The Millennium Semiconductor Survival Guide.

Chapter 39 The Loser in the Game Field

"Jerry, what do you think?

There needs to be a proper solution to this matter, and the speech cannot be allowed to ferment further.

Games are only part of Yahoo's overall Internet service strategy, and Yahoo's mailbox and portal are the more important part.

We cannot cause users to vote against Yahoo's other products because the game community affects the reputation of the entire Yahoo. "

Abel Garcia, senior vice president of Waddell &. Reed, one of Yahoo's largest shareholders, has been tracking the investment in Yahoo and has a unique understanding of Yahoo.

It is also the largest supporter of Yahoo within Waddell &. Reed's company.

There have been voices within the company to sell Yahoo, because Yahoo's price-to-earnings ratio at this time is 300, which far exceeds the normal valuation.

Later generations know that this was caused by the Internet bubble, but people in it all take it for granted that Internet companies have high valuations.

It's as if stockholders of Big A are accustomed to the dynamic price-earnings ratio of more than 1000 for so-called good growth companies.

Yang Zhiyuan smiled bitterly: "We are currently planning to attribute the responsibility for this matter to a certain executive who made his own decisions.

After the president is fired, I will come out and apologize publicly.

Subsequent guarantees will not have similar behaviors. "

Abel agrees: "It's a very conventional solution.

This can stop the situation from further escalating, but it will not help to reverse our image in the minds of users.

It's scary when an Internet company loses its cool image.

Yahoo is far from reaching the position of Microsoft, which can treat users arrogantly relying on its monopoly position.

Even the portal, there are countless challengers are coveting Yahoo's throne. "

In the eyes of Abel and Jerry Yang, Microsoft is their biggest competitor. Relying on the monopoly advantage of the operating system, Microsoft forces Internet Start to be the default home page of IE browser.

Google is just a little-known player at this time.

Internet Start was the predecessor of msnbc.com, and later msnbc.com split into two, becoming MSN and NBC.

The subdivision of Internet services now makes it difficult for users to understand the status of portal websites around the millennium. At that time, the status of portal websites was similar to the combination of Tencent and Baidu.

Because the most mainstream communication software at that time was mailbox, the portal website integrated a series of services such as email, calendar, instant message, blog and music.

"I can understand your thoughts.

The reason why Microsoft can't compete with Yahoo on the portal is that even if their portal is the default homepage of IE browser, users will adjust the settings immediately.

Change the default home page to Yahoo.

Because users think that Microsoft can't provide good Internet services, but is it really the case?

There is no essential difference between the Internet service provided by our portal website and the Internet service provided by MSN.

Users will subconsciously choose Yahoo because of the corporate image built by the Yahoo brand.

The basis of our survival is that users recognize us, just like consumers recognize clothing brands.

An apology isn't enough, we need new original products that are cool enough to reshape Yahoo's image. "

Abel agrees with Jerry Yang's point of view. Waddell &. Reed will invest in Yahoo. His point of view is: For Yahoo, we cannot measure its importance like the relationship between price and sales. We must regard it as a 21 The new media company of the century.

Portals are indeed a new type of media company in the 21st century, but Google and Facebook survived the first 21 years of the 20st century, not Yahoo.

“Yeah, the question is what kind of product do we need to reshape the image?

Do you have a solution in-house? "

Yang Zhiyuan took a serious look at the other party: "We can acquire Riot Games.

After careful analysis, Riot Games is definitely a very high-quality company.

They currently have more than [-] games on sale, and our internal survey shows that more and more game makers are willing to use Riot Games as one of their game distribution options.

Game publishing and game communities have formed a perfect closed loop.

It's the coolest company in the gaming community right now.

We can buy it, and its founder, Newman.

Newman is a top product manager, if he joins Yahoo, Yahoo will be injected with new vitality. "

Abel said helplessly: "Of course I know the value of Riot Games.

Our current internal valuation for it is $10 billion.

The problem was that Yahoo didn't have that much money on its books.

If you want to acquire Riot Games, you must pay a certain premium on the basis of US$10 billion.

If there is only Newman behind the fist game, we may only need a small premium to convince the other party.

But behind it is Bill Gates.

Bill Gates won't let Yahoo buy Riot Games.

The idea is unrealizable. "

"We don't necessarily need to use cash to buy, but through the method of share replacement.

Use Yahoo's shares to replace the fist game shares in Newman's hands, so as to achieve the purpose of acquisition. "

Abel nodded and said: "This is just an alternative and cannot be the best solution.

I still feel that the other party will not agree.

In other words, the price that Yahoo can offer, Microsoft will only open higher. "

Yahoo has never been tired of acquiring other companies since it went public.

Yahoo acquired a company called ClassicGames.com last year. This website mainly deals in online chess and card games, just like the early Lianzhong online chess and card platform. ,

In other words, the products of the early Huaguo Internet can find corresponding prototypes in American.

After the acquisition of ClassicGames.com, Yahoo changed its face on this basis and became Yahoo Games.

However, the bottleneck of online chess and card platforms is limited. The audience of chess and card games is relatively fixed, and there is no room for the development of electronic communities at all.

This has also led Yahoo Games to be both an online chess and card platform and an electronic community.

Yahoo’s behavior made the original ClassicGames.com users very dissatisfied, because they thought that Yahoo made ClassicGames.com no longer pure, and it was full of too many strange speeches and inexplicable users.

After the Yahoo plagiarism incident broke out, the original ClassicGames.com users even wrote a song to mock Yahoo games: "Yahoo's loser in the field of games".

Yang Zhiyuan sighed, "Actually, I had already talked with Newman before Bill Gates invested in Riot Games.

Expressed hope to acquire Riot Games.

It's just that Newman only accepts investment and does not accept acquisitions.

This matter is over.

As a result, it didn’t take long to hear about Bill Gates’ investment in Riot Games. At that time, if I also chose to invest instead of acquire, Yahoo would have a chance.

Now besides acquiring Riot Games, we have alternatives. "

　Sorry, I was delayed by something in the morning. This chapter was added yesterday, and I will update two chapters tonight.

　　
　
(End of this chapter)