King of Capital

The next day, early morning.

Kalanick turned off the alarm on his phone with sleepy eyes, walked around the bottle of wine on the floor, and walked into the bathroom barefoot to wash up.

Slide the manual razor dipped in warm water across your jaw, and sweep away the shaving foam and beard together, perfect.

Just like a racing driver who has experienced speed and passion will not turn his car to automatic transmission, people who have truly possessed power are obsessed with having everything under control, and shaving is no exception!
Put two banknotes on the bedside as a tip, and the cleaning staff will take care of last night's hangover. When he walks out of this room, he is still the omnipotent founder of Uber.

So, let everything that is happening out of control end immediately.

"Everyone, cheer up. We need the best M&A plan. We will not give up an inch on shares, valuation, and payment delivery period!" Kalanick clapped his hands to boost morale.

No one paid any attention in the conference room. The negotiation team that had rushed over from the Silicon Valley headquarters overnight each had a large cup of coffee in hand and were busy with their respective tasks.

Uber is about to withdraw from the Chinese market. No one wants to add a shame to their resume. Whether it is a retreat or a peaceful handover, the decision is in everyone's hands.

"Boss, time." The head of the negotiation team reminded in a low voice.

"Liu Qing is a poor negotiator. You can't expect her to be respectful."

"Do we need to urge them?" the person in charge suggested.

As they were talking, the door of the conference room opened and members of Didi's negotiation team filed in. They all had serious and sad expressions, and Liu Qing was not seen among them.

The leading man took the initiative to extend his hand: "Yan Wenhua, head of Didi's strategic development department, sorry, we are late."

“Let’s get started.” Kalanick said noncommittally.

Yan Wenhua looked around and said directly, "We have temporarily received a notice from the regulatory authorities regarding the policy adjustment expectations regarding the recognition of 'commercial monopoly' in the online car-hailing industry, which may pose a greater risk to this transaction."

"What do you mean by policy adjustment expectations?" Kalanick puzzled.

Yan Wenhua remained silent and spread his hands, calmly accepting the scrutiny from all members of Uber's negotiation team. There was silence for a while.

The merger of the two parties does not directly amount to commercial monopoly. It is a monopoly when they use their market dominance of more than 90% of the market share after the merger to maliciously suppress other platforms through large subsidies and "choose one of two" methods.

In short, regulators will have to consider whether Didi will do so in the future before deciding whether to approve the current merger and acquisition transaction.

Such logic leads to the fact that merger and acquisition-commercial monopoly lawsuits in any region of the world are full of metaphysics, not to mention the commercial legal environment of a developing country, where human subjective factors dominate.

"I see."

Kalanick nodded, said something and turned away.

Yan Wenhua calmly signaled his team to sit down and negotiate as usual. The supervision was just a means to lower the price. As for how to solve the legal review risks that might really be faced...

Just don't submit the application for this merger and acquisition transaction to the business department. The facts are in front of us, so you can hit or scold them as you like.

When the time comes, the leaders should try to think positively. They cannot order Didi to split Uber China. On this point, Yan Wenhua, Liu Qing and Cheng Wei have the same idea.

"Fuck it, Jim!"

In the underground parking lot, Kalanick locked the car door and yelled into his phone angrily: "Listen carefully, your good friend has been provoking us again and again, and he doesn't want to merge at all."

"The deal is over. Liu Qing is unable to convince him, and I don't want to play monkey tricks with you guys endlessly." He spoke words at a very fast speed to vent his emotions.

Jim Goetz on the other end of the line couldn't get a word in, so he could only interrupt with a higher tone: "Don't your people have the ability to confirm the authenticity of this news? Even if the regulations change, it won't immediately cost you your life."

"The government proposes a legal policy today, the policy is approved tomorrow, and the new policy is promulgated the day after tomorrow. The new policy will be implemented the day after tomorrow! You have enough time to complete the transaction before that. They just want to lower the price. Calm down."

Jim Goetz gave an objective analysis, and Kalanick took a deep breath and slammed the steering wheel with his fist.

This deal bypassed Uber China's management team and Chinese investors, so it was naturally not sensitive enough to the latest regulatory risks.

…………

At noon, the aroma of shabu-shabu wafted from the old restaurant hidden in the alley.

The diners sat on the red plastic benches facing the street, waiting in line boredly for their tables. The waiters strolled in and out of the kitchen with huge trays in their hands. The children in the next room were laughing and screaming, and the adults were urging people to drink.

The copper pot was bubbling with steam. I poured the second plate of mutton into the pot and first picked up the frozen tofu that had been cooked in advance to satisfy my appetite.

"I insist that there is no conflict between us."

Liu Qing's voice was hoarse, his face was pale, his eyes were red and swollen, and he was haggard but stubborn: "Things are not what you think. You should put yourself in my shoes and think about the pressure I am under."

"I talked to Cheng Wei for a long time on WeChat last night. He promised me that he would make Didi a success and would revise the supplementary agreement on priority repurchase with Taihe Xiyou."

