I can become stronger by paying salaries. I have one billion employees!

Chapter 217 My limit is 12.4 US dollars, a special edition phone from 360 and Huawei!
Cheng Congwu and Lei Yijun are from the same hometown. Both of them started out as exam takers in a small town and rose to high positions step by step.

After graduating with a master's degree, he joined a state-owned enterprise. In 94, he went into business and, after more than a decade of hard work, finally established himself in the field of digital mapping.

In fact, AutoNavi has three founders. Before Cheng Congwu became CEO, the former CEO Hou Jun was in charge of the company. However, on the eve of the IPO, the three were constantly fighting amongst themselves.

Finally, in order to ensure the company could go public smoothly, Hou Jun voluntarily stepped down from the position of CEO.

Cheng Congwu successfully took over and recruited a group of professional executives, effectively sidelining the other founder.

He secured his position as CEO of AutoNavi thanks to his exceptionally strong leadership and interpersonal skills.

However, during the transition from PC internet to mobile internet, Gaode's development was unsatisfactory. It was like a herdsman entering the ocean age, having good abilities but having no place to use them.

From 2011 to 2012, the stock price of AutoNavi hovered around $12 for a long period, and even fell to $11.4 per share after the New Year.

To put it bluntly, Cheng Congwu was originally a financial investor, and his ability in business development was not outstanding.

It is at least unable to meet the current development needs of Gaode Maps.

Therefore, when Liu Zhiping told him that Chen Yansen of Senlian Capital intended to make a strategic investment in or fully acquire AutoNavi, Cheng Congwu agreed without hesitation.

As he was sizing up Chen Yansen, Chen Yansen was also secretly observing Cheng Congwu's expression and subtle physical movements.

"Don't just stand there, sit down and let's talk."

Zhang Chaoyang pulled Cheng Congwu and Chen Yansen to sit down.

His assistant, with great perceptiveness, came out of the private room and signaled to the waiter that the food could be served.

As one of the first generation of internet pioneers, he could say without exaggeration that he "knows all the CEOs of China's top 500 companies."

The same is true!

Although he and Cheng Congwu didn't interact much in public, they were both involved in the business circle of Yanjing and often went out drinking together in private.

This is also why Liu Zhiping insisted on including him.

"President Cheng, please have a seat!" Chen Yansen said with a smile.

Cheng Congwu smiled slightly, sat down, and didn't forget to greet Liu Zhiping.

While investment and acquisition may seem sophisticated, the core process of such transactions is actually quite similar to buying groceries, with no fundamental difference.

Chen Yansen wanted to buy at a low price, while Cheng Congwu wanted to sell at a high price.

Once a satisfactory balance can be found between the two parties, the deal is considered done.

Gao Weilin and Song Yuncheng sat on either side of Chen Yansen, smiling throughout. They remained silent when not required to speak.

Before long, plates of exquisitely prepared cold dishes were served.

As the middleman, Liu Zhiping took off his coat, picked up a bottle of wine, and poured a full glass for everyone.

"Mr. Cheng, I think you should be aware of the purpose of Senlian Capital's visit. I would like to hear your thoughts on the sale of Gaode."

After a few rounds of drinks, Chen Yansen put down his glass and got straight to the point.

Currently, Gaode's three major shareholders are Hou Jun, Cheng Congwu, and Xiao Jun. If Cheng Congwu is too greedy, he will bypass him and communicate directly with Hou Jun and Xiao Jun.

After all, the three had fallen out long ago, and in terms of shareholding ratio, Hou Jun was the largest shareholder.

coming!

Cheng Congwu snapped to attention, realizing they had finally gotten to the point. Of course, he also had the idea of ​​selling, otherwise he wouldn't have come to the appointment.

“I have no objection. As long as Mr. Chen’s offer can impress me, Gaode can be privatized and delisted at any time and become a subsidiary of Senlian Capital.”

Cheng Congwu shrugged, seemingly unconcerned.

Before the mobile internet entered its golden age of development, many entrepreneurs felt that the PC internet was coming to an end, but no one could say for sure whether this period of decline and transition would last five, ten, or twenty years.

From Cheng Congwu's perspective, the B2B business (in-vehicle navigation) is becoming increasingly competitive, while the B2C business has yet to show any signs of improvement. Rather than wasting time, it would be better to monetize it sooner.

It's important to know that in 2012, electronic maps and navigation software were separate; the maps themselves were free, but the navigation function required payment.

Gaode's fee is 50 yuan, Qiandu's is 30 yuan, and KLD's is as high as 108 yuan.

But what is the core of the internet model?
free!

Therefore, the performance of both Baidu Maps and Gaode Maps in the B2C field is hard to describe.

Most drivers prefer to use physical maps rather than pay for electronic navigation services.

"What price is Mr. Cheng looking for?"

Chen Yansen smiled faintly and deflected the question.

