For capital, enough concepts and prospects equal enough value. Li Mu has experienced the golden period of rapid development of the Internet industry for more than ten years, and has a very deep understanding of this truth.
It is based on this understanding that he knows how to create a win-win situation in front of capitalists, whether it is a double win or a triple win, as long as the trader's pattern is large enough, the vision is far enough, and the control is firm, everything can be achieved.
The concept Li Mu gave to Google is: the world's largest search engine, non-Chinese search engine, the undisputed No. 1 in any language field, and there is no opponent in the world, the only one who has the ability to defeat it is Makino. Technology has also become its godfather. With Makino Technology as its backing, no Microsoft, Yahoo or any other company can threaten Google's status. Google will become invincible in the field of search engines. ;
The concept Li Mu gave to Baidu is: the world's largest Chinese search engine is also backed by Makino Technology. Even Google cannot have a substantial impact on its core business. It will be divided between Google and Makino Technology. Peacefully coexisting under the coordination of Google, this will ensure its position in the Chinese search engine. Compared with before, the prospects are brighter now, and it owns 3.33% of Google's shares, which is a huge increase in its own market value. Supplement, it seems that although Baidu may lose future overseas markets, the capital market does not expect it to seize overseas market resources from Google. In the view of the capital market, Baidu can hold on to the Chinese search market. Already the greatest success;
The concept that Li Mu left to himself is: Makino Technology has become a shareholder of the world's two largest search engines, locking in the dividends of the search engine market in advance. In the next ten or twenty years, a considerable part of Google and Baidu's mission is to replace Makino Technology. To make money, Li Mu did not pay any substantial price for this. He just sent the search needs of his users to Google and Baidu respectively. For Li Mu, this is not a loss of resources, but a loss of resources. in-depth development;
Three different companies, three completely different but not conflicting with each other, and can form complementary concepts, which lays the foundation for the three companies to form a win-win situation in the capital market, which is hugely attractive to capital.
Soon, the capital market conducted an in-depth analysis of Google’s acquisition of Muye & Baidu. Their estimates of Google’s prospects were almost the same as Li Mu’s, and even more optimistic than Li Mu’s. They believed that Google’s valuation could reach 100% by the end of the year. A high of 20 billion US dollars, and doubling it in the next year, followed by an IPO, will definitely not encounter any resistance.
And their estimates of the prospects of Makino Technology are even more optimistic, because Li Mu's current "godfather" status has begun to be highlighted on a global scale.
Makino Technology owns shares in two search engines, Baidu and Google, and controls traffic and user retention at the source. Even if Makino Technology itself does not engage in any search engine business in the future, the dividends from this area will have been steadily reaped. Based on the capital market's estimates of the prospects of the search engine market, Makino Technology may create a market value of hundreds of billions of dollars in the future just by relying on these shares.
It’s terrifying to think about.
Let’s not talk about the businesses we own. The businesses we hold shares in alone have the potential to be worth hundreds of billions of dollars. Companies like Makino Technology are already giants in the Internet industry.
Because of this understanding, the capital market's valuation of Makino Technology has exceeded US$100 billion. If Makino Technology decides to conduct a new round of financing now, the capital can provide at least US$12 million. If Li Mu plans to conduct an IPO next year. As long as it is announced, capital will definitely give a higher premium in order to catch up with the last chance, not to mention US$150 billion.
Without being tricked by Li Mu, Google's valuation has fallen to within the 5 billion range, and may continue to decline in the future;
After being cheated by Li Mu, Google's valuation can not only return to more than 10 billion, but may also exceed 40 billion next year. This huge contrast has given those doers and technology geeks a huge stimulus.
Capitalists' renewed optimism about Google's prospects made these doers and tech geeks suddenly realize that capital operations were not addition in their minds, but multiplication like Li Mu's. Originally, this seemed like a big loss for Google. Because of Li Mu's operation, Google gained huge benefits after it was actually placed on the capital market!
Google's "lucky experience" has made many companies look forward to joining Li Mu's ecosystem and becoming the next Google by sacrificing part of their equity.
After YY landed in the United States with the momentum of a dragon crossing the river, Paradise Town and Plants vs. Zombies swept the world like a storm, YYtunes integrated music lovers around the world, and Apple was acquired by Makino Technology, Li Mu once again It shocked the entire Silicon Valley and Wall Street.
This time, Li Mu used the conspiracy left by his Chinese ancestors to stage an unparalleled capital show operation in Silicon Valley and Wall Street.