The frozen tofu was soaked in soup and was too hot. Xie Jingxing put down his chopsticks and drank juice to cool down, and took the opportunity to respond.

Modifying the priority repurchase supplementary agreement is a guarantee for both parties. If Didi fails to go public by 2019, Taihe Xiyou can require Didi to repurchase shares at the highest financing valuation.

On the contrary, unless there is a major change, Xie Jingxing has no reason to interfere with Didi's subsequent capital operation decisions.

The rights and interests are very balanced. Liu Qing's insistence on meeting seems redundant. Cheng Wei is much more determined than her. Now that things have come to this, why bother about the present and move forward.

"I think you announced your resignation as a director without any communication because you were angry and didn't consider the impact at all." Liu Qing clenched his hands and argued.

Xie Jingxing explained seriously: "I really don't think highly of Didi anymore."

"Why? Just because of the merger?" Liu Qing couldn't understand.

"For many reasons, from a rational perspective, Didi's revenue of $11 billion last year cannot support a valuation of $300 billion."

Xie Jingxing paused for a moment, and commented helplessly: "This is completely because the entire capital market feels that the prospect of monopoly operation is very attractive, so it does not care about the cost. On the first day of the first lunar month, I told you on the phone that I would give Didi $10 billion first. This is what I thought.

"But I suddenly realized that after acquiring Uber China to monopolize the market, you have no motivation to go public as soon as possible to meet market expectations. And I can't influence you to make the right decision."

He thought about the organization of the language and summarized: "So from the perspective of financial investment, Taihe Xiyou's follow-up investment has a high probability of standing guard at a high position, and it is necessary to seek stable exit returns."

It’s hard to persuade the damn ghost with good words?

Liu Qing realized the hidden meaning and felt even more powerless.

After completing the merger and acquisition, Didi, as a monopoly enterprise with a 93% market share, is sought after by the primary market and has no shortage of money. It is natural that it has the confidence to hold back.

Hold on until the last moment of the high growth curve of operating data, push for listing to let the secondary capital market share a little bit of the soup, and early investors can eat big mouthfuls of meat and exit happily and smoothly.

Didi’s goal is to become the next Alibaba, with a market value of US$200 billion!
However, Xie Jingxing rejected this based on underlying logic, believing that a monopolized market was useless.

"Why do you think Didi's future business performance is not optimistic?" Liu Qing finally felt that there was a problem in the thinking of both parties.

“When do you think Didi will be profitable, three to five years or ten years?”

Xie Jingxing gradually perked up and discussed calmly: "We all know the concept of the listing window period, and I have discussed the macro situation with you more than once." "War is the continuation of politics, just as Uber desperately increased its spending intensity before actively issuing its acquisition intentions. Let's use this as a prediction."

He looked into Liu Qing's eyes and said slowly with a complex tone: "This year, China and the United States will face a high-intensity confrontation. If they fail to return to the negotiation table smoothly like Didi and Uber did, the confrontation will continue until one side gives in."

"How can Didi go public in the US with such international relations? Can Didi make profits by monopolizing the industry if economic growth slows down due to all-round confrontation?"

In fact, Didi has missed several opportunities to go public. Now that it has acquired Uber China to monopolize the market, it can go public in the United States. However, the management and most shareholders do not want to share the high growth with the secondary market and have voluntarily given up the opportunity.

After the merger and acquisition, the company integrated the online car-hailing market, formed an industrial alliance to develop value-added businesses such as Internet finance, and its revenue growth reached its peak in 18/19.

The company made its financial statements look nice and packed up for takeoff, but two consecutive serious criminal cases shattered its dream of going public.

Afterwards, the dual nuclear bombs from both inside and outside the country washed the floor and crushed the macro-economy. Facts have proved that without the support of capital, the domestic market's consumption power is swimming naked. If the subsidies are cancelled, Didi will never be able to make a profit in its lifetime.

Paradox: subsidies cannot bring profits, and not subsidizing revenue will be a problem.

The situation is like a simmering mess of ice and fire. Shareholders’ baskets are about to melt, so they have no choice but to bite the bullet and go to the United States to go public.

It was not until this point that the regulators took three actions to crush the soul of foreign capital, shouting "Boss, don't hit me, I'm going to demolish that person!"
However, as one of the most representative victims in the international confrontation, Didi can receive care and support, and it will not be difficult for it to be listed on the Hong Kong stock market if it listens to the regulators' advice.

During the three listing windows, Cheng Wei and Liu Qing's self-persistence made Didi rise, but it always fell short at the critical moment.

"Since you regard yourself as a monopoly enterprise, you have to consider the macro-economy. Social responsibility is not just empty talk. If you can't do it, no matter how much you eat, you will eventually have to spit it out."

Liu Qing listened in a daze, deducing various possibilities in his mind at the same time, unwilling to accept or refute.

