Chapter 319 Valuation of 300 million US dollars
"Valuation of 300 million US dollars, financing of 30 million US dollars." Cai Chongxin said calmly.
Xu Liang listened and smiled faintly.
“Everyone, I admit that Alibaba has initially made a profit, and I also heard Mr. Ma Yun said that Alibaba’s mission in 2002 is to make a profit of one yuan for the whole year.”
Ma Yun He said publicly at Alibaba's 2001 annual meeting that he would earn one yuan a year in order to relieve pressure and boost morale. Unexpectedly, he ended up shooting himself in the foot.
"I believe you all know the operating conditions of a company that has announced this goal.
300 million US dollars?!"
Xu Liang shook his head with a smile.
“Don’t you think it’s too greedy?”
“Mr. Xu, although Alibaba is encountering some difficulties now, we are the only company in China that is currently developing well and has a clear profit model. B2B e-commerce companies
As a top investor and operator in the Internet field, you should be able to see the value of Alibaba better than ordinary investors. "Tsai Chongxin praised him and said.
Xu Liang smiled and said: "I recognize the value of Alibaba, but now it cannot reach the height of US$300 million as you said. ”
“How much does Mr. Xu think Alibaba is valued? "Tsai Chongxin asked.
"Before the Nasdaq crisis, Alibaba was valued at US$100 million. After Nasdaq, your business not only failed to develop, but also retreated significantly.
Up to now, it is barely surviving and has not shown strong development.
Even considering your potential in the B2B field, Alibaba's valuation should be around US$120 million. Of course, I personally admire Mr. Ma Yun very much.
Being able to persistently develop the Internet market during the chaotic period of China's Internet requires tremendous courage and perseverance.
A successful company must have a leader with charisma and perseverance.
For Mr. Ma’s sake, I can give Ali an extra $30 million.
$150 million.
For shares, I want 15%.
Of course, if you are willing to take out more, I can eat it too. "Xu Liang said with a smile.
Ma Yun was smiling all over her face at the moment, with a bit of pride in the corners of her eyes and brows.
With Xu Liang's status, he praised and affirmed his contribution and ability in public. It is indeed a proud thing.
Happy, he has not lost his mind.
He didn't make any promises, and he didn't interfere with Tsai Chongxin's negotiations.
Tsai Chongxin smiled slightly, "Mr. Xu, thank you very much for your recognition of Ali. But I must make it clear that Ali's value is not only represented by revenue.
What we really have is incomparable The alternative is the one million customers who trust us, and the domestic and overseas markets are still growing.
In addition, I need to emphasize that although Mr. Ma Yun said it before at the annual meeting in 2002. If we make a profit of one dollar, our development is actually much better than expected.
As of April, we have created a profit of 230,000 Huaxia coins, and the annual profit is expected to exceed 1.5 million Huaxia coins, and with the growth of Ali. The three-year free period promised to customers when we started our business is about to end, and our income will be higher
So, $300 million is a very reasonable valuation. ”
Xu Liang’s eyes flashed.
In fact, Tsai Chongxin is right to say so.
Alibaba’s operating model is that the annual service fee for ordinary members is 40,000 yuan.
After paying the money, customers can publish product information and 10 product pictures on Alibaba’s website. At the same time, Alibaba will include these product information and pictures in different CDs, and then regularly participate in overseas events. Some exhibitions
Provide sample display, industry brochure promotion, supplier CD and buyer matching services.
The annual service fee for senior members is 60,000 yuan.
Benefiting from the increasingly significant effect of Bing search bidding ranking, Alibaba has also launched a new service - internal information ranking.
Members who apply for this service can set 8 keywords for the company and 3 keywords for each product.
When buyers search for keywords, they can see their product information first.
Finally, there are display ads.
The most conspicuous position on Alibaba's page requires money. Whoever pays more will be seen first by customers.
Based on these three aspects, Alibaba’s income is actually not low, but its operating expenses are also high.
In addition to personnel salaries and benefits, the largest expenditure is the cost of the server.
But as Tsai Chongxin said, the biggest reason why Alibaba has difficulty making profits is the three-year free period it promised.
When Ali's overseas expansion could no longer be sustained, someone suggested giving up the free period and starting charging, but Ma Yun rejected it.
Although Jack Ma does not understand technology, he understands management and understands people's hearts better.
Once you break your promise, your customers’ trust in Ali is also over.
The harm caused is far more important than hundreds of millions of dollars.
This also laid the foundation for Ali’s subsequent rapid development.
Unfortunately, when Alibaba developed, Jackma also forgot his original intention and changed from an entrepreneur to a capitalist.
Back to the topic.
From Alibaba’s establishment in 1999 to now, the three-year free period is indeed coming to an end.
It can be expected that Alibaba’s net profit will increase significantly.
