Reinventing the Millennium

On June 18, Alibaba’s Taobao promotion was held.

On this day, Fang Zhuo led the Yike team to Beijing in a low-key manner to meet with the founder and management team of AutoNavi.

The last time the company failed to be negotiated, he had learned lessons. The lion fought the rabbit with all his strength. This kind of company that conforms to the YMS ecology should still pay more attention to it and show his sincerity no matter what.

The field of image commerce is rather special.

Because it involves map data collection, the company needs qualifications, and AutoNavi is currently the only private company with Class A surveying and mapping qualifications.

Like its competitor NavInfo, this is a regular force in the surveying and mapping industry with an administrative background. Its major shareholder is NavInfo, a wholly-owned subsidiary of China Satellite Communications Group established by the State Administration of Surveying and Mapping. Well, you can’t mess around. .

Nowadays, NavInfo provides basic data for several map vendors on the market.

Such a field has its industry thresholds and technical barriers.

In addition, maps are one of the few rigid-demand applications among tool products. Once the market is occupied, it is occupied, and further competition requires the investment of more funds and resources.

Of course, for a map dealer like AutoNavi, which works alone, making maps is just making maps, but for today's Internet giants, this large amount of data, natural entrances, online and offline interconnections, etc. are all It is a comprehensive consideration of interests.

Fang Zhuo's biggest goal in wanting AutoNavi this time is to fill in the YMS ecosystem. Secondly, he also values ​​business linkage, such as big data and cloud computing. This is a business that can be tried in the near future.

In the longer term, packaging business from car chips to in-car navigation is a good direction. AutoNavi provides navigation data products and in-car navigation for more than 100 models of famous brands including Audi, BMW, GM, Honda, etc. Serve.

However, for this kind of packaging business, the cooperation after this investment may not be enough.

After all, it is two companies that invest in the shares, and there may be differences in decision-making and right to speak.

Fortunately, there is no rush now. Fortunately, Baidu and Penguin are also engaged in the map business. The subsequent money-burning investment of these two companies in the map business cannot be handled by Amap alone.

Yike now occupies a shareholder position in AutoNavi and promotes the company's vigorous transformation. Naturally, there will be a collision of competition, and it will naturally increase cooperation to finally resolve the differences in decision-making and voice.

Two companies must have two voices, but if only one company has one voice, wouldn’t the problem be solved?

Competition will burn money, and by expanding the scale, management can cash out at a high position and leave.

Yike took over and gained it, and its own ecology and related businesses have become more complete.

Even the company is listed in the United States, so the risk of stock price fluctuations lies there.

Is there a more perfect collaboration than this?

Fang Zhuo feels that this is in line with his philosophy of pursuing win-win situations.

Of course, respecting each other’s independent operations at this stage is also true respect.

If Amap insists that it is unwilling to transform into the C-end market, then give up and really respect it to the end.

"Hahaha, now that Mr. Fang is here, we won't be afraid of Gaode's transformation."

At noon on the 18th, at the luncheon between Yike and AutoNavi, AutoNavi CEO Cheng Congwu raised his wine glass and toasted Mr. Fang with a smile.

Fang Zhuo was so proud that he finished the job and said with a smile: "No, I'm just here to give AutoNavi a boost. When it comes to business development, AutoNavi is professional and is second to none in the industry."

He put down his wine glass and mused: "We will all be our own people from now on, and I won't hide it. I really don't know the ropes in the map business. As far as company development is concerned, any transformation must be done with caution. How about Gaode?" It’s easy to get to where we are today, so we need to be more cautious.”

Fang Zhuo meant what he said.

Cheng Congwu also represented the management of AutoNavi and said more sincerely: "Mr. Fang, AutoNavi needs to transform. What we are talking about now is not whether to transform, but how to transform. On this point, we very much hope to work with Yike Discuss.”

Fang Zhuo said "hmm". In that case, let's... have a drink.

The luncheon was full of smiles, and both parties enjoyed themselves happily and regretted seeing each other so late.

However, after eating and drinking, we still have to talk seriously. How much does Yike value Amap, how to invest, and whether we want a board seat... All these details are the key to Amap's insights into Yike and Mr. Fang's thoughts.

Then...it was even more late to meet.

Yike has repeatedly stated that it respects AutoNavi’s independent operations and does not require a board seat.

At the same time, Yike is willing to provide YMS promotion resources and technical support to help Amap implement mobile applications and transformation.

In addition, Yike gave it a valuation of US$800 million and was willing to invest US$100-120 million to become the first institutional shareholder of Amap.

When Yike Investment Director Tao Xinglei spit out this valuation figure, the entire conference room fell silent.

