How can you become a star without money?

Chapter 264 Its momentum is like a drawn crossbow, its timing like a trigger.

The speed of rushing water that can carry away stones is due to its momentum; the speed of a bird of prey that can destroy and break its prey is due to its discipline.

Therefore, those skilled in warfare often wield perilous situations and employ swift tactics.

Its momentum is like a drawn crossbow, its timing like the release of a trigger.

Compared to riding the wave of opportunity, Wang Yao prefers to maximize advantages and benefits by going with the flow.

The scale of the captain's incident on the internet is increasing by hundreds of millions every day, and it will continue to escalate and ferment until it is alleviated.

Mixue leveraged the biggest momentum on the surface and released first-hand information only on the MS platform. Within three days, MS's users surged from over 20 million to over 30 million, daily UV visits steadily exceeded 100 million, and daily active users (DAU) reached over 10 million, making it a leading social media platform in China.

Behind the surge in data is the 'vampire' effect on all other social media platforms and forums. Sina, as a leading social media platform in China, just announced last month that it had surpassed 5000 million registered users. Unexpectedly, it was about to be surpassed by Ms, a rising star, in just two months.

Previously, the combined efforts of other platforms to limit and suppress MS traffic were completely overwhelmed by this momentum, and they dared not make any further moves. Moreover, because they dared not express their stance immediately, Sina even suppressed some of its traffic, which directly resulted in all related traffic being absorbed.

Besides Sina Weibo, the biggest victim was Baidu Tieba, because Mixue's target consumer group was the Tieba community. After trying the three-in-one model of Ms social media + music + community super topic, Tieba seemed a bit rudimentary in comparison.

Most importantly, the mobile app for Ms was released. Although the number of mobile users is only in the millions, it has contributed 4 to 5 times the number of posts and the market share of the PC version.

The surge in domestic Ms data directly impacts Ms company's overall valuation and development direction.

The combined user base of the two versions, domestic and international, has recovered from a decline of millions at the beginning of the year to its peak of hundreds of millions of users. Moreover, with the first-mover advantage of the mobile app, MS is now even qualified to compete with Facebook.

Deng Wendi, accompanied by Elizabeth Murdoch, the CEO of the media group's entertainment division and the old man's second daughter, personally flew to Shanghai to discuss the future development of Ms.

Elizabeth was the same age as Deng Wendi and showed extraordinary business talent from a young age. Before she was thirty, she revived two television stations that were on the verge of bankruptcy. At the age of 28, she became the CEO of the media group English Broadcasting Company and was named a rising star in the business world. When her father wanted his eldest son, Lachlan, to take control of the company, Elizabeth began to fight for control with her mother's support.

After failing in the first round of competition, he started his own company and produced the global phenomenon cooking show "MasterChef" and the phenomenal TV series "Merlin". He successfully became a top entertainment company in Europe and America. This year, he returned to the family to participate in the competition for control.

Furthermore, he acquired his own company for a discount of 5 million yuan to a media group, and gained control of the group's entertainment sector, including several Hollywood companies such as Fox.

As an heir who gained the family's approval through her own abilities, she initially didn't take her stepmother Deng Wendi seriously. It wasn't until Ms's global user base recovered to 50 million that she began to pay attention to her stepmother.

The internal competition within the media group mainly revolves around Elizabeth and her two brothers, but the three parties have maintained a delicate balance of power, with Elizabeth's resurgence disrupting this balance.

As the internet's influence on the world grows, the importance of social media for media groups is self-evident. However, compared to established giants like Facebook and Twitter, even with 50 million users, MS may not be able to revitalize its user base.

Moreover, Ms's main user base is in Asia, which does not align with the media group's primary operating region.

But now that the number of users has exceeded 100 million, the situation is somewhat different. Although more than 70% of the users are still in Asia, and even 50% are in China, under the influence of the quantitative change, Ms may become the group's first new growth driver.

For media conglomerates, Asia is a gold mine with enormous potential, but it is also difficult and costly to mine, given the lessons learned by giants like Google and Microsoft.

But Ms. may now become a powerful tool for mining gold. Elizabeth took advantage of being a woman and found Deng Wendi to cooperate first, preparing to use Ms.'s channels to expand her business, whether in film and television or advertising.

