Reborn in 08, a heretical cultivator starting a business

Chapter 119 YouTuan is valued at 200 billion, but they don't even want Paipai, which is valued at 10 billion!

The next day, Wyeth and Mead Johnson contacted U-Tuan International and upgraded U-Tuan International to a top-tier client!

The payment method has been adjusted to a 30% prepayment, with the remaining 70% to be paid in installments later.

In return, U-Tuan International also doubled its orders for Wyeth and Mead Johnson.

In the following days, the transaction volume of YouTuan International's maternal and infant products remained high, all exceeding 3500 million.

With the addition of sales of other products, U-Tuan International's daily revenue remains around 6000 million, and it simply cannot be reduced.

This left Tencent's Vice President Yao Mingchen quite distressed:
"Steady, really steadfast!"

"I thought the transaction volume could be reduced to 4000 million, with 3000 million going to smuggled goods."

"The result was surprisingly stable at 6000 million, with 4500 million coming from grey market imports!"

"Then YouTuan International's valuation is not just 100 billion, but 125 billion, even 150 billion won't be enough. It's probably going to be 160 billion, or even 165 billion!"

How can we negotiate this?

Yao Mingchen was in a state of utter confusion.

The situation is out of control again!
He underestimated the impact of the San Niu incident, thinking it was just a matter for one brand.

After a few days, once the hype dies down, sales of imported baby and maternity products will plummet, and YouTuan International's daily transaction volume will be halved, dropping to 3000 million.

Unexpectedly, the entire army was almost wiped out!
Therefore, U-Group International's maternal and infant product category not only did not suffer a sharp decline, but instead continued to explode!
U-Tuan International's daily revenue not only did not drop to 30 million, but remained at 60 million!
That's scary!
"Damn it, a valuation of 165 billion, how are we going to negotiate!" Yao Mingchen lost his usual composure.

Huo Siying was also speechless: "Given the current situation, YouTuan International's maternal and infant product category will not drop significantly at all, and YouTuan International's daily revenue is stable at around 6000 million."

"There's no point in us waiting any longer; the price won't go down!"

Yao Mingchen nodded: "Yes, it's pointless. Let's work out another plan today and go talk to YouTuan Technology."

"it is good!"

Two days later, YouTuan International's daily transaction volume remained around 6000 million.

It's frighteningly firm.

Completely disheartened, Yao Mingchen decisively went to YouTuan Technology to negotiate with Wang Junshan.

"Mr. Wang, this is such a pleasant surprise, such a wonderful surprise!"

"With the collapse of the three major financial institutions, YouTuan Technology's revenue from selling counterfeit goods jumped from 15 million to 45 million. That's impressive." Yao Mingchen's expression was somewhat complicated.

Huo Siying, standing beside her, also had her beautiful eyes sparkling.

As for Xu Tiannian standing to the side, he was completely sullen and disgruntled.

It's as if Wang Junshan owes him a hundred million.

"Just lucky," Wang Junshan said with a smile.

"President Yao, is this another investment opportunity? But let me make it clear beforehand, the valuation of 5 billion was from last month."

"Haha, of course." Yao Mingchen didn't simply believe that Wang Junshan had agreed to sell for a mere 5 billion!

This is not realistic.

"Chairman Wang, how about the valuation of 150 billion?"

"Not good, too low," Wang Junshan said decisively.

"So, what is Mr. Wang's expected valuation?" Yao Mingchen asked directly, already having a guess in mind:
'Well, they'll most likely ask for 180 billion, and we'll probably settle for around 160 billion.'

"With Paipai.com valued at 40-50 billion RMB and incorporated, Tencent can further invest cash and resources to secure a decent shareholding."

Unexpectedly, Wang Junshan laughed and said, "President Yao has come twice already, so I won't play games with you. I'll give you the lowest valuation directly."

"Mr. Wang is so generous!"

Yao Mingchen's face lit up with joy, but then his smile froze.

Wang Junshan held up two fingers and calmly said, "200 billion, the lowest valuation!"

"How much?" Yao Mingchen didn't say anything, but Xu Tiannian couldn't sit still any longer: "President Wang, are you serious?"

"Of course, it depends on your sincerity. Otherwise, I won't agree to a valuation of 200 billion!"

"..."

"!!!"

For a moment, the entire Tencent team was shocked and fell silent.

I don't know what to say anymore.

The highest expected price was 160 billion, but you started at 200 billion, and that's still the lowest price!

Isn't this a joke?
Yao Mingchen took a deep breath: "President Wang, to be honest, we have been paying close attention to YouTuan Technology's revenue."

“Your daily turnover has been around 6000 million recently. If you remove the grey market iPhones, it’s only 4500 million. Your annual turnover is 164 billion. A valuation of 150-160 billion is a reasonable price.”

"6000 million in daily revenue?" Wang Junshan laughed. "President Yao, are you talking about YouTuan International's daily revenue? Don't forget, we also have YouTuan group buying. You didn't even calculate those?"

"???" Yao Mingchen was stunned: "President Wang, YouTuan's daily revenue isn't that much, is it? 100 million a day? Do you even need to calculate it?"

Such a small business requires so many resources; it would be a failure if kept at Tencent and had to be cut.

He doesn't even care about him!

“One million a day, that was before summer vacation,” Wang Junshan laughed. “Come on, let President Yao see for himself.”

Shen Huaijin handed out several documents to everyone.

This is exactly the daily revenue of YouTuan Group Buying over the past few days.

Yao Mingchen took one look and immediately realized something was wrong:
"YouTuan Group Buying's daily revenue reaches 700 million! And its valuation is already at 25 billion!"

"I wasn't lying to you, was I?" Wang Junshan laughed. "Given the growth rate of YouTuan Group Buying, YouTuan Technology's valuation of 200 billion is not high."

Over the past week, the four marketing departments have worked tirelessly to add 20 new schools in Jeju and Namdo.

The total number of schools covered by YouTuan Group Buying has reached 60, and its daily revenue has also increased to 700 million.

YouTuan offers low prices, guaranteed quality, and free delivery for orders over 30 yuan.

Get diamonds back with your purchases!

To play "WeChat Farm" and get diamonds back, nearly a million students from 60 schools will forgo more expensive supermarkets and choose the affordable YouTuan group buying platform!
It would be difficult for U-Tuan Group Buying's revenue not to skyrocket!
“If President Yao is still hesitating, once our YouTuan group buying platform develops, it won’t be a matter of 200 billion, but 250 billion, or even 300 billion!” Wang Junshan said meaningfully.

"!!!" Yao Mingchen was dumbfounded.

Huo Siying and Xu Tiannian were both dumbfounded: "!!!"

accident!

This is such a damn surprise!

Everyone thought that U-Tuan International was the core of U-Tuan Technology, accounting for 99% of its revenue.

Everyone thought that U-Tuan International had no room for growth, and that U-Tuan Technology's revenue and valuation had reached their limit!

Unexpectedly, the unremarkable YouTuan group buying platform has risen to prominence!
Its growth rate is also terrifying, reaching a daily revenue of 700 million!
More importantly, YouTuan International's daily revenue has basically peaked, and without a significant surge in traffic, it will be difficult to further increase revenue.

Keyoutuan's daily revenue is just beginning and is still growing rapidly!
The daily revenue from just three second-tier cities reached over 700 million!

If there were more cities, to what extent would it reach?
Scary, so scary!
If we can't reach an agreement this time, we'll talk again next time, and the daily revenue will definitely be 900 million, or even 1000 million!
Then YouTuan Technology's valuation will rise even higher, possibly reaching 250 billion!
Then we really can't afford to invest!
"Mr. Wang, is YouTuan group buying really that powerful?" Xu Tiannian was somewhat incredulous, thinking it was all fake.

