"Sogou is one thing, but even NetEase, Sina, Sohu, and 360 are joining in to take advantage of the fire!"
"It's truly despicable!"
Li Yan said angrily.
Internet business warfare is just that simple and unadorned.
Once someone gets into trouble, other friendly companies will seize the opportunity, swarm in, and snatch traffic, customers, and market share!
Whether it's 2022 or 2011, the rhythm is exactly the same.
After all, the internet pie is only so big, and Baidu Search monopolizes 76% of the search engine market.
Baidu Tieba is one of the hottest platforms currently, making the four major Weibo platforms wary.
Baidu Browser is also rapidly increasing, fiercely grabbing internet entry points...
Every business Baidu rises with will kill off many competitors, forcing friendly companies to seize the opportunity to act!
Li Yan was furious:
"Wang Yi isn't playing by the rules, he's planning to beat the master with wild punches. Those bastards at 360 and Sina are actually joining in to throw dirty punches and gang up!"
"That's so morally bankrupt!"
What's worse, Baidu doesn't have a very good counter-strategy for this!
They can't possibly label all four major Weibo platforms, four major portal websites, and 360 as mortal enemies and declare war on all of them!
That's unrealistic; Baidu doesn't have that kind of energy, let alone the time.
They can only secretly remember today's grudge!
"Just wait, you few companies, I've noted down today's events. If you encounter a crisis in the future, my Baidu will definitely repay you tenfold!"
Li Yan said in a deep voice, his expression extremely cold:
"I'm just afraid that with all this, Baidu's users will plummet again. And a drop in users will cause stock prices to tumble! It's a vicious cycle!"
Li Yan sighed, no longer having his previous calm demeanor, and could only open the backend data.
Sure enough, Baidu Browser's already small user base had decreased by several hundred thousand compared to the same period a few days ago.
Baidu Search Engine's 76% market share also fell to around 70%!
"Tonight's stock price will fall further!"
In desperation, Li Yan immediately convened a high-level meeting to discuss countermeasures.
He came from a technical background, seizing the initiative with core Chinese search technology to create Baidu.
But when it comes to business warfare tactics and strategic development, Li Yan falls far short.
It is precisely because of this that Baidu, a few years later, went from being the big brother of BAT to being completely left behind.
If Li Yan truly had foresight and a broad perspective, he wouldn't have lagged so far behind Tencent and Alibaba.
Wang Yi, however, was very relaxed.
This trending topic not only sharply reduced Baidu's market share but also caused Sogou's market share to continue to surge.
Sogou Search Engine's market share increased from the previous 2.4% to 3.9% two days ago, and now it has even surpassed 8%!
Sogou Browser's market share also increased from the previous 9% to 12% two days ago, and now it has broken through 17% in one fell swoop!
And it's still increasing!
Although it's still far from Baidu's 70%, this aggressive growth is very impressive.
Next, as long as they maintain the popularity and traffic, continuously build momentum, and gradually develop, it will be fine.
Of course, the database must also be well-managed, and features made comprehensive!
Wang Yi was very confident in Wang Dachuan's ability to lead these matters.
With the exam month approaching, Wang Yi had to abandon his plan to return to Jeju and instead started attending school, or studying accounting with Mei Qiulin, and preparing for other subjects.
As for the data center construction plan, Wang Yi could only communicate remotely with experts in Jeju and relevant departments there via video conference.
Without any surprise, when the US stock market opened that evening, Baidu's stock price dropped further.
The news of 25 billion evaporating overnight last night triggered a global panic, causing another wave of selling.
Baidu's stock price continued to fall, and although the decline was not as terrifying as yesterday, only 4.5%, it still evaporated tens of billions.
Looking at this trend, it will continue to drop slightly over the next two days.
After all, with a market capitalization of over 230 billion, a 4% fluctuation is tens of billions.
This made Baidu anxious but helpless.
Under the leadership of Wang Dachuan, Sogou rapidly pushed various businesses, integrated resources, and connected to Meiyou!
Sogou Maps department was also spun off and moved to Xingyi Science and Technology Park!
Joining Xingyi Technology were also 200 employees from the Maps Business Unit!
However, Wang Yi had no time to deal with this.
There were quite a few exams these days.