According to the previous docking with Goldman Sachs, if AutoNavi can be listed in the United States this year, the U.S. stock market value range will be approximately US$600-800 million. Now Yike has directly maximized the valuation.

"This, this..." Cheng Congwu didn't know what to say.

"We are quite sincere in our valuation of AutoNavi." Tao Xinglei was a little dissatisfied. The other party was probably too greedy. This time compared to the last time, the valuation has been greatly increased due to Mr. Fang's intervention.

"We saw Yike's...sincerity." Cheng Congwu drank a lot. Although he drank a lot at noon, he was still very sober. He was frightened by Yike's sincerity. "In this case, Mr. Tao, we need to discuss it internally. Down."

The Yike team left the conference room.

The focus of internal discussions within AutoNavi is not other things, but the weakening of management's equity and Yike's real intention this time.

Calculated based on accepting an investment of US$100 million, Yike holds 12.5% ​​of the shares, which just exceeds the 10.5% of the current first institutional shareholder MSD, and the entire management's shareholding will be reduced from 64.1% to 56.09%.

If the previous listing plan is continued, the management shareholding after the IPO will continue to be reduced from 56.09% to 46.55%.

Cheng Congwu and Hou Jun are somewhat sensitive to this ratio.

"How about we ask for less money?" Vice President Gaode also felt that Yike was too generous this time. It's not that he had no financing experience in the past. It was all about you and me. How could he say something like this?

When Cheng Congwu and Hou Jun heard this, they looked at each other and found a tacit understanding.

"People think highly of you and are willing to pay, but you don't even dare to take the money, what's your future!" Cheng Congwu criticized.

The vice president has some grievances. If you dare to take it, what is the discussion about?

Cheng Congwu took a breath and asked the chairman for his opinion: "Lao Hou, what should I say?"

"It's not that we don't dare to take money, but do we need so much money now? There will be an IPO next." Hou Jun said calmly, "Actually, the amount of money is not important, the cooperation between the two companies is the most important, Lao Cheng, What do you think?"

Cheng Congwu gave a thumbs up: "Lao Hou, it has to be you. I can't help it. The IPO will raise at least US$100 million. This investment of tens of millions will be enough for our transformation."

As the president of AutoNavi, although he prefers cooperation, he also wants to be the president of a listed company. Although Yike is good, he must be moderate.

The chairman and president set the tone, and after several discussions on the investment amount, it became US$85 million. Subsequent IPOs will also be adjusted according to a reassuring ratio.

Half an hour later, this time it was the Yike team who looked at each other in shock.

$85 million? 10.6%?

It will still be lagging behind the 10.7% of MSD, the current largest institutional shareholder.

No, what are you trying to achieve? Not even real money or silver?

Tao Xinglei couldn't help but asked the reason.

"Mr. Tao, AutoNavi is developing well. This time we are willing to cooperate not because of Yike's funds, but because of your resources." Cheng Congwu explained seriously.

Tao Xinglei looked at the person opposite, okay.

As the person in charge of specific investment affairs, the purpose of this time is to achieve cooperation anyway, so it doesn’t matter if we hold less shares. This is the principle from Mr. Fang.

Tao Xinglei suppressed his weirdness and continued to implement the details of the cooperation.

The general conditions for valuation and shareholding are determined, and everything else is easy to discuss.

By the end of the afternoon, both parties were nearly satisfied.

There will still be a dinner party in the evening, but this time Fang Zhuo will be the host.

Because he drank a lot at noon, Fang Zhuo did not attend the negotiation in the afternoon.

By the time AutoNavi's management summarized the afternoon's content after the meeting and rushed to the dinner, many guests had already arrived.

Hou Jun walked into the banquet hall and immediately saw Mr. Fang and the people around him - they were all quite familiar.

At a glance, he saw that they were all institutional shareholders of Amap, and they were all here!

Sequoia Shen Nanpeng, Walden International Chen Liwu, MSD Wan Debo, Kleiner Perkins Zhou Wei...

Everyone was chatting and laughing, and Mr. Fang sat in the middle.

Hou Jun felt emotional in his heart, this is the head of Zhenyike.

When he got closer, he heard several people chatting.

"Taobao's June 18th promotion this year is definitely going to hit tens of billions. Think about it, what kind of name does it have? It will save a lot of money in terms of publicity."

"Tsk, Taobao has indeed leveraged countless small and medium-sized offline businesses. It's no wonder so many people are looking for gold. The increase is so fierce! 10 billion is faster than building a platform!"

"Mr. Fang, what is Tesco's goal for the second half of this year? The stimulation of home appliances going to the countryside is quite long-lasting. Tens of billions is more difficult, but 7 billion in revenue can be rushed, right?"

