Chapter 369: Meituan's Story of Selling Out

On February 2, Liu Qiangdong announced the "repose and recuperation" strategy to the public, voluntarily ending the price war with Suning, Gome, and Yixun. com.

The outside world thought he had "gone straight," but Zhang Jindong knew clearly that Handsome Dong was going to the Land of the Lighthouse for further studies, taking a three-month MBA course, and simply had no energy to spare.

Zhang Jindong had the heart to launch a sneak attack, but he was unwilling to spend the money.

After all, every subsidy campaign by Suning was a product born when they were forced by JD. com to a point of no retreat.

Half an hour later, the Analysys Data Network released the January group-buying market report, with KuaiPao securing the championship throne again with a monthly transaction volume of 1.49 billion.

LaShou. com ranked second with 1.02 billion.

Dianping ranked third with 730 million.

Meituan, without a doubt, was once again the industry's fourth, with a transaction volume of only 470 million.

LaShou. com jumped to second place for the first time.

Although the "Annan Bride Group Buying" business had not generated actual transaction volume, it did bring a wave of heat to LaShou. com, and with the traffic and financial support from QianDu. com, surpassing Dianping was within expectations.

Yet, the combined transaction volume of Dianping and Meituan was still less than that of KuaiPao, which truly left many people's eyes popping.

Now that Meituan is deeply mired in public opinion storms, it is not hard to imagine that the February results will most likely be at the bottom.

Movie ticket group buying accounted for as high as 27.9%, becoming an important sales channel for the Spring Festival season.

"Journey to the West: The Demons Strike Back" opened its pre-sale mode, with an exclusive special ticket price of 19.9 yuan on KuaiPao, bringing tens of millions of extra traffic to the group-buying business.

Immediately after, Mobile announced its TD-LTE strategy, preparing to accelerate 4G layout and build 200,000 base stations by the end of the year.

Telecom and Unicom, after completing 4G network commercial testing, were also making frantic preparations.

3G network fees were already showing a downward trend, and the signal of the imminent arrival of 4G was spreading like wildfire.

Ma Liyun, holed up in his hometown in Hangcheng, could no longer sit still after learning that WeChat users had surpassed 300 million and Sister Chengzi users had exceeded 200 million.

He temporarily summoned Lu Zhaoxi, Zhang Yong, and others to hold a senior management meeting, designating social software as Mama Ali's core strategy for 2013.

After a day of discussion, an app named "Laiwang" was listed as the top development priority.

Mama Ali's HR department rushed before the Spring Festival to send the recruitment requirements for the person in charge of the Laiwang app to the group website, social recruitment software, and headhunting firms.

The e-commerce boss's first attempt at social networking began in silence.

……

……

"Brother Xin, we still have a chance; giving up now is too early, isn't it?" Wang Huiwen advised cautiously.

After three consecutive days of suffering multiple blows, Wang Xin had cowered and wanted to admit defeat.

He didn't understand!

The mud doll in his hand remained a mud doll, but once sold to someone else, it turned into a golden doll.

For example, XiaoNei. com was sold to Chen Yizhou seven years ago for 2 million US dollars; the other party slightly renamed and packaged it, listed on the Nasdaq to ring the bell, and achieved a market value of 7.4 billion US dollars on the first day.

Another example is group-buying websites; at the very beginning, he had figured it out that to provide services to more users, the more users there were, the higher the product value.

Facts proved his business vision was not wrong, but there were too many competitors in the group-buying track.

QianDu. com entered the game first, followed closely by Senlian Capital.

They knocked Meituan off the industry championship throne, then kicked it down to fourth place; with no one behind, one more step back would be like WoWo. com, closing down and stopping operations.

"Old Wang, I'm sorry; I failed to lead everyone to live a decent life."

Facing his old classmate and old partner, Wang Xin wore a face full of guilt.

In his eyes, only Meituan's founding team counted as insiders; middle management were cattle and horses, and lower-level employees and riders were merely consumables, never even glanced at properly by him.

Wang Xin's count of failed startups was about to exceed what two hands could count; for him, failure was not terrifying, but daring not to start over was the most shameful.

