Chapter 52 52. Running fast

  There is a parable in the Bible "New Testament · Matthew Gospel":

  Once upon a time, a king was going to go on a long journey. Before leaving, he handed three servants a coin each, and said: "You go to do business, and when I come back, come see me again."

  When the king returned, the first servant said: "Master, I have earned 10 coins for the one silver you gave me."

  So the king rewarded him with 10 cities.

  The second servant reported: "Master, I have earned 5 coins for the one silver you gave me."

  So, the king rewarded him with 5 cities. The third servant reported: "Master, the one silver coin you gave me was always wrapped in a handkerchief. I was afraid of losing it, so I never took it out."

Therefore, the king ordered that the third servant's 1 silver coin be rewarded to the first servant, saying: "Anything that is small, even what he has, will be taken away. Anything that is too much will be given to him, so that the more is better. ."

  This is the origin of the very famous Matthew effect.

  The Matthew effect, also known as winner-takes-all, is particularly evident in the economic field.

  Since the outbreak of the Bomi game, the current Bomi has become a favorite of capitalists. Many people look for venture capitals that are not always available, and rush to call Bomi every day.

  Some venture capital salesmen even went to visit and stayed at the elevator entrance. Whether the business can be negotiated is of secondary importance, and some people just want to have a good relationship with Cao Yang first.

  From October to November, Cao Yang was in an overloaded operation mode. He had to receive many investors every day. At the same time, he had to carefully screen the capital and deal with some bad-hearted friends.

  In short, at night, Cao Yang just wanted to sleep when he got home.

  Sometimes Cao Yang feels that capitalists are really not human beings. When a successful boss does not have a strong physique and energy different from ordinary people, it is easy to be squeezed out and lead to premature decline.

  Now Cao Yang has a similar feeling. It turns out that he enjoys spending time with Pei Siqing at night, and now he has to avoid her as much as possible.

  It's not for anything else, just don't want her to see her haggard appearance. (I believe you a ghost.)

   Pei Siqing sometimes called, and his tone was a bit wronged, worried about whether Cao Yang had another woman outside, how could he suddenly neglect himself?

  There is no way, Cao Yang can only do his best and work hard.

  Seeing Cao Yang collapsed, Pei Siqing was also very distressed.

  ...

  IDG restarted valuation, 7 days later, on October 22.

  At the shareholders' meeting, Cao Yang and Xiong Xiaoge sat in the meeting room together to listen to Xiao Ma's explanation of the financial report for the past six months.

  On the other side of Xiangjiang River, Li Zekai didn't want to waste time at all, so he entrusted a supervisor of an investment department to come over.

  In fact, Penguin’s accounts are clear at a glance:

  I have been losing money since April.

  Among them, only some of the project investment amounts given by Bomi are renewing their lives.

  But company valuation is actually to estimate how much the company is worth now and in the future. A company that does not make money but loses money can be calculated with your toes, and how much it is worth.

  If you continue to lose money like this, the valuation will fall even more.

  Current valuation, it’s clear and **** to look at the financial report. Xiong Xiaoge just turned a few pages and couldn’t bear to read it.

  Everyone is a shareholder. You know the operating conditions of Penguin, and no one can fool anyone.

  So the main contention here today is the future valuation of the company, that is, the potential valuation.

After Xiao Ma finished speaking, he looked at several investors with some guilty conscience.

  Xiong Xiaoge has a sad expression on his face. Before Cao Yang made it clear that he would repurchase IDG’s equity in Penguin, he hoped that the valuation would be higher, so that he could also charge some more investment costs back, so that he would not be overwhelmed.

   While Cao Yang appears to be laid back and relaxed, his position is just the opposite. The lower Penguin’s valuation is, the more favorable it is for him to repurchase IDG's equity at a low price.

  The focus of the dispute between the two sides is actually the judgment of Penguin's future potential.

   "So, what is the core value of Penguin now?" Although Xiong Xiaoge didn't want to discuss things that everyone knew, he had to ask, because he earns a little bit.

   To put it plainly, the potential of an enterprise depends on the confidence of the capital in it. This thing requires data support, but it also has a certain degree of subjectivity.

  Bomi and IDG are now competing for subjectivity.

   "We have a large number of users, and the number of users now exceeds 60 million. This number will be even more in the future." Xiao Ma still moved this set of rhetoric out.

  The number of users is an advantage, but also a disadvantage, which means that you need to invest more operation and maintenance costs.

  Especially the recent account hacking incident, which really made the Penguin really frustrated.

  Penguin stores the chat records of many users, which is not only a huge expense, but also means that once user data is leaked, Penguin will face a very dangerous situation.

  One day in the future, Yahoo will withdraw from China because of user data leaks.

  So Cao Yang still attaches great importance to this area and has invested a lot of manpower to improve data security protection.

  In this way, the loss becomes more serious.

  It’s a miracle that Penguins can survive to this day.

   "However, without seeing a profit model, the increase in the number of users can only mean more consumption and losses." Cao Yang took over Xiao Ma's words.

"Forehead…"

  As the founder of the company, this has always been a pain in Xiao Ma's heart, but he is really unable to refute it.

  Xiong always frowned fiercely.

  "How does Penguin want to make money in the future?"

  Little Ma was stunned on the spot.

  In what way can Penguin make money, don’t you know?

  It’s just Mr. Xiong who has played back and forth here. I don’t know how many times. He still has not been able to get out of the predicament. Do you still have the face to ask?

  However, even though Xiao Ma is in his heart, he still has a good face. In fact, Xiao Ma knows very well that today he is just an intermediary, because the big players in the competition are Cao Yang and IDG.

  He can only bite the bullet and explain, "Having users means having a market. We have thought about many effective ways to monetize, but it will take time to improve..."

  So he continued to repeat the previous theories and future concepts according to the script.

  After 4 hours of [interrogation] in the morning, both Cao Yang and Mr. Xiong fell into silence.

  But this is the norm. On the contrary, as Cao Yang had a pleasant talk with Xiao Ma before, it is rare that the matter of equity transfer can be settled through one or two meetings.

  It all depends on the timing.

   "Let's go, let's have dinner. I'll treat you." Cao Yang stood up and invited several managers and Penguin's supervisors downstairs for dinner.

  After dinner, everyone continues to plate.

  Cao Yang is actually not so anxious now, and his mentality is completely different from when he ate the Xiao Ma team. At that time, he was anxious to take part. Now that he has the initiative, people are more relaxed.

  This war, for Cao Yang, is a little bit more advantageous—

  The longer you drag, as the number of Penguin users continues to increase, the more losses will be, which is actually more detrimental to IDG.

  Because the lower the valuation becomes later.

  This is almost the case in the next week. There are more than a dozen meetings over and over again, all of which are see-saws in terms of valuation.

  It wasn't until the end that Mr. Xiong couldn't stand it, and everyone reached a unity.

  The final valuation of Penguin is 20 million, which has shrunk by more than 70% when IDG acquired Penguin's equity.

  Cao Yang only needs to pay IDG 4 million to repurchase the Penguin equity in their hands.

  To be honest, Xiong Xiaoge is distressed.

  But it’s better than getting rid of the water completely.

After signing the agreement, Cao Yang and Mr. Xiong breathed a sigh of relief.

  Looking at the clear sky outside, Xiong Xiaoge showed a rare smile in the past few days.

   "Mr. Cao, I am still optimistic about you. One day in the future, Bomi wants to raise funds again. Please inform me as soon as possible. The price IDG will offer will definitely satisfy you."

   "It must be." Cao Yang hugged each other.

  ...

   After Cao Yang acquired IDG’s equity in Penguin, Li Zekai soon got the news.

  4 million is a drop in the bucket for Li Zekai, but he really admires Cao Yang and IDG.

   "Go on, IDG runs very fast."

  ...

  ————————————————————————

  Seeking collection, investment, rewards, recommended tickets, monthly tickets

See you tomorrow.

  Thank you all.

  Recommend a friend's book:

   "My Empire War Game"

  (End of this chapter)

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