This is also one of the trump cards that supports Tsai Chongxin’s call for a valuation of US$300 million.
However, I understand that when it comes time to bargain, Xu Liang will not be soft-hearted.
"Mr. Cai, we should understand one thing, free and paid are two completely different concepts. When it is free, you may have 1 million or even 2 million users, but when you start charging, There may not even be one-tenth of the people willing to pay the membership fee.
An optimistic estimate is that there will be one-thirtieth, or even one-fifty. It’s very good, or even less.
Without accurate data to estimate, it’s difficult for me to agree with the fact that Alibaba is currently valued at US$300 million,” Xu Liangdao.
Cai Chongxin and others were not surprised by Xu Liang's words.
USD 300 million was originally the price they raised, in order to leave room for subsequent negotiations.
Cai Chongxin was about to speak.
“However, I personally highly recognize Mr. Ma Yun’s business talent. Although Alibaba is not worth US$300 million now, with Mr. Ma Yun’s leadership, I believe Alibaba’s future will be very bright.”
< br>Looking at Queen Jack with a smile on her face and a proud look in her eyes, Xu Liang continued: "I can accept your valuation of US$300 million, but I also have three conditions.
First, I want 30% of Alibaba’s equity.
Second, an anti-dilution clause must be added to the contract.
Third, I can give up 20% of my 30% voting rights to Mr. Ma Yun. ”
For him, whether Ali is valued at US$200 million or US$300 million is not actually the most important thing.
It’s not big money here.
< br>
But being able to control more equity in Alibaba and lock in more income rights in the future is the top priority.
Looking at the changing expressions of everyone.
Xu Liang continued with a smile: "Everyone, in my opinion, Alibaba cannot become an e-commerce company with global influence by relying only on B2B business. If it can take into account C2C, both legs Only by walking can you go further.
With 30% equity and US$90 million in financing, Alibaba can use this money to acquire eBay.
The merger of the two will make Alibaba a domestic e-commerce company. Dominant in the business field.”
As soon as these words came out, Ma Yun's eyes shone with light, and there was even more emotion on her face.
Jack Ma has always had the ambition to become a giant, otherwise he would not have been eager to expand into the international market after raising US$25 million.
Not to mention that after the Nasdaq crisis, they knew that the international market was no longer sustainable and still gritted their teeth and refused to retreat.
Now that Ali is about to make a profit and his financial situation is improving, he is already a little ready to make a move.
Xu Liang was excited now and his heart suddenly became excited.
Not just him, even Cai Chongxin, Guan Mingsheng and others are also moved.
Across B2B and C2C, Alibaba’s future will be brighter, its market value will be higher after listing, and the options in their hands will also be more valuable.
Cai Chongxin took a breath and calmed down a little.
"Mr. Xu, as far as I know, Hongmeng Company's No. 1 store is also engaged in e-commerce. Why don't you merge No. 1 store with Alibaba to combine the strengths of both companies?"< br>
“I do, but Yihaodian follows the Amazon model, which is a combination of online stores and offline logistics.
If the two merge, Alibaba may not be able to spend hundreds of millions or even billions of Huaxia coins for logistics now, right? "Xu Liang said with a smile.
Yihaodian is a B2C asset-heavy model, while Alibaba and eBay are both asset-light models.
This is the essential difference between the two parties.
Ma Yun and others understand.
They really don’t have the capital to try the Amazon model.
"Brother Xu, it's getting late. I think we should stop talking here first."
Ma Yun said.
Xu Liang's conditions made him very excited, but he wanted to discuss it with Cai Chongxin and others first.
Xu Liang didn’t insist either.
Stand up.
"Then let's talk about this first. I happened to be a little tired after flying here."
"Let's go, Brother Xu, I'll take you back." Ma Yun said.
"No need, the journey is not far. You'd better stay and discuss it with Mr. Cai and the others." After taking two steps, Xu Liang suddenly stopped.
Half turn.
“By the way, if you feel that US$90 million is not enough to acquire eBay, I can also provide more. As for the voting rights of the shares obtained, you can give them to Mr. Ma for exercise.
Everyone, I have no intention of managing Alibaba, it is just a purely financial investment. "
After finishing speaking, his eyes quickly glanced at everyone, then turned and walked outside.
Lu Hui, Huo Gang and others quickly followed.
Ma Yun I sent him outside the building in person and then hurried back to the conference room.
Jack sat on the main seat with great dignity.
He glanced at everyone with a hint of excitement.
"Everyone, what do you think of Xu Liang's proposal just now?"
After everyone looked at each other for a moment, Guan Mingsheng spoke first.
“I don’t very much agree with the acquisition of eBay. First of all, Ali has just stabilized after layoffs. It should focus on stable development and solid foundation, and it will not be easy to make another big move.”
(End of this chapter)