Reborn multinational giant

"Valued at $45 billion!"

When Fang Zhe and others returned to Yanjing, a piece of news about Huizhong's valuation began to spread like wildfire in the domestic investment circle and the Internet industry!

Many people who heard the news thought it was incredible and took it for granted.

Of course, Huizhong is now listed as BATH alongside the other three domestic Internet giants, and its valuation is naturally comparable to the other three.

Nowadays, Baidu, which is listed on Nasdaq in the United States, is valued at US$46 billion. Due to the 3Q war, the valuation of Tencent, which is listed on Hong Kong stocks, has dropped from US$50 billion to around US$44 billion.

This is also the reason why senior leaders such as Mr. Ma and Tencent urgently stepped on the brakes in the fight against 360, because companies such as Huizhong Baidu released the "Advocate a Harmonious Network Environment, Resist Abuse of Market Position to Intimidate Users and Illegal Commercial Competition" initiative Half an hour after the book, Tencent's Hong Kong stock price plummeted by more than 10%.

Later, Tencent shook hands with 360, withdrew from the field of Internet security, and so on. Tencent’s stock price continued to fall. Until the end of August, President Ma boldly invited industry experts and Internet company CEOs across the country to open the famous "diagnosis". Tencent’s meeting, after Tencent decided to fully open up, the market value of Tencent has risen from the threshold of 40 billion US dollars to around 44 billion US dollars today.

Nowadays, with the news that Huizhong's US$45 billion valuation has begun to circulate in the market, Huizhong has stabilized Tencent's US$1 billion valuation, which makes everyone feel a little incredible while taking it for granted!

US$45 billion is US$1 billion more than the current market value of Tencent. Huizhong’s valuation is a bit too high, right?

You know, in October last year, the valuation of Huizhong circulated in the market was only 5-10 billion U.S. dollars. Huizhong was ranked by everyone because of Fang Zhe’s wonderful remarks and foresight at the IT Leadership Summit earlier this year. H after BAT.

To be honest, although many people are BATH, BATH has been called for more than half a year, but most of them still feel that Huizhong is always behind BAT. This is from the core of their business, the number of users, and the company. Founding time and company size can be seen.

Everyone believes that although Huizhong’s core game business is making money, and it is still making money globally, it definitely shouldn’t have the potential for development in search, social, and e-commerce businesses like BAT.

However, if you consider Huizhong's WeChat, which has gradually opened up around the world, this valuation seems to make some sense!

In fact, a large part of Huizhong’s high valuation indeed comes from WeChat.

In Hong Kong last year, