Reborn since 1993

Chapter 507 Setting up a stage to sing
Listening to Li Dongling's words that sounded like "I'm done pretending" and "I'm going to show my cards", it seems that Himalaya Radio is just putting old wine in new bottles, giving its parent company a new vest, and then listing on the Nasdaq!
This made Jim Clark, Moritz, Dixon and others in the conference room silent.

This way of putting old wine in new bottles has not become popular yet, but in a few years, it will not be so new. Companies like General Electric, Enron Group, Time Warner in the United States, and even Disney, which now ignores the Internet, have all begun to "embrace" the Internet.

These giant companies are acquiring Internet companies and launching their own energy trading websites, e-commerce websites, etc. They are having a lot of fun because by playing with the Internet, stock prices can really skyrocket!

It's not that these companies suddenly fell in love with the Internet, but faced with a sharp drop in stock prices and pressure from Wall Street, they had to enter the Internet industry in order to increase their stock prices, even if it was just for show.

Feiyan Technology is just one step ahead, setting an example for its peers, telling them how to harvest leeks, or rather, how to transform into an information-based company and become a modern company...

"From the moment Himalaya Radio went online, Feiyan Technology has been an Internet company. No one can question its identity!"

Li Dongling's eyes swept over everyone in the conference room and he spoke to them, still with a warm smile on his face and a gentle tone. But everyone in the conference room knew that no matter whether Li Dongling was trying to call a horse a zebra or not, anyone in the conference room today who dared to question whether Feiyan Technology was an Internet company would probably be kicked out!
The key point is, are Netscape, Yahoo, Sequoia Capital, and Citigroup, the companies in the conference room today, willing to be driven away in such a disgraceful way? !

Now Himalaya Radio is a hot commodity. Anyone who gets involved can get huge rewards. This is the confidence that Li Dongling has in calling a horse a zebra.

Similarly, if Netscape can invest in or take a stake in Himalaya Radio, it can boost the stock price and bring Himalaya Radio into the Netscape camp. Yahoo can also use Himalaya Radio to gain traffic and popularity.

As long as Sequoia Capital and Citigroup get shares in Himalaya Radio, given the current popularity, what they need to consider is how many times the US dollar return they will get!

Who would want to go against the US dollar, especially in a country like America? As long as there is US dollars to be earned, people are willing to swallow their pride, not to mention Li Dongling's misconduct. It's nothing at all!
Dixon said at this time, "The separate listing of Himalaya Radio and the overall listing of Feiyan Technology are two completely different concepts!"

If Himalaya Radio were to go public separately, its valuation would at most be a few hundred million dollars. However, if Feiyan Technology were to go public as a whole, its starting value would be estimated to be over one billion dollars. If it were to go public with a valuation of more than tens of billions of dollars, it would be considered a small overlord-level company if it were listed on the Nasdaq.

“This is also the reason why Feiyan Technology invites you all to come. I believe that as long as you are willing to support us, Feiyan Technology will definitely be listed on NASDAQ!”

Yao Luoying also spoke up. Her words sounded as if she was praising Sequoia Capital and Citigroup, but on the other hand, if they couldn't help Feiyan Technology go public on NASDAQ, then what was the point of keeping them around? Just to eat and eat?

If any other Internet company, including Netscape at the time, had dared to say this to Sequoia Capital, Moritz would have slammed the door and left long ago.

It has always been Silicon Valley venture capital companies that have controlled Internet start-ups. When will it be their turn to be controlled by Internet companies? But facing Li Dongling and Yao Luoying, Moritz couldn't slam the door.

Just as Li Dongling said just now, Himalaya Radio is just a department of Feiyan Technology. It can add icing on the cake for Feiyan Technology, but even if it fails, it will not endanger Feiyan Technology, not to mention the existence of Dongling Hi-Tech behind it. It is impossible to control Himalaya Radio.

Another point is that if Sequoia Capital takes control of Himalaya Radio, Feiyan Technology will not be able to deal with Sequoia Capital in America.

However, Sequoia’s investment is estimated to be isolated from the mainland Internet industry, and even the entire Asian Internet market. Sequoia can forget about investing, because... that is the base of Feiyan Technology’s parent company Dongling Hi-Tech!
In America, Feiyan Technology is a port of call thanks to Sequoia Capital, and Dongling Hi-Tech has no fault with it. But in Asia, inland, Sequoia Capital and other venture capital companies in Silicon Valley have to cower and hide when facing Dongling Hi-Tech.

In the inland, it is hard to say how much investment Dongling Hi-Tech can help Sequoia with, but to ruin its business is easy, and they have plenty of means to do so!
The atmosphere was a little dull for a while. Moritz and Dixon were both calculating how much they would have to pay if they invested in Feiyan Technology.

After a brief silence, Yang Zhiyuan was the first to speak, "Mr. Li, I hope that Yahoo can complete the equity swap with Himalaya Radio!"

Unlike Sequoia Capital and Citigroup, Yahoo does not have much cash flow, and can only exchange equity for the acquisition of Himalaya Radio's shares.

