Chapter 750

The market value of meituan is US $15 billion and that of public comments is US $8 billion. Naturally, the combined market value can not be as simple as US $15 + 80 = US $23 billion.

Because after the merger of meituan and public comment, its market share in the field of o2o will directly exceed 80%, close to and in a monopoly position.

After the merger, meituan comments that its competitors in the o2o field are only nuomi.com supported by Baidu, word-of-mouth.com supported by Alibaba, hungry in the takeout segment, google takeout, etc. Although there are many enemies, they are not a climate.

It can be said that the merger of meituan and public comment will directly establish the dominant position of meituan comment in the o2o field.

Therefore, for the merged meituan comments, there is also a premium in the market valuation.

25 billion?

26 billion?

28 billion?

30 billion?

During the discussion between Fang Zhe and several major shareholders, he constantly pushed up the valuation of the new company. Wang Xiaoxing, CEO of meituan and Zhang Tao, CEO of public comment, who are in the same small private room, are also happy. The rise in valuation after the merger has achieved their expected purpose of merger.

What we are looking at now is how much the final valuation point of the new company can fall.

$31 billion!

When Shen NANPENG, head of Sequoia Capital China, said the valuation, everyone present held their breath.

US $31 billion, which is comparable to JD and enough to rank among the top ten domestic Internet companies.

"Yes!" Zhang Lei, founder of Hillhouse capital, nodded first.

Fang zhe pondered for a moment and nodded slowly. The valuation of US $31 billion is not low. Compared with the market value of US $23 billion combined by meituan and public comments, it has a premium of about 35%.

They can accept this valuation, and other venture capital funds in the market can also accept it.

Next, meituan comments on the new round of financing after the merger will float upward according to this valuation. If it is lower than this valuation, the three major shareholders will not accept it, which is equal to the three of them. They are making a tray for this valuation!

After the valuation was finalized, other details that needed to be finalized were readily solved. When everyone attended president Liu Jingdong's wedding and returned home from Australia, the merger of meituan and public comments was a foregone conclusion.

When the two sides announced the news on October 8, the first working day after the national day, the industry and netizens talked about it one after another.

"The merger of meituan and public comment is a group heating under the cold winter of capital. After the merger, meituan comment will become a well deserved overlord in the domestic o2o field. The capital market is also willing to pay for a dominant Internet leading enterprise."

"Well, why merge, Monopoly!"

"I've always felt that public comments are more fair than meituan. Now it's good. The world is as black as crows."

"I remember in June, meituan and Ditui employees commented by the public were still fighting for customers. Why are they merged now?"

"Money can make the devil push the mill. The shareholders behind both sides don't want to spend any more!"

"After Kuai'an and Kuai, 58 same city and ganji.com, two Internet giants that have been killed have merged. This year's domestic Internet industry is really magic!"

"Magic? I think what's more magic is that Fang Shoufu has predicted all this in advance!"

"Yes, I think Fang's richest man's predictions have been verified, which is the most coquettish and terrible!"

"I suddenly understand why Fang Shoufu's prediction is so accurate, because it seems that Fang Zhe is behind all this!"

"Think carefully and fear!"

Netizens talked about the merger of meituan and public comments, and Fang Zhe's divine prophecy video at Lakeside University at the beginning of the year was released again, which was fried on the microblog hot search and Zhihu hot list.

"In my opinion, at present, many in China, including 58 cities and ganji.com, Ctrip and qunar, eLong, and even meituan and public comments, are around 2005..."

"God predicted! The only thing big brother Fang zhe didn't say is Ctrip and qunar. However, if we only say that the internal competition intensifies, it has indeed come true!"

"Darling! Meituan and public comments are at the end. It's already October. There should be no merger of Internet companies this year!"

"Capital winter, such terror! Fang zhe follows the law, such terror!"

No one thought that Ctrip and where to go, which many netizens thought were not in words, were fulfilled at the end of October!

On October 26, Ctrip announced that it had reached an equity exchange with Baidu. Baidu transferred all its qunar shares to Ctrip to replace 25% of Ctrip's shares. Ctrip and qunar reached a merger!

As soon as the news came out, public opinion and netizens became more crazy!

"Don't hold me. I'm going to worship Fang's richest man as a teacher!"

"Kneel! I'm really convinced. It's not that Fang Shoufu didn't predict, but the time hasn't come."

"There is only one truth, and Fang's richest man is absolutely forced to be behind all this!"

On the Internet, there are endless comments that Fang Zhe is behind all this, but people with a little brain will know that this is not the case!

Because there is no Huizhong or any company or capital associated with Fang Zhe in the list of shareholders of Ctrip or qunar.

The biggest driving force behind the merger of Ctrip and qunar this time is qunar's controlling shareholder, Baidu!

As early as 2011, google spent more than US $300 million to acquire more than 60% of qunar's shares and control qunar. Later, qunar developed vigorously with the help of Baidu's resources and won a lot of market share in the domestic online tourism market.

Later, qunar, Ctrip and elong successively launched a several-year war of money burning subsidies. In early May this year, after Ctrip acquired elong, it expanded its competitive advantage over qunar and was at a competitive disadvantage.

At the beginning of this month, seeing the soaring valuation after the merger of meituan and public comments, both Baidu and Ctrip executives had the idea of incorporating where to go into Ctrip.

Therefore, under the pressure of Baidu, Ctrip executives and Baidu executives negotiated the merger after only one weekend, because the only problem they had was one. How much benefit can Ctrip give Baidu?

The answer is 25% of Ctrip's shares!

In Ctrip's view, where to take it, Ctrip will monopolize the domestic online tourism market, and its valuation will make a huge improvement as the merged meituan review.

In addition, after the merger of Ctrip and qunar, they can also stop the crazy price subsidy war between the two sides, master the bargaining power of the industry and move towards profitability in an all-round way.

The capital market did vote with their feet to express their optimistic attitude towards the merger of the two companies.

The day after the merger of Ctrip and qunar, US stocks opened. Ctrip's share price jumped by 20%, with a total market value of more than 13 billion US dollars, qunar's share price jumped by 30%, with a total market value of more than 6 billion US dollars!

Baidu president Li, who pushed qunar into Ctrip and made a lot of profits in this transaction, commented in high spirits in public:

"Everyone describes the capital winter as terrible and terrible, but in my opinion, this happens to be a great opportunity. People and companies with real ability will bloom their beauty and aroma like plum blossoms in the cold winter!"