After selling FoxTao to Ali and cashing out 120 billion yuan, he didn't spend much money except for buying shares in DiDongfang, investing in Orange Mobile's No. 3 factory and KuaiPao.

Orange Technology raised $13.5 billion from DST Capital, and Pinduoduo raised $3 million from Tencent. There's no need for Senlian Capital to continue investing.

Therefore, Chen Yansen has more than enough funds in his account to buy Gaode.

Cheng Congwu narrowed his eyes, glanced at Liu Zhiping and Zhang Chaoyang, pondered for a moment, and then announced a number: "14 US dollars."

This figure is both his desired price and a way to satisfy investors in the United States.

Although major shareholders have a greater say in the privatization process, the final outcome is not entirely determined by them.

If minority shareholders and retail investors believe that the privatization plan is unfair, unreasonable, or detrimental to their interests, they can still file a complaint with the regulatory association.

Take Jumei as an example. Its IPO price was $20 per share, but when it was delisted, it was only willing to offer $7. Its first privatization application was rejected.

The price was reduced from $7 to $2 the second time, and this time it was successful.

It wasn't that the stock market investors in the United States suddenly became reasonable; rather, Jumei's stock price had plummeted, its market value had shrunk by 96%, and if they didn't agree, all their shares would become worthless.

Chen Yansen frowned slightly; this price was 22.8% higher than the market price.

His target price was below $13, and Cheng Congwu's demands clearly exceeded his limit.

"I'm sorry, Mr. Cheng, Senlian's finance department has conducted a comprehensive evaluation based on Gaode's revenue, profit, cash flow, market share, user data, and technology patents over the past three years. The most reasonable price should be $12 per share, but to show our sincerity, I am willing to raise the price to $12.4 per share."

Chen Yansen shook his head, directly rejecting Cheng Congwu's offer.

"Mr. Chen, Gaode Maps has great market potential and is absolutely worth the premium of $14 per share. Five years ago, Nokia acquired Navteq Maps for $81 billion. Although Gaode Maps' coverage area and user base are not as large as Navteq's, its future market value will not be less than $50 billion."

Cheng Congwu frowned, suppressed his smile, and replied in a deep voice.

He then cited Nokia's acquisition of Navteq Maps as an example in an attempt to persuade Chen Yansen.

“But after Navteq was merged into Here Maps, its current market value is only $13.7 billion, which is only 17% of the original acquisition price. Here Maps covers 174 countries and a total area of ​​over 4600 million kilometers. What about Gaode?”

Chen Yansen asked in a nonchalant tone.

Cheng Congwu was speechless. He hadn't expected Chen Yansen to be so knowledgeable about the market value of similar overseas competitors. The rhetoric he was supposed to use to persuade Chen Yansen had instead backfired and pierced his own heart.

"Whether it's financing or acquisition, price is the easiest issue to negotiate, as long as both Senlian and Gaode have the intention to cooperate."

Liu Zhiping, fearing that Cheng Congwu would lose face, tried to smooth things over with a smile.

This statement also serves as a reminder to him to go back and reconsider, and to offer a more reasonable quote in order to reach a cooperation agreement.

$12.4?

It's one dollar higher than the market price!

Cheng Congwu pondered for a while, then sighed. He quickly adjusted his mindset, raised his glass and said, "Mr. Chen, to be honest, the price of $12.4 per share is indeed lower than my expectations. I'm not confident that I can use this number to persuade the other two shareholders."

“A price of $12.4 is not low. Mr. Cheng might as well try to lower his expectations.”

Chen Yansen clinked glasses with him and said with a light laugh.

He knew that if he waited until the second half of 2013, when 3G networks began to see widespread speed increases and price reductions, and when Baidu and Gaode Maps announced their free strategies for low-end individual users, then it would be impossible to acquire them at a low price.

However, with a year and a half to go, he wasn't worried at all.

Cheng Congwu's face was tense. He downed his drink in one gulp, then changed the subject and started gossiping about Lei Yijun and Zhou Hongyi.

Clearly, he felt that he couldn't reach an agreement on a price in a short time, so he decided to move the negotiation process to the formal meeting tomorrow.

"The fight didn't happen. Before I came, I had the driver drive around Chaoyang Park, and I did see quite a few reporters there."

Zhang Chaoyang grinned and said.

"Mr. Zhang, you don't know this, but the two of them were at the intersection of East Gate 5 of Chaoyang Park. After the patrol officers arrived, the two guys went to a boxing gym."

Liu Zhiping burst into laughter, then paused and said, "Guess who won in the end?"

"It's definitely Zhou Hongyi. He's young but has a fiery temper, and he'll definitely go all out in a fight." Zhang Chaoyang thought for a moment, then gave a serious critique.

Cheng Congwu originally thought it was outrageous enough that the two of them agreed to fight, but he didn't expect that Zhang Chaoyang and Liu Zhiping would also make a bet.