On the morning of the 20th, he had an exam on ideological and political education, and in the afternoon, English.
On the 21st, he had an accounting exam in the morning!
With three consecutive exams grouped together, Wang Yi couldn't spare time for anything else and could only focus all his efforts on reviewing, making last-minute preparations.
Fortunately, the ideological and political education exam had many multiple-choice questions, allowing him to score quite a bit, and the subsequent essay questions were open-ended, allowing him to get some points by just being coherent.
And Wang Yi, as a student who could score 620, already had good English, easily passing it based on his high school foundation.
Just like the saying, "Freshmen can easily pass CET-6 without studying, but juniors struggle with CET-4!"
It all depends on whether one has forgotten their high school foundation.
Coupled with Mei Qiulin's intensive coaching, Wang Yi mastered all 20 knowledge points, and easily passed the accounting exam on the 21st.
Seeing Wang Yi walk out of the exam room, Mei Qiulin was excited:
"Chairman, how did you do?"
"Above 80 is difficult, but 75 should be fine!"
"Chairman is amazing!"
Mei Qiulin breathed a sigh of relief.
"You worked hard, let's go, I'll treat you to a big meal!"
"No, no need."
Mei Qiulin quickly waved her hand:
"It would be great if my performance review could go up a level and I could get tens of thousands more in my year-end bonus!"
"Year-end bonus is year-end bonus, and a big meal is a big meal!"
Wang Yi smiled slightly:
"Let's go, get in the car!"
"Thank you, Chairman!"
Mei Qiulin got into the car.
She had followed him since early morning for today's accounting exam, giving Wang Yi a pre-exam cram session...
After taking Mei Qiulin and Wu Shuang for a meal at the Sheraton, Wang Yi returned to Xingyi Technology in the afternoon and went straight to the Xingyi Maps department.
To take on Baidu, one must fight the master with wild punches.
Launch a swift and comprehensive attack on Baidu's core businesses, seize Baidu's market share, make Baidu struggle to cope, and cause its stock price to plummet!
Whether it's Xingyi Video, Sogou Search Engine, or Sogou Browser, the battle against Baidu is a long-term one.
Overthrowing Baidu in the short term is unrealistic; they can only proceed step by step, gradually seizing market share.
Fortunately, the current development momentum is good.
And next, Sogou Maps should also prepare to aggressively expand and launch another offensive against Baidu Maps!
Seeing Wang Yi arrive, Tian Guanghan, the head of the Maps Business Unit, quickly greeted him:
"Chairman, you're here."
Tian Guanghan was the top person at Sogou Maps, and Wang Yi had assessed him; his capabilities and character were both fine.
The reason Sogou Maps couldn't compete with AutoNavi and Baidu was primarily due to a lack of money and too little investment.
Most of Sogou's money was invested in Sogou Input Method and search.
Wang Yi nodded and went straight to the office.
Tian Guanghan quickly pulled out a prepared document and began to report on the maps business:
"Chairman, Sogou Maps previously invested a total of 85.3206 million in R&D, marketing expenses, map data copyright fees, etc., in 2011, with revenues of 51.2118 million, resulting in a loss of 34.1188 million."
Wang Yi was a bit surprised:
"Only that much?"
The total annual investment in the maps business was only 85.3206 million, which only indicates that Sogou was short on funds and had to be very frugal.
Of course, one shouldn't expect too much market share with such minimal investment!
AutoNavi next door invests two to three hundred million a year!
"Chairman, in the current map field, Nokia Maps accounts for..."
Tian Guanghan was about to continue his report but was directly interrupted by Wang Yi:
"Ignore Nokia and Google Maps, just talk about Apple and Android platforms!"
Given the current installed base of Nokia phones, Nokia Maps has more users than Baidu and AutoNavi combined, but it's meaningless.
Nokia will soon be gone; any market share it has will be like a mirage.
In the future, Android and iOS will be the main battlegrounds.
And Google Maps, while it has many users now, will be abandoned by people in a few years.
"Yes!"
Tian Guanghan pulled out another set of data:
"On Apple and Android platforms, KLD Navigation ranks first with a 47% market share. AutoNavi Navigation ranks second with a 22% market share. Baidu Navigation ranks third with a 16% market share, Sogou Maps ranks fourth with a 3% market share, and others like Tiger Maps and Soso Maps rank fifth and sixth respectively..."