Seeing Wang Xin in this state, Wang Huiwen's face was pained, and he couldn't help but say, "Brother Xin, it's not the final moment yet."

"Sell early, and you can still get some money; if you wait until Meituan's February sales figures are announced, I'm afraid you won't even be able to sell it for 300 million US dollars."

Wang Xin said with a bitter smile.

Unless absolutely necessary, he didn't want to sell the company either.

But currently, there was no investor, no traffic, and the funds on the account were nearly exhausted; if he kept struggling, WoWo. com would be Meituan's warning example.

Founders being chased and beaten by venture capital firms!

"Then who do we sell to?" Wang Huiwen, seeing that Wang Xin had made up his mind, asked helplessly.

"Mama Ali." Wang Xin said through gritted teeth.

Chen Yansen and Li Yanhong had forced Meituan into a corner with no way out, so he had to find some trouble for the two of them.

Ali Baba's strength was in no way inferior to Senlian Capital and QianDu. com; once Ali Baba took over Meituan, with the support of traffic and funds, the development of KuaiPao and LaShou. com would surely be hindered.

"Mama Ali invested in KuaiPao; would Ma Liyun be willing to hit his own hand with his palm?" Wang Huiwen did not look favorably on this decision.

"Let's try; if it really doesn't work, selling to the Penguin is also an option."

Wang Xin said dismissively.

"Alright, I'll go contact Ji Gang from Mama Ali's investment department first." Wang Huiwen saw his old friend's intention and nodded in agreement.

That evening.

Ji Gang received Wang Huiwen's phone call; after listening to the other party's statement, he wore an expression of surprise on his face.

He hadn't expected that Wang Xin had actually lost his fighting spirit after being beaten by KuaiPao and LaShou, nor had he expected that Wang Xin's first choice was not to merge with Dianping, nor to sell himself to Senlian Capital, but to approach Ali Baba.

"President Wang, I must report to the company first." Ji Gang thought for a moment and said.

According to the rules, Ma Liyun and Cai Xin had both said before to temporarily give up further investment in Meituan.

But the bosses' wording was very rigorous; it was only temporary.

If a major situation occurred and was not reported, there was a chance of receiving a scolding.

"Troublesome, President Ji." Wang Huiwen also knew that Ji Gang, with his status, could not make the decision.

His direct superior was Cai Xin, and Cai Xin still had to report his work to Ma Liyun.

Without two or three days, it would be hard to get results.

Therefore, after hanging up the phone, he called Lin Chenfeng in the Penguin Investment Department again.

He would not foolishly wait for Mama Ali.

"President Wang, sorry, Penguin has no intention of acquiring a group-buying website." Lin Chenfeng refused very bluntly.

After merging Gao Peng and F-Tuan, QQ Group Buying was still half-dead; should he buy another one, Meituan, which was plagued by negative news?

Are you kidding me!

He did not want to be criticized by name by Pony and Martin at the group's senior leadership regular meeting.

Wang Huiwen let out a dry laugh and silently put away his phone.

At the same time.

Shen Nanpeng of Sequoia Capital also received the news and immediately called Wang Xin to question why he did not follow his arrangement to merge with Dianping.

"I want to cash out, not equity." Wang Xin answered directly.

Only by selling Meituan could he get startup funds for his next project.

What could he get by merging with Dianping?

Wang Xin did not believe Zhang Tao could defeat Kuaipao and Laoshou.

"How about I step in and help you arrange a chat with Chen Yansen of Senlian Capital?" Shen Nanpeng suggested.

Not long ago, he had just participated in the Series A financing of ofo bikes; in his view, Chen Yansen would at least give him some face.

"A few days ago, I had Zhang Chaoyang pass a message; Chen Yansen has no intention of acquiring Meituan at all."

Wang Xin stated truthfully.

"Fine, I understand. If you want to sell the company, I won't stop you, but the price must pass Sequoia Capital's review." Shen Nanpeng said in a deep voice.

He feared Wang Xin would engage in backroom deals, sell at a low price, and harm Sequoia Capital's interests.

"Okay, I have no objection." Wang Xin replied dryly.

With things said to this extent, and Shen Nanpeng not mentioning additional investment, it showed that Sequoia Capital had long given up on Meituan.