Xie Jingxing used the intertwined interests and emotional entanglements of three years of walking side by side to conclude his words. It would be too ridiculous to discard them like dross.

“What is the right thing for Didi to do?”

Liu Qing sat and waited quietly for half an hour. When he saw that he had finished his meal, he started asking questions again.

“Go public as soon as possible, achieve compliance in the online car-hailing business, and steadily and resolutely lay out the smart car industry chain.”

Xie Jing Xing frowned, and hesitated for several seconds before finally adding: "Try to... take less foreign money, and don't be misled by professional managers with a financial background to do technology."

"You still think there's something wrong with me." Liu Qing couldn't help but pull the corners of his mouth and smiled with relief.

"If I have to say it, it's actually my problem."

Xie Jing Xing responded with a faint self-deprecating smile, took out a cigarette from his pocket, lit it, and exhaled a faint puff of misty smoke.

The most direct way is to go public as soon as possible. This is the inspection exemption benefit that Didi has obtained due to the strong background of foreign shareholders and the Chinese stocks listed in the United States in the past years. It does not need to provide massive domestic traffic data.

Once Luckin Coffee explodes and strict regulation is imposed, this path will be blocked.

Online ride-hailing compliance is a backup plan for Hong Kong stock market listing regulatory requirements, while smart cars represent the future and are a ticket to the era of artificial intelligence after the dividends of mobile Internet have been exhausted.

However, the biggest problem lies in the strategy that Xie Jingxing formulated for the secret fund in Singapore a few days ago. The US dollar fund is to Didi as Alibaba is to the Indian version of Alipay.

Domestic capital liquidity is difficult to match the rapid growth of local enterprises.

It is said that domestic financial institutions are short-sighted and should be less concerned with investment strategies that focus on big moves and long-term accompanying companies. There is no investor who does not want them, but they just don't have the money.

Even if Cheng Wei and Liu Qing were dismembered and sold, they would not be able to obtain financing of hundreds of billions of RMB, and would be tolerated to suffer huge losses of tens of billions of RMB.

As a result, a large number of overseas investment bank elites took up management positions and introduced US dollar funds to be willing to be "suckers" to pay the money. Didi had to be a "comprador" and focus on listing in the United States, allowing others to exit and reap the rewards.

On the first day of the Lunar New Year, Xie Jingxing told Liu Qing that he would give you 10 billion US dollars first. He was willing to let go of the high absolute return rate of financial investment and firmly increase his strategic investment to become the largest shareholder.

Things turned too fast. His poor cash reserves went against the will of Didi's management. The joint decision of both parties made this unformed plan vanish into thin air.

"Didn't you quit smoking?"

They stared at each other in silence for a long time again, and Liu Qing broke the silence.

"Oh, I've been slacking off these past two days. It's not easy to admit defeat."

Xie Jing Xing paused as he complained, and took the lighter that was flipping on his fingertips back into his palm: "Any other questions?"

"You haven't failed, we are still on the road..."

Liu Qing wanted to say that apart from Didi, no one can realize your vision of a full-industry investment ecosystem for smart cars, so you should go back to the board of directors.

Xie Jing Xing looked at her carefully and shook his head gently: "In the next period of time, I personally may not devote too much energy to the venture capital business."

"Getting back on the road?" Liu Qing felt a sudden lump in his throat.

“It’s a new journey.”

Xie Jing Xing curled his lips: "You are almost 40 years old, so stop crying, pay more attention to your health, and have more physical examinations."

…………

"Your bottom line?"

There was a strong wind on the rooftop in the afternoon, blowing the hems of his clothes fluttering. Kalanick was straightforward and clear.

Xie Jingxing was puzzled: "I support the founders and management of the invested companies without reservation."

"Come on, do you believe what you say?" Kalanick sneered.

"If you don't believe me, why did you risk your life to meet me, just to blow the cold wind?"

“I just want to know, is M&A the outcome you want?”

Kalanick pulled out a Patek Philippe ultra-complex chronograph watch from his pocket. He had caught the watch on this rooftop on a winter day two years ago.

751 days, he failed to master this long and difficult time, what about Xie Jingxing?
"The seventh war between Chinese Internet companies and multinational companies has continued the victories of the previous six wars. Fortunately, we have fulfilled our mission! - This is the ending I want!"

The lighter flipped over with a crisp sound, and the flame was blown out by the cold wind in an instant. Xie Jingxing threw it into the air: "The next war we will start is in the financial industry."

"You know Normandy? The Allies landed on many beaches and charged forward one after another. Someone would always rush into the wolf's den!"

Kalanick quickly grabbed his lighter and threw the watch back.

"I was walking on the beach, the soles of my shoes were covered in blood, and I walked all the way from Normandy to Wall Street." Xie Jingxing put his hands in his pockets and laughed sarcastically, then turned and left.

The watch fell to the ground and broke into pieces, the hands stubbornly jumping through the minutes and seconds. (End of this chapter)