The Birth of Shanghai's First Conglomerate

Since Boiling Sheep has already been delisted, why not split it into regions and then introduce local internet celebrities to invest in these regions, allowing them to become investment bosses in these smaller Boiling Sheep regions?

While attracting new customers, we will also create more innovative and trendy stores.

To be honest, this is indeed the best solution to quickly resolve the long-term losses of Boiling Sheep.

With major online celebrities investing in the company, which was once a giant in the catering industry, their online celebrity status was certainly enhanced.

In a short time, Zhang Wanyi received more than 1.5 billion yuan in investment funds raised by hundreds of top internet celebrities.

The internet is flooded with videos of Boiling Sheep promoting products.

That's the method.

This solved a small problem for him, and he also started planning to buy Bobo Milk Tea with Deer Antler Coffee.

It's far more appropriate to manage three large groups than ten small businesses.

Moreover, the risk resistance capabilities of large corporations are simply incomparable to those of small businesses.

Just look at Tencent Media now.

In late December, after Chen Pingsheng had initially completed the integration of Tencent Entertainment and Tencent Media, he brought Yang Qian back from Hong Kong.

They plan to acquire Bobo Milk Tea with Deer Antler Coffee. The competition in the milk tea industry in recent years can only be described as insane.

On a single street, there are often seven or eight milk tea shops, lined up in a row.

Deer Antlers Coffee was an early entrant and has expanded into the global market, with a market value exceeding 120 billion US dollars.

Using it to acquire Bobo Milk Tea has two major advantages.

Many regions can quickly complete their expansion without opening more stores; they only need to split half of the Bobo Milk Tea stores to make Deer Antler Coffee.

Since most of Deer Antler Coffee's orders are for delivery, a merger of the two stores to some extent will not have a significant impact.

Chen Pingsheng also hopes to quickly resolve the problems of some of his traditional listed companies through industrial mergers and reorganizations.

I don't expect to drive the stock market up too high, but at least running two large groups is better than spreading my energy to seven or eight listed companies.

His future focus will still be on the technology sector, and these traditional listed companies must be properly arranged.

After a series of restructurings, he personally cashed out 110 billion yuan from Tencent Entertainment and Boiling Sheep.

Early investors like him managed to cash out their limited shares during these two restructurings.

These are the obvious benefits.

If Douyin Group is unable to go public within the next two years, he will sell his 3% stake in Douyin to Tencent Media.

This is of great significance to Tengyou Media, and is far more than just a simple financial investment.

This means that it will have a certain say on the platform and be one of the top ten shareholders of the largest short video platform in China.

If this news comes out, Tencent Media's stock price could very well reach 500 billion in the future.

To put it bluntly, he no longer needs those small listed companies; their market value is less than 100 billion, so they are meaningless to him.

The latest valuation of TikTok Group is 300 billion US dollars, and his 3% stake is definitely a hot commodity.

It won't be easy for Tencent Media to raise $90 billion to acquire his shares.

We need to successfully consume all the current Boiling Sheep and Tencent Entertainment products.

Once a company reaches a certain stage, its expansion strategy shifts from figuring things out step by step to directly seeking suitable acquisition targets among listed companies and unicorns.

Getting it done in one go is much better than slowly opening a shop and finding people.

This is the current situation with Tencent Media, and the same applies to Deer Antler Coffee's direct merger with Bobo Milk Tea.

……

end of June.

Most of the top executives of Tencent Pictures gathered at Kingsoft headquarters for a meeting.

The meeting had only one theme: he personally invested 720 billion yuan to acquire a 60% stake in Wanda Commercial Management.

In addition, several other major traditional industries are undergoing mergers, and the remaining projects that want to go public will be directly acquired by existing listed companies, which is also an alternative way to quickly cash out.

If we were to pinpoint the biggest changes in the stock market this year, there are two main points: technology stocks have been clearly on an upward trend.

This is inseparable from the country's support, including core policies.

In addition, it is much more difficult for traditional companies, especially those with relatively small profits, to go public than before.

Another point is that the authorities intend to clear out some junk stocks.

Given these three points, some of the large projects that Yuanmeng Fund invested in in its early stages have also been stalled on the road to listing.