"If it is an equity swap, we hope that Feiyan Technology will exchange 3% of its equity for 8% of Yahoo's equity!" Zhou Hualiang said. This had already been discussed before. The reason why he dared to put forward such conditions was naturally because Feiyan Technology was now more "valuable" than Yahoo!

The popularity of Himalaya Radio exceeds that of Yahoo, and the annual revenue of Feiyan Technology even crushes Yahoo. Exchanging 3% of Feiyan Technology's shares for 8% of Yahoo's shares can be said to be a "loss" for Feiyan Technology.

Upon hearing the equity exchange conditions proposed by Zhou Hualiang, Yang Zhiyuan and Yahoo President Kugel did not refute it at the first time, which shows that, in fact, they also agree that Feiyan Technology is more valuable than Yahoo.

After all, Feiyan Technology’s annual profit exceeds 170 million US dollars. Exchanging equity with Feiyan Technology can increase Yahoo’s popularity and also get dividends. No matter how you look at it, it is not a loss, and it may even be an advantage!

Kugel whispered a few words with Yang Zhiyuan, then looked towards Moritz. Sequoia Capital is also one of Yahoo's major shareholders, holding 19% of the shares.

Kugel and Moritz went out one after another, made a few more phone calls, and returned to the conference room. They said to Li Dongling, "Yahoo is willing to accept the equity exchange!"

Yahoo and Feiyan Technology reached an equity exchange agreement. The equity held by Yahoo's major shareholders, including Softbank, Sequoia Capital, Yang Zhiyuan, Filo, and Li Dongling's Zhixing Foundation, has shrunk.

After the completion of this equity exchange, the Yahoo equity held by Zhixing Foundation directly shrunk to about 5%.

But correspondingly, Feiyan Technology's shareholding in Yahoo has reached 8%. The combined shareholdings of Zhixing Foundation and Feiyan Technology in Yahoo have exceeded 13%, making it officially the fifth largest shareholder of Yahoo and having the power to influence Yahoo's decision-making power.

If Yahoo's stock price could reach the level of the previous life, how many dollars could this equity be cashed out for? !
As the chief of Yahoo, Yang Zhiyuan was very satisfied with the deal. Zhixing Foundation and Feiyan Technology were both industries under Li Dongling. Li Dongling was now his most important supporter on the Yahoo board of directors. The more Yahoo shares Li Dongling held, the greater his voting rights would be on the board of directors, and naturally, Yang Zhiyuan's power in Yahoo would also increase!

Moritz, who also returned, also began to make an offer for Sequoia Capital, "Sequoia Capital is willing to invest 10 million US dollars in exchange for % of Feiyan Technology's equity!"

Moritz knew that he couldn't treat Feiyan Technology with common sense. It was simply unrealistic to expect to acquire 30 to 40 percent of Feiyan Technology's shares with one or two million US dollars, just like he did when he invested in Yahoo. Now Sequoia Capital had lost the initiative and had to increase the valuation of Feiyan Technology.

With 90 million US dollars, Feiyan Technology's valuation was raised to 900 million US dollars, which is already a bit scary.

But facing Moritz's offer, Zhou Hualiang said unhappily before Li Dongling and Yao Luoying could speak, "Mr. Moritz, this offer is too low. Other investment institutions have valued Himalaya Radio at more than $600 million. Is Feiyan Technology's mini radio business, which earns $100 million to $200 million a year, only worth $300 million?!"

"The profits of companies in the aviation, banking, insurance, automobile, petroleum, chemical and other industries are higher than that of Feiyan Technology. What is their market value?" Moritz said with a sneer.

Li Dongling shook his head and retorted, "But Feiyan Technology is different from them. Feiyan Technology is an Internet company. Compared with its Internet peers, it has a revenue of over 700 million US dollars. Compared with traditional industries, it is also an Internet company!"

Hearing this, Moritz was speechless for a moment. This was pure hooliganism, but when he thought about it carefully, it seemed to make some sense!
Once Feiyan Technology is successfully listed, it will have the skin of an Internet company and the revenue of a traditional company. Doesn't this create a natural space for hype? !
Jim Clark and Dixon's eyes lit up. They both thought of the tricks involved. Using the Internet as a platform to promote Feiyan Technology, combined with its revenue, it would be hard for Feiyan Technology's stock price not to skyrocket!
Li Dongling has paved the road and set up the stage. If Wall Street institutions don’t know how to play the game, that would be really unreasonable.

Even if someone can see that Feiyan Technology is playing tricks, so what? Even if someone knows that Feiyan Technology is selling dog meat under the guise of mutton, so what? As long as the stock price is pulled up and the leeks make dollars, there will be people who will defend Feiyan Technology!

Moritz naturally understood this, and looking at Dixon's expression beside him, he was obviously moved.

"For 10 million US dollars, Feiyan Technology can transfer % of its equity!" Li Dongling also quoted a price.

(End of this chapter)