Chapter 979 Hongmeng
A smile instantly appeared on Qian Santai’s face.
On October 15, No. 1 store was officially launched in Xiangjiang.
The total share capital is 1 billion shares at HK$85 per share, 120 million shares are issued, 50 million old shares are cashed out, and 70 million new shares are issued.
On the day of listing, the stock price exceeded HK$100.
It's been a week now.
Yihaodian’s share price has exceeded 150 Hong Kong dollars, nearly doubling.
The market value of No. 1 Haodian has also reached US$19.47 billion.
Far exceeded the original estimate of $14 billion.
As the president of No. 1 Store, Qian Santai naturally received the greatest reward.
Holding 1.2% of the shares of No. 1 Store, he directly became a billionaire with a net worth of over US$200 million.
Although the money cannot be cashed out until the half-year lock-in period is over, it is enough for him to enter this year's Forbes China Rich List.
“Without you, Mr. Xie’s support, No. 1 store would not be what it is today.”
Although modest, the smile on his face cannot be hidden.
"Okay, have fun if you want. There are no outsiders here." Xu Liang said with a smile.
Qian Santai grinned. He didn't dare to be presumptuous in front of the big boss.
“We have raised 7 billion Hong Kong dollars, how are we going to spend it?”
“4 billion Hong Kong dollars will be used to develop logistics under Yihaodian, of which 2.5 billion will be placed in China and 1.5 billion will be placed in Nanyang . The other 3 billion Hong Kong dollars are temporarily used as the company’s reserves.”
At this stage, online shopping is a new thing for China and Southeast Asian countries.
Although the number of Internet users is growing rapidly, the online shopping market is not very big.
4 billion Hong Kong dollars, plus the income of No. 1 Store itself, is enough for it to operate for three years.
There is no problem with the remaining 3 billion Hong Kong dollars as reserves.
In fact, Xu Liang rarely interferes with the development of Hongmeng's major subsidiaries.
The roads that need to be paved have been paved for them.
As long as we follow this path step by step, we will be able to become a top global Internet company with the rapid development of the Chinese market.
Xu Liang nodded and said nothing more.
“Lao Xie, how are the negotiations with Youku going?”
“Sun Yan reported that the talks were very difficult, and Hollywood giants including News Corporation, Warner, and Disney were trying to get hold of them. They will not let go of our copyright infringement.
Require us to hand over at least 51% of Youku's equity to them
And pay copyright fees for the previously infringed content. Their litigation expenses”
"This is sure to defeat us." Xu Liang said with a smile.
“Although we will not lose the lawsuit, we did infringe on their copyright. Moreover, film and television drama editing is indeed a major category of Youku videos.
If they are all removed, It will greatly affect Youku’s user stickiness and attractiveness,” Xie Wendao.
Xu Liang nodded and thought for a moment.
“In this way, you can communicate with Sun Yan later and we can give up 51% of Youku’s shares, but it can only be Class B shares.
The last two are absolutely impossible.
If you agree, sign the contract. If you don’t agree, just go to court. "
Xie Wen frowned slightly, "Mr. Xu, is 51% of the equity too much? ”
“Although it’s a little more, the most important thing now is to let Youku survive first. Moreover, Youku's current expenditure is already very high. After this negotiation, it will still have to pay copyright fees to major film and television giants, and the expenditure will be even higher.
It would also be a good thing to have a few more shareholders share the burden with us. ”
Xie Wen nodded. Of course he knew that Youku's future development would require a lot of funds.
But his understanding is not as profound as Xu Liang, who has the memory of his previous life.
So I am not willing to give up so much equity.
Now that Xu Liang said so, he didn’t want to object.
"Mr. Xu, there is something I need you to decide on."
"What's the matter?"
"Yesterday we received a call from Kravis, the founder of KKR. They hope to acquire Internet technology companies."
Xu Liang was stunned for a moment.
“These guys have very sharp noses.”
Although Internet Technology Company wears the skin of an Internet company, it is actually an Internet cafe chain company with retail as its core.
However, there is something special about the products sold. They are not physical objects, but Internet time.
“What do you mean?”
Xu Liang asked.
“Mr. Xu, although the life span of Internet cafes will not be very long, looking at the current research and development speed of smartphones, it will take at least two to three years to launch them on the market.
But this is just now In the beginning, anything new needs time to grow
Therefore, for at least six or seven years, Internet cafes will still be the mainstream channel for ordinary people to access the Internet.
It is also the most important promotion channel for major websites and online games.
So I don’t recommend selling it directly.
The most reasonable choice is to slowly reduce the stake in Netco and finally exit before the mobile era truly comes. ”
Xu Liang nodded. Xie Wen’s analysis is very pertinent and is the most consistent with Hongmeng’s corporate strategy.
And he didn't say anything, or said he didn't care.
Network is distributed throughout East Asia and Southeast Asia. There are more than 4,000 self-operated Internet cafes and tens of thousands of sponsored Internet cafes. It is a very important sales channel for Master Kong.
Although it’s just some instant noodles, drinks and the like.
But because of the exclusivity agreement.
Master Kong has exclusive access to this channel.
Now the monthly share received from Netke has exceeded 900 million Huaxia coins, and it is still growing with the increase of directly operated and named Internet cafes under Netke.
Beyond pure financial returns.
There is also an invisible benefit - brand promotion.
The customers of the Internet cafe are all white-collar workers who are studying or have just graduated.
