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Chapter 415 0405 [Chen Guiliang: Using Any Means He Can]

Chen Guiliang personally approached e-commerce companies for cooperation, and the only ones he found were Alibaba, JD.com, and Dangdang.

Dangdang is the most convenient option; just call Li Guoqin out for a drink.

Although this guy is a bit abstract, he's always been easy to talk to, and besides, this is actually beneficial to Dangdang.

For the other e-commerce companies, Chen Guiliang had his subordinates negotiate with them one by one.

Moreover, cooperation is quite complicated; it requires persuading them to first build their mobile WAP sites.

Take Amazon China as an example. As an international e-commerce giant, it still hasn't even built a mobile WAP site. Such sluggishness and backwardness explain why it can't compete with Taobao and Dangdang.

Currently, Weibo cannot communicate with its PC website. When collaborating with e-commerce platforms, it can only link to the e-commerce platform's WAP site.

"How's the negotiation with Gaode going?" Chen Guiliang called Lü Zhihui.

Lu Zhihui replied, “Gaode is preparing for its IPO, and its valuation is particularly high at this time. Based on this valuation, $2000 million would only buy 3.64% of the shares. However, Walden is eager to withdraw funds and is willing to sell existing shares at a discount. I've been negotiating with IDG and several other companies to lower the price, and the current agreed price is $2000 million for 4.21% of the shares. I plan to continue negotiating, with an expected target of 5%! Gaode's high valuation is due to its upcoming IPO, but we're currently experiencing an economic crisis, and no one can say for sure whether it will be able to list smoothly. As long as we grasp this point, we can negotiate.”

"You handle it from your side; you're in full charge," Chen Guiliang said.

When ByteDance went public, it raised $1.5 million. However, after deducting listing costs (commissions for the listing executives, underwriting fees, legal fees, accounting fees, etc.), it ultimately only received $1.37 million.

This money is now being used to buy existing shares of AutoNavi, support the research, development, production, promotion, and sales of HarmonyOS phones, and HarmonyOS is also acquiring land in the suburbs of Beijing for construction. Now, they're also engaged in a Weibo war with Sina, spending a fortune on advertising and promotional activities.

Therefore, ByteDance cannot afford to invest in JD.com; ByteDance must reserve sufficient funds to carry out its business.

Chen Guiliang said to Lü Zhihui, "I'd like to adjust your position."

"Please speak, boss," said Lü Zhihui.

Chen Guiliang said, "I want ByteDance and Game Science to jointly invest in and establish an investment company. You will serve as the general manager of the investment company. For example, the purchase of existing shares of AutoNavi will be carried out in the name of the investment company. Next, I also plan to invest in JD.com, which will also be carried out in the name of the investment company."

"That's a great idea!" Lu Zhihui was very happy, as it meant he was being put in charge of something on his own.

Chen Guiliang said, "You come back and set up the company first, and leave Walden International out of the loop for a few days. As for the name of the new company, let's call it... Xiyi Investment. It means 'invisible to the eye, inaudible to the ear,' which implies the ability to discern trends and values ​​that ordinary people cannot see or hear, and to hear thunder in silence."

Lu Zhihui frantically flattered him: "No wonder you're a top student from Peking University, boss. Your choice of name is truly meaningful."

He'd be happy as long as he was made the general manager of an investment company and the company was named "Poop Investment".

……

Liu Qiangdong is currently communicating with Xu Xin.

Xu Xin is the founder of Capital Today and also an A-round investor and B-round intermediary for JD.com.

JD.com's current shareholding structure is as follows: Dongzi and his team 62.5%, Today Capital 22.5%, and Series B venture capital firms such as Xiongniu Capital 15%.

"Nearly 70% of the funds we received in January have already been burned through," Liu Qiangdong said.

Xu Xin was only slightly surprised, as she had already gotten used to it. She smiled wryly and said, "I invest in more than one company, but you are definitely the one who burns through money the fastest."

