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Text Chapter 1405 Got Linkedin!

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    As the saying goes, if you are frustrated in love, there is always a place to make up for it.

    Wade of Citibank was entrusted by Xiao Qi to acquire LinkedIn, a social networking website focusing on professional categories, but he exhausted all methods.

    ¡°Citibank¡¯s various connections and resources, Wade¡¯s own connections and resources, and those of some friends¡­ Anyway, he used all of them that could be used.

    There are three people in LinkedIn¡¯s largest shareholders: PayPal¡¯s Reed?  Hoffman, an investment firm Socialnet and former YAHOO executive Jeff?  Werner.

    At the beginning, Socialnet was the easiest to get. After paying a price of 120 million US dollars, 30 shares of Socialnet were handed over to Xiao Qi, and this was compared to the 5 million they invested in 5 years.  In U.S. dollars, that¡¯s a full 24 times the gain.

    Hoffmann and Werner were not easy to talk to.

    Hoffman, who holds 40% of LinkedIn's shares, gained a large amount of wealth when EBAY acquired PayPal in 2002, and then founded LinkedIn. He is not short of money now.

    Another Werner from Yahoo is also a person who values ??career more than money. He has not considered selling the 30 shares in his hand.

    Fortunately, Citibank, known as the most pervasive bank and one of the most famous banks in the world, gathered countless resources and spent a whole month to finally get it through various negotiations and promises, as well as constant communication with Xiao Qi.  , finally gave the LinkedIn acquisition case a rough result.

    I have to praise Citibank here. Although they competed with Xiao Qi in the oil bet, they still put in all their efforts when it came to other unrelated entrustments. They are worthy of being called "the world's largest bank".  Professional Bank¡±.

    Hoffman and Werner finally agreed to sell their shares based on Xiao Qi's constant concessions.

    Originally, Xiao Qi acquired shares based on 20 times their operating income of US$10 million last year. For an unlisted company, 20 times the revenue, or US$200 million, is already a very generous price.

    However, because Xiao Qi was afraid of an accident, he finally raised it to a maximum of 40 times revenue, which is 400 million U.S. dollars for a wholly-owned acquisition.

    Socialnet lost its battle just before the price of 40 times revenue and sold 30 of its shares.

    But for the remaining two people, Hoffman and Werner, even if the revenue was increased to 40 times, or even 50 times or 60 times the revenue after emergency communication, they were not impressed.

    After realizing that the two of them were not that easy to deal with, Xiao Qi began to give in.

    Through negotiations through various channels, Wade learned that the two of them really wanted to make LinkedIn a success and did not just want money.

    Then Xiao Qi decided to invest no less than 100 million U.S. dollars per year and directly raised the upper limit to 300 million U.S. dollars at the end. There is no time limit, and it can take any number of years.

    In this way, Werner is very satisfied. The annual investment of 300 million US dollars is enough for him to plan carefully and develop LinkedIn even more powerfully.

    Hoffman, the largest shareholder, doesn¡¯t like listed companies very much because of PayPal¡¯s previous acquisition. He also doesn¡¯t like the 10 shares given to them after the listing.

    ¡° Then Xiao Qi simply gave him a promise. If the company¡¯s management had not requested an IPO, then he would never let LinkedIn go public for an IPO. LinkedIn would exist as a purely private company.

    And Xiao Qi promised that as long as the two of them want to continue, their status at LinkedIn will not be changed.

    Hoffman was therefore satisfied. Finally, together with Werner, he sold most of his shares at a valuation of US$600 million, leaving only a symbolic 5 each.

    The reason is actually because LinkedIn is just one of thousands of social networking sites. It is far less eye-catching than the big ones such as MySpace, Facebook, Twitter, etc. What is a little bit more unique is that they have established it for professional groups.  It¡¯s just the concept of various circles of people.

    No matter how confident Hoffman and Werner were in the development of LinkedIn, they would never have thought that in 6 years, their company would have a market value of more than 25 billion U.S. dollars and become a giant that cannot be ignored in the social network industry.

    Without knowing the future, it was certainly impossible for the two of them to refuse such a sincere acquisition from Xiao Qi.

    So, plus the handling fee, the commission to Citibank, and the thank you fee to Wade, Xiao Qi got 90% of LinkedIn's shares at a high price of 560 million US dollars.  And at the first opportunity, Xiao Qi injected US$300 million in capital through Citibank.

    After the transfer of the shares was completed, Xiao Qi also had a problem with Hoffman and Werner.A guarantee is that within five years, all the funds invested by Xiao Qi will not dilute their shares.

    In other words, Xiao Qi's capital injection into the entire company reached at least 1.5 billion, plus the 560 million he purchased the shares, the actual value of LinkedIn should be at least 2 billion US dollars. Calculating 5 shares, it is 100 million US dollars. Two  5 people's shares tripled in value out of thin air.

    A very critical point is that Xiao Qi said it after the transaction was completed, rather than before the negotiation as a condition of the transaction. This made Hoffman and Werner feel very good, and they felt that Xiao Qi was indeed Xiao Qi.  , Sure enough, he has a courage that others cannot have.

    The two of them felt more at ease and focused on doing a good job in LinkedIn and making it a dazzling presence in the social network.

    By the way, Xiao Qi gave Citibank a total of US$58 million in commissions for this transaction, and Wade also received a personal reward of US$2 million.

    The two million U.S. dollars are all made of U.S. bearer treasury bonds, with a face value of 5,000 U.S. dollars, which can be put in a large envelope. There is no need to calculate taxes, and there is no need to worry about the tax bureau. When needed, it can be directly circulated in the global market.  Cashing out is really the best weapon for bribery and backroom dealing!  (To be continued. Please search Piaotian Literature, the novels will be better and updated faster!)
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