My rebirth is different

Page 551

"Then, how much capital and how many shares does Mr. Fei plan to raise in this round of financing?" Xue Chunhe asked, staring at Yu Wenfei with piercing eyes.

When we started talking about business, we had to temporarily put aside the schoolmate friendship. In terms of address, the two of them also became "Mr. Xue and Mr. Fei" by coincidence.

"Let's talk about Facebook's valuation first, which is the basis." Yu Wenfei said calmly.

Xue Chunhe nodded in agreement.

"Facebook now has 500 million registered users. With reference to the recent user growth rate, the number of users will officially exceed 4000 million in half a month, or at most a month! Daily active users will exceed [-] million. In these two key Based on the data and through comparison, we believe that the value of Facebook should exceed those of Sina and Sohu.” Yu Wenfei said seriously.

The three major domestic portals, Sina, Sohu and Netease are all listed on NASDAQ, and their market value is also very clear.Then it is normal for Yu Wenfei to compare them to get the valuation of his company.

Xue Chunhe nodded, then shook his head again, and said, "Compared with Sina, Sohu, and Netease, I have no problem. But if you want to say that Facebook's market value exceeds them, I have reservations."

At the beginning of 2003, Sina's market capitalization was US$32 billion, the highest among the three major portals.

The second is Sohu's market value of 28 billion US dollars, followed closely.

The weakest is NetEase, with a market value of only US$18 billion.

According to Yu Wenfei, if it exceeds the three major portals, it means that the market value of Facebook will exceed 32 billion US dollars!

Xue Chunhe couldn't accept this.

Although all the data on Facebook are against the sky, but this is your A-round financing, is the asking price so high...

"Oh? Does Mr. Xue have any different opinions?" Yu Wenfei asked calmly.

"These three companies have been listed. Although their market value is relatively objective,... everyone understands that there is a certain amount of water in it. The market value of listed companies does not represent their actual value, which includes investors' perception of this company. The expected value of future prospects. In addition, portals are currently the most mainstream in the Internet industry and have the strongest ability to monetize traffic. In this regard, I think blogging websites cannot be compared with portals. Therefore, I agree that Facebook is qualified to compete with NetEase On par, but not more than Sohu, let alone Sina." Xue Chunhe said slowly.

He is different from Yu Wenfei in terms of concept. Xue Chunhe believes that the prospect of the portal is better, and the monetization ability of the blog is weaker than that of the portal.

At that time, for Internet companies, what investors valued was their future liquidity. They could accept short-term losses, or even long-term losses, but your company must be profitable after all.

In the Internet industry at that time, there was a very simple means of monetizing traffic, and the only way was to advertise...

Therefore, through advertising, Yahoo.com has been able to dominate the world in terms of market value for several consecutive years.

Also through advertising, Google has risen rapidly and become a new generation of Internet overlord.

Sina, Sohu, and NetEase also became the three major Internet giants in China around 2000 through advertising.

This is why when people open portals like Sina, they find that there are so many advertisements on the homepage that they can blind your eyes.

The homepage of Facebook is so simple and pleasing to the eye. It was definitely a clean stream in the Internet at that time. When other websites were just launched, they thought about how many advertising spaces they wanted.

Yu Wenfei also shook his head. Although Xue Chunhe has the ability and foresight, his vision is not far-sighted enough and the pattern is not big enough.

Obviously, Xue Chunhe was still confined in the Internet environment at that time, and could not see the future development direction of the industry.

Realization of traffic does not have to go through the traffic portal!

He said: "Mr. Xue, I have thought about how to monetize Facebook in the future. It is not convenient to disclose the specific means now, but I can guarantee one thing, that is, in the not-too-distant future, within three to five years." , Facebook’s profit will exceed these three portals, or in other words, exceed their sum!”

Xue Chunhe was dumbfounded by these words, his junior...

It's too good to blow!

Chapter 479 Over 200 Million Valuation

"Mr. Fei, do you know the revenue of these three portals last year?" Xue Chunhe asked with a smile.

He thought that Yu Wenfei hadn't read the relevant financial reports at all, and was bragging casually.

"Of course, listed companies publish financial reports every year. Among the three websites, Sina has the best profit status. Last year, it made a total profit of 6000 million US dollars. "Yu Wenfei replied casually.

"Then these three companies add up to [-] million US dollars! Mr. Fei said that in the next three to five years, Facebook's profit will exceed the sum of these three companies?"

Xue Chunhe leaned back against the back of the chair, turned a ballpoint pen in his hand, and looked at Yu Wenfei with a smile.

"Hehe, Mr. Xue may think that it is impossible for Facebook to do it. Regarding the future, there is really no way to verify it now, but it is also very simple to resolve this disagreement." Yu Wenfei said calmly.

"How to deal with it?"

"Signing the performance vs. betting agreement, I can write the promise of performance into the investment agreement!" Yu Wenfei said bluntly.

…………

VAM agreements are too common in the investment circle.

In venture capital, there will be a VAM agreement, and the entrepreneur will lead the company to achieve the scale of the company within a limited time, or how much profit it will achieve, then the investment bank will give corresponding investment or additional follow-up investment.If the entrepreneur fails to do what he promised, then there will be penalty clauses triggered, such as the transfer of company shares to the investment bank of the bettor without compensation.More seriously, there may even be cases where entrepreneurs are kicked out of the company.

During acquisitions, the acquirer and the acquiree often sign a VAM agreement.To give an example that everyone is familiar with, when China Literature acquired Xinli Media, a film and television media company, it signed a VAM agreement.

In terms of the agreement, China Literature will acquire Xinli Media at a total price of 140 billion, but only pay 100 billion in the early stage, and whether the remaining 40 billion will be paid depends on the performance of Xinli Media within three years after being acquired.

If Xinli's profit can reach 40 million, [-] million, or [-] million within three years of being acquired, then China Literature will pay the remaining [-] billion in cash.

On the contrary, if this profit cannot be achieved, then the remaining 40 billion...

no more!

Therefore, when Yu Wenfei said that he would sign a VAM agreement and write performance commitments into the contract, Xue Chunhe smiled slightly and asked, "So, to what extent does Mr. Fei think Facebook can reach within three years? How much profit can you make?"

The reason for saying three years is because Xue Chunhe believes that as long as Facebook continues to develop normally, it will definitely be successfully listed on NASDAQ within three years.

After listing, the company's market value basically depends on these two main factors, one is the industry status of the website, and the other is the profit data!

Yu Wenfei smiled, first stretched out two fingers, and then stretched out the entire palm.

Xue Chunhe understood, two fingers means that the number of Facebook users will exceed [-] million within three years, and a whole slap means that the annual profit will reach [-] million US dollars.

He frowned, and said with a half-smile, "Boss Fei has so much confidence in Facebook?"

[-] million users, [-] million US dollars in profits, neither of these two figures is easy to achieve!

In fact, in 2003, no website in China could do any of these data!

If history has not changed, in August 2003, Tencent will announce that the number of QQ users has officially exceeded 8 million!

As for the annual profit of [-] million US dollars, except for Shanda and NetEase, which later transformed into a game company, and Tencent, which is vigorously developing the game business, other websites will not be able to achieve it until many years later.

In other words, after a few years, everyone will discover that online games are the real Internet cash cows...

In the face of the jaw-dropping profits of online games, portal websites relying on advertising to make money are simply weak!

Of course, Xue Chunhe didn't know where Yu Wenfei's confidence came from. If he knew, then his achievements would not be limited to the investment field. People of his age look down on games from the bottom of their hearts.

"It doesn't matter whether I have confidence or not, what matters is whether I can do it!" Yu Wenfei said bluntly.