Liu Qiangdong asked, "Can we still attract venture capital?"

Xu Xin said, "The global financial crisis isn't over yet, and many large investment institutions haven't recovered. If you're burning through cash so quickly, you'll scare away most venture capitalists. Where are you going to find investment for you?"

If JD.com were so easy to attract investment, it wouldn't have waited until it was on the verge of bankruptcy to get venture capital funding in its Series B round.

Seeing Liu Qiangdong deep in thought, Xu Xin added, "Since you've chosen to build your own warehousing and logistics system, you can't give up halfway. I'm still very optimistic about this model, and I'll try my best to help you raise some more money. You need to be careful with your spending in the second half of the year. The economic situation might improve next year, and maybe a large institution will be willing to invest."

Liu Qiangdong said, "Chen Guiliang is willing to invest in JD.com."

"The one who used to argue with Li Yanhong, and now he's waging war against Sina Weibo, suing more than 30 companies in one go?" Xu Xin's impression of Chen Guiliang is mainly based on these landmark events.

Liu Qiangdong nodded: "It's him."

Xu Xin muttered, "How much money could he possibly have to invest?"

Liu Qiangdong said, "I checked the news these past two days. His Game Science is quite profitable, ranking second among Chinese game companies, second only to Shanda."

“Making games can be quite profitable,” Xu Xin acknowledged Chen Guiliang’s financial prowess. “How much does he plan to invest?”

Liu Qiangdong said, "He didn't say it explicitly. He doesn't plan to invest in the Series C round, insisting that he's investing in the Series B expansion round. So, if JD.com's valuation is much higher than the Series B round, he will give up the investment."

"I'll make a phone call," Xu Xin said.

Liu Qiangdong said, "I'm going to the restroom."

After Liu Qiangdong left, Xu Xin dialed Liang Baitao's cell phone: "Hello Chairman Liang, this is Xu Xin."

Liang Baitao is known as the "Father of Red Chips," a nickname that speaks volumes about his status in the industry.

Just one year before the financial crisis broke out, Liang Baitao invested 6 million RMB to start a guarantee company. In the same year, he also spent a huge sum to acquire Zhujiang Zhongfu and successfully entered its board of directors.

Right now, Liang Baitao is short of money and simply can't come up with any.

He was very optimistic about JD.com's development model, but for its Series B funding round at the beginning of the year, he had to bring in other venture capitalists, and it took several of them pooling their money to invest $2100 million. "Hello, Xiao Xu, just say what's on your mind," Liang Baitao said, busy.

Xu Xin said, "70% of the funds that JD.com raised in January have already been burned through."

"So fast?" Liang Baitao was extremely shocked.

Xu Xin added, "JD.com is burning through cash too fast. You know the current environment, so it's difficult for me to help them attract venture capital in the short term."

Liang Baitao said, "I'm also having a hard time. Everyone is having a tough time right now."

Xu Xin said, "There is a mainland entrepreneur named Chen Guiliang whose game company ranks second in the industry, and he also has a company listed in the US. He is willing to invest in JD.com's Series B expansion round, but his requirement is that the valuation cannot be much higher than the Series B round."

After thinking carefully, Liang Baitao said, "Come to Hong Kong, and I'll invite those guys from Bull Group to come along. We can discuss how to value the company. By the way, let's see if we can help JD.com attract other venture capital."

“Okay, I’ll fly to Hong Kong in a couple of days,” Xu Xin said.

……

Sina headquarters.

Peng Shaobing was reporting: "My worst fears have come true. ByteDance's Weibo is using its 13 million user base to launch a viral promotion with rewards. They offer a one-month subscription for each friend you refer, and a six-month subscription for each friend you refer. In just one week, ByteDance's Weibo has added 2 million new registered users!"

