Chapter 932 Jupiter Fund
The two briefly hugged.
"Xu, you have changed even more. In one year, you have become the second richest person in the world by Forbes, and your net worth has increased by tens of billions of dollars. It is really enviable."
"It's all valuation. It's worth 10 billion today, and it may not even be 100 million tomorrow. Don't worry too much. Come, sit down and talk."
Under Xu Liang's greeting, the two sat down .
After the company secretary brought coffee and tea.
"Reed, Netflix is getting better and better under your leadership."
Nearly three years have passed since it went public in 2002, and Netflix’s registered users have also From 857,000 at the beginning, it has grown to nearly 5 million now.
The company's revenue has grown from US$127 million in 2002 to US$712 million now.
The company's net profit has also grown from a loss of US$20 million in 2002 to a current revenue of US$47 million.
The company's market value has also grown from US$300 million to US$850 million now.
Developing very fast.
But in this era, there are many companies similar to Nasdaq, and not much capital has paid attention to this small company that mainly focuses on DVD rentals.
But Xu Liang is different.
“Netflix is indeed developing well, but compared with Facebook, we are far behind.”
Reed Hastings couldn't help but feel a little jealous when he looked at the man in front of him.
He considers himself a genius and founded Netflix worth US$1 billion at a young age.
But compared with the person in front of me, it is really discouraging.
That’s it for Hongmeng.
He recognized it.
Facebook, which was only established in 2003 and is similar to a game without any personal management, has also risen like a comet. In just over two years, it has grown from scratch to nearly 300 million registered users, making it the world's largest social networking site. .
The valuation is close to US$15 billion.
Although Facebook received help from Xu Liang and Hongmeng during its development, this amazing growth still makes people envious and even jealous.
This ability to seize opportunities and the superb vision that penetrates the future makes people admire but also feel powerless.
Can't compare, really can't compare.
Xu Liang played with the tea cup in his hand, put it down and smiled.
"Then have you ever thought about joining Facebook?"
Reed's heart moved, "Xu, I don't quite understand what you mean?"
"It's very simple. When Facebook acquires Netflix, you serve as chief operating officer of Facebook and are directly responsible for the development of Netflix," Xu Liang said directly.
Although Netflix has not yet developed its video business, they have accumulated more than five million users, and they also have a relatively mature business of DVD rental.
The foundation is already very solid.
As long as it is paired with the copyrights of Universal, Marvel, and DreamWorks Animation, it can take off quickly.
It saves a lot of energy compared to Facebook building a video business from scratch.
Reed Hastings was a little surprised. He was not opposed to selling the company.
In the Western corporate world, especially the United States, there is nothing that cannot be sold as long as the price is right.
"Xu, Netflix's main business is DVD rentals, while Facebook is a community website. There is not much correlation between the two. How did you think of acquiring us?"
Xu Liang smiled and said: " Reed, the Internet speed is getting faster and faster now.”
A glimmer of light flashed in Reed Hastings’s eyes.
“Xu, I don’t quite understand what you mean.”
“No, Reed, you actually know it very well.
As Internet speeds get faster and faster, coupled with the upgrading of computer hardware, when the effect of online movie viewing exceeds that of DVD, no one still wants to wait two or three days to rent a movie.
More convenient online viewing is everyone’s only choice.
So, whether Netflix wants it or not, it must transform into an online video website in the future. ”
As the CEO of Netflix, Reed Hastings is more aware of the current development of the U.S. DVD rental market than Xu Liang. Although the number of Netflix member registrations is growing rapidly, the growth rate is not as good as in previous years. Years ago.
So, the development of online videos also appeared on Netflix’s work diary
It’s just that the current Internet speed is not enough, and Netflix also lacks copyright accumulation, so it has not launched this business.
"Xu, your long-term vision is admirable."
"Thank you. ... Facebook hopes to develop more emerging businesses, and online video is our new choice.
>
Although Facebook can start from scratch, Netflix has accumulated a certain number of users and a relatively mature business model over many years of development
It does not require much change to become a successful company. Video website.
This is also the real reason why I want to acquire you. "
Reed Hastings pondered for a moment, "If it were acquired, how much would you offer? "
"1.2 billion US dollars, I think this offer is very sincere. "
The current market value of Netflix is US$850 million. Xu Liang paid a premium of 42% to acquire Netflix. He is indeed very sincere.
"Xu, the matter is very important. I can't give you an accurate answer now. reply. ”
"I understand. But how long will it take for me to receive a reply?"
"Seven days, seven days at most."
Xu Liang stood up and stretched out his hand.
“I hope to receive an exciting reply in seven days.”
“I will do my best.”
The two shook hands and Xu Liang sent the person away.
Xu...
Xu Liang let out a long breath.
"Hope it will succeed."
——
I called Jiang Xiaoyang in the afternoon.
"I sent an email to your mailbox, please read it."
Say yes.