These people eat Master Kong’s instant noodles, biscuits, and cans every day, and drink various beverages and mineral water produced by Master Kong.
Once consumption habits are formed, the impact will last for more than ten years or even a lifetime.
So, he and Xie Wen had the same idea, they could slowly sell the shares of Netcom, but they could never sell them all at once.
"Reject KKR."
Xie Wen nodded quickly after heaving a sigh of relief. Opening the briefcase beside him, he took out a stack of documents and handed them to Xu Liang.
"This year's US$5 billion loan has matured, and we have repaid it now. These are the information."
Xu Liang took it and flipped through it.
This US$5 billion loan was borrowed when it acquired Universal, and it is now due.
“How much cash will the company have after repayment?”
“$10.7 billion.”
The sale of Universal Music made Hongmeng gain weight.
“What about the debt?”
“Excluding subsidiaries, Hongmeng has no debt.”
Hongmeng headquarters has experienced a total of two debts since its development.
In order to acquire Vivendi Games, Xu Liang issued a US$1.5 billion ABS bond through Bill Gates as a guarantee.
The second loan was the US$5 billion borrowed to acquire Universal Entertainment.
Both amounts have now been paid off.
“Mr. Xu, I plan to sell Hongmeng’s equity in Korean entertainment companies.”
For the development of Hongmeng Music Network in South Korea, Hongmeng invested in YG, JYP, and SM. Large entertainment companies each hold about 15% of the equity. Now Hongmeng has launched a pan-entertainment industry.
Hongmeng Music Network was also sold to Penguin Music.
There is no need to keep the copyrights of these music companies.
"You can sell it, but don't sell it outside. I will arrange for someone from Hanhua to contact you in a few days."
Hanhua has a private equity group in South Korea that invests in South Korea alone. fund.
The three major entertainment companies have great development prospects, so they are ready to take advantage of them.
Xie Wen nodded.
"After selling the equity of the three major entertainment companies in South Korea, the only equity assets Hongmeng still holds are 16.3% of Ctrip and 12% of Penguin, right?"
Sina was unable to compete in the tourism industry at the time. Ctrip.
Join if you can't beat it.
Sold directly for equity in Ctrip.
Penguin’s equity was naturally obtained in exchange for some assets of Hongmeng Entertainment.
"Mr. Xu, Ctrip is the largest online travel website in China. Relying on the rapidly developing domestic tourism market, there is still great potential to be tapped in the future.
So, I do not recommend selling it."
Xu Liang nodded, "Ctrip is indeed a good company. If you plan to keep it, just keep it."
He could understand Xie Wen's thoughts.
As each of its subsidiaries goes public, there are basically only a few sources of profit for Hongmeng headquarters.
Dividends from its listed subsidiaries.
Sell shares of its listed subsidiaries, such as Netcom and Ctrip.
Then there is the income from financial management.
With US$10.7 billion, even if you only invest in solid government bonds and short-term credit, you can still get a net income of US$500 million a year.
But Hongmeng headquarters does not only have income but no expenses.
If nothing else, the investment in its major laboratories is not a small amount.
Especially the research and development of Hongmeng operating system is a big money burner.
From the establishment of the project to the present, nearly 1 billion US dollars have been burned.
If it weren’t for Hongmeng’s Bing and Hongmeng Games making huge profits, they would pay more and more dividends.
Plus the money from several consecutive financings.
I'm afraid they still won't be able to save their current wealth.
Anything that is forewarned will lead to success; failure to do so will lead to failure.
As Hongmeng has more and more R&D projects and investment, he must find more financial resources.
Investing in Internet companies with potential is the most suitable choice.
Penguin is also based on similar considerations.
"Have negotiations for Bing's listing begun?" Xu Liang said.
"It has already started, but do we still need to cooperate with JP Morgan?" Xie Wen asked.
Nearly two months have passed, and news of the dragon-slaying plan has spread.
As Hongmeng COO, he certainly knew that JP Morgan was involved in the dragon-slaying plan.
“Go on, after all, we signed the contract.”
Gorman had called J.P. Morgan several times since he excluded him from Facebook's financing.
Even other JP Morgan management contacted him.
In order to eliminate the conflicts between the two parties, JP Morgan is willing to help him complete the US$17 billion loan securitization sale of Unocal Resources Group with zero handling fee.
The other party showed his sincerity, so of course he also borrowed the donkey.
We can’t really offend the boss of the five major investment banks on Wall Street.
"However, once the contract is signed, Hongmeng Bing's securities underwriting in Asia must be handed over to Hanhua."
With the foundation laid by Hanhua in the private equity field, the investment banking business has been relatively smooth.
Many large institutional clients, in order to obtain a share of Hanhua's private equity investment, took the initiative to hand over part or all of the company's financial business to Hanhua.
In just one year, Hanhua has made great progress in this area.
Now we need more excellent companies to take a further step.
Hongmeng Bing is now a big piece of meat that all investment institutions around the world are staring at.
Google, which has worse market share and traffic, has a market value of nearly US$60 billion.
Hongmeng Bing, which dominates the Asian and European markets, will definitely have a higher market value.
Once this top company goes public, Hanhua, as an investment bank, will surely attract the attention of capital markets around the world.
With this classic case, it will be easier for Hanhua to engage in securities business again.
Xie Wen nodded.
He didn't really want Hanhua to get involved, after all, its background was too shallow.
But he also knew that no one could resist the big boss’s determination.
(End of this chapter)