As the promotions for daily necessities were progressing rapidly, Liu Shixiong left Beijing and started to run around setting up a logistics base for Taobao Logistics.
Lei Jianguo, who had attended a Taobao meeting, was looking forward to joining the Taobao team as soon as possible. Hence, he was busy pushing forward the acquisition of Zhuoyue by Taobao.
What was gratifying was that Jinshan and Lenovo had reached a consensus and were willing to sell according to Li Mu's offer. The next step was the asset audit before the acquisition and the transition of the team. Hence, while Lei Jianguo was waiting for the audit to be completed, he reassured his old team. He told them not to worry. Even if the company was sold to Taobao, they could still continue working in their original positions. Moreover, Taobao had promised to increase the salaries of the employees of Zhuoyue by 20%. This was not because Taobao valued this team. It was because the salaries of the employees of Taobao were much higher than those of Zhuoyue. Even if they increased their salaries by 20%, it was not enough to make up for the difference in salaries.
After a few days, Makino Technology, who had released news that it wanted to acquire Series C, started to receive letters of intent from various venture capital firms. Ding Zhenglin, who was poached by Li Mu from Sequoia, resolutely carried out Li Mu's request. All the venture capital firms that valued Makino Technology at less than 10 billion were rejected by Ding Zhenglin.
What was a rejection? It meant that when Ding Zhenglin saw the letter of intent from the other party and saw that the valuation was less than 10 billion, he would close the letter of intent without hesitation and return it to the other party. He would then say expressionlessly, "I'm sorry, Makino Technology will not consider accepting your company's financing."
The other party was confused by Ding Zhenglin, and Ding Zhenglin immediately told him the reason. "I'm sorry, our boss said that we will reject any firm that offered less than 10 billion."
When the other party heard this, he immediately said, "Then let's go back and meet again to make another letter of intent."
"There's no need." Ding Zhenglin's expression was firm. "Our boss said that if the offer is less than 10 billion, there is no need for further discussion."
The other party was dumbfounded. After a long while, he realized that his conservative offer had caused him to completely miss out on Mu Ye Technology's Series C financing. In fact, they also had Plan-B and Plan-C as backups. The other backups were constantly increasing in price, but because they wanted to be lucky, they wanted to offer a lower offer first. If the other party refused, they would come up with a second back-up plan and increase the price bit by bit.
However, they had never expected that Muye Technology would be so powerful. Once the price was too low, they would be out of the game without giving themselves a chance to make up for it.
With the rejection of many companies that offered less than 10 billion yuan, Muye Technology's high-profile also caused a huge shock in the Internet industry. Based on the current development of the Internet industry in China, there was no one else but Muye Technology that could be so domineering in the face of capital.
As a result, everyone reached a consensus: in the Hua Xia Internet industry, there was no one else other than Makino Technology who could be so arrogant in the face of capital.
Therefore, everyone reached a consensus: in the Hua Xia Internet industry, there was no one else but Li Mu who could treat capital like a grandson.
Just as Li Mu was being talked about in the industry, the people of Sequoia were rejoicing. They were rejoicing that they gave Makino Technology a price of 13 billion.
The reason why they gave a price of 13 billion was that Sequoia had carefully analyzed the current influence of Makino Technology. The part with the highest valuation was naturally YY. This was a god-level product that dominated the entire Hua Xia Internet. At present, almost every computer in Hua Xia that was connected to the Internet had installed the YY client. There was absolutely no one else in Hua Xia that had such a high coverage rate.
Other than YY, Makino Technology's second biggest products were Tieba and YY portal. These two were web products, which were also page products. They did not have clients, but their traffic was very high. Needless to say, Tieba. After a year of operation, Tieba had become the largest Chinese community in the world. Not only did it gather a large number of Chinese users, but most importantly, it also gathered a large number of Chinese celebrities. In particular, the celebrity Tieba could gather the resources of celebrities to such an extent. It was really amazing at the moment. It felt much more influential than Sina Blog in the future, second only to Sina Weibo.
YY portal started late, but with YY as a huge source of traffic, its traffic grew rapidly from the first day it was launched.
After Li Mu took over Hao123 and completely integrated into YY123, he almost blocked the traffic of the entire navigation website. All the news modules on the navigation website were links to YY. A large part of the traffic of other websites was cut off, and all of it was used to subsidize YY. Therefore, YY's traffic ranked first among the Chinese websites, surpassing the traffic of the three old portals, Sina, 163, and Sohu. As for Baidu, it had not yet entered the top five Chinese websites.