It's rare to see Mr. Fang like this. The investors are very active, and what they are talking about is not today's Gaode, but the scale of funds that can easily reach billions or tens of billions.

Hou Jun heard such a confusing financial figure in his ears, and suddenly felt his head buzzing. Princes, generals and ministers, would you rather have the guts?

"It's very difficult. You make it easy. Last year was the double stimulation of home appliances going to the countryside and the Olympics. Tesco's growth rate this year will not be that high." Fang Zhuoxian nodded to Hou Jun and continued with a smile, "Taobao is I am envious of the strongest e-commerce company in China right now.”

When the richest man in the mainland said this, Hou Jun heard the sound of flowers blooming.

These people really don’t look like shareholders of AutoNavi, they really look like shareholders of Yike!

This is what a man should do!

Hou Jun remembered what his old friend said in the afternoon - "People think highly of you and are willing to pay, but you don't even dare to take the money..."

"Mr. Hou, sit down, sit down quickly. I'm too drunk. I'm going to sleep a little longer in the afternoon." Fang Zhuo asked Chairman Gaode to sit down and explained the situation in person again. "When I sobered up, the United States called again. I was chatting and it was time.”

Hou Jun waved his hand quickly: "It's okay, Mr. Fang, I am also happy at noon, everyone drank a lot."

"I can't drink enough." Fang Zhuo said with a smile, "In the evening, I heard Tao Xinglei say that the afternoon went well. I have always felt that Gaode's major and Yike YMS are a perfect match, and this time it is not This trip is in vain.”

He doesn't mind the amount of investment and the amount of shares he holds. As long as he pushes the roller down the slope, he will naturally move forward.

Fang Zhuo said politely: "It seems that Amap got a little less money this time. It should be enough for the subsequent transformation, right?"

Unexpectedly, Hou Jun did not answer when he heard this. After thinking for a while, he asked an unexpected question: "Mr. Fang, we are not very good at evaluating the follow-up development. Do you think it is enough?"

Fang Zhuo raised his eyebrows slightly, thinking about what this meant.

After hearing this, Yike Investment Director Tao Xinglei and AutoNavi CEO Cheng Congwu were stunned. What's going on? Isn’t it basically settled?

Especially Cheng Congwu, he looked at his old friend and didn't understand why he said this at this time.

"As for funds... I haven't made a map, so it's hard to say whether it's enough." Fang Zhuo changed his mind and continued, "But I have an experience in running a business, that is, when the company is doing well, it needs more money, otherwise , once the situation is bad, it will be difficult to get money.”

He spread his hands and said: "The more abundant the company's cash flow is, the more willing the bank will be to provide money. When the company encounters difficulties, let alone providing money, you will have to ask your grandfather and grandma if you don't get a loan. We still have to think ahead when running a business. We can't see the long-term future." Clearly, if the short-term is good, then we must make good use of this 'short-term' advantage."

Shen Nanpeng smiled and said, "Mr. Fang, this is my sincere opinion."

Hou Jun looked at Mr. Fang, then glanced at the surrounding shareholders with his peripheral vision, and took the initiative: "Mr. Fang, AutoNavi's transformation still requires funds. I think 120 million is a relatively sufficient number."

"Okay, no problem." Fang Zhuo said without blinking, "Mr. Hou has the ambition of transformation, so let's celebrate this ambition with the first glass of wine. Come on, I'll pour the wine for Mr. Hou."

The richest man in Mainland China is quite straightforward.

But Shen Nanpeng reached for the wine in time and filled both of their glasses.

The main course hadn't been served yet, and all the drinks were on the table.

Cheng Congwu, CEO of AutoNavi, was so surprised that he forced himself to have a glass of wine together.

He put down his wine glass and then thought about it, he was taking 80 million, and he was taking 120 million. What's the difference between a little more and a little less? What big business is Mr. Fang talking about? This time I don’t even want a seat on the board of directors, so what else?

The first glass of wine was drained and the second glass was filled.

Fang Zhuo raised his wine glass and said with emotion: "The era of mobile Internet is coming. This is an era where there are opportunities everywhere. Here today are Mr. Hou and Mr. Cheng, as well as investment friends. We must seize the opportunity."

He still looked at Hou Jun and said with a smile: "Mr. Hou, let me toast you again. From now on, our two families will be blood allies and will always be friends. I will do it."

Hou Jun raised his neck and drank it all. Okay, it's done. We will make an alliance with blood and we will be friends forever.

Today we make a blood alliance with Mr. Fang, and Gaode and Yike will be friends forever!