Baidu Maps with 17 million users could sell for 700 million.
But Baidu Maps with 7 million users could only sell for 100 to 200 million!
"General Manager Qu, please consider it carefully."
"Thank you, General Manager Ye, for your candor."
Qu Xin left Tencent with a grim face.
The wind outside was cold, and his heart was even colder.
Joining forces with Xingyi Technology to block Baidu Maps, kill Baidu Maps, and acquire Baidu Maps!
This was Tencent's plan!
There was no possibility of negotiation or authorizing Baidu's underlying map data!
It was meaningless to continue talking.
A lion never wants to befriend an injured tiger, nor will it help the tiger heal.
It won't even let the tiger go; on the contrary, it only wants to eat the tiger!
The current relationship between Tencent and Baidu Maps was exactly like this.
As for bypassing Tencent to invest in Siwei Tuxin... that was unrealistic.
Currently, Siwei Tuxin's largest shareholder was Siwei Group, holding 12.58% of the shares.
Tencent held 10% of the shares, making it the second-largest shareholder.
More than 40% of the shares were still in the circulation market, and the remaining major shareholders held only a few points each.
Why did Tencent only buy 10% of the shares?
It was because Siwei Tuxin's largest shareholder, Siwei Group, only held 12.58% of the shares.
If Tencent bought more and directly became the largest shareholder, Siwei Group would never agree.
Therefore, Tencent was only given 10% of the shares, but a priority right was agreed upon.
Even if shares were sold again or further financing was sought, Tencent had to be consulted first, meaning Baidu had no chance at all.
Moreover, although Tencent was the second-largest shareholder, it had absolute say.
The simplest example: once Tencent and Siwei Group had a conflict, would the small shareholders support the giant Tencent or Siwei Group?
It would definitely be Tencent; everyone knew how to cling to a powerful entity.
Furthermore, the internet, both currently and in the future, was divided into factions.
In the previous life, there were four major internet factions: Baidu, Tencent, Alibaba, and Toutiao (ByteDance).
Jinri Toutiao would only be established next March.
Therefore, currently, there were mainly three major factions: Baidu, Tencent, and Alibaba.
Siwei Tuxin introducing Tencent capital and fully joining the Tencent ecosystem offered many benefits.
At the very least, all companies in the Tencent ecosystem would use Siwei Tuxin's underlying map data in the future.
With Tencent's backing, Siwei Tuxin could also develop better and would not offend the powerful Tencent for the sake of Baidu.
Back at the hotel, Qu Xin immediately called Li Yan:
"Chairman, the discussion is over."
"What's the result?"
Li Yan became nervous.
Saying he wasn't expectant would be a lie, but he also knew that it was unlikely to be good.
"The result is not good. Tencent refused to authorize and proposed to acquire Baidu Maps business for 700 million!"
Li Yan's mouth twitched: "..."
He felt insulted!
Deeply insulted!
"What an arrogant Chairman Ma, not only refusing authorization but also threatening to acquire Baidu Maps! Arrogant, truly arrogant!"
With a similar reaction to Qu Xin, Li Yan was furious:
"No, absolutely cannot sell!"
Qu Xin sighed:
"Chairman, there's no choice. Without underlying map data, Baidu Maps is just an empty shell and cannot operate at all. Baidu Maps has already lost 3 million users. If this continues, there will be even fewer users, and it will be worth even less. It's better to sell it at a high price while we still have many users and cash out. With this money, we can also develop other businesses!"
"This..."
Li Yan fell silent.
But he had to admit that Qu Xin was right.
Cutting losses in time was also a great wisdom.
Besides, 700 million was not a small amount!
Rather than waiting for Baidu Maps users to dwindle to nothing and become worthless, it was better to sell it now and convert it into cash!
With this money, Baidu could integrate resources and explore other businesses!
Even Baidu would not treat 700 million lightly.
Baidu's net profit in 2011 was only 6.6 billion, and 700 million was more than one-tenth of that!
Qu Xin continued to persuade:
"Chairman, selling the Baidu Maps business for cash now is not a big deal. Our technology is still there. Once we develop our own underlying map data later, we can always relaunch a new Baidu Maps!"
"Okay, Baidu Maps can be sold."
Li Yan breathed a sigh of relief:
"But it cannot be sold to Tencent! That's the bottom line!"