Overall, in the eyes of Sequoia, the most valuable parts of Makino Technology were these three sections. As for the YY game lobby and Happy Farm, in their opinion, although they were very good products, they did not have much room for development. Although YY game lobby and Happy Farm's top-up revenue was not low, Sequoia felt that they were just two games that made quick money. Therefore, when they calculated the valuation, they estimated it to be ten times the revenue, which was a very low proportion of the 13 billion yuan valuation.
In addition to Sequoia, several other venture capital institutions also gave a valuation of more than 10 billion yuan. What surprised Li Mu the most was that Japan's SoftBank also gave their price, which was as high as 15 billion yuan.
Sun Zhengyi actually wanted to invest in Makino Technology, which surprised Li Mu. However, after thinking about it carefully, this person was considered one of the most powerful investors in the Internet industry. He was the one who invested in Boss Ma, and he also invested in many other Internet companies in Hua Xia. In the words of CCTV, he was considered an "old friend" of the people of Hua Xia.
After getting the quotations from almost all the venture capital institutions, Li Mu held an internal meeting in Makino Technology. At present, a total of five companies had quoted more than 10 billion yuan for Makino Technology. Among them, the highest price was SoftBank with 15 billion yuan, and the second was Sequoia Capital with 13 billion yuan. As for the remaining three companies, two quoted 12 billion yuan, and one quoted 10 billion yuan.
For Li Mu and the other employees of Makino Technology, everyone could basically reach a consensus in a very short period of time. That was, the financing this time must be from SoftBank and Sequoia.
It was not only because of the high quotations of these two companies, but also because these two companies were top venture capital institutions. Whether it was capital strength, ability in the capital market, or background, they were extraordinary.
Needless to say, Sequoia was one of the world's largest venture capital institutions. It had invested in a large number of companies, big and small, including many big names. It was also a veteran US venture capital with a deep foundation in the US capital market. In contrast, except for the slightly lower quotation than SoftBank, it was a bit stronger than SoftBank in other aspects.
As for SoftBank, putting aside its nationality background, this was indeed a very powerful company. SoftBank had invested in a large number of Internet and electronic hardware companies, many of which had been successfully listed in the US. It was also very strong in the US capital market. However, Li Mu was somewhat disgusted with Sun Zhengyi's nationality, but reason also told him that there was no need to be a nationalistic youth in the capital market. Both the US and Japan had a large amount of hot money in the international capital field. It was basically impossible to completely avoid Japanese capital in the international capital market. Moreover, SoftBank's quotation was a full 2 billion yuan higher. This was absolute confidence and affirmation of Makino Technology's future.
Just as everyone expressed their views, and as Sequoia and SoftBank expressed their own opinions, Li Mu set the tone. "First of all, you don't have to consider whether to choose Sequoia or SoftBank. That's because it's still at the stage of their quotation. We haven't started negotiations with them yet. There's no reason for us to decide how much they want. We actually want more."
When everyone nodded, Li Mu continued, "Secondly, we have to first figure out how much the current business segments of Makino Technology are worth in the eyes of the capital. YY, YY Net, and YY Game Hall are directly subordinate to each other, so there's no way to separate them. However, other products can be separated, such as Tieba and the YY Game Division. So when we really sit down with the capital and talk, we have to separate them all."
Lin Ching-ah asked Li Mu, "Li Zong, do you mean that we should split them up before financing?"
Li Mu said, "Whether we split them up or not depends on how much they value them respectively."
After a pause, Li Mu made an example. "Take Sequoia for example. They've given us a valuation of 13 billion. This is the overall valuation they've given to the entire Makino Technology. But if they think that Tieba is not worth much, out of this valuation of more than 10 billion, they think that Tieba is only worth 1 billion. If we think that Tieba is worth more than 1 billion, then we can split Tieba. We don't want this 1 billion valuation. I'll take out Tieba alone. You can give the remaining 12 billion valuation to Makino Technology minus the Tieba portion."
Lin Ching-ah nodded gently and said, "I think that a considerable part of the valuation given by the capital is given to YY."
Ding Zhenglin also said, "Boss Lin is right. According to the analysis of the routine of the venture capital, what they value the most is the direct ecology of YY, not Tieba and Happy Farm. After all, YY has a lot of room for imagination. With YY's current market share and development trend, the venture capital must have great confidence in its development in the next five years or even longer. In the valuation given, YY definitely accounts for the majority."
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