Not long after hanging up the phone, she called again. "Why did you send this email suddenly?"
"All assets involved in the email should be acquired by Jupiter Fund." Xu Liang said.
In addition to the external business department, Hanhua also has an internal asset management department.
This department is divided into three parts.
Equity Asset Investment Department, Fixed Asset Investment Department and Industrial Management Department.
The Industrial Management Department is mainly composed of the four major companies.
Kunlun Technology, which specializes in computers, MP3, MP4, USB flash drives and various computer hardware; China's largest supermarket group, 'Kelong Supermarket', which is currently seeking to go public.
‘Huaxia Liquor Group’ has just completed the integration of Changyu Group.
Fuhua Real Estate has just completed its privatization and delisting.
Fixed Asset Investment Department
Currently divided into five parts.
Real estate, precious metals, jewelry raw materials, art and luxury goods.
Real estate is mainly Hanhua’s office real estate around the world.
Precious metals are mainly rare earths and lithium. Hanhua has been investing since its establishment in 2000. In the past six years, Hanhua has invested US$3 billion in it and is the world's leader in the field of rare earths and lithium. Big buyer.
The raw materials for jewelry are mainly jadeite and Hetian jade, plus a small amount of red and sapphire.
The artworks are mainly Chinese antiques, plus a small number of foreign art masterpieces.
Luxury goods include some high-end wines and some commemorative watches issued by Vacheron Constantin and Patek Philippe.
After six years, Hanhua Investment’s money in the fixed asset investment department has exceeded US$6 billion.
Including the rising income.
The total asset value of this division has risen to US$13 billion.
The last is the equity asset investment department, which has been established for the shortest time.
The establishment of this department stems from the reform of Hanhua in 2003.
In this era, most venture capital funds still operate separately from angels, VCs and PEs.
Different companies are responsible for different stages.
Even if a venture capital company has acquired everything from angels, VCs and PEs, it will all exit after the target company goes public.
But Xu Liang has experience and insight into the operation of later venture capital funds.
After 2003, Hanhua completely changed.
Investment in venture capital funds is no longer limited to angels, VCs and PEs. You can enjoy it from beginning to end as long as you are willing.
But after the company is listed, if it is optimistic about its development, Hanhua will not sell its equity.
Instead, it used its own funds to buy the equity from its own venture capital fund.
Become part of your own assets.
Hanhua’s equity investment department is known to the outside world as ‘Jupiter Fund’, and it also appears on the shareholder lists of major listed companies under the name Jupiter Fund.
From 2003 to now, although Hanhua has sent nearly 20 companies to the public market.
But not many companies remain in their hands.
Currently, only Netflix has 9.3%, Ctrip 7%, NetEase 12.7%, Mengniu 29% and Supor 18%.
Five in total.
This has been held for a long time, and some were held for a short period of time and then sold.
There are also companies that Hanhua actively invests in.
15% stake in Gree, 45% stake in Hynix Wuxi Factory, and 13% stake in Anta.
And as a white glove shadow fund.
Xu Xin, Capital Today; Duan Yongping, H&H Investment; Peter Thiel, Thiel Fund; Michael Barry, Thain Capital; Steve Eisman, Qiandian Partners; Zhang Lei, Hillhouse Capital and so on.
There are a total of 17 shadow funds across Europe and the United States, and Hanhua basically holds 30% of the shares.
Some of these shadow funds just spent some money to buy shares, and some were real cooperations. In addition to shares, they also invested a sum of money.
For example, Michael Barry's Thain Capital, Hanhua invested US$1 billion in Thain Capital, and has lost nearly US$200 million since its development.
But it’s a good loss.
Michael Barry is shorting subprime debt, and he chooses the same method as Xu Liang, which is secured debentures.
As mentioned earlier, the secured debenture itself is a kind of insurance.
Pay a certain amount of insurance premiums every year, and once the property loses money, you will make a lot of money.
But it is still early for the subprime debt crisis, and real estate is still increasing in value.
The insurance premium paid is the loss of the fund.
Jiang Xiaoyang was stunned for a moment.
The asset list Xu Liang sent her involved not one or two companies, but as many as eight companies.
NetEase, Sohu, Wuliangye, Luhua, Yangcheng Procter & Gamble, Fuhua, CYTS Holdings, and SMIC.
It would cost at least US$6 billion to buy it all.
Of course Hanhua cannot afford the money.
But she knew that Xu Liang would never sell assets on a large scale.
"What happened?"
Xu Liang also knew that what he was going to do next would definitely not be hidden from the other party, so he simply didn't hide it.
Let me briefly talk about what happened in New York a few days ago.
"So you are ready to face the difficulties?"
"Well. ...Escape is not the way. If we escape this time, they will only think that we are weak and we will be disappointed later. Increasing sanctions and exploitation
Only by attacking and going all out to fight with them can these bastards not dare to touch you easily. "
Xu Liang said fiercely.
(End of this chapter)