"This..."
Qu Xin fell silent, and after a long while, said:
"Chairman, if Baidu Maps isn't sold to Tencent, there are no other buyers."
Current Baidu Maps was just an upper-layer application.
Buying Baidu Maps still required underlying map data.
And the underlying map data depended on Amap and Siwei Tuxin, which meant Xingyi Technology and Tencent had the final say!
And Xingyi Technology already had Amap Navigation, which was more perfect than Baidu's, so it didn't need Baidu Maps at all.
Currently, the only one that could acquire Baidu Maps was Tencent!
No one else!
It could be said that Baidu had no choice.
Moreover, while Tencent investing in Siwei Tuxin provided underlying map data, Tencent's upper-layer map application Soso was not strong enough.
It lacked users and high-quality upper-layer applications!
And Baidu Maps had all of these!
It could be said that Baidu Maps could only sell itself to Tencent.
And Tencent also needed Baidu Maps' users and upper-layer applications to compete with Amap!
Li Yan understood these points, took a deep breath, and closed his eyes:
"Selling is acceptable, but there are two conditions. First, 700 million is not enough; we want 1 billion."
"Second, Tencent Maps, after acquiring Baidu Maps, must grant Baidu a permanent license, so Baidu can also develop O2O and other businesses!"
Qu Xin's eyes lit up:
"Excellent! This way, we can use Tencent Maps for O2O, and even develop AI autonomous driving. At the same time, we can acquire companies with Class A surveying and mapping qualifications to develop our own underlying map business. Once Baidu's underlying map data is ready, we can launch a brand-new Baidu Maps, completely replacing Tencent Maps!"
"Exactly, that's the strategy."
Li Yan's mouth curved upwards:
"Penguin is trying to pull the rug out from under us and take advantage of our misfortune, so I will pretend to repair the plank road while secretly crossing the old one!"
Both sides had shown their cards, it was an open stratagem!
"Chairman is brilliant, I will go back and negotiate with Tencent!"
With that, Qu Xin returned to Tencent headquarters.
Seeing Qu Xin return, Ye Yu was in a good mood:
"General Manager Qu, have you changed your mind?"
Qu Xin sighed:
"I just discussed with Chairman Li. In principle, Baidu Maps can be sold to Tencent, but it must be for 1 billion, and Baidu must be granted a permanent license. Of course, Baidu will pay a license fee!"
"This..."
Ye Yu fell silent.
The other party's conditions were too high.
1 billion was not a big problem, it was still within Chairman Ma's plan.
But permanent authorization, that was a bit demanding.
"What? Tencent can't even agree to such simple conditions?"
Qu Xin retorted coldly.
"No, I can try my best to fight for the funding. But the matter of permanent authorization, I..."
Seeing Ye Yu's conflicted expression, Qu Xin snorted:
"This is Chairman Li's bottom line, and also Baidu's bottom line. If you can accept it, then we'll sell. With Baidu Maps, and integrating Soso and Siwei Tuxin's underlying map data, Tencent Maps has a limitless future.
If you can't accept it, then forget it. Baidu will consider selling to Xingyi Technology. Xingyi Technology has already acquired Amap; if it takes over Baidu again, it will completely monopolize the navigation market!"
A threat, a naked threat!
Indeed, Ye Yu's expression changed dramatically, and he quickly said:
"General Manager Qu, don't rush. This is a big matter. Give me some time; we need to have a board meeting to discuss it."
"Alright, I'll wait for your result!"
Qu Xin said, then left Tencent headquarters.
Ye Yu immediately sought out Chairman Ma:
"Chairman, Baidu is willing to sell, but they want 1 billion and permanent authorization. Of course, Baidu will pay the licensing fee."
"Permanent authorization?"
Chairman Ma's face turned cold:
"This isn't a matter of money, it's a matter of strategic layout! Once Tencent Maps is licensed to Baidu, Baidu can continue to do O2O, e-commerce, and snatch Tencent's market share!"
"That Li fellow, what a shrewd calculation!"
Ye Yu also sighed:
"And they also threatened that if we don't agree, they'll sell to Xingyi Technology!"
Pony Ma's expression changed dramatically:
"Xingyi Technology already has Amap; if it acquires Baidu Maps again, it will be completely invincible. Then Tencent Maps will be finished, unable to compete at all. We absolutely cannot let Baidu Maps sell itself to Xingyi Technology."
"Yes, this is Li Yan's open stratagem! Threatening us!"
Pony Ma took a deep breath, feeling somewhat aggrieved:
"Damn it! Li Zai is still Li Zai, he's incredibly cunning. Even in such a desperate situation, he can pull off a decisive move against me. The key is that I have to yield! Unbelievable, truly unbelievable!"
This was the current situation.
To prevent Baidu Maps from selling itself to Xingyi Technology and monopolizing the market, Tencent had to acquire Baidu Maps.
For Tencent to acquire Baidu Maps, it had to accept the harsh terms of permanent authorization.
"He played a 'royal flush' with a bad hand, Li Yan, you're amazing!"
"Damn it!"
Pony Ma was furious, and his good mood about acquiring Baidu Maps was gone.
Now it was like eating a delicious fish only to get a bone stuck in his throat!
However, Pony Ma was not one to compromise easily:
"Ye Yu, there's no rush to decide this. Continue negotiating with Baidu. 1 billion is fine, authorization is also fine, but it can't be permanent, three years at most!"
Ye Yu's eyes lit up, instantly understanding Pony Ma's meaning:
"With only three years of authorization, Baidu won't have map assurance in the future and won't dare to push into O2O."
"Yes, that's exactly what I mean."
Subsequently, both sides began a new round of negotiations.
"What? Only three years of authorization? No way, at least six years!" Qu Xin said coldly.
Baidu simply couldn't develop its own underlying map data in three years.
But in six years, it would be almost done.
By then, it wouldn't matter if Tencent cut off authorization in the seventh year, as Baidu would have its own underlying map data ready.
"Six years? That's too much!"
Ye Yu decisively refuted, thinking to himself:
"Baidu is thinking of 'repairing the plank road in the open while crossing the old one in secret'. With six years of authorization, they could develop their own underlying map data! Wouldn't that mean we blocked them for nothing?"
On this issue, both sides communicated all afternoon, but still had no result.
Baidu didn't want to back down, and Tencent didn't want to give six years of authorization, so negotiations were in a stalemate.
Xingyi Technology.
Jian Ziyan approached Wang Yi:
"Chairman, Tencent and Baidu are negotiating the acquisition of Baidu Maps, and it seems to be in a stalemate."
Wang Yi had asked Jian Ziyan to arrange for people to monitor Tencent and Baidu's movements, and Jian Ziyan had kept it in mind.
Wang Yi pondered slightly:
"Tencent acquiring Baidu Maps, they're thinking of integrating resources to compete with Amap!"
"Yes, what should we do? Should we make a move in advance and acquire Baidu Maps?" Jian Ziyan asked.
Wang Yi thought for a moment:
"No need. Announce the New Year's Day press conference at the Water Cube. We'll deliver a critical hit to them. And casually release news that Amap Maps will have a big move!"
"Understood, Chairman!"
Maps were something that cost a lot of money and generated little revenue.
Their main significance was strategic, and there was no need for too many competitors.
Wang Yi was ready to crash the market, taking down as many as he could!
As for the method of crashing the market, it was simple.
Originally, Wang Yi had planned to directly announce free navigation, but that was a bit aggressive for the current time, and Xingyi Technology currently lacked funds.
So Wang Yi launched a new strategy: a limited-time offer for a lifetime membership, 200 yuan to enjoy permanent free navigation!
Download and register Changliao, use it for half a month, and get 100 yuan back!
Equivalent to 100 yuan for permanent free Amap Navigation!
Currently, navigation services all charged fees: Amap was fifty yuan per month, Baidu was thirty yuan per month, and Careland was 108 yuan per month!
Amap Navigation was already the best navigation service, and now it was 100 yuan for permanent free navigation.
Compared to competitors, it was almost like giving it away for free!
This would certainly attract a large number of users in a short period and also increase Wang Yi's revenue significantly.
Coupled with the cashback event, it would greatly increase the number of Changliao users!
At least tens of millions of Amap users would choose to download and use Changliao for the 100-yuan cashback!
Once they used it for more than thirty days, they would become completely accustomed to using Changliao and recommend it to friends and family.
