Reborn since 1993

Chapter 508 Tongtian Era

"This is impossible!"

Hearing this exorbitant price, Moritz couldn't help but shout that in the past, Sequoia's investments were mostly high-yield investments. They would invest a few million dollars, and then after listing the invested companies, they would start cashing out and making a lot of money.

Previously, Sequoia Capital had never invested hundreds of millions of dollars at one time. Just now, Moritz announced an investment of 90 million US dollars and valued Feiyan Technology at 900 million US dollars. To be honest, this is unprecedented.

But who knew that Li Dongling would not abide by the moral code and directly gave Feiyan Technology a valuation of US$1.5 billion!
If the stock price doubled or tripled on the day of listing according to the pattern of Netscape's listing, then the market value of Feiyan Technology on the day of listing would have soared to 3 billion US dollars or even more than 4 billion US dollars, which is almost the same as Netscape's current market value? !
When they thought of this, Moritz and Dixon suddenly felt that... it was not unacceptable. As the saying goes, the greater the risk, the higher the return. The real market value has reached as much as 3 to 4 billion US dollars, and the money they invested has more than doubled.

But Moritz refused to admit it, "Li, the valuation of 1.5 billion US dollars is too high. No one will take over Feiyan Technology's publicly listed shares!"

"As long as Himalaya Radio and Feiyan Technology show enough value, I believe there will be investors who will accept its pricing. And not just Wall Street, but also a large number of investors in Asia, inland, Hong Kong, Japan, Singapore and other places, will rush to buy its stocks!"

Li Dongling reminded Moritz and others that if anyone asked who is the most famous Internet stock in Asia, it would definitely be Himalaya Radio!
As long as the performance of Himalaya Radio and Feiyan Technology is presented more impressively, there will definitely be a lot of investors in Asia to take over!

The Internet market in Asia is still not good, but this does not mean that Asian investors have no money. Especially in Hong Kong, Tokyo, Singapore, Siam and other places, there are still a lot of investors. As long as they feel that it is profitable, why wouldn't they rush to buy Feiyan Technology's stocks like crazy?
Dixon heard the hidden meaning and looked at Li Dongling, "So, the management of Feiyan Technology is sure that they can increase the revenue of Feiyan Technology?!"

Yao Luoying, the head of Feiyan Technology, glanced at Li Dongling, and when he nodded, she said, "Feiyan Technology has some new projects, including self-developed projects and projects jointly developed with its parent company Dongling Hi-Tech, etc. It is expected that future performance may improve to a certain extent..."

"The same project as Himalaya Radio?" Jim Clark on the side couldn't help but ask.

The Himalaya Internet Radio project has shaken the American Internet upside down and created a new track. Now a bunch of Internet radio companies have emerged in Silicon Valley, and they are basically copying Himalaya Radio. They know that they cannot compete with Himalaya Radio, but so what? It is enough to take the opportunity to make some money.

If Feiyan Technology comes up with another project like Himalaya Radio, even Netscape, which claims to be the leader of the American Internet, will feel under tremendous pressure.

Yao Luoying smiled but said nothing about Jim Clark's words. This made Jim, Yang Zhiyuan, Kugel, Moritz and others a little surprised and confused.

They felt that Feiyan Technology was bluffing, but... if it was true, if there was a project comparable to Himalaya Radio, they would regret it so much if they missed it.

"Feiyan Technology's hardware business is currently developing automotive-grade radios, audio equipment, and other equipment. It is also cooperating with Dongling Hi-Tech Headquarters on several projects. There is no need to worry about revenue. Feiyan Technology cannot guarantee how much it can grow, but it can guarantee that revenue will never fall before listing!
In addition, we do have plans for new Internet projects, but not now, as this needs to be kept confidential. However, we can guarantee that new Internet projects will be launched within two to three years, which will bring about a qualitative change in Himalaya’s business!”

Li Dongling also painted a big picture. There was no need to worry about Feiyan Technology's revenue. Even if the mini radio business declined and the future of car radios and car audio equipment was unknown, Dongling Hi-Tech would hand over part of the electronic dictionary and repeater businesses, and even the PHS OEM business, to Feiyan Technology.

Feiyan Technology is already full of money. Its performance report is simply dazzling. It is not impossible for its performance to triple or even quintuple in a single quarter. Anyway, it is just a transfer from one hand to the other...

As for Himalaya launching a paid platform for legitimate music like iTunes and Spotify, it will have to wait until the right time. When several major record groups are almost defeated by pirated music platforms, Himalaya Radio and Dongling Hi-Tech's MP3 can appear as saviors and clean up the mess of the American record industry!

"Citi is willing to invest, but we also have a request..."

While Moritz was still struggling, Dixon had already spoken, "Citi is willing to acquire 10% of Feiyan Technology's equity for US$ million, but we require that if Dongling Hi-Tech's next new project requires financing, Citi has priority investment rights!"