Every day, the capital market hears about conventional operations such as acquisitions, mergers and acquisitions, investments, shareholdings, splits, mergers, etc., and also hears about unconventional operations such as monopoly, malicious competition, and malicious mergers and acquisitions. However, the "malicious mergers and acquisitions" involving huge amounts of money "Events rarely occur in the world's capital markets.
Li Mu made Google finally accept the acquisition of Muye & Baidu. Inc at a huge price. In fact, he successfully executed a textbook case of "malicious merger and acquisition".
Reports about this merger and acquisition in Silicon Valley and Wall Street filled almost all the front pages, but everyone's opinions were seriously divided. One side felt that Li Mu's operation was unparalleled and impeccable, and could even be regarded as a classic case and written into financial textbooks. , the other side feels that Li Mu's operation really sets a bad precedent for the capital market. In the future, such "malicious mergers and acquisitions" may appear one after another.
However, a report in the Wall Street Journal analyzed Li Mu’s approach from another perspective. The author of this report was signed Rui-Liu, who seemed to be a Chinese or Chinese. He commented on Li Mu in the article. "Malicious acquisition":
"Westerners have their own philosophy of life, and so do Easterners. There are huge differences between the two cultures, which makes it difficult for Westerners to learn Easterners' strategies, and it is also difficult for Easterners to learn Westerners' logic. , especially the Chinese people. From the generation of their ancestors, they have always paid attention to planning before taking action. This makes the Chinese people's routine of doing things much more complicated than that of Westerners. In the eyes of Westerners, there are only one or two solutions to things. , in China, there will be many solutions due to strategy."
"The most representative of these is the solution to debt. In the West, there are basically only two solutions to debt, either to pay it back or not to pay it back. In the eyes of Westerners, there is no third solution to this kind of thing. plan, but in China, there are countless solutions to this kind of thing. For example, Li Mu's "malicious acquisition" of Google is not common in the West, but in China, especially among the Chinese people, such cases happen almost every day It’s all happening.”
Rui-Liu gave an example to Western readers in the article: "Suppose A and B are business partners, and A owes B half a million yuan, but the two parties still cooperate, and the amount of cooperation and the profit generated are far greater. When the debt exceeds 500,000, B's appeal for the 500,000 yuan debt will become weak and lack confidence, unlike Westerners who do business, where all accounts are sorted out and one code is included;"
"Although A will not directly let go of the 500,000 yuan debt, he will try hard to come up with a solution that is more suitable for him. At this time, he thought that he happened to have an Audi A6L that he had been driving for five years. This car When the car was purchased in China five years ago, it was just 500,000 yuan, but the current market price is only 200,000 yuan at most, so he said to B: Sorry, money is a little tight recently, and it is not convenient to pay the 500,000 yuan debt at the moment. You, but my A6L was paid for 500,000 yuan, how about you drive this car away and we can settle the account."
"What A really wants to release to B is: You can either accept this car to offset the debt of 500,000 yuan, or you can wait indefinitely, and you may not get a cent of 500,000 yuan in the end. Such a solution is It is incomprehensible and unacceptable to Westerners, but in China, most people like B will choose to accept this apparently inappropriate deal, because to them, it is not only harmonious, but also The best solution to recover losses as much as possible;”
"So, the final practical solution to this debt is: A gives B a car worth only 200,000 yuan at most, offsetting his and B's debt of 500,000 yuan. It seems that A is very shameless, but it must not be Deny, this is indeed a legal transaction between you and me. From this point of view, A is successful. He successfully settled the debt of 500,000 yuan with the actual value of 200,000 yuan. This is the relationship between the Chinese people. A common 'malicious acquisition'."
This article aroused great repercussions in Silicon Valley and Wall Street. Many people are discussing the cases mentioned in the article, discussing this Eastern strategy, and using it as a standard to measure Li Mu's "malicious acquisition" this time. Many people were surprised to find that Li Mu’s method of selling Muye & Baidu to Google was very similar to Rui-Liu’s use of cars to pay debts mentioned in the article. They both used strategies to act rogue reasonably, and used tactics instead of Use violence to make the other party willingly accept a cooperation that is obviously unreasonable and unfair.
But there is another paragraph in Rui-Liu's article that is highly recognized by Western elites. He said: "In fact, any business transaction is strictly speaking unfair. The actual material cost of a bottle of Coca-Cola may be only a few cents, but Is it fair to sell it for almost one dollar in the United States, a gap of dozens of times? Is it fair for a middleman to purchase a certain product from a supplier for $1 and then sell it to users for several dollars?"
"Since Coca-Cola can sell half a gallon of water mixed with sugar and other additives for three dollars, why can't Li Mu sell a company worth ten million dollars for several billion dollars?"
(End of chapter)