"It's most likely Lei Yijun. After all, Zhou Hongyi is nearsighted. If we break his glasses first, then Old Zhou can only passively take the beating."

Chen Yansen said with a wicked smile.

"You went to the scene?" Liu Zhiping was slightly taken aback and subconsciously asked.

The actual situation is pretty much as Chen Yansen described.

Zhou Hongyi had practiced Tai Chi and Judo, while Lei Yijun, relying on his long arms and legs, gave his opponent a thorough lesson in physical education.

Gao Linwei and Song Yuncheng exchanged glances, barely suppressing their laughter. Liu Zhiping and Zhang Chaoyang's assistants weren't much better off, each covering their mouths and chuckling.

The meal lasted from 6 p.m. to 8:30 p.m. After leaving the restaurant, Zhang Chaoyang suggested going to a bar for a while.

Liu Zhiping looked at Chen Yansen and asked for his opinion.

Chen Yansen nodded and did not refuse.

He saw through Liu Zhiping's thoughts, and since the other party wanted to go, he naturally had to give him face.

at the same time.

As soon as Lei Yijun entered the house, he quickly took ice cubes from the refrigerator and applied them to his face.

"Damn, that's ruthless!"

Looking at himself in the mirror, Lei Yijun saw that his right cheek was red and swollen, as if he had mumps, and his face looked much rounder. He couldn't help but curse inwardly.

Just then, the phone on the table rang.

Chen Yansen?
Lei Yijun glanced at the caller ID, but didn't think much of it. He pressed the answer button and said, "Mr. Chen, what's up?"

"I'm in Yanjing. I've made plans to go to a bar with Liu Zhiping, Zhang Chaoyang, and Cheng Congwu from Gaode Maps to relax tonight. Mr. Lei, are you free? Want to come out and have a chat?"

Chen Yansen extended an invitation.

If I go looking like this, won't I just be laughed at?

Lei Yijun smiled wryly and politely declined.

"Mr. Lei, I'll visit your company tomorrow," Chen Yansen said with a smile.

Lei Yijun really wanted to say that it would be fine to meet again next time, but when Chen Yansen mentioned that there was a cooperation to discuss, he immediately nodded in agreement.

After saying that, Chen Yansen hung up the phone.

He wasn't trying to make a fool of Lei Yijun; he genuinely wanted to discuss cooperation with Xiaomi.

Orange Mobile's Factory No. 3 will start production next week, at which time the monthly production capacity of Factories No. 1 to No. 3 will reach 600 million units.

However, the total online sales of Orange C1, C2 and D1 have dropped to an average of 130,000 orders per day after nearly 20 days of launch, a decline of more than 70% compared to the sales speed in the first week of launch.

In addition, the No. 4 super factory located in Luzhou is also under intensive preparation. Once it enters the production stage, the total monthly production capacity will reach more than 1000 million units.

Orange phones alone cannot handle such a large production capacity!

Therefore, Chen Yansen wanted to talk to Lei Yijun and take over the OEM business of Xiaomi phones from Inventec.

Lei Yijun put down his phone, pondering Chen Yansen's purpose.

To date, Xiaomi and Orange Technology have only collaborated on the licensing of one memory cleaning algorithm patent. However, after the launch of Orange C2, he quickly obtained an important piece of information.

Orange Technology licensed version 1.0 of its patents to Xiaomi, Meizu, and OPPO, but its more advanced algorithm cleaning technology has not been made available to other competitors.

Has Chen Yansen come to a realization and is preparing to license his patents to third-party mobile phone manufacturers?
the other side.

With his face covered in injuries, Zhou Hongyi returned to a villa within the Second Ring Road. He had decided that he would go back to the company once his injuries had healed.

Tai Chi is useless, and Judo is utterly useless too!
As soon as they started fighting in the afternoon, the two began throwing wild punches.

Zhou Hongyi's glasses were shattered instantly, and he could only see Lei Yijun's blurry figure. Fortunately, he had punched the other party, so he didn't suffer a loss.

The feud between the two was now completely sealed.

After sitting on the sofa for a long time, Zhou Hongyi suddenly stood up. He felt that Lei Yijun was right about one thing: he shouldn't have gone to Haier, but should have gone to established telecommunications brands like Huawei and ZTE.

With that in mind, he dialed Yu Chendong's private mobile phone number.

After understanding Zhou Hongyi's intentions, Yu Chendong agreed to the cooperation request for the 360 ​​special edition phone without much thought.

Although Huawei is at a critical stage of transformation, it's not impossible to make special edition phones. They can just give it a sub-brand name, which will not only make money but also affect Huawei's brand image.

The two hit it off immediately, and Zhou Hongyi took the opportunity to suggest visiting Huawei.

Since he had already fallen out with Lei Yijun, Zhou Hongyi thought: If we're going to make a special edition phone, we'll make a 360 phone too!
(End of this chapter)