Chapter 218 My upper limit is 12.4 US dollars, special machines for 360 and Huawei!
Cheng Congwu and Lei Yijun are fellow villagers. Both of them were born into small-town test-takers and rose to high positions step by step.
After graduating from graduate school, he joined a state-owned enterprise and went into business in 1994. After more than ten years of hard work, he finally gained a foothold in the field of digital maps.
In fact, AutoNavi has three founders. Before Cheng Congwu took over as CEO, the person in charge of the company was former CEO Hou Jun. However, on the eve of the listing, there were constant infighting among the three.
Finally, in order to ensure the company's smooth listing, Hou Jun took the initiative to step down from the position of CEO.
Cheng Congwu successfully took over the position and recruited a group of professional executives from outside, sidelining the other founder.
Thanks to his super strong tactics and interpersonal skills, he was able to securely sit on the position of CEO of AutoNavi.
However, when the PC Internet transformed into mobile Internet, AutoNavi's development was not satisfactory. It was like a herdsman entering the ocean age. Although he had good capabilities, he had no place to use them.
From 2011 to 2012, the stock price of AutoNavi Map hovered around 12 US dollars for a long time, and fell to 11.4 US dollars per share after the new year.
To put it bluntly, Cheng Congwu was originally a financial investor and his ability in business development was not outstanding.
At least it cannot meet the current development needs of Amap.
Therefore, when Liu Zhiping came forward to tell him that Chen Yansen of Senlian Capital was planning to make a strategic investment or acquire AutoNavi in full, Cheng Congwu agreed without hesitation.
While he was looking at Chen Yansen, Chen Yansen was also secretly observing Cheng Congwu's expression and the other's subtle body movements.
"Stop standing there, sit down and talk slowly."
Zhang Chaoyang pulled Cheng Congwu and Chen Yansen to sit down.
His assistant tactfully walked out of the private room and signaled to the waiter that the dishes could be served.
As the first godfather of the Internet, he can even say without exaggeration: "He knows the CEOs of China's top 500 companies."
This is true!
Although he and Cheng Congwu didn't have much communication in front of the stage, they were both in the Yanjing business circle and often went out for drinks together in private.
This is also the reason why Liu Zhiping chose to bring him along.
"Mr. Cheng, please take a seat!" Chen Yansen said with a smile.
Cheng Congwu smiled slightly, then sat down, not forgetting to say hello to Liu Zhiping.
Investment and acquisition may seem high-end, but in fact the core process of the transaction is similar to buying groceries, with no essential difference.
Chen Yansen wanted to buy at a low price, while Cheng Congwu wanted to sell at a high price.
As long as we can find a balance that satisfies both parties, the deal will be done.
Gao Weilin and Song Yuncheng sat on the left and right sides of Chen Yansen respectively, smiling throughout the whole process. When there was no need for them to talk, they remained silent.
After a while, plates of exquisite cold dishes were served.
As the middleman, Liu Zhiping took off his coat, picked up a bottle of wine and filled the glasses for several people.
"Mr. Cheng, I think you should be aware of the purpose of Senlian Capital's visit. I would like to hear your thoughts on the sale of AutoNavi."
After three rounds of drinks, Chen Yansen put down his glass and asked straight to the point.
Currently, the three major shareholders of AutoNavi are Hou Jun, Cheng Congwu and Xiao Jun. If Cheng Congwu is too greedy, he will skip this person and communicate directly with Hou Jun and Xiao Jun.
After all, the three of them had fallen out a long time ago, and in terms of shareholding ratio, Hou Jun was the largest shareholder.
Here we come!
Cheng Congwu was startled, realizing that they had finally gotten to the point. Of course, he also had the idea of selling, otherwise he would not have come to the appointment.
"I have no objection. As long as Mr. Chen's offer can impress me, AutoNavi can carry out privatization and delisting at any time and become a subsidiary of Senlian Capital."
Cheng Congwu shrugged and said nonchalantly.
Before the mobile Internet entered its golden period of development, many entrepreneurs felt that the PC Internet would eventually come to an end, but no one could say for sure whether this decline and transition period would last five, ten or twenty years.
But from Cheng Congwu's perspective, the B2B business (in-car navigation) is becoming more and more popular, while the B2C business has not improved. Instead of wasting time, it is better to realize the business early.
You should know that in 2012, electronic maps and navigation software were separate. The maps themselves were free, but the navigation function required payment.
AutoNavi’s charging standard is 50 yuan, Qiandu’s is 30 yuan, and Carlife’s is as high as 108 yuan.
But what is the core of the Internet model? Free!
Therefore, whether it is Qiandu Map or Amap, their performance in the B2C field is difficult to describe in a few words.
Most drivers would rather use a physical map than pay for electronic navigation services.
"What price does Mr. Cheng want?"
Chen Yansen smiled faintly and kicked the question back.
After he sold Fox Tao to Ali and cashed out 12 billion yuan in cash, he did not spend much money except for purchasing shares of Dongfang, investing in Orange Mobile Factory No. 3 and Kuaipao.