Faced with Elizabeth's offer, Deng Wendi realized that Wang Yao's earlier mention of "playing cards" might have a chance.

Although Ms received $2.5 million in loans from the old man, this amount is far from enough for Ms to compete with Facebook and Twitter. However, if Elizabeth is willing to cooperate, things may take a new turn.

Unlike Deng Wendi, who is a mascot, Elizabeth has a board seat and considerable power in the media group.

After understanding the situation, Wang Yao reorganized the framework and finally asked Deng Wendi to invite Elizabeth to Shanghai for a visit and meeting.

Because Elizabeth had long been in charge of the English business, she possessed a typical English noblewoman's demeanor, which was affected and even somewhat rigid.

After visiting the MS platform's R&D center and learning about future version iterations, Elizabeth's expression became extremely serious.

"You mean that within the next year, music and video playback will be available on MS's app? Even Facebook doesn't have that feature yet?"

"Our feature is inspired by Facebook Video technology, but their single videos are capped at 60 seconds. Our MS platform is positioned around music + social media + UGC, so to complement the built-in music playback function, we've implemented audio up to 5 minutes long and short videos up to 30 seconds long."

However, due to hardware and network limitations, the video function is only in the internal testing phase, but the music function is already complete. Although the PC version's bullet screen interaction function has been removed, the core comment function has been retained," Wang Yao explained.

"So, you're still just following Facebook, right?" Elizabeth said, somewhat disappointed.

“I think there’s room for reference in terms of technical approaches, but there’s no clear order of precedence in terms of direction. Facebook is currently focused on text and image features, and is only exploring audio and video, while MS is already emphasizing them.” Wang Yao shook his head.

"So, this direction could potentially surpass Facebook?" Elizabeth raised an eyebrow slightly, looking at the overly young Chinese man with amusement.

When Deng Wendi introduced the boy, who was only slightly older than her daughter, as the mastermind behind Ms's revival, Elizabeth thought that Deng Wendi was keeping a gigolo on the side.

However, after spending time with Wang Yao, his understanding of Ms and his comments on industry development changed her opinion of him quite a bit. At least this boy was much better than those Ivy League young entrepreneurs in Silicon Valley who loved to talk the talk but not walk the walk.

Since the emergence of successful young internet entrepreneurs like Google and Facebook, the average age of Western entrepreneurs has dropped to around 20. As a result, Western investors have gradually changed their prejudice that "young people are unreliable" and have begun to listen to the voices of young people. After all, the internet belongs to the young.

"I wouldn't dare say we'll surpass them, but at least we can differentiate ourselves and gain a solid, stable base. As for how things develop afterward, it depends on the real needs of users. Just like two years ago, none of Google, Microsoft, or Apple dared to say that their system and approach would usher in the mobile era."

But after two years, the outcome is basically decided. The future of mobile devices will belong to iOS and Android, and other operating systems will be gradually phased out. Wang Yao chose the hottest industry at present as an example.

"Is Ms. iOS or Android?" Elizabeth asked with great interest.

"It's hard to say. The core of social media is people. There's an old Chinese saying: 'He who wins the hearts of the people wins the world.' It all comes down to who can better serve the users," Wang Yao shook his head.

"Deng, you've found an excellent CEO, congratulations!" Elizabeth turned to Deng Wendi and smiled.

"Congratulations to you too, Ms. is also part of the media group," Deng Wendi said with a light laugh.

“The era of print media is over. The internet has completely changed the way information is delivered and user habits are managed. We missed it once before, and we hope we won’t miss it again this time. Mr. Wang, is there anything I can do to help you?” Elizabeth smiled.

"This surge in the number of users on ChinaMS is a stroke of luck, something that can't be taken for granted, but it has already exhausted the entire budget of the China region. The biggest difficulty right now is, of course, funding. If we don't replenish the funds, even daily operations and maintenance will become a major problem," Wang Yao said solemnly.

Previously, Deng Wendi received 2 million dollars from the old man, of which 5000 million was used to purchase mobile services, 2000 million was used for the operation of the domestic MS version, and the remaining 1.3 million was used as a budget to sprint to hundreds of millions of users in East Asia by the end of the year.