Cao Guowei said, "Even if we attract more people to register, we may not be able to retain them. We need to develop Sina Weibo in the same way we developed Sina Blog. In particular, we will build a dedicated customer service team for celebrity users and provide them with nanny-style service so that they can use it comfortably."

Peng Shaobing said, "ByteDance Weibo is doing the same thing. Moreover, they actually went to the film crew of 'The Founding of a Republic' to do on-the-ground promotion! They pulled in hundreds of celebrities, as well as countless second, third, and fourth-tier actors and behind-the-scenes staff."

"So many stars and actors in 'The Founding of a Republic'?" Cao Guowei had never even heard of this movie.

Peng Shaobing said, "I just heard about it too. Even the extras in this movie are stars, or relatively unknown veteran actors."

Cao Guowei said, "Those celebrities and actors probably won't exclusively join a certain platform. Even if they are invited by ByteDance, we can invite them back. So, the key is to improve the user experience. As long as Sina Weibo's user experience is better, over time, users will abandon or ignore ByteDance and choose to focus on managing their Sina Weibo accounts."

User experience?

The best experience is one where users can make money!

Cao Guowei and Peng Shaobing had no idea what Chen Guiliang was planning, and they could not have predicted the upcoming devastating attack.

Big stars may not care about a few measly coins, but countless second, third, and fourth-tier actors, as well as various internet celebrities, are happy to make money on Weibo.

As long as ByteDance Weibo retains its large user base, the snowball effect of scale will grow stronger and stronger, and big stars will naturally be willing to manage ByteDance accounts for the sake of influence.

"Furthermore, Sohu Weibo has also gotten involved. They've clearly increased their promotional efforts these past few days. And I've also heard that Zhang Chaoyang is using his connections in Beijing's entertainment circle to personally persuade celebrities to join Sohu Weibo," Peng Shaobing said.

Cao Guowei frowned: "Why is it Sohu again?"

When I started blogging a couple of years ago, Sohu was Sina's main competitor.

Now that Weibo is being launched, Sohu is getting involved again.

The two-way battle in the Weibo arena is about to escalate into a three-way war.

Of course, there is one phenomenon that benefits all competitors.

That is, all parties are waging a Weibo war, launching a massive propaganda offensive to make the word "Weibo" known to everyone.

Even older generations who don't use the internet know that microblogs are popular now through newspapers. Young people are also rushing to follow the trend, and the number of users of various microblog products has increased significantly.

Chen Guiliang went to extreme lengths; he even called Wang Wei and asked him to "help contact the 'iPartment' production team and have them promote ByteDance Weibo in the show."

Wang Wei said, "It seems like 'iPartment' is almost finished filming."

Chen Guiliang said, "Let them do reshoots. Or just add an extra episode, with a plot specifically revolving around ByteDance's Weibo. I'll give them a sponsorship fee of 50 yuan!"

“You have money, so you call the shots,” Wang Wei said with a smile.

The production cost of the first season of "iPartment" was very low, with a single episode costing less than 10 yuan. It was even cheaper than "My Own Swordsman" because the director, screenwriter, and actors were all relatively unknown figures.

The filming of "iPartment" has not yet wrapped up, but the actors and locations are already in place.

If Chen Guiliang were to invest 50 yuan in sponsorship, the director would definitely have the screenwriter rush to finish the script and film an episode specifically about ByteDance's Weibo.

Since it's a sitcom, the plot of each episode can be made up on the spot, and any content inserted won't seem out of place.

Chen Guiliang thought for a moment: "Right, ask the director to give me a role, one with a few lines. I want to play myself, appearing in the show as the boss of ByteDance!"

Wang Wei joked, "Mr. Chen, has Sina Weibo driven you to this point?"

"We must go all out and give Sina the utmost respect," Chen Guiliang said.

He was genuinely a little scared, after all, before his rebirth, Sina Weibo was deeply ingrained in people's minds.

With all the arrangements made, Chen Guiliang was finally able to attend the graduation ceremony with peace of mind.

(End of this chapter)