Winning the new financial era

Chapter 412 Qualitative leap
In addition to serving as the head of BlackRock's Asia-Pacific region, Bao Zheyu also holds multiple important positions such as senior managing director, global leader of corporate strategy, and member of the global executive committee.

With a high status in BlackRock, his words basically represent the will of this giant financial institution that manages assets of 6 trillion US dollars.

Zhang Liping, as the senior partner of the Blackstone Group and the chairman of the Greater China region, has not low authority.

However, he is not qualified to make decisions for the headquarters for large-scale gambling involving billions of dollars.

He asked Zhang Yida to suspend the negotiation for a while, he needed to ask the headquarters for advice.

Liu Zhiping had already discussed with Ponima in advance, and for the Zhonghe Group, a layout must be made.

However, DouTV's valuation of US$250 billion and the terms of the bet still gave him some headaches, how to maximize the benefits of Penguin.

"How do you bet against each other?"

After Zhang Liping left, Liu Zhiping fiddled with the teacup in his hand, and asked Bao Zheyu as if chatting.

"The revenue is less than 200 billion. According to the actual completed revenue, the founding major shareholders and management will compensate the investors of the B round.

The revenue is between 150 billion and 200 billion, and the valuation of Douvision has been lowered to 150 billion US dollars;
The revenue is between 100 billion and 150 billion, and the valuation of Douvision has been lowered to 100 billion US dollars;
The revenue is between 50 billion and 100 billion, and the valuation of Douvision has been lowered to 50 billion US dollars;
If the revenue is less than 50 billion yuan, the founding major shareholders and management will repurchase the shares of the B-round investors with a premium of 20%. "

Bao Zheyu also considers issues comprehensively. This year is a year that proves the commercial value of DouTV is crucial.

If the revenue does not even reach 50 billion RMB, then there is not much investment value.

No matter how many and active users there are, what’s the point if they can’t make money.

Zhang Yida smiled and asked, "What about the revenue exceeding 200 billion?"

"More than 200 billion, that's in line with the $250 billion valuation."

Zhang Yida chuckled, you foreigner are you pretending to be confused here?

VAM signed by start-up companies is generally a one-way adjustment.

That is, after the company's performance does not match and the listing timetable has not been met, investors directly demand compensation from the founders.

If the company's performance exceeds expectations, investment institutions rarely compensate the founders.

This is the real investment world, and it is very unfair.

Of course, it depends on the strength of the company and the scarcity of the target, as well as the energy of the investment institution.

If the company is strong enough and investors rush to invest, then the reward conditions are not impossible to discuss.

As for BlackRock, the world's top asset management company, if they invest in a company, they will provide the company with a very strong credit endorsement.

There are many conveniences in international expansion, refinancing, etc.Therefore, their negotiations are relatively strong, and they will not give too many generous terms to startup companies.

However, Zhonghe Group is not an ordinary company, and Zhang Yida is not an ordinary founder.

He said with a smile: "The range of 50 billion in the revenue betting plan is too broad, I think it is better to set it at 5 million.

For example, in the range of 195 billion to 200 billion, 200 billion to 205 billion is regarded as the normal completion of the VAM.

From 205 billion to 210 billion, the valuation was raised to 260 billion US dollars.and so on. "

This plan is not very beneficial to BlackRock, which greatly weakens the return of winning the bet.

Bao Zheyu made his own speculation based on the various data of DouTV, and the probability of DouTV's revenue can reach 100 billion to 150 billion.

Because according to Douvision’s current monthly advertising revenue of nearly 4 million, it will almost reach nearly 50 billion without growth in the next year.

With a little effort, more than [-] billion in revenue can still be achieved.

But whether the specific revenue is more than 140 billion or more than [-] billion, he is not sure.

According to the plan proposed by Zhang Yida, if the final revenue is more than 140 billion, the valuation of Douvision is almost the same, but the unit is US dollars.

This is a gap of billions of dollars from the $100 billion valuation he proposed, and the impact is not small.

So Bao Zheyu was very dissatisfied and firmly refused to agree to Zhang Yida's plan.

Not long after, Zhang Liping also came back, and he said that Blackstone could agree to bet against each other.

But Blackstone also has its own conditions.The specific conditions are also about the details of the VAM plan, which are similar to those proposed by BlackRock, and are more beneficial to investors.

Zhang Yida naturally refused to agree, although he was very sure of completing the 200 billion revenue task.

But what if something goes wrong?So you also need to leave a way out for yourself.

Regarding the VAM, the biggest controversy among several parties lies in the division of revenue ranges and the increase in valuations due to better-than-expected performance.

Liu Zhiping made the final decision, "Choose a revenue range of 10 billion. If the revenue exceeds 210 billion, for every 10 billion revenue increase, the valuation will increase by 250 billion US dollars on the basis of 10 billion US dollars.

If the revenue is lower than 200 billion, for every 10 billion revenue reduction, the valuation will be reduced by 200 billion U.S. dollars on the basis of 10 billion U.S. dollars. "

This plan seems unfair to the original shareholders of the founders, but it is actually relatively fair.

Penguin, Blackrock, and Blackstone are not soft persimmons, so how could they be manipulated at will.

The 200 billion revenue has become a very clear dividing line. Whether you cross this line or not, the treatment varies greatly.

199 billion revenue and 201 billion revenue, the valuation gap reached 60 billion US dollars.

In order to prevent Zhang Yida from engaging in related party transactions, the investor also added a restriction.