Orange Technology raised US$1.35 billion from DST Capital, and Pinbei raised US$300 million from Penguin Capital, so there is no need for Senlian Capital to continue investing money.
So for Chen Yansen, the funds in the account were more than enough to buy AutoNavi.
Cheng Congwu narrowed his eyes, looked at Liu Zhiping and Zhang Chaoyang, thought for a moment, and then reported a number: "14 US dollars."
This figure is not only the psychological price he is satisfied with, but also an explanation to the investors in the Lighthouse Country.
Although major shareholders have a relatively large say in the privatization process, the final result is not entirely determined by the major shareholders.
As long as small shareholders and retail investors believe that the privatization plan is unfair, unreasonable and harms their interests, they can still complain to the regulatory association.
Take the future Jumei Youpin as an example. Its IPO price was 20 US dollars per share, but when it was delisted, it was only willing to offer 7 US dollars per share. The first time it submitted its privatization application, it was rejected.
The second time, the price was reduced from 7 US dollars to 2 US dollars, and this time it was successful.
It’s not that the shareholders of the Beacon Country have suddenly become reasonable, but that Jumei’s stock price has fallen too sharply, with its market value shrinking by 96%. If they don’t agree, all the stocks in their hands will become worthless pieces of paper.
Chen Yansen frowned slightly. Compared with the market price, this price was a premium of 22.8%.
His psychological price was below 13 US dollars, and it was obvious that Cheng Congwu's request exceeded his upper limit.
"I'm sorry, Mr. Cheng. Senlian's finance department has conducted a comprehensive evaluation based on AutoNavi's revenue, profit, cash flow, market share, user data, and technology patents over the past three years. The most reasonable price should be 12 U.S. dollars, but to show my sincerity, I am willing to raise the price to 12.4 U.S. dollars per share."
Chen Yansen shook his head and directly rejected Cheng Congwu's offer.
"Mr. Chen, AutoNavi Maps has great market potential and is definitely worthy of a premium of 14 U.S. dollars per share. Five years ago, Nokia acquired Navteq Maps for 8.1 billion U.S. dollars. Although AutoNavi Maps' coverage area and user base are not as large as Navteq's, its future market value will not be less than 5 billion U.S. dollars."
Cheng Congwu frowned, restrained his smile, and replied in a deep voice.
He also used the case of Nokia's acquisition of Navteq Maps to try to convince Chen Yansen.
"But after Navteq was merged into Here Maps, its market value is only 1.37 billion U.S. dollars, which is only 17% of the acquisition price. Here Maps covers 174 countries and a total area of more than 46 million kilometers. What about AutoNavi?"
Chen Yansen asked back lightly.
Cheng Congwu was suddenly speechless. He did not expect that Chen Yansen was so familiar with the market value of similar overseas competitors.
The words that were supposed to be used to convince Chen Yansen turned against him and stabbed into his own body.
"Whether it is financing or acquisition, price is the easiest issue to negotiate, as long as both Sunlink and AutoNavi are willing to cooperate."
Liu Zhiping was afraid that Cheng Congwu would be embarrassed, so he tried to smooth things over with a smile.
This sentence also reminded him to go back and think about it again, and give a more reasonable quotation before reaching a cooperation.
12.4 US dollars?
One US dollar higher than the market price!
Cheng Congwu pondered over it for a while, couldn't help but sigh, then quickly adjusted his mindset, raised his glass and said: "Mr. Chen, to be honest, the price of 12.4 US dollars per share is indeed lower than my expectations. I am not sure I can use this number to convince the other two shareholders."
"The price of 12.4 U.S. dollars is not low. Mr. Cheng might as well try to lower your expectations."
Chen Yansen clinked glasses with him and said with a chuckle.
He knew clearly that if he waited until the second half of 2013, when 3G networks began to increase speeds and reduce prices on a large scale, and when Qiandu and AutoNavi Maps announced free strategies for low-end individual users, it would be impossible to acquire them at a low price by then.
But there is still a year and a half left, so he is not in a hurry at all.
Cheng Congwu's face was tense. He drank the wine in one gulp, then changed the subject and started talking about the gossip about Lei Yijun and Zhou Hongyi.
Obviously, he felt that he could not reach an agreement on the price in a short period of time, so he decided to move the negotiation process to the formal meeting tomorrow.
"It didn't work out. Before I came, I asked the driver to take a detour through Chaoyang Park. The reporters saw quite a few."
Zhang Chaoyang said with a grin.
"Mr. Zhang, you don't know this. They were at the intersection of the East Fifth Gate of Chaoyang Park. After the inspection officers rushed over, the two guys went to a boxing gym."
Liu Zhiping laughed loudly, paused and said, "Guess who won in the end?"
"It must be Zhou Hongyi. He's a little kid with a bad temper and would definitely be ruthless in a fight." Zhang Chaoyang thought for a moment and commented seriously.