The original plan was to invest 30% in film and television sponsorships, such as variety shows like "Sister Hua" and movies like "Playthings," 50% in online advertising for customer acquisition, and the last 20% in traditional channel exposure.

These plans were all aimed at the East Asian market, but unexpectedly, the domestic captain incident broke out. Wang Yao had already diverted 80% of the money the day before yesterday to complete the plan of reaching 100 million users ahead of schedule (because of the huge explosion in natural traffic, the actual cost was only 20%, and the rest was all the profit of Wang Yao, the middleman).

The remaining 20% ​​is only enough to keep the platform running until the end of the year, and Ms's advertising revenue is a drop in the bucket compared to the expenses. Without working capital, the promotion and marketing for the next three months will have to be put on hold. "The 2 million dollars are gone so quickly?" Elizabeth was somewhat surprised.

"Compared to the number of new users, the average customer acquisition cost is less than $4, which is already lower than the market cost. Facebook's customer acquisition cost is now at least $20 or more." Wang Yao shook his head.

"And what about the profitability?" Elizabeth asked.

"In the early stages of the platform, revenue mainly relies on advertising and music revenue sharing. However, due to the lack of stable large clients, advertising revenue is not yet sufficient to cover the company's daily operations," Deng Wendi said.

“The number of domestic users has surged in the last two days. The advertising revenue is still uncertain, but compared to the old Sina Weibo, each user is worth about $20 in net worth in the future, and the revenue scale is about $3000 million per year. Although the revenue scale is small, the valuation is already close to $10 billion,” Wang Yao said.

“Before I came here, I had someone assess the current valuation of Ms Group. Because of the unsatisfactory revenue, although the user data has exceeded 100 million, it is still only valued at less than 15 billion. Mr. Wang’s valuation of Huaxia Ms is a bit too idealistic,” Elizabeth said with a frown.

Ms. is considered to be in a bubble phase by investors because its main users are in Asia and its revenue and business model are not ideal.

“If Miss Elizabeth feels that China Ms is not worth this valuation, I can initiate an acquisition at this price,” Wang Yao said with a slight smile.

As soon as she finished speaking, a hint of surprise flashed in Elizabeth's eyes.

She knew that Wang Yao held 40% of Huaxia Ms's shares, but even so, the acquisition would still require $6 million based on this valuation. Back then, the media group only spent $6 million to acquire the entire Ms Group!

Essentially, if they sell it, the losses on MS can be largely wiped out, and they can also gain access to an overseas social media platform with nearly 50 million users.

She was surprised by Wang Yao's wealth and also by his high expectations and confidence in China Ms.

"Mr. Wang, are you so confident in the development of China Ms? As far as I know, Tencent, the social media giant in China, is also in the competition, and it's unlikely that local advertising revenue in China will be profitable in the short term. Or do you have other plans, Mr. Wang?" Elizabeth asked with some curiosity.

“Although China is still in a developing stage, I am very confident in the future market growth rate. Moreover, MS has the advantages of mobile terminals and music social media, which is likely to give it a head start, at least in China. In addition, with the support of my Tianhuo Entertainment Industry, we still have a revenue advantage.” Wang Yao smiled.

"The advantages of Ms.'s collaboration with the cultural and entertainment industry?" Elizabeth raised an eyebrow slightly.

Coincidentally, she is also very accomplished in the arts and entertainment industry.

"Ms' core users are entertainment enthusiasts. As long as we continue to exclusively sign some celebrities and rely on their fan base, we can basically guarantee user loyalty."
Furthermore, due to its focus on entertainment, all entertainment-related publicity and promotion will prioritize Ms. Elizabeth. Ms. Elizabeth should be aware of the annual scale of the entertainment sector.
Furthermore, considering the inherent commercial nature of social media, celebrity-related brand endorsements will also attract attention on social media. Our advertising market size is projected to exceed $1000 billion this year, with internet advertising accounting for $40 billion, representing an annual growth rate of at least 30%.