Wang Xin sneered and pressed the hang-up button.

Half an hour later, Wang Huiwen returned and synchronized Mama Ali's and Penguin's replies to Wang Xin. "Since Penguin won't buy, let's find Baidu." Wang Xin thought for a moment, and a new idea popped into his head.

First, it could make Kuaipao and Laoshou fight each other; second, with Baidu entering the game, he could also inflate his own value with Mama Ali.

Otherwise, if Mama Ali were the only buyer, the other party would definitely press the price to the death.

Wang Huiwen was a smart person; once pointed out, he understood immediately. He didn't ask much, pulled a chair over, and started making calls in the office.

Wang Xin, like a dying hyena, stared fiercely at Kuaipao and Laoshou, looking as if he wanted to bite anyone.

On the other side.

Hangcheng, Mama Ali headquarters, Peach Blossom Island office.

Ma Liyun's gaze swept over Tang Yongbo, Zhang Yong, Lu Zhaoxi, and the others, then he asked, "What do you think?"

"Buying Meituan can fill another gap in Mama Ali's local life business; this way, we can walk on two legs." Lu Zhaoxi said lightly.

"Confronting Kuaipao and Laoshou directly at this time will only consume the group's resources and funds, and might affect the upcoming listing work." Zhang Yong shook his head, obviously not in favor.

Chen Yansen is famous in the industry for holding a grudge; after Kuaipao entered the group-buying track, Wang Xin only bared his teeth once and was beaten to the point of withdrawing.

What if Mama Ali's acquisition of Meituan provokes retaliation from Kuaipao? Should we start a price war then?

If we fight, it consumes funds and affects the group's cash flow health; if we don't fight, then why buy Meituan?

"Combine Taobao Food Delivery and Meituan; use high frequency to drive low frequency, forming a complete business ecosystem. I support the acquisition."

Tang Yongbo added.

Buying Meituan and merging it with the food delivery business would give him more authority, more resources under his control, and more say.

Since it benefited him, he naturally would not oppose it.

Ma Liyun frowned; two votes in favor, one against, and he actually didn't want to buy either.

But then he thought, Taobao had already entered the food delivery industry, and local life was part of Mama Ali's strategy; sooner or later, they would clash with Kuaipao.

From the day he decided to test the waters with food delivery, cracks had appeared in the cooperation between Mama Ali and Senlian Capital.

"Tell Ji Gang to start the Meituan acquisition process." After pondering for a while, Ma Liyun decided immediately.

Rather than hiding and shying away, it was better to openly admit Mama Ali's determination to enter the local life market.

"Yes, President Ma." Tang Yongbo nodded slightly.

"Are you saying Wang Xin is preparing to sell Meituan?"

Baidu headquarters building, Li Yanhong looked at Gong Zhenbing and asked.

"Wang Huiwen said it himself, so it should be true. Meituan's transaction volume in January was only 470 million, a drop of nearly sixty percent compared to three months ago. Once February's data comes out, it will likely not even hold 400 million."

Gong Zhenbing said with a smile.

Although he was scolded last month and criticized by name by the Inspection General Association, Laoshou's monthly transaction volume also reached 1 billion for the first time, leaping to second place in the industry, second only to Kuaipao.

Li Yanhong became friendly with him again!

In big companies like BAT, if you want to thrive, timing is crucial; you must bring the project to the expected level before the boss's time and patience run out.

Otherwise, the project gets disbanded, and the person in charge has to get out too.

"What is Wang Huiwen's asking price?" Li Yanhong asked, a hint of interest flashing in his eyes.

"370 million US dollars." Gong Zhenbing replied.

Li Yanhong recalled that when Baidu acquired Laoshou, the price was 420 million US dollars; back then, Laoshou's monthly transaction volume was around 600 million. Comparing the two, a price of 370 million US dollars was not high.

"Press the price down, keep it around 300 million. I will have the Investment Department assist you." Li Yanhong said.

Take down Meituan, then merge and reorganize with Lashou; at that time, Qiandu Wang will rank first in the group-buying track.

But Li Yanhong overlooked one thing: business merger is an extremely complex task; from a macro perspective, it looks simple, as simple as "1+1=2".