A series of companies controlled by Zhang Yida, headed by Ruixiang, can only place a maximum of 10 billion advertisements on Douyin in the next year.

Those exceeding this number will not be included in the VAM assessment indicators.

In addition, several investors will send financial audit consultants to Zhonghe Group to audit all advertising contracts and finances.

In order to prevent Zhang Yida from stealing his wool, several investment institutions also took great pains.

Zhang Yida agreed to all these conditions, and he naturally didn't want to rely on related transactions to prop up DouTV's 200 billion revenue.

But have enough confidence in the company.The height that Douyin can reach in the previous life, DouTV will naturally not be worse than them.

Zhonghe Group’s pre-money valuation is fixed at US$355 billion, of which Pinduoduo is valued at US$100 billion, Doushi is US$250 billion, and Bilibili and Canxing Culture’s equity valuation is US$5 million.

The amount of financing was set at US$45 billion, of which Penguin led the investment of US$25 billion, Blackstone Group and BlackRock Group each followed with US$8 million, and Robin Lee Family Fund and Dongfang Yu Family Fund each followed with US$2 million.

After this round of financing is completed, the valuation of Zhonghe Group will reach 400 billion US dollars.

Zhang Yida’s Cayman company shareholding ratio will drop from 71.39% to 63.36%;

The shareholding ratio of Ruixiang Industrial Investment Fund dropped from 3.8% to 3.37%;

Blackshirt Capital, Zhenke Fund, and Huayi Capital also diluted their shares in the same proportion.

Penguin's shareholding rose from 9.47% to 14.65%, failing to achieve the goal of holding 20%.

This is what Zhang Yida did deliberately. If Penguin alone invests US$45 billion, it will almost achieve the goal of holding 20% ​​of the shares.

But this is not a small amount of money, and it is very difficult for Penguin to take it out.

In addition, Zhang Yida brought in Blackstone and BlackRock on the grounds that he needed to introduce large international capital to help Musical.ly expand overseas.

Penguin finally gave up its plan to hold 20% of the shares.

BlackRock and Blackstone each received a 2 percent stake in Zhonghe Group.

The shareholding ratio is not high, mainly financial investment.

Robin Lee and Dongfang Yu's family funds held even lower proportions, and each paid 2 million US dollars in exchange for 0.5% of Zhonghe Group's equity.

To be honest, these two stakes are of little significance to Zhonghe Group.

But Zhang Yida has always stretched out his hand and never slapped people with smiling faces. If the two senior brothers want to buy shares, they will still pay a very fair price, so naturally they will not push it out.

Regarding Zhonghe Group's valuation of US$400 billion, Zhang Yida himself feels that it is still somewhat overestimated.

But valuation, in addition to the company's current value, also includes investors' expectations for the future.

Whether the valuation of 400 billion US dollars can be stabilized depends on the business development in one year.

Since Zhonghe Group came from the merger of Pinduoduo and Doushi, after the merger, it is still the first round of financing.

Although Zhonghe Group announced that it was the B round of financing, the media still called it the A round of financing.

"Zhonghe Group has completed the world's largest A-round financing of US$45 billion!"

"In less than 3 years since its establishment, this company is valued at nearly 3000 billion!"

This kind of headline is still very eye-catching, and countless netizens have been tricked into clicking and reading like this.

It has to be said that the media has spared no effort in publicity, which has brought Zhonghe Group a high degree of exposure.

Many netizens know that there is another small giant in China, Zhonghe Group.

Together with Ruixiang, Didi, Toutiao, and Meituan, they are called the five small giants "RTMDZ", all of which are unlisted Internet companies with a valuation of US$100 billion.

This news slightly dilutes the negativity brought about by Zhang Yida's selling Huimin trips.

In the eyes of the public, selling a company is a failure, the behavior of a loser.

No matter there are thousands of reasons, Zhang Yida's selling Huimin trips is showing signs of decline.

Sold a $60 billion company, and still has two companies valued at tens of billions of dollars.

Can such a person be called a business failure?Can it be called Encounter Waterloo?
There are also many people who say that Zhang Yida is behind in the battle for the throne of the "third largest Internet company".

Ruixiang’s official valuation is still at 275 billion US dollars, which is far behind Didi’s valuation of more than 500 billion US dollars.

This time, Zhonghe Group reached a valuation of US$400 billion, which brought Zhang Yida back a bit.

There are also some media that are too idle to express their views: the merger of Ruixiang Group and Zhonghe Group surpassed Qiandu in an instant, and the valuation approached 1000 billion US dollars.

And it is well-founded, and I made a comparison with penguins.

Penguin includes three main revenue segments: advertising, finance, and games.After the merger of Ruixiang and Zhonghe Group, the main business can also be carried out around the three major sectors of finance, e-commerce and advertising.

Many well-known foreign media, including the Wall Street Journal, New York Times, Times, Daily Mail... a lot of media also conducted in-depth reports.

Including the founder Zhang Yida, the products of Zhonghe Group, and the number of users have made relevant introductions and explanations.

This time, there is no need to be side by side with Brother Hiccup, the media has given him the title of "World's Youngest Billionaire".

It is also the first time for many young people in the West to know that Musical.ly, which they play every day, has such an awesome boss.

The degree of awesomeness is not inferior to Zuckerberg.

News such as "a senior student" and "three listed companies under its umbrella" were all dug up by Western media.

Zhang Yida's popularity around the world has also achieved a qualitative leap through this huge financing!
(End of this chapter)