Chapter 361

"Valued at $45 billion!"

When Fang Zhe and others returned to Yanjing, a message about Huizhong valuation began to spread widely in the domestic investment circle and the Internet industry!

Many people who heard this news felt both incredible and taken for granted.

Of course, Huizhong is now tied with the other three domestic Internet giants as bath, and its valuation is naturally on a par with the other three.

Now, Baidu, which is listed on NASDAQ in the United States, has a valuation of $46 billion. Tencent, which is listed on Hong Kong stocks, has dropped its valuation from $50 billion to about $44 billion because of the 3Q war.

This is also the reason why Ma Zong, Tencent and other senior executives urgently stepped on the brake to fight 360 at the beginning, because half an hour after Huizhong Baidu and other companies released the proposal to advocate a harmonious network environment and resist abusing market position to coerce users and illegal business competition, Tencent's Hong Kong stock price plunged by more than 10%.

Later, Tencent shook hands with 360 and withdrew from the field of Internet security. Tencent's share price continued to decline. Until the end of August, President Ma boldly invited industry experts and Internet company bosses across the country to hold the famous "diagnosis Tencent" meeting. After Tencent decided to fully open up, Tencent's market value rose from the threshold of $40 billion, Back to about $44 billion today.

Now, with the news of Huizhong's valuation of $45 billion in the market began to spread, Huizhong stabilized Tencent's valuation of $1 billion, which also made people feel taken for granted and a little incredible!

$45 billion, which is $1 billion more than Tencent's market value. Is Huizhong's valuation a little too high?

You know, in October last year, the valuation of Huizhong circulated in the market was only US $5-10 billion. Huizhong was ranked as H behind bat because of Fang Zhe's wonderful remarks and foresight at the IT leadership summit at the beginning of the year.

To be honest, although many people have called bath for more than half a year, most of them still feel that Huizhong is always behind bat, which can be seen from their business core, number of users, company establishment time and company scale.

We all believe that although Huizhong's core game business makes money and still makes money around the world, it should definitely not have development potential like bat's search, social networking, e-commerce and other businesses.

However, if we consider the wechat that Huizhong has gradually opened up in the world, this valuation seems to make some sense!

In fact, a large part of the reason for Huizhong's high valuation does come from wechat.

Last year in Hong Kong, Leung Po Tao and others proposed to Fang zhe a valuation of US $5-10 billion for Huizhong. Fang zhe just smiled and didn't talk at that time, because he knew that Huizhong could only get a P / E ratio of 5-20 times of the game company before wechat was officially hung in front of Huizhong and made some achievements.

However, when wechat was pushed to the front desk by Huizhong and its global users exceeded 100 million, it was a small achievement, and all this changed!

"So, how do you define your Huizhong company, or what kind of company do you think your Huizhong company is, a game company, a mobile social software company, or?"

This is what Fang Zhe, Zheng Siwen and others asked when they met with the executives of Carlyle investment group at HSD in the United States. He hoped that Fang Zhe, the young founder of Huizhong, could tell them frankly what kind of company Huizhong is and whether it is worth their investment at the bottom.

Carlyle Group is the second stop of Fang Zhe and others in the United States. In the first stop, Fang Zhe and others visited Sequoia Capital, which is well-known in the domestic Internet investment circle. Although this capital has branches in China, it is obvious that at the level of Huizhong, the domestic person in charge alone is a little unqualified. Therefore, after greeting the domestic person in charge of Sequoia Capital, Directly contacted Sequoia Capital's US headquarters.

However, although Sequoia Capital is well-known in the global Internet industry and has successively invested in the world's top multinational giants such as Google, apple, Cisco and Yahoo, Sequoia Capital's investment is generally biased towards the early stage and has great influence in TMT industries such as the Internet, but it has some difficulties in political resources vital to the future development of wechat.

Therefore, Carlyle Group, which has rich resources in American and European politics, has become the second stop for Fang Zhe and others. You know, this company is known as the "President's Club" in the investment banking industry, including political dignitaries from many countries, such as former US President George W. Bush and former British Prime Minister Major, who have served as the consultant chairman of this company!

"We Huizhong, a mobile Internet company!

We Huizhong started from mobile games at the beginning. Later, although we entered the field of page tour end tour, mobile Internet business has always been the core business we adhere to. Huizhong involves page tour steam China and other end tour platform businesses, but also to better serve the mobile business and wechat, wechat!... "

Fang zhe briefly explained in English to several executives of Carlyle Group who met with them that although Huizhong is now a bath giant in China, there are still top companies in the world such as Microsoft, apple and IBM that Huizhong needs to look up to, and there are still capital giants such as Carlyle and Blackstone that Huizhong needs to be careful to deal with or even provoke!

Because Huizhong is a mobile Internet company, its valuation P / E ratio is twice as high as that of the game company and fluctuates between 30-50. Because Huizhong's achievements and layout in the mobile Internet industry have taken a great lead in the world, the advantage is that these capital are between re supporting a start-up company in a non Chinese region and investing in Huizhong, It has been difficult to choose.

Capital pursues profits. For capital, what they always pursue is the greatest interests and returns. When Huizhong has such a big leading advantage and development prospect, how many are the odds of winning and the success rate of re supporting a start-up company to compete with Huizhong? What is the final return profit?

Yes, these top-level capital can exert influence in the world and make Huizhong's wechat unable to survive in many countries around the world. However, the problem is that there are more than one or two top-level capital and forces with this ability in the world. You don't want Huizhong's wechat to develop, but others want Huizhong's wechat to develop, Even the top capital of the original monolithic western countries do not agree.

Because Huizhong is a Chinese company, a company with achievements and achievements in China, a large market with a population of 1.3 billion. Many western capital do not want Huizhong to continue to grow in Europe, America and other overseas regions, but also hope to enter the Chinese market with the opportunity of the mobile Internet industry reform of Huizhong and wechat!

More than a decade ago, when Tencent, Alibaba, Baidu and other companies were just founded, a small number of overseas capital lived alone and seized this opportunity, including MIH, de Fengjie and Softbank of Japan, which made a lot of money and obtained incomparably rich returns.

Now, these three investment companies hold a considerable part of the shares of Tencent and other three companies, and continue to make a lot of money from China's huge market. Even the world's top capital is greedy.

It is China's huge market temptation that leads to the world's top capital's own evil intentions, and the mentality that every capital will not have this store after passing this village, which makes Fang zhe see the opportunity for wechat and Huizhong to gain a firm foothold in the world!