Moreover, after Wang Yi acquired Amap Navigation, it received new updates and a comprehensive upgrade according to Wang Yi's requirements, further putting it far ahead of Baidu Maps.
As a result, both Amap and Changliao would see an explosion in users, and Wang Yi would also rake in a fortune.
But Baidu Maps and Tencent Maps would be miserable.
Not only would the map business suffer, but even WeChat would be encroached upon by Changliao!
Since the war with WeChat was unavoidable, Wang Yi chose to take the initiative!
Soon, news stories shook the entire internet:
[Xingyi Technology's New Year's Day Strategy Press Conference to be held at the Water Cube!]
[Amap Maps to make a big move!]
Watching this unfold, Pony Ma fell into deep thought:
"What is Wang Yi going to do? Is Amap going to drop its price to thirty yuan and go head-to-head with Baidu?"
"If so, then if we acquire Baidu Maps and launch a new Tencent Maps, we'll have to follow suit and lower prices too!"
"What a mess!"
He then called Ye Yu:
"Drag out the negotiations with Baidu until after New Year's Day. Let's see Amap's big move first."
"Understood!"
Ye Yu replied.
Originally, both sides had almost reached an agreement, settling on a five-year authorization, and were preparing to sign the contract.
But now, everything had to wait until Wang Yi showed his hand.
Qu Xin was helpless about this, only sighing:
"I feel like Wang Yi is going to lead us by the nose again!"
As soon as the news of the press conference broke, the entire internet looked forward to Xingyi Technology's New Year's Day press conference.
But Wang Yi paid no attention to this, instead heading to Xingyi Media.
Ye Changpeng smiled and said:
"Chairman, Xingyi Video has been developing very well recently. Currently, Android users have surpassed 20 million, and PC users have surpassed 15 million. The total number of users has now exceeded 35 million!"
Xingyi Video giving out memberships for signing in indeed attracted many users.
In this era, free was the most powerful!
"It's a pity it was blocked by Baidu, otherwise PC users would probably have exceeded 20 million!"
Ye Changpeng lamented.
Baidu's block had a considerable impact on the spread of Xingyi Video.
Wang Yi, however, was unfazed:
"It's fine. The Xingyi Video apps for PC and iOS are ready and will be released on New Year's Day!"
"That's great! Once the PC and iOS apps are released, Baidu's block will be meaningless."
Ye Changpeng smiled:
"Moreover, next month we have two exclusive major new dramas, 'The Cliff' and 'Beijing Love Story,' which will surely attract many users."
Wang Yi was not so optimistic:
"The current 35 million users were attracted by sign-in memberships. These memberships will expire next month, so it's hard to say how many people will be willing to pay for a membership then!"
"Yes, that's a problem."
Ye Changpeng frowned slightly.
No matter how many free users there were, their contribution to a video platform's revenue was very limited.
The real key was the number of paying members next month; that was the fundamental issue.
After all, Xingyi Technology spent a lot of money buying TV series copyrights.
"The key is still to focus on content and quality. Only with enough exclusive content and high enough quality can we attract more paying members!"
Wang Yi looked at the catalog of Xingyi Video's exclusive dramas for next year, his brows slightly furrowed:
"We've prepared so many TV series, which should be enough for now. But animation is not enough; one 'Xia Lan' is too little."
Members attracted by TV series were not actually long-lasting.
Many people only came for a popular drama, and once the show finished airing, if they weren't interested in the next one, they wouldn't renew their membership.
But animation was different, especially exclusive annual animations.
Broadcasting weekly throughout the year, if you wanted to follow along, you had to subscribe to an annual membership directly!
This was the underlying logic behind video memberships.
Regarding this, Wang Yi looked at Ye Wenpeng:
"How is the animation team's recruitment going?"
"Chairman, Ruosen's staff has doubled, and they are currently accelerating the production of 'Xia Lan,' significantly improving efficiency. They can reset four episodes a week. Half of the staff can also be pulled to start a new 3D animation!"
Ye Changpeng said:
"In addition, according to your instructions, we also recruited some excellent animators and other elites to establish a 2D animation department, which can also launch a 2D animation. Currently, they are drawing the 'Mo Dao Zu Shi' comic."