Cheng Congwu originally thought that the fight between these two people was outrageous enough, but he didn't expect that Zhang Chaoyang and Liu Zhiping would also make a bet.
"It's probably Lei Yijun. After all, Zhou Hongyi is nearsighted. He should break his glasses first, and then Zhou Hongyi can only passively take the beating."
Chen Yansen said with a wicked smile.
"You went to the scene?" Liu Zhiping was slightly stunned and asked subconsciously.
The actual situation is very similar to what Chen Yansen said.
Zhou Hongyi had practiced Tai Chi and Judo, while Lei Yijun relied on his long arms and legs to give his opponent a severe physical education lesson.
Gao Linwei and Song Yuncheng looked at each other, trying hard to hold back their laughter. The assistants of Liu Zhiping and Zhang Chaoyang were not much better, and they all covered their mouths and smiled faintly.
The meal lasted from 6pm to 8:30pm. After leaving the restaurant, Zhang Chaoyang suggested going to a bar.
Liu Zhiping looked at Chen Yansen and asked for his opinion.
Chen Yansen nodded and did not refuse.
He saw what Liu Zhiping was thinking. Since the other party wanted to go, he naturally had to give him face.
at the same time.
As soon as Lei Yijun entered the house, he quickly took out ice cubes from the refrigerator and applied them on his face.
"What a ruthless move!"
Lei Yijun looked at himself in the mirror. His right cheek was red and swollen, as if he had mumps, and his face looked fatter. He couldn't help but curse inwardly.
At this moment, the phone on the table suddenly rang.
Chen Yansen? Lei Yijun glanced at the caller ID, but he didn't think much about it. He pressed the answer button and said, "Mr. Chen, what's the matter?"
"I'm in Yanjing now. I've made an appointment with Liu Zhiping, Zhang Chaoyang, and Cheng Congwu from AutoNavi to go to the bar to relax in the evening. Is Mr. Lei free to come out and sit with us?"
Chen Yansen invited.
If I go there looking like this, won’t I be laughed at?
Lei Yijun smiled bitterly and declined politely.
"Mr. Lei, I will visit your company tomorrow." Chen Yansen said with a smile.
Lei Yijun actually wanted to say that they could meet next time, but when he heard Chen Yansen mention that they wanted to discuss cooperation, he immediately nodded in agreement.
After saying that, Chen Yansen hung up the phone.
He didn't want to make fun of Lei Yijun, but he really wanted to discuss cooperation with Xiaomi.
Orange Mobile Phone Factory No. 3 will be put into production next week, and the monthly production capacity of Factories No. 1 to 3 will reach 6 million units.
However, the online sales of Orange C1, C2 and D1 have dropped to an average of 130,000 orders per day nearly 20 days after the launch, a decline of more than 70% compared with the sales speed in the first week of launch.
In addition, Super Factory No. 4 in Luzhou is also under intensive preparation. Once it enters the production stage, the total monthly production capacity will reach more than 10 million units.
Orange phones alone cannot absorb such a large production capacity!
Therefore, Chen Yansen wanted to talk to Lei Yijun and snatch the Xiaomi mobile phone OEM business from Inventec.
Lei Yijun put down his phone and secretly wondered what Chen Yansen was up to.
So far, Xiaomi and Orange Technology have only had a licensing cooperation on a memory cleaning algorithm patent, but after Orange C2 went online, he quickly obtained an important piece of information.
The patent authorized by Orange Technology to Xiaomi, Meizu and OPPO is version 1.0, and the more advanced algorithm cleaning technology has not been opened to other friendly companies.
Could it be that Chen Yansen has figured it out and is ready to license his patents to third-party mobile phone manufacturers?
Zhou Hongyi returned to a villa within the Second Ring Road with a face full of injuries. He had decided when he would go to the company after his injuries healed.
This Tai Chi is useless, and Judo is useless too! As soon as they started in the afternoon, the two of them started throwing turtle punches.
Zhou Hongyi's glasses were blown off at the first moment, and he could only see Lei Yijun's blurry figure at that time. Fortunately, he punched the other party and did not suffer any loss.
The feud between the two of them was completely settled.
After sitting on the sofa and thinking for a long time, Zhou Hongyi stood up suddenly. He felt that what Lei Yijun said was right. He should not look for Haier, but should look for old brands in the communications industry such as Huawei and ZTE.
Thinking of this, he dialed Yu Chendong's private mobile number.
After finding out Zhou Hongyi's purpose, Yu Chendong agreed to 360's request for cooperation on the special-purpose machine without much thought.
Although Huawei is in a critical period of transformation, it is not impossible to produce special-purpose phones. Why not just give it a sub-brand name? This will make money and will not affect Huawei's brand image.
The two hit it off immediately, and Zhou Hongyi took the opportunity to propose a visit to Huawei.
Since he had fallen out with Lei Yijun, Zhou Hongyi thought: I have to make the special supply machine and the 360 mobile phone too! (End of this chapter)
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