Wang Junshan smiled faintly:
"Before the summer vacation, YouTuan group buying only operated in Binhai City. Before the start of the school year, we expanded into the Jeju market."

"After the start of the school year, we will expand into Jiangsu Province and develop the Jiangsu market."

"As we expand to cover more and more provinces, our revenue will increase, and our valuation will also rise."

"Investing now is the most cost-effective way to make money!"

"If you offer 20 billion yuan in cash, I can give Tencent's YouTuan Technology a 10% stake."

Wang Junshan knew very well that Tencent could come up with 20 billion yuan in cash, but they were reluctant to part with it!

Of course, if he really wanted to give it up, Wang Junshan would accept it.

With this 20 billion, we can do a lot of things.

Regardless, Wang Junshan made a profit!

Yao Mingchen did not answer directly, but fell into deep thought.

If YouTuan's group buying doesn't take off and YouTuan Technology doesn't find new profit sources, its valuation of 150-165 billion yuan will be the upper limit.

With limited future growth prospects, prices are unlikely to rise further, and investors are unwilling to invest at high levels.

Tencent wouldn't have invested so heavily if it weren't for strategically containing Alibaba and using YouTuan.com to counter Taobao!
But now things are different. While U-Tuan International's growth potential is limited, U-Tuan Group Buying has exploded with terrifying growth potential and is developing extremely well, becoming a new growth point.

Then YouTuan Technology's valuation can continue to climb, getting higher and higher.

I hesitated twice before, watching as YouTuan Technology's valuation grew from the initial 50 billion to 100 billion, and now to 200 billion.

If they don't invest this 200 billion this time, then next time it could very well be 250 billion!
The next time, it will be 300 billion!
That would be a real problem.

Yao Mingchen doesn't want to make the same mistake again.

Moreover, he is very optimistic about the development of YouTuan group buying!
By relying on the campus and making steady progress, the future is limitless.

"Mr. Wang, a valuation of 200 billion is acceptable, but the cooperation between Tencent and YouTuan Technology can be multifaceted."

"Oh?" Wang Junshan's heart skipped a beat. Seeing Xu Tiannian's constipated expression, the president of Paipai.com, he already had some guesses.

Sure enough, Yao Mingchen laughed:

"Mr. Wang, YouTuan.com focuses on vertical e-commerce, while Paipai.com focuses on comprehensive e-commerce. With over 50 million users, annual revenue is expected to reach several billion, and the valuation is at least 4 billion."

"If Paipai.com merges into Youtuan.com, then the combination of vertical e-commerce, comprehensive e-commerce, and campus group buying will inevitably create a super giant."

"The valuation of YouTuan Technology will inevitably rise, reaching 300 billion or even 350 billion is not out of the question."

Wang Junshan fell silent: "..."

Paipai.com was merged into Youtuan.com.

This sounds exciting, but it's not very meaningful.

Paipai.com, a C2C platform, has no profit point and loses money every year. Even a dog wouldn't want it!
"Mr. Wang, what do you think? Of course, this is a big deal, you can take your time to consider it. Binhai City has beautiful scenery, I plan to stay here for a couple of days," Yao Mingchen said with a smile.

He was buying time.

It seems like they're buying time for Wang Junshan, but in reality, they're buying time for Tencent.

Wang Junshan doesn't play by the rules; all the plans he researched beforehand were rendered useless from the very beginning.

They were all ruined by the seemingly insignificant campus group buying.

Who would have thought that such an inconspicuous, third-rate business would grow so fast and have such a bright future?

He needs to have a good talk with Chairman Ma and the board of directors.

Wang Junshan waved his hand: "To be honest, President Yao, YouTuan Technology currently has no plans to do C2C and has no interest in Paipai.com."

Yao Mingchen fell silent: "..."

Xu Tiannian was even more furious: "!!!"

Wang Junshan's blunt refusal was full of disdain for Paipai.com.