Let's not even talk about Tengyou. After acquiring Tengying Entertainment and Feiyangyang, it would take them at least three or four months to digest them.

Other companies are different.

Snack Run is relatively healthy, and its stock price is also good.

The snack industry has also been highly competitive in recent years.

Many independent snack brands have emerged in various regions. Many of these companies do not make money from selling snacks, but rather from franchise fees.

It had previously invested in many related industries through financing.

It would be very difficult for these industries to go public on their own. The current solution is for Snack Runner to acquire a series of related industries it has invested in through a stock market offering.

To achieve rapid expansion, and of course, this also raises suspicions of insider trading. Therefore, the financial audit team is not handled by them, but by the most professional financial audit team in Hong Kong.

Chen Pingsheng's goal was very clear: he wanted to quickly merge his small businesses into three independent and large conglomerates.

Snack Run will be responsible for the expansion and mergers and acquisitions in the department store snack sector.

Deer Antlers Coffee is in charge of milk tea and anticipates industry expansion, which also includes a range of beverage products they invested in early on, such as Dewdrop sold in supermarkets.

Tencent Media merged its businesses into entertainment, catering, apparel, short videos, and department stores.

As for his four super first-tier cities, he has his own Tenghui Department Store.

The future plan also includes the independent merger of other department store investments within the group.

This merger involves not only projects, but also teams and investment funds.

Let's put it this way: once the merger is complete, Snack Run will quickly reach a scale of hundreds of billions, while Deer Antler Coffee will start at two hundred billion US dollars.

He will officially own four large listed groups with assets exceeding 100 billion yuan: Tengyou Media, Deer Antler Coffee, Snack Run, and Tengde Times.

When Tengfei New Energy goes public in the future, its revenue will certainly not be less than 300 billion yuan, plus Tengfei AI.

He alone would own at least six mega-unicorn groups.

Instead of the past, there were a lot of small projects and a bunch of medium-sized listed companies.

This is fundamentally detrimental to group management. Merging and consolidating these industries would be more conducive to the company's ability to withstand future market risks.

In addition, the investment departments of all major groups will be merged into the Dream Fund.

We will bring together all the scattered investment departments to create a top-tier investment fund in China.

The Dream Fund's future investments will primarily follow two cash-out models.

One option is for his listed companies to acquire the company as a package deal, which is similar to a backdoor listing but can be done much faster.

Another option is to go public independently, which would take at least four to five years. It's relatively slower, but the advantage is that it offers greater growth potential.

In fact, he has now reached a similar stage to Alibaba and Tencent.

If you were to calculate exactly how many projects he owns, it would be impossible to count them all.

He himself didn't know exactly how many there were; he simply combined the larger ones and then merged the smaller projects under his control through mergers and acquisitions.

This is simply a way to ensure that the strong get stronger.

Due to the major merger of industries, the company's personnel have also undergone significant adjustments.

Firstly, Tencent Media, which has the highest market capitalization, is still headed by Zhang Wanyi as its president.

As for Bai Xin, she remains the president of Tengying Entertainment and also serves as the vice president of Tenyou Media.

The treatment of the former CEO of Fei Yangyang was far inferior to hers. Given Fei Yangyang's size, he was simply not qualified to serve as the vice president of Tengyou Media. He couldn't even get a seat on the board of directors.

He only concurrently serves as the head of the catering department at Tencent Media.

Zhang Wanyi remains the CEO of Tencent Media Group, and there are five other vice presidents in total.

The board of directors consists of eleven members, including Tong Zhelan and Shen Nanpeng, who are based overseas.

He himself also serves as the highest-ranking chairman in that organization.

Unless there are major decisions, he, as chairman, generally doesn't get involved in too many things.

In addition, Deer Antler Coffee and Snack Run also need to complete a new personnel structure.

The Dream Fund is different. It is already very large, especially after this merger, which has brought its cash flow to over 30 billion yuan. It has both money and manpower.

The CEO position fell to Chu Qiuyan, while Lin Qiunan remained as the project manager.

After three years of battling his illness, Chen Pingsheng has finally discovered a major factor contributing to the losses of traditional businesses.