What Citigroup values ​​is not just Feiyan Technology, but Dongling Hi-Tech!

It is true that Himalaya Radio and Feiyan Technology are golden eggs, but Dongling Hi-Tech is the one that will lay the golden eggs. What Citi wants most is to invest in Dongling Hi-Tech. This time, it invested heavily in Feiyan Technology in order to establish a relationship with Dongling Hi-Tech.

Li Dongling glanced at Dixon for a few times and laughed, "There will be a chance!"

Moritz felt helpless when he heard that Dixon actually agreed to Feiyan Technology's outrageous high-priced financing. But at this time, another "straw" broke the camel's back.

"Netscape is also willing to acquire 5% of Feiyan Technology's shares, but the acquisition must be completed in the form of stocks!" Jim Clark also spoke at this time. According to Feiyan Technology's current valuation of US$5 billion, the acquisition of this % stake will cost million.

It is not cheap, but considering the current popularity of Himalaya Radio, as long as Netscape gets its equity, its stock price will definitely rise significantly, and it will definitely not lose money.

Furthermore, Netscape does not have much cash, but it is a listed company and can issue new shares. This is why many companies dare to swallow an elephant. If they want to acquire a company, they can issue new shares. After all, it is the leeks who pay the bill.

Moreover, the bigger the game is and the more stocks are issued, the more the leeks are willing to pay for it. How did WorldCom in America become a giant company? It was by constantly issuing new stocks and then acquiring competitors one by one. Within a few years, it acquired dozens or even hundreds of telecommunications companies, and its market value exceeded 200 billion US dollars. Every time stocks were issued, the leeks rushed to pay for it, and even complained that WorldCom issued too few stocks.

Well, in the previous life, LeTV also did this, and after issuing new shares, the stock price continued to rise. However, after LeTV issued new shares, Boss Jia put the money into his own pocket, which led to a direct collapse...

"make a deal!"

Li Dongling nodded to Jim Clark. Netscape is still the leader in browsers, and its stocks are still hard currency, equivalent to the US dollar. After getting them, you can basically cash them out for US dollars.

But it was only for the past one or two years. Later, when Microsoft started to act like a rogue, Netscape's browser was beaten back step by step, and its stocks were worthless. Feiyan Technology must have cashed out the Netscape stocks it had obtained in the past one or two years.

Right now, Yahoo, Citi, and Netscape have all reached agreements with Feiyan Technology, leaving only Sequoia Capital. Li Dongling, Yao Luoying, Larson, Lu Kui and others all looked towards Moritz.

Taking a deep breath, Moritz couldn't help but complain, "Damn it, this is Sequoia's largest investment in the Internet industry so far. If it fails, I will be kicked out of my position as Sequoia's investment partner!"

After cursing a few more times, Moritz finally made up his mind, "You win, Lee, I hope this isn't a decision I'll regret!"

"You won't regret it, Mr. Moritz!"

Li Dongling responded with a smile, and then there was loud applause in the conference room. The Himalaya office staff outside the conference room couldn't help but show joy on their faces. They knew what this applause meant, and they were one step closer to a net worth of one million US dollars!
Larson and the legal staff began to draft the contract. Sequoia Capital and Citigroup had paid out such a huge sum of money. In order to avoid losing money, they had to grit their teeth and list Feiyan Technology, let alone a piece of that thing, on Nasdaq, otherwise they would suffer huge losses.

“Feiyan Technology must complete its listing this year!”

Li Dongling's words were mainly directed to Moritz and Dixon. Behind each of them, one represents the Silicon Valley venture capital industry, and the other represents Wall Street. If the two companies work together and cannot take Feiyan Technology public, that would be a bit unreasonable.

"As for public relations and lobbying, Sequoia Capital will handle it, and as for the Nasdaq Securities Commission..."

Moritz said, looking in the direction of Dixon. Upon hearing this, Dixon also took it over and said, "Nasdaq Securities Review Committee, let Citi handle it!"

“Before Feiyan Technology goes public, it must ensure that there are no unexpected performance issues. The Internet business of Himalaya Radio must also improve in terms of users, clicks, visits, revenue, etc.”

Moritz explained to Feiyan Technology that Sequoia Capital was very familiar with how to operate a company's listing. Over the years, Sequoia Capital had operated nearly 70 or 80 companies for listing, if not 200, so it had abundant experience in this area.

……

"According to Yahoo news, Feiyan Technology, a technology company from Asia and the parent company of Himalaya Radio, has completed a financing of 375 million US dollars, setting a record for the largest financing in the history of the global Internet!"

In the past, traditional media were the first to report the news, but this time, it was Yahoo that reported it first. After it was reprinted by a California TV station, the news began to spread wildly in America.

(End of this chapter)