What's wrong with me being a rich man?

Chapter 271: Advance to Retreat (5k)

Liu Chih-ping spent much less time than expected in coming to Shanghai to persuade people to surrender.

The return flight is in the afternoon.

Liu Chih-Ping did not rush to the airport. Instead, he looked at the various billboards of his competitors in Shanghai with great interest.

Perhaps because WeChat’s headquarters is here, the word “WeChat” can be seen in office buildings, bus stations and commercial centers.

After a quick lunch, Liu Chih-ping looked up at the big billboard before getting in the car to go to the airport and exclaimed: "The picture of Mount Everest on WeChat is quite suitable for advertising."

When Ren Jiarui, the deputy director of the co-pilot heard this, he smiled and said, "Our company is also suitable. When WeChat goes bankrupt, we will put our advertisement in front of Yu Xing's company. He likes to protect the environment, so let him see the cute penguins."

Liu Chih-Ping shook his head: "That's not necessary."

"Mr. Liu, to be honest, I think it's unnecessary to come here." Ren Jiarui said half-jokingly, "If you want to eat pickled duck, I know a place in Pengcheng that tastes pretty good."

Liu Chih-Ping just smiled and didn't answer.

Ren Jiarui saw that Mr. Liu was in a good mood, so he continued, "There's no need to spend money on something that's sure to win."

Liu Chih-Ping sighed: "There is no such thing as a sure win. If you can win for sure, would you do something like 360?"

When the Penguin attacked 360, it also thought it was bound to win, and then there was a huge storm.

Liu Chih-Ping said thoughtfully: "It seems that it is not the best solution for us to do everything by ourselves. I have talked with Pony many times. We should still play the role of a link, whether it is investment, traffic, or providing technology. We can't do all the business."

Ren Jiarui hesitated for a few seconds before uttering "hmm".

He knew that Mr. Liu had been in charge of investment, mergers and acquisitions, and strategy since he joined the company, but in fact, Penguin's overseas investment in the past few years was not much. Last year it was still quite a lot, but it was only about 5 billion Chinese yuan, and the year before that it was less than million.

The company is indeed used to doing business by itself, which has caused public outrage. This year, there have been a series of events, including "Computer World" scolding, 360's counterattack, and WeChat targeting core business.

But if what Mr. Liu said is true, the company will most likely make major strategic adjustments next.

Ren Jiarui thought silently, if the actions of foreign investment and mergers and acquisitions were strengthened, he wondered whether the resource mobilization in the hands of General Manager Liu would also be further strengthened.

Liu Chih-ping also revealed a specific piece of news: "Pony has decided to establish the Penguin Industry Win-Win Foundation in January next year, with an initial scale of 1 billion Chinese Yuan. We will see whether it is necessary to adjust it to 50 billion in the future. Our system must move from closed to open."

Ren Jiarui was surprised and asked, "Isn't this a bit too radical? Who will be responsible?"

"Leave it to Peng Zhijian." Liu Chih-ping's voice was calm. "He has enough experience and is familiar with the company in the past two years."

Ren Jiarui was not surprised to hear this name. Peng Zhijian was working in investment and M&A business at Google before joining the company in 08. In the past two years, he has also been Mr. Liu's confidant in charge of investment attempts. Now he is almost the only one who can take more radical actions.

He quickly thought about the changes and found a topic: "What does Mr. Peng think of the acquisition value of WeChat?"

When Liu Chih-ping heard this question, he laughed: "Hahaha, he has the same opinion as you. He thinks there is no need to spend money to buy things that can be won."

Ren Jiarui shrugged: "Yeah, even the pickled duck is more valuable than meeting Yu Xing."

"If we can end this competition appropriately, then it is necessary," Liu Chih-ping said gently. "Besides, Yu Xing is indeed talented. WeChat has created such a situation from scratch. If he is willing to come to Penguin, he will definitely shine even more."

After pondering Mr. Liu's thoughts for a few seconds, Ren Jiarui asked in confusion, "If that's the case, if you want a 'radical' change, why don't you offer a higher price? We couldn't even sit down and have a good discussion about an acquisition like this today."

"How much higher?" Liu Chih-Ping said as a matter of course, "I didn't ask him to dissolve WeChat and focus on Bai Xiaosheng. Instead, I proposed a price. This is already respect for him."

Ren Jiarui nodded, thinking it made sense.

Even if the company wants to set up an industrial win-win fund, it will be an industrial project that can be derived from investment and mergers and acquisitions. If it also needs to target its main business that it has been doing for more than ten years, it does feel weird.

He commented: "Yu Xing is just too self-centered. He will definitely regret it."

Liu Chih-Ping smiled and did not continue to talk about Yu Xing and WeChat. Instead, he considered the company's overall strategic adjustment and said with expectation: "Penguin needs to change, and we can change it. Perhaps, we need to become the Berkshire Hathaway of Penguin."

Berkshire Hathaway is a capital behemoth run by Buffett.

Ren Jiarui complimented: "What Berkshire Hathaway? It's just a little penguin."

Liu Chih-Ping was amused and burst into laughter.

……

Penguin’s WeChat chat gained 300 million users in just ten days.

This is serious news that makes people think.

With an average of 30 users per day, the number will continue to grow.

This reminded Hu Xubo of a simple math problem.

Also, I really can't help but sigh that the situation of WeChat is changing so fast.

After Hu Xubo and Xu Xin saw Yu Xing off, he did not go back. Instead, he sat back in the office of Today Capital to discuss the impact from the giants.

“Penguins are still awesome.”

Hu Xubo said this, but there was no response and the office fell into a strange silence.

After a while, Xu Xin spoke up to break the silence: "Mr. Zhang mentioned the idea of ​​reverse asset injection before, and IDG has indeed tried to find a suitable target. But from what we have seen so far, Penguin's quick response has indeed put a lot of pressure on everyone and put heavy expectations on them."

Ultimately, it was because the penguin reacted too quickly, not just because of its speed. In other words, it was the fast strategy that drove the speed.

Hu Xubo heard the euphemism that IDG could not find a suitable target for its idea for the time being.

He didn't read any clues from Mr. Xu's expression, so he took the initiative to say: "It is true that some users are boycotting Penguin's products, but more people don't seem to care so much about using Weichat or WeChat. If this continues, WeChat will be in danger."

Xu Xin frowned and said, "Liu Chih-ping is here to undermine the morale of the troops. WeChat has done something that even Penguin feels threatened."

Hu Xubo pondered: "From Penguin paying attention to Penguin actually making products, this direct push from Pony may in some sense symbolize that the situation of this round of competition has undergone a fundamental change."

Seeing CEO Xu frowning and remaining silent, he continued, "The most regrettable thing now is that WeChat didn't get more time to develop. Otherwise, the opportunity would have been greater. I think one thing we need to acknowledge is that WeChat's development window is indeed getting smaller as Penguin is pushing forward with all its might."

Xu Xin glanced at Hu Xubo's eyes, and the meaning in them was different from before in the conference room.

She suddenly asked, "Have you talked to Liu Chih-ping in advance?"

"No, and I won't talk to him anymore," Hu Xubo denied, adding, "I think our positions must remain consistent in order to maximize our benefits in the next situation."

At this point, he simply said bluntly: "If WeChat is really going to fail, or if Weichat is really going to catch up with WeChat, then we should all understand what this means and we have to find a way to make up for the losses. If it's just me, Capital Today, or IDG, any one of us wants to sell the shares alone, it's hard to have much bargaining power, but if we do it together..."

"Penguin is going to adjust its strategy, and it doesn't want to see this kind of competition continue. In the end, they can always negotiate."

"If Penguin is unwilling to talk, we can try 360, or try to use 360 ​​to raise the demand for negotiation."

Hu Xubo emphasized again: "Mr. Xu, I will not talk to Penguin alone. This is my most basic position. At the same time, I also hope that our interests can be guaranteed to a certain extent."

Xu Xin pondered for a moment and sighed: "The boat hasn't sunk yet, but you're already thinking about how to jump."

Hu Xubo said helplessly: "The storm is too big, and we can't just watch it sink. We need to have a charter first. Besides, Mr. Yu has a strong personality. At present, it seems that Penguin may have the intention to acquire it in the end. What if Mr. Yu is unwilling to sell at that time?"

Logically speaking, if you can't win, you can sell it, after all, it's in your own interest. However, Yu Xing is a difficult person to figure out. If you start purely from the perspective of interest, some of Bai Xiaosheng's problems should be avoided.

Xu Xin is the one who knows and recognizes this best.

She frowned as she thought about the competition between WeChat and Weichat, pondered the information revealed by Liu Chih-ping's visit, and then thought about Pony Ma who was standing at the top of Penguin and running the company. Finally, she sighed.

Xu Xin directly proposed a solution: "We still have to fight in the market, but the equity transferred by WeChat in the next round of financing cannot be less than 23.44%."

Hu Xubo was stunned and calculated the ratio in his mind.

目前三家分别持有14%、14%、8%，合计36%，如果下一轮再拿到23.44%的股份，那就是36%*（1-0.2344）+23.44%=51.0016%，刚好超过一半。

Hu Xubo was too embarrassed to pick up the computer and calculated silently for a long time. He estimated that the approximate number was this. Then he looked at Mr. Xu who had just stated the proportion without thinking, and he had only one feeling in his heart.

This makes me say what the bad guy said, and it turns out that the other party has already calculated the next round of moves.

This is the calmness of the older generation of investors...

He asked, "This ratio is quite obvious. Will Mr. Yu object to it?"

Xu Xin took a sip of tea and said calmly, "Then it's not up to him."

23.44% was beyond his control, and 51% was even less so.

……

The pressure from Penguin is causing every aspect of WeChat to cool down rapidly, as if spring turned to winter overnight.

When Yu Xing returned to the company, he started thinking about the 300 million users of WeChat, and he also specially invited Chang Haijie from Bai Xiaosheng to evaluate the effectiveness of competitors.

Chang Haijie was recruited from Fenzhong Media, and after joining Bai Xiaosheng, he specialized in Internet promotion. Not only did he learn quickly, but he also did an excellent job in all aspects.

WeChat company also relies heavily on him for advice on its current Internet promotion.

"With 300 million users, this... I feel that Penguin's publicity effect is in a relatively middle position."

Chang Haijie stood beside the whiteboard in the president's office with a serious expression, and wrote down QQ-related data on it. According to industry conditions, there are more than 6.47 million QQ users, and the average daily pop-up exposure on the PC side reaches 4 million times, but the conversion rate is often extremely low. This round of reach needs to reach the user's mobile phone, so the effect is greatly reduced.

In addition to its own channels, Penguin has also been recommended by other app stores, including but not limited to Wandoujia, Apple Store, etc. However, their performance has been verified by WeChat, so relatively more accurate figures can be estimated.

"We can use this number to infer the promotion of Penguin. After deducting the 50 to 100 million users from the App Store, the actual growth from PC Internet is 200 to 250 million."

"Of course, there are also third-party channels such as new machine pre-installation and media reports that are difficult to calculate or not used at the moment. These will be further reflected in the future."

"Mr. Yu, you see, from PC to user to mobile phone to smartphone, with all the discounts, the conversion rate of PC exposure may be less than 0.5%. And due to the limitation of the terminal smartphone, the final comprehensive conversion rate of successful downloads may be around 0.06%."

Chang Haijie made some deductions on the whiteboard and then talked about an actual case in the industry: "This comprehensive conversion rate should be relatively reliable compared to the promotion of Penguin Weibo. Penguin Weibo used QQ pop-up windows to strongly promote the "one-click Weibo activation" feature, which had a daily exposure of around 3 million, a click-through rate of 0.4%, a registration rate of 90%, and a comprehensive conversion rate of 0.36%."

"However, Penguin Weibo has not been able to compete with Sina Weibo. Although WeChat chats now have greater exposure resources than Weibo, the problem is that the stock of smartphones cannot achieve high conversions like web pages like Weibo."

"In addition, the conversion rate of the PC-based app Xunlei Kankan is actually quite similar. Its conversion rate is even lower than that of Penguin Weibo, at only about 0.15%."

"Mr. Yu, that is to say, Penguin can further strengthen its promotion, but it also has an upper limit. As for this upper limit, I will boldly push it. It may be between 30 and 45 at a certain stage, and it may be between 50 and 70 in the end."

Yu Xing stared at the already crowded whiteboard: "The upper and lower limits of the range are quite large."

Chang Haijie nodded and said, "After all, there is no way to know their specific data, so we can only vaguely estimate the range."

Then, he pointed out another problem: "But there is one thing that is quite scary. Although the overall conversion rate of Penguin Micro Chat is very low, it can continue to convert like this. Most users either use WeChat or not use Micro Chat. The two softwares coexist for a certain period of time. This is quite troublesome. Penguin can keep chasing."