That's right, in 2011, Baidu and AutoNavi were both minor players, and KLD, with users worldwide, was number one!
It's worth noting that in 2011, map software was free, but navigation was charged!
Car manufacturers that built-in navigation software had to pay for it, and it was only free for car owners for one or two years.
After the free navigation package expired, car owners who wanted to continue using it had to pay to buy it.
In addition, map databases are updated annually, becoming more and more detailed.
Therefore, car owners who wanted to upgrade their navigation maps later had to go to 4S stores and pay for the upgrade.
Baidu Navigation and AutoNavi were cheaper, costing 200-500 for an upgrade.
While KLD charged over a thousand for an upgrade!
As for BBA, it was even more expensive, 1800 or even 2000+ per year!
Therefore, current in-car navigation was the main source of map revenue.
As for not using in-car navigation but using phone navigation, turning on Bluetooth...
That's overthinking it; phone navigation in 2011 was also charged.
That's right, current navigation not only charges businesses but also users.
For example, users pay 30 yuan per month for Baidu Navigation, 50 yuan per month for AutoNavi Navigation, and 108 yuan per month for KLD Navigation!
In his previous life, Baidu and AutoNavi fought fiercely to snatch users.
It wasn't until August 28, 2013, when Baidu Maps launched its killer move, announcing Baidu Navigation would be permanently free, that a new era of free navigation began!
Four hours later, AutoNavi was forced to follow suit that evening, also announcing free navigation!
Baidu and AutoNavi rapidly grew to become number one and number two by relying on free navigation.
KLD, which was number one, was completely crushed by Baidu and AutoNavi because it continued to charge fees.
However, currently, Baidu and AutoNavi are still making a lot of money from navigation.
Wang Yi, however, was determined to launch free maps next year, directly crushing KLD and seizing its market share!
As for whether Baidu and AutoNavi follow suit, it doesn't matter.
If they don't go free, even better.
But unfortunately, Sogou Maps currently has too few users, and its map resources and navigation resources are not strong enough.
Street view and other features also lag far behind Baidu and AutoNavi.
It's worth mentioning that the main domestic map data providers currently are NavInfo and AutoNavi!
Baidu Maps, Sogou Maps, Soso Maps, Nokia Maps, etc., currently do not have their own map data, nor do they even have Grade A map surveying and mapping qualifications!
They all purchase licenses from NavInfo and use NavInfo's map data.
AutoNavi, however, has surveying and mapping qualifications and its own map data, and it has captured half of the in-car navigation market!
It's just that AutoNavi is both a map data provider and an internet navigation software developer, naturally competing with Baidu and Sogou, so Baidu Maps and Sogou Maps both chose NavInfo, which only provides map data and doesn't make navigation apps.
So, for the development of Xingyi Maps, the most important thing is to improve the map data and navigation data!
Only with strong underlying data, and if users find it easy to use, will they continue to use it.
Current Sogou Maps resources are very limited, navigation is imprecise, and many places do not support navigation, so there are very few users.
As for the methods, there are nothing more than four:
First, continue to purchase the latest map data licenses from NavInfo!
This solution is the simplest and lowest cost, but buying licenses year after year without one's own map resources is not reliable.
Second, invest in or even acquire NavInfo!
NavInfo is currently listed, with a market value of around ten billion, so acquisition is unrealistic; the price is too high and meaningless.
Investing 10% to become the second largest shareholder would also require an investment of one billion.
And once free navigation is launched, NavInfo's market value will instantly halve!
In his previous life, when Baidu and AutoNavi successively announced free navigation in 2013, NavInfo's stock price halved to around six billion.
Even ten years later, it's only about 20 billion, with negligible growth potential.
Acquiring it now is completely uneconomical.
Third, acquire a company with Grade A map surveying and mapping qualifications, conduct one's own surveying and mapping, and build one's own map data and street view!
This solution is the most stable in the long run, but it requires starting from scratch and has a relatively long cycle.
Fourth, acquire AutoNavi!
AutoNavi is similar in size to NavInfo, but AutoNavi is both a map data provider and a navigation app developer.
And AutoNavi, currently listed on the US stock market, has a market value of only about 500 million US dollars, which is 3.3 billion RMB.