But from a micro perspective, factors such as high-level handover, business docking, and personnel turnover will all affect the combat effectiveness of the merged team.

If operations succeed, 1+1>2; if operations fail, 1+1<2.

The next morning, when Ma Wenteng attended an internet entrepreneur exchange meeting, a reporter asked: "Mr. Ma, hello. What is your opinion on Qiandu Wang crossing over into ride-hailing and group-buying businesses?"

If it were ten-plus years later, Little Ma Brother would definitely perfunctorily say: "Qiandu possesses quite outstanding technical accumulation; I believe Robin can also achieve certain results in new fields."

But Gao Peng Wang and QQ Group Buying made him lose all face in the group-buying industry, so Ma Wenteng spoke very bluntly: "Generally, a company cannot do two different types of businesses well across borders, unless you are Chen Yansen."

The reporter was stunned, and instinctively pressed on: "So, is this the reason Penguin has failed repeatedly in the e-commerce industry?"

Little Ma Brother's face darkened; he squinted and asked, "Which media outlet are you a reporter for?"

Damn it, hitting people specifically in the face, right?

The reporter was startled, smiled awkwardly, subtly covered the logo on the microphone, and then ran away at full speed.

But what Ma Liyun and Li Yanhong did not expect was that Wang Xin changed his mind the very next day.

Because Hong Jing of Atlantic Capital proactively approached him, wanting to invest 100 million US dollars in Meituan.

In the eyes of foreign capital, Meituan's market share was not high, but it still occupied the fourth position in the industry.

Although Wang Xin did not understand, he did not refuse and readily agreed.

He exchanged 20% equity for 100 million US dollars in financing.

Ma Liyun was dragged around by Wang Xin and flew into a rage, cursing loudly.

Li Yanhong was also dumbfounded; his and Old Ma's behavior had actually helped Wang Xin successfully drive the price up.

But he was helpless and could only mutter a few curses.

"It seems the 4% equity stake in Kuai Pao simply cannot satisfy Ma Liyun's appetite."

After learning that Wang Xin had played Li Yanhong and Ma Liyun around, Chen Yansen did not take pleasure in their misfortune.

Ma Liyun wants to buy Meituan?

What is this old fellow trying to do!

Doing food delivery isn't enough; he also wants to enter the group-buying track?

The 100 million in funds Atlantic Capital gave Wang Xin undoubtedly pulled Meituan back from the brink of death.

But he didn't care too much; at most, it would just let Meituan last a few more months.

Outside the window, snow was white and the cold wind was biting; only three days remained until the Spring Festival holiday.

There were already 5,700 users who had collected all five Fu cards; compared to a few days ago, the number of new users collecting them daily had increased by over 100, and the per-person share amount displayed on the activity page was getting smaller and smaller.

Users' moods were extremely contradictory: before collecting all five Fu cards, they wished Sister Chengzi Payment would issue 10,000 Professional Fu cards a day; after collecting them, they wished Sister Chengzi Payment would issue only one card per day.

But regardless, Sister Chengzi Payment's marketing campaign successfully attracted the attention and high participation of hundreds of millions of users.

At the same time.

In the Land of the Lighthouse, Stanford University next to Silicon Valley.

"Jerry, look what I found! A brand new mobile operating system; wow, they even have their own open-source community."

A computer science college student shared this enthusiastically with his companion.

"AuroraFutureOS? How is its architecture design?" Jerry turned sideways, glanced at the computer screen, and asked.

"I am still researching; the underlying technology of this system is very advanced, the layered architecture is clear, memory management and multi-task scheduling have been optimized, and the message passing mechanism is stronger than iOS,"

Bunian replied.

"Send me the link to the open-source BBS." After hearing this, Jerry immediately became interested.

Under the promotion of channels like Mimo and Wired magazine, AuroraFutureOS gradually gained a small reputation among developer enthusiasts.

Plus the AuroraFuture vulnerability bounty program totaling 30 million US dollars, which caused a large number of developers to start studying the AuroraFuture system.

And Apple, which had obtained the OrangeZ1 instruction set architecture license, was using the new CPU architecture to design the A7 chip.

(End of this chapter)