Besides the poor market conditions, the more important reason is that his personal energy was too scattered.

They simply don't have the time to attend to so many listed companies, which leads to traditional companies facing a lack of decision-making power in some necessary matters.

This is a very common problem in large companies, especially diversified ones.

Now, after a series of restructurings, he only needs to manage a few large groups.

Instead of the past, where one company has problems today and another company has a board meeting tomorrow.

Even if he held twenty meetings a day, he still wouldn't be able to finish them all.

Not to mention that he has so many important figures to receive, and some of them he has to handle himself.

The merger of industries does not involve hierarchical management, but rather continues to use a flat management structure.

To maintain the independence and decision-making power of these projects to the greatest extent possible.

This is something I learned from Ali.

Like him, Ali has invested in countless projects and likes to seize control of others. As a result, a project that was originally quite good often ends up being ruined a few years later.

It just stopped working for no reason.

This is the complete opposite of the giant penguin.

The Big Penguin had made the same mistake before, but after several major failures, it finally gave up the idea of ​​taking control.

Instead, it was changed to traffic support.

With just this one change, Tencent's performance in the investment field has far surpassed Alibaba's.

There is no comparison at all.

Chen Pingsheng would certainly not make such an obvious mistake, so his main purpose in restructuring and merging the company was to help small businesses and projects grow rapidly through corporate empowerment.

For example, after Fei Yangyang was acquired by Tencent Media, he immediately gained access to its online celebrity traffic.

Tencent Entertainment also receives immediate traffic support from Tencent Media in its promotional efforts, including short video e-commerce featuring young artists.

That's the advantage. Things are different now than in the 1990s. The best advertising resources have always been on short videos.

Other businesses will also benefit to varying degrees.

For example, Deer Antler Coffee, which merged with Bobo Milk Tea, immediately became the top milk tea brand.

They can also launch their own milk tea + coffee combo, and at the same time, deliver coffee to every corner of the country.

They will also be launching their own supermarket bottled beverages next.

While it cannot solve most of the group's problems at once, it is clear that after this restructuring...

Tengying Group is far superior; at least to outsiders, it immediately appears to be a diversified, super-large conglomerate.

Tencent Group has also been officially divided into five super-large group groups.

These are Tengyou Group, Lujiao Group, Ling Shi Kuai Pao Group, Yuanmeng Investment Group, and Tengfei New Energy Industry Group.

This is also the group he has invested in the most, and Tengde Times is one of them.

The future Tengfei New Energy will also be included in this after its listing.

The overseas assets were not acquired; instead, they were all transferred to overseas investment funds.

The newly acquired Wanda Commercial Management will not be incorporated, as it is a giant in itself.

Wanda only needs to empower the group's offline high-end shopping mall channels.

In addition, there are brand resources.

Over the years, what has always been most favored by the market for Tengyou Media is its very strict control over its product selection channels.

This is inseparable from the fact that Chen Pingsheng owns several department stores. Many online celebrities rely on gimmicks to sell goods in the short term.

In the long run, quality is essential.

This large-scale market restructuring and merger, regardless of whether outsiders can understand it or not.

This all reflects a major market trend. For example, if you simply want to sell milk tea well, it might not be too difficult in the early stages.

Once you grow your business to a large scale, it will undoubtedly become very difficult.

Because of the competition, the methods of management and operation will be completely different.

The survival space for small businesses will undoubtedly become increasingly difficult in the future.

Because many of the large companies mentioned above have already completed their comprehensive transformation.

Just as internet companies cannot survive in the long term by relying on a single product, the same applies to traditional sectors.

Large corporations are playing a game of "eating snakes" in this arena, using capital expansion to create a "big fish eats small fish" scenario, gradually squeezing out entrepreneurial opportunities for ordinary people.

For most people, the best path forward is not starting their own business, but rather getting a job at a large company like this.

This is the disorderly expansion of capital.

Chen Pingsheng is doing relatively well; so far, he has only integrated and merged the companies under his control.

Once these companies are fully restructured, given the current size of the Tencent Group, it will be able to easily devour traditional sectors, including some sectors that it has its eye on.

(End of this chapter)