Ms has these two platform advantages that provide a strong competitive advantage, allowing it to capture at least 20% of the market. Its revenue is expected to stabilize at $10 billion in two years. Based on a 30% net profit margin, Ms will be a social media platform worth at least tens of billions in two years. Meanwhile, China, with the world's second-largest user base, has an uncertain future in ten years," Wang Yao analyzed.

"How large is Mr. Wang's entertainment company in China?" Elizabeth asked curiously.

"It's hard to say, but I think I could rank in the top five," Wang Yao said with a modest smile.

"Tianhuo has already controlled more than 30% of the cinema chains in China, at least in the top three," Deng Wendi said, raising the price from the side.

"Mr. Wang is indeed a man of great talent." Elizabeth was somewhat surprised, and as she looked at the constantly changing background data on the screen, she fell into deep thought.

Selling is definitely out of the question; the only question is what price to offer.

“Actually, I don’t really recommend internal financing within the media group,” Wang Yao interrupted Elizabeth’s thoughts.

"Oh?" Elizabeth raised an eyebrow slightly.

"Who is the most important person in the development of Facebook?" Wang Yao asked with a smile.

“Of course it’s Zack.” Elizabeth was taken aback.

“I think it’s an angel investor, Peter Thiel,” Wang Yao shook his head.

"You know Thiel?" Elizabeth was taken aback again, her expression becoming even more serious upon hearing the name.

“I am in charge of the future global expansion of Ms, so naturally I need to study the competitors. I don’t know Thiel, but I know that the PayPal system he leads has played a crucial role in the development of Facebook.”

Social media cannot exist in isolation; it must consist of at least three elements forming a cycle: the user base, the interaction mechanism, and the content ecosystem. Among these, the content ecosystem is the most important. Facebook itself is a content aggregator and distribution center, providing a platform for interaction mechanisms. Currently, the world's largest content ecosystem is built by two companies: portal websites and YouTube.

YouTube and Facebook are both part of the PayPal Matrices, and their mutually beneficial relationship is what attracts their main user base. While media conglomerates also boast the world's most influential content ecosystem, I don't think they necessarily surpass YouTube.

"If we want MS to have the potential to surpass Facebook in the future, we need to introduce another content ecosystem," Wang Yao said seriously.

"Google and Tooth Tiger?" Elizabeth instantly understood.

They even suddenly understood why Ms. sponsored the movie "Queen of Silicon Valley"—she wanted to introduce the ecosystem of portal websites.

“Google is too powerful. Bringing them in is like letting wolves into the house. Yahoo is currently in decline and its business is hollowed out, but they still control a lot of content ecosystem resources, especially in the Asian market.” Wang Yao nodded.

“I see. You want to bring in Yahoo so you can not only use its search portal resources, but also share their advertising resources.” Elizabeth narrowed her eyes.

Even though Yahoo's global portal market share is less than 10%, it is still the world's second largest portal website (Google has 80%+). Moreover, Yahoo has now outsourced its portal business to Microsoft and is responsible for advertising and marketing itself.

After investing in Ms, they can directly access YaHu's advertising resources, eliminating the cycle and risks of expanding their own business.

“That’s right. If Miss Elizabeth is willing to join, we can try the same operating model as Huaxia Ms., leveraging the celebrity resources of the media group to stabilize the basic user base of the entertainment industry. In this way, Ms. will have the support of two ecosystems, directly forming a self-sustaining cycle internally.” Wang Yao nodded.

“Mr. Wang’s thinking is very smooth. It seems that he has already put it into practice?” Elizabeth looked at Wang Yao meaningfully.

"Ms's biggest advantage is its early lead in the mobile market. I think this is another opportunity to overtake others, so I am very confident in Ms's future development. If you have time, I can invite you to a movie," Wang Yao extended an invitation.

“Oh? I rarely watch Chinese films. The last one I watched was ‘Crouching Tiger, Hidden Dragon’.” Elizabeth raised an eyebrow slightly.

She knew perfectly well that watching a movie wasn't for entertainment.

"I'd like to test the waters of this film in the European and American markets, and I hope you can help me with the approval," Wang Yao said with a smile.

“With pleasure.” Elizabeth chuckled.

An hour and a half later, Elizabeth was in the movie theater, lost in thought as she watched the scrolling credits.

(End of this chapter)