It's practically a direct statement: "Paipai.com is garbage, stop trying to scam us!"

"Mr. Wang, you don't have a good view on C2C?" Yao Mingchen asked, puzzled.

Alibaba's C2C business is so successful that Tencent has followed suit. Why doesn't Wang Junshan have a positive outlook on it?

Wang Junshan nodded: "To be honest, I'm not optimistic about it. I have no plans to do C2C for at least the next two years."

"Why? Mr. Wang, can you tell me the reason?" Yao Mingchen asked, his brows furrowed in worry.

The merger of Paipai.com into Youtuan.com is Tencent's biggest bargaining chip in this negotiation.

However, Wang Junshan rejected Paipai.com right from the start.

How can we even negotiate like this?
"The reason is simple: I can't see any profit potential."

"Taobao has been doing C2C for so many years and has become the number one in the country, but it is still losing money."

"Paipai.com had a transaction volume of 2 billion last year, but its revenue was less than 200 million, resulting in a loss of more than 100 million, right?"

"Has the transaction volume decreased again recently?"

"The revenue won't be much higher either. I dare say it won't even reach 3 million for the whole year!"

"After the final calculation, we ended up not making a single penny and even incurring a loss of 2 million."

"Tell me, why would I do C2C?"

"Did you burn money?"

Xu Tiannian fell silent: "!!!"

Yao Mingchen was also stunned: "..."

That's just how the C2C model is; it's difficult to make a profit.

In the B2C model, high transaction volume generally translates to substantial platform revenue and profits.

However, the C2C model is different. The transaction volume is generated by all merchants on the platform. Even if it is billions, it belongs to Paipai.com's revenue. The advertising fees are only two or three hundred million a year.

It's not even enough to cover the cost.

Despite the use of QQ's built-in pop-up ads to drive traffic, it still couldn't boost Paipai.com.

How could Wang Junshan possibly acquire a company that is constantly losing money, with no future prospects?

"Who else told you that Paipai.com was valued at 40 billion? Was it an internal assessment?"

Wang Junshan laughed and said, "I suggest you go to the capital circle and ask around to see if Paipai.com's real valuation can reach 20 billion."

"This..." Xu Tiannian was stunned: "President Wang, you can eat whatever you want, but you can't say whatever you want. Even if Paipai.com is not doing well, it shouldn't be valued at 20 billion!"

"Ahem, to be honest, the valuation of 15 billion is still based on Tencent's resources and the hundreds of millions of QQ users it attracts."

Wang Junshan laughed and said, "If we don't consider Tencent's resources, Paipai.com has no future, no profit, no logistics, no warehousing, and it loses money every year. It's just a framework that can't make ends meet, and it's not even worth 10 billion!"

"You!" Xu Tiannian was furious, but he couldn't refute it.

Taobao is also losing money, but it's a huge platform with annual transaction volume of over 100 billion yuan, making it the number one in the industry!

However, Paipai.com is different; it's small and can't compete with Taobao.

Especially after San Niu's collapse, traffic plummeted, transaction volume halved, and the already loss-making revenue and profits became even more dismal.

In its previous life, Paipai.com, QQ Shopping, and YiXun.com were all sold to JD.com as a package, along with traffic resources, for a total of only 40 billion RMB.

The idea that Paipai.com can be valued at 40 billion yuan is simply wishful thinking.

Moreover, Wang Junshan doesn't need it.

In the C2C model, all merchants are third-party sellers, and there are too many counterfeit products.

It's very difficult for platforms to make money!
Forget about taking a commission; if you even dare to collect a small amount of merchant protection money, the merchants will run away and curse you!

As a result, the platform couldn't earn commissions or get its deposits. Despite investing so much capital in operations and building the platform, it could only earn a little advertising revenue, which was far from enough to cover its expenses, resulting in losses year after year.

However, when merchants sell counterfeit goods, it damages the platform's reputation!

When consumers seek redress, they first turn to the platform!

(End of this chapter)