While NavInfo has a market value of ten billion, three times that of AutoNavi!
It can be said that AutoNavi's current market value is severely underestimated, or NavInfo's market value is severely overestimated!
With AutoNavi's market value of 500 million US dollars, Wang Yi offering 600 million US dollars, a 20% premium, to acquire AutoNavi should be promising.
After all, map navigation is just starting now, and the total number of mobile users is only 135 million.
AutoNavi Maps ranks second, but its user base is only 30 million.
Baidu Maps only has 20 million users.
Sogou Maps only has over 3 million users!
But AutoNavi's map data is invaluable!
In his previous life, Baidu proposed to acquire AutoNavi for 600 million US dollars in 2013, but Alibaba stepped in, offering double the valuation and promising not to change its name or interfere with AutoNavi's development.
Ultimately, AutoNavi went to Alibaba.
In 2013, Alibaba invested 294 million US dollars in AutoNavi, holding 28%, valuing it at 1.05 billion US dollars.
In 2014, Alibaba spent another 1.45 billion US dollars to fully acquire the remaining shares of AutoNavi, delisting it from the US stock market.
However, those were events of 2013, when AutoNavi's users had exceeded 100 million, naturally making it more valuable.
But current AutoNavi users are only 30 million, certainly not worth 1 billion US dollars.
Furthermore, Alibaba's double-premium acquisition of AutoNavi was also out of desperation.
At that time, Tencent had acquired Sogou Maps and had its own Soso Maps.
Baidu had Baidu Maps.
Alibaba had nothing and was completely dumbfounded, so it acquired AutoNavi at all costs to stage a comeback!
Otherwise, in this BAT map battle royale, Alibaba would have been completely left behind.
But now, Tencent has not acquired Sogou; Wang Yi has taken it.
Baidu currently has no intention of acquiring AutoNavi.
Wang Yi's surprise move, taking AutoNavi for 3.3 billion in advance, still holds hope.
AutoNavi's map data, 30 million mobile users, and 50% in-car user base are all worth this 3.3 billion.
More importantly, once Wang Yi takes AutoNavi, there will be one less competitor.
Alibaba would be crippled!
If AutoNavi is let go, it is highly likely to be snatched by Baidu or Alibaba.
Regardless of who it is, it would be a catastrophic blow to Wang Yi.
Fortunately, two years in advance, the current navigation market is not large, and Alibaba has not yet realized its value, so it has not rushed to act.
Wang Yi made up his mind, he must acquire AutoNavi!
The price of 3 billion is completely worth it.
And it must be done quickly!
If it's too late, there will be complications.
As long as AutoNavi is acquired, and then merged with Sogou Maps, Baidu Maps will be crippled!
Of course, if the acquisition of AutoNavi doesn't go smoothly, a fallback plan must also be considered.
For example, option three, acquiring a company with Grade A map surveying and mapping qualifications and conducting its own surveying and mapping.
With this thought, Wang Yi did not hesitate and immediately arranged for someone to contact AutoNavi's old chairman and headed straight to AutoNavi's headquarters.
Fortunately, AutoNavi's headquarters was also in the imperial capital, not far away.
An hour later, Wang Yi met AutoNavi founder Cheng Wu.
"Chairman Wang, you've indeed come!" Chairman Cheng smiled slightly, seemingly not surprised by Wang Yi's arrival.
"Chairman Cheng, have you guessed my intention?"
Cheng Wu nodded:
"The most sensational news in the internet world right now is Xingyi Technology and Baidu; this situation is almost comparable to the previous 3Q War! And Chairman Wang acts decisively; when Baidu Search blocked Xingyi Video, you directly acquired Sogou Search. I was wondering if you would also acquire a map software to take on Baidu Maps! Sure enough, you came!"
"Haha, Chairman Cheng is wise."
Wang Yi laughed.
It seems not only Chairman Cheng thought this way; it's likely Alibaba and Tencent also thought this, all believing that acquiring AutoNavi was just to take on Baidu!
That's even better; there's no need to find an excuse for a deceptive maneuver.
Wang Yi simply nodded:
"Yes, I do have this idea. As the saying goes, a gentleman's revenge is best served overnight. Baidu Search is hard to deal with, Baidu Maps is easy to deal with! I hope Chairman Cheng can consider it!"
"This..."
Chairman Cheng sighed:
"To be honest, I don't intend to sell AutoNavi."
Wang Yi, however, didn't care:
"Chairman Cheng, your AutoNavi started by relying on in-car navigation, and most of your main revenue also comes from in-car navigation, right?"
"That's right, over 50% of the in-car navigation market is ours at AutoNavi!"
Cheng Wu said proudly.
Wang Yi, however, smiled:
"But in recent years, the global automotive industry's growth rate has sharply declined, only 5% this year, right? In-car navigation business has also encountered a crisis!"
"This..."
Chairman Cheng fell silent; this was an undeniable fact.
He had thought that with the surging car sales, AutoNavi would quickly grow strong after going public.
But unexpectedly, soon after listing, it encountered a cold winter in the automotive industry, and in-car navigation sales also stalled...
It is precisely because of this that AutoNavi's current market value is only 500 million US dollars, only one-third of NavInfo's!
Wang Yi easily saw through these data with a quick check.
Chairman Cheng waved his hand:
"In-car navigation is indeed unsatisfactory, but it doesn't matter; next, we will focus on mobile navigation, primarily phone navigation! This market is still very large. Our mobile users have exceeded 30 million."
"Yes, this market is very large, but Baidu is also eyeing it. Can you, who make in-car navigation, compare to Baidu, who makes search?"
Wang Yi said with a smile:
"Baidu's PC map is doing very well, with many users, and now they've also launched a mobile version, which must be severely impacting AutoNavi, right?"
"I..."
Chairman Cheng was speechless for a moment; these were all facts.
On the mobile end, AutoNavi's years of accumulation were almost caught up by Baidu, a rookie who even bought its map data!
AutoNavi felt completely powerless.
Wang Yi continued:
"Moreover, there's KLD, the number one overlord, eyeing it, making AutoNavi's prospects even bleaker."
"Alas!"
Chairman Cheng sighed, but still said:
"Even so, I believe there's still development in the mobile sector. Chairman Wang, please leave!"
The meaning was simple: We're not selling!
Wang Yi was speechless and could only resort to drastic measures:
"Chairman Cheng, you're half right. The mobile sector does have development, but no profit."
"What do you mean?"
Chairman Cheng was confused.
Wang Yi smiled slightly:
"The era of free navigation is coming. Even if mobile users surge, you won't make money!"
"!!!"
Chairman Cheng's expression changed dramatically, and he stood up:
"Chairman Wang, what do you mean? You want to make navigation free? Are you crazy? Maps are so expensive to develop, if you make navigation free, our entire industry is finished!"
Wang Yi waved his hand:
"There's no other way, Chairman Cheng, if I don't make it free, I can't beat Baidu!"
Chairman Cheng's face completely darkened: "..."
Is this guy here to cause trouble?
"Chairman Wang, are you making navigation free just to take on Baidu? And incidentally kill off our AutoNavi too?"
Chairman Cheng looked speechless.
AutoNavi spends two to three hundred million a year on R&D and surveying to make money!
Not to provide public welfare.
If you make navigation free, it's truly over!
In 2011, AutoNavi and Baidu both made money by charging for maps, and never even considered free navigation!
Now that Wang Yi wants to make it free, he's practically leaving AutoNavi no way to survive!
Wang Yi sighed:
"My making navigation free is indeed to take on Baidu. But for AutoNavi, it's purely collateral damage. I express my deepest regret."
"..."
Chairman Cheng's mouth twitched:
"Is regret useful?"
Wang Yi smiled:
"So, I came to you to offer a reasonable price for an early acquisition, so you won't suffer any losses. That way, when I make it free later to take on Baidu, you will remain unaffected. Any money lost will be my, Wang Yi's, responsibility."
"This..."
Chairman Cheng frowned deeply, not knowing what to say for a moment.
After a long pause, he said:
"Chairman Wang, are you serious? Once it's free, your billions spent acquiring AutoNavi will be wasted, and you won't make money. Is it worth it?"
Wang Yi waved his hand:
"What's worth or not worth? I'll just ask you, if I acquire AutoNavi for 3.3 billion and launch free navigation, how much will Baidu lose?"
"Just tell me if it's worth it!"
"Hiss!"
Cheng Wu gasped.
Once AutoNavi goes free, Baidu, whether it follows suit or not, will suffer heavy losses.
If it doesn't follow, Baidu Maps continues to charge, users will inevitably be lost in large numbers, and its market capitalization will evaporate by tens of billions or more.
If it follows, Baidu Maps also goes free, revenue will inevitably plummet, performance will decline, and market capitalization will still evaporate by tens of billions!
It can be said that free navigation is Wang Yi's open strategy; regardless of whether Baidu follows, it will suffer heavy losses!
And Wang Yi uses only over three billion to make Baidu lose tens of billions; that's incredibly worth it!
"Madman!"
"Chairman Wang, you're a madman!"
For a moment, Cheng Wu didn't know what to say.
Wang Yi wasn't angry; on the contrary, he liked this persona!
Many outsiders thought he was young and reckless, acting on impulse.
So Wang Yi would establish a persona of being impulsive, letting the outside world think he was simply young and arrogant, ready to fight if challenged!
After all, nineteen years old, a freshman, how reasonable!
This way, many things Wang Yi does in the future will become exceptionally reasonable, and his true intentions won't be suspected or intercepted.
Just like the acquisition of AutoNavi, even Chairman Cheng thought Wang Yi was young and reckless, acting for revenge against Baidu!
But who could have imagined Baidu was just a small wild badger!
Wang Yi's acquisition of AutoNavi was, of course, to cut off Alibaba and later lay out ride-hailing, group buying, and other local services!
This was the key!
As for taking on Baidu, it was purely an incidental matter.
As for when the persona would collapse... Wang Yi wasn't in a hurry.
By then, Xingyi Technology would have already grown large, and BAT would have to regret infinitely!
Wang Yi sighed deeply, continuing his act:
"Chairman Cheng, I, Wang Yi, always conduct my affairs with clear distinctions between gratitude and grudges. Free navigation is purely to take on Baidu, truly not aimed at AutoNavi. So I will first fully acquire AutoNavi, then launch free navigation to take on Baidu, absolutely ensuring you suffer no losses! After all, I have a feud with Baidu, but we have no feud!"
Chairman Cheng was silent: "..."
For a moment, he didn't know what to say, but in his heart, he believed it by seventy percent.
After all, the previous Wang Yi had indeed acted in this manner.
He did what he said!
Some time ago, to take on Baidu Search, Wang Yi quickly acquired Sogou for 1.65 billion.
Now, to take on Baidu Maps, Wang Yi investing 3.3 billion to acquire AutoNavi is very reasonable, very normal!
Some people are just damn crazy!
As for saying they won't sell?
That would also be meaningless.
Wang Yi still had Sogou Maps in his hands; once Sogou Maps launched free navigation, AutoNavi would still be finished.
At that time, let alone 3.3 billion, it might be difficult to get even 2.3 billion.
AutoNavi's 30 million users would dwindle to almost nothing unless it also went free and faced tough times.
It could be said that current AutoNavi doesn't have good options!
Cheng Wu took a deep breath:
"Chairman Wang, this matter is very important; I need to call a board meeting to discuss it. Please give me some time."
"No problem,"
Wang Yi said carelessly:
"Discuss it as soon as possible. If you are willing to sell, I will acquire it at its current market value, without pressing the price or causing you losses; consider it compensation for AutoNavi. I always adhere to principles!"
"If you are unwilling to sell, and AutoNavi is accidentally harmed by Sogou Maps becoming free, don't blame me. The opportunity was given to you, and it was your choice not to sell. I won't feel guilty."
Chairman Cheng: "..."
Damn, this is an open conspiracy!
An open conspiracy against Baidu, and also an open conspiracy against AutoNavi!
After seeing Wang Yi off, Chairman Cheng's face darkened, and he immediately gathered the senior management and directors to hold a board meeting:
"Chairman Wang just came. To take on Baidu, Chairman Wang is preparing to launch free navigation."
"What? Free navigation? Are we all going to starve?"
"Exactly, car sales are declining, and in-car navigation revenue is sharply down. If mobile navigation also becomes free, won't it be over? Our AutoNavi stock price will plummet!"
(End of chapter)