My rebirth is different

Page 889

Cai Congxin and Jiaotong University Venture Capital tied for fifth place, each with 100 million shares.

In addition, 1000 million employee incentive shares have been reserved, some of which will be given to old employees when they wait for the listing, and some will be reserved to attract high-level talents to join in the future.

Of course, when it is officially listed, the company will still have to expand its shares again for listing and financing.

The main issues discussed at this shareholders' meeting are how much shares to expand when listing; how to set the stock price when listing; which employees can get the original shares, these three major issues.

In fact, the first two questions can be summed up as one question, both of which are based on how to correctly value the Facebook company.

…………

"What is the valuation of Facebook?" Yu Wenfei raised this question at the beginning of the meeting.

As for the valuation of unlisted companies, Softbank and Citigroup are both experts in this regard, and of course the representatives of these two companies took the lead in speaking.

Softbank Capital is of course Xue Chunlai’s representative. After hearing Yu Wenfei’s question, he replied without hesitation: “Start with 150 billion US dollars!”

The representative of Citibank immediately nodded in agreement and said, "Yes, our latest valuation is 150 billion US dollars."

Yu Wenfei was a little surprised. He remembered that at the last financing, Facebook’s valuation was less than 100 billion. Why did it increase by several billion dollars after half a year.

Billions of U.S. dollars, it sounds flimsy to say, but converted into RMB, it is tens of billions!

Domestic Internet companies, except for Facebook companies, there are not many other companies that even exceed 50 billion US dollars.

"Is there any basis for this valuation? Will investors recognize it?" Yu Wenfei asked.

"Don't worry, Mr. Fei. After Facebook's advertising channels are released recently, the profit prospects are good. I have communicated with institutional investors in Europe and the United States. They all expressed that they are very optimistic about the future of Facebook, and they have no idea about the valuation of 150 billion US dollars. Any objection. You know, the same group of people, I communicated with them two months ago, and they were a little hesitant about the valuation of 100 billion US dollars." The representative of Citibank said with a smile.

"It's not just advertising revenue, but also a profit model. In fact, Facebook's influence and imagination on the Internet are also very large. After all, Facebook has even become synonymous with online media, and it has a worldwide presence. Inside, Facebook is in a class of its own.

Originally, relying on the imagination of this model alone was enough to support a valuation of 100 billion US dollars.In addition, although Facebook Entertainment can't see any hope of profit in the short term, and it only has investment and no income, but in the long run, it is also a near-monopoly industry leader!

At present, the country does not pay much attention to the copyright of songs, movies and TV, so this is what investors are worried about.If it is placed in European and American countries, if Facebook Entertainment alone has a large-scale monopoly on music, film and television copyrights, the valuation can be worth billions of dollars. "Xue Chunlai added.

Yu Wenfei nodded. There is really nothing to say about this. Regarding the issue of intellectual property rights, not to mention in 2004, even if it is more than ten or twenty years later, the country has not paid much attention to it.

At this point, it often becomes the place where other countries accuse us.

The frustrating thing is that when someone accuses you, you still can't refute it.

Because it is true that many citizens have no so-called knowledge products and copyright awareness at all, and piracy is rampant on the Internet. Many people are not ashamed of piracy, but proud of it!

Facebook Entertainment is just a pawn laid out in advance, it will take some time to play its due role, and there is no rush now.

This means that in Facebook, a project that burns money like Facebook Entertainment cannot be supported by any other company. It has invested hundreds of millions of dollars just to buy copyrights, and it will continue to invest a lot of money in the purchase of new film and television drama copyrights.

Yu Wenfei also thought about whether some of his plans were too early, but in the end he thought it was right to do so.

Because of many things, you only have the opportunity to get involved at a specific time. If you miss that time, if you want to do it again, you may need to spend an unknown amount of money and energy.

Let’s just do it first, anyway, the Facebook company is not short of money, and the money burned was given by venture capital institutions, so don’t feel bad!

Chapter 753 List of Equity Incentives

After all, Facebook's valuation of US$150 billion is still supported by Facebook's main business, and Facebook entertainment has not made much contribution to the company's valuation.

But it doesn't matter, the entertainment business will shine brightly sooner or later, Yu Wenfei is very confident about this.

At that time, I am afraid that Facebook Entertainment will have to be spun off again, or even listed separately.

But don't worry now, Facebook Entertainment still has to rely on Facebook to give it a continuous "blood transfusion", otherwise, where will the money come from to buy film and television copyrights every year in the future?

This type of video website should belong to a company with heavy assets. Whether it is buying film and television copyrights or producing film and television dramas by itself, it requires a large amount of real money to invest!

Therefore, when there is no copyright resolution in China, or when video websites are not yet in the "window", let's keep them under Facebook first.

…………

After the valuation of Facebook has been determined, it will be listed at a price of 150 billion US dollars, and then the next step is to discuss the issue of shares.

Now Facebook's total share capital is 1000 million shares, and when it goes public, it will issue some additional shares for investors to buy, that is, market tradable shares.

After discussion among all shareholders, it was decided to issue another 4000 million new shares to make up the company's total share capital to 5000 million shares. The company's valuation is 150 billion U.S. dollars, so the price per share is 150 U.S. dollars!

For this price, some shareholders raised objections.

Mr. Wang of Modu International Trust frowned and said: "150 US dollars per share is still the listing price. Is it too high? Everyone has traded in stocks. You should know that the lower the stock price, the more investment you will have. purchasers."

Cai Congxin also nodded, and echoed: "Yes, the stock price is really high. I'm a little worried that it won't rise after listing."

This price is indeed not low. The opening price of more than 100 US dollars is rare in Nasdaq.

In comparison, the stock prices of companies such as Netease, Sina, and Shanda were priced at a few dollars or more than a dozen dollars when they went public, and they dare not set them too high.

But Xue Chunlai has a different opinion.

He said with a smile: "High prices also have the benefits of high prices. In the American securities market, most of them are institutional investors. When they buy stocks, they don't look at the stock price, but only whether the company is worth the valuation. And , if the stock price of Facebook can keep going up, there is still hope to become the stock with the highest price, this is also a kind of publicity for the company.”

Indeed, the securities markets in Europe and the United States are very different from those in China. Most of the domestic stock markets are retail investors, and there are a crop of leeks.

But in Europe and the United States, ordinary people don't buy stocks by themselves, they entrust their money to professional institutions to take care of them, so it is professionals who play games in the stock market.

For professionals, they don't care about the price of the stock. What they care about is whether the stock can continue to rise.

Representatives from Citibank agreed, saying there was nothing wrong with pricing the shares.

Now that the two most professional people have said so, Mr. Wang and Cai Congxin will stop questioning and start the last question.

That is how employee incentive shares are allocated, and which employees are eligible to receive incentive shares!

This time, no one rushed to speak, and everyone looked at Yu Wenfei, because he was the major shareholder and the one most qualified to make a decision.

"Didn't we reserve 1000 million shares in the past? Let's give half of it to the employees this time." Yu Wenfei said without hesitation.

This is not a small amount, although 500 million shares will be distributed to many people, it seems that it is not much.

But know that Facebook stock is priced at $150!

500 million shares are 5000 million US dollars, which is enough to cover the total market value of many medium-sized companies. Now Yu Wenfei just said lightly and distributed them to the company's old employees.

Very bold and generous.

"500 million shares? That's ok, Mr. Fei is generous, and it's worth hundreds of millions of dollars. It's lucky for those employees to be able to enter Facebook and follow Mr. Fei. Haha..." Mr. Wang laughed boldly.

"Then I would like to thank Mr. Fei on behalf of the employees. After this news is announced, everyone will definitely be very happy. Facebook is also almost a millionaire per capita, a wealth-making machine!" Cai Congxin also said with a smile on his face.

It is a bit exaggerated to say that there are millionaires per capita, but after this employee incentive plan is implemented, a large number of millionaires will definitely emerge on Facebook, and the number will never decrease.