Chang Haijie knows that WeChat's current growth can reach about 25 per day, but this is almost the normal upper limit of WeChat. Even if the subsequent user fission ratio is higher, it will be difficult to increase the daily growth significantly.

The user gap between Weilian and WeChat is 900 million. Based on the daily growth rate, Penguin may catch up with WeChat in less than 6 months at the slowest and less than 2 months at the fastest.

Yu Xing handed over a cigarette and said with a smile, "It doesn't look good."

Chang Haijie didn't expect that his boss could be so...relaxed.

He took the cigarette and changed his angle: "Mr. Yu, Penguin has so many users and such strong promotion, but it is still like this at present. With the current resources, WeChat can achieve a growth of 25 in a single day, which is really amazing."

Chang Haijie often pays attention to data and knows the situation in the industry. What he said is also sincere. If there is more time, it is really uncertain what the final result will be.

Yu Xing nodded slightly, and after thinking for a moment, he said, "Then write a detailed analysis combining this analysis with the Penguin Weibo case. I will call IDG's CEO Xiong tonight to discuss this matter."

Chang Haijie hesitated for a few seconds and asked, "Should I write it based on the future growth of Penguin Micro Chat, or based on the past promotion of Penguin Weibo?"

Yu Xing smiled: "What do you think?"

Chang Haijie understood it and wrote about both, but with the latter as the main focus.

That night, Yu Xing first sent a WeChat message to Xiong Xiaoge, then sent the report, and finally made a phone call. The theme of his speech was only one point - the competitive pressure was great, but there was still room for improvement.

Xiong Xiaoge has briefly reviewed the analysis from WeChat company.

He listened more than he spoke, and only said at the end: "Mr. Yu, I actually regret it now. Maybe WeChat should not have appeared after 3Q, so that it could have more time to develop."

Yu Xing was very calm: "Boss Xiong, if WeChat didn't use the public opinion after 3Q, it wouldn't have the current 1200 million, at most only 400 million. It's hard to say clearly what the pros and cons are."

"Yes, it's a different time now." Xiong Xiaoge said seriously, "WeChat's external situation has changed a lot. Frankly speaking, Mr. Yu, we originally hoped that WeChat could take advantage of the slowdown of Penguin to develop rapidly, but without the prerequisite of Penguin's slowdown, the next round of financing must consider retreating from advancing. I think you can understand."

Yu Xing was silent for a few seconds before saying, "Boss Xiong, I understand. I understand. The opportunity is shrinking, but it hasn't completely disappeared."

Xiong Xiaoge made a limited promise: "IDG can still support one more round, but it is difficult to raise the valuation. If the market situation still cannot be opened up, the next round will be more difficult."

Yu Xing replied: "Okay, Mr. Xiong, let's play another round and see."

call ended.

Yu Xing pondered the key rhetoric of advancing in order to retreat, and guessed that the three parties already had a tacit understanding for the next round.

The situation is changing, defeat is looming, and everyone has their own considerations.

Song Yufeng was met with a cold reception when he came into contact with the outside world. The old Saipan made development difficult, and investors pursued profits first and then avoided harm.

Liu Chih-ping came in person to persuade the company to surrender, probably because he also wanted Penguin to get a ticket to the mobile Internet as soon as possible, clear the mist and see the rising sun.

Yu Xing recalled his original intention, lit a cigarette, and suddenly remembered Cao Cao's poem with interest: "Drinking and singing, how long is life? Like the morning dew, the past days are full of suffering, the past days are full of suffering."

What a haunted life. It doesn’t look like I’m having a good time, but Penguin shouldn’t expect to get a ticket so easily.

The giants will fight against the giants. If the Penguin doesn't want to bleed more today, then let the giants bleed you themselves when the time comes.

After finishing his overtime work, Yu Xing decided to quit smoking. He has been under a lot of pressure recently and he needs to take good care of himself for the future.

The next afternoon, at 11 o'clock on November 9, Tudou, a well-known Chinese video website, announced that it had submitted an application for listing to Nasdaq, officially starting the road to overseas listing.

Yu Xing had forgotten about this matter because of Liu Chih-Ping's change of heart in persuading him to surrender. As soon as he received the news, he sent a WeChat message to Liu Jiankai to inform him in advance to show their friendship.

(End of this chapter)