Wang Yi was very pleased:
"Excellent. Then let Ruosen's people continue to produce 'Xia Lan' for now. After New Year's Day, pull some people to work on a new 3D animation. As for the 2D animation department, directly launch 'Mo Dao Zu Shi'!"
"Good!"
Afterward, Wang Yi went to the 2D animation department, reviewed the 'Mo Dao Zu Shi' comic they were working on, pointed out some issues, and made some requests.
The theme of 'Mo Dao Zu Shi' was still more suitable for 2D, though some scenes incorporating 3D would be more effective.
Wang Yi still planned to make 'Mo Dao Zu Shi' in a 2D+3D hybrid style.
Currently, the 'Mo Dao Zu Shi' novel was explosively popular, with average subscriptions exceeding 200,000, having long since broken into the mainstream.
It brought millions of new users to Meiyou Novels, and even You Wanwan became famous with this one book!
"Make the 'Mo Dao Zu Shi' comic and animation according to the new requirements,"
Wang Yi instructed.
"Yes!"
From then on, Xingyi Video would have another animation next year.
The launch of the 'Mo Dao Zu Shi' comic and animation would not only increase the user base of Xingyi Video but also increase the user base of Meiyou Novels website and enhance its IP value.
In a couple of years, it could even be adapted into a TV series to earn another wave of profit.
Subsequently, Wang Yi approached Gu Qing and handed over a document:
"Manager Gu, go and buy the copyrights for all these novels! We want full copyrights, and the price can go up to 3 million, even 5 million!"
"Understood, Chairman."
Gu Qing opened it and was stunned:
"'Zhu Xian,' 'A Record of a Mortal's Journey to Immortality,' 'The Lost Tomb,' 'Ghost Blows Out the Light,' 'Battle Through the Heavens,' 'Shrouding the Heavens,' 'Douluo Dalu,' 'Swallowed Star,' 'Joy of Life,' 'Ever Night'..."
"Chairman, you want to buy all of these? Some of them are still being updated!"
"Buy them all! It's okay if they're not finished, just buy them first. All these themes are suitable for IP adaptation."
Wang Yi knew how popular these novel IPs would become after being adapted into animations and TV series!
Like 'A Record of a Mortal's Journey to Immortality' and 'Douluo Dalu,' they were extraordinarily popular.
Once these copyrights were secured, and they were gradually released as annual animations, Xingyi Video would essentially be invincible in the ACG field!
Even Bilibili would have to step aside.
In the previous life, Goose Factory used these national animations to completely dismantle Bilibili's basic foundation!
The copyrights for these novels could be acquired for three to five million in 2011.
Six years later, IP copyright prices would skyrocket tenfold, and thirty to fifty million might not even be enough for one!
He had to act preemptively.
Especially with shorting Baidu, Wang Yi currently had ample funds, making it a perfect opportunity to acquire them all at once.
As long as these novel copyrights were acquired, whether Qidian was acquired or not would no longer matter much.
Compared to acquiring Shanda Literature for 5 billion, it was more appropriate to spend one or two hundred million to directly buy the copyrights.
After all, Meiyou already had a novel platform, so spending another 5 billion to acquire Shanda Literature would not be very meaningful; it was better to directly buy out the copyrights.
"Also buy the copyright for 'The Three-Body Problem,' try to get it for 10 million!"
Wang Yi had previously sent people to acquire copyrights for 'The Wandering Earth' and other works, but 'The Three-Body Problem' had been bought by someone else, and their asking price was higher.
He hoped 10 million would be enough to secure it.
"Understood, Chairman, I'll set off immediately!"
Gu Qing said.
"Thank you for your hard work."
"It's part of my job."
Gu Qing acted swiftly, leading a team to Modu that very day to negotiate numerous copyright acquisitions.
If all these novel copyrights were bought, it would be almost equivalent to emptying out the essence of Shanda Literature from recent years!
Later, when Goose Factory acquired Shanda Literature, they would probably be completely bewildered.
The main strategy was to cut off their opportunities!
On December 31st, Wang Yi went to the Water Cube for the rehearsal before the press conference.
Song Sining had arrived early and was busy directing the rehearsal.
This press conference was very important, with a lot of content to announce, and Wang Yi himself was hosting it.
But he still called Song Sining over.
After all, they hadn't seen each other in a long time, and he missed her very much.
It wasn't until after nine in the evening that the two returned to their apartment.
"I'm exhausted."
Song Sining had traveled early to the Imperial Capital, tired from the journey, and then busy with rehearsals all day; it was truly hard work.
"You worked hard, Sining."
Wang Yi smiled, stepped forward, and handed her a cup of hot milk.
Song Sining looked at Wang Yi meaningfully:
"You're hosting this press conference yourself, yet you called me over, really."
Wang Yi smiled:
"I didn't have time to go to you, so I could only make you come to me. Today is the last day of 2011 and also the first day of 2012. Let's celebrate New Year's Eve together!"
"You rogue!"
Song Sining playfully scolded,
"You called me here to celebrate New Year's Eve?"
She couldn't be bothered to expose him.
As for the New Year's Eve gala, at that time, more than a dozen TV stations were still producing them.
And video platforms collaborated with TV stations, buying broadcast rights and livestreaming.
It wouldn't be until a few years later that major video platforms would launch their own New Year's Eve galas.
Wang Yi didn't need to worry about this; Ye Changpeng had already made arrangements.
iQiyi bought the New Year's Eve galas from 13 TV stations, while Xingyi Video bought 15!
Although not all were acquired, it had already comfortably surpassed iQiyi and other competitors.
In addition, Ye Changpeng also arranged a trending topic:
[15 New Year's Eve Galas, all on Xingyi Video. Sign in for a membership, enjoy a high-definition, smooth experience!]
This move further added several million new users to Xingyi Video.
No other reason, the traffic for New Year's Eve galas was simply too massive.
Moreover, Xingyi Video offered memberships for signing in, while platforms like iQiyi required VIP to skip ads and watch in high definition.
It was imaginable that Xingyi Video once again became the hottest platform on the last day of 2011!
Wang Yi was very satisfied with Ye Changpeng's strategic move.
The magnificent year of 2011 drew to a close.
The even more brilliant year of 2012 officially began!
Early on January 1st, Wang Yi and Song Sining arrived at the Water Cube.
Various media outlets, hosted by Xingyi Technology staff, entered the venue.
Once Xingyi Technology announced a press conference, no matter how tight the schedule, everyone had to rush there immediately.
This had become an unspoken understanding among all media.
Even if there were schedule conflicts, they had to drop other engagements and head straight to Xingyi Technology!
At ten in the morning.
The press conference officially began, and Wang Yi walked onto the stage:
"Thank you all for coming to Xingyi Technology's 2012 New Year's Day Strategic Press Conference! Thank you!"
"Whoosh!"
Thunderous applause resounded throughout the Water Cube.
Everyone was full of anticipation for Xingyi Technology's press conference.
"First, I'd like to report on the xphone 1 situation!"
Wang Yi waved his hand, and an image of the xphone 1 appeared on the large screen behind him:
"Since its release on December 1st, the xphone 1 has been deeply loved by users for its powerful performance, extraordinary configuration, excellent design, and epoch-making concept."
"Coupled with our more down-to-earth price, starting at 3299, it sold out like crazy!"
"Our stock of 1 million units wasn't enough to sell, simply not enough!"
"In desperation, our factories went full throttle, adding production lines, but it still wasn't enough. Pre-ordered full-payment orders exceeded 2 million units; we couldn't produce them all, simply couldn't finish them!"
"How do you describe this? It's the trouble of being too successful!"
"Hahaha!"
The audience burst into laughter at Wang Yi's words.
Lei Bus, watching the livestream, shed bitter tears:
"Your damn xphone 1 sold out so fast you can't make enough, while our Xiaomi 1 hasn't even gathered all its components, and you bought all the Qualcomm processors! We still haven't received our shipment!"
Wang Yi continued:
"In desperation, we urgently enlisted BYD to manufacture for us, achieving a surge in production capacity."
"Fortunately, with BYD and our Xingyi Technology factory, we produced over 3 million more xphone 1 units throughout December!"
"Thus, in one month, the total sales of xphone 1 surpassed 4 million units!"
"Thank you for your support!"
"What! Four million units!"
Suddenly, the crowd present was shocked, those watching the livestream were stunned, and even Lei Bus nearly dropped his jaw:
"A phone costing three to four thousand sold 4 million units in one month? Are you crazy! Besides the iPhone, who can achieve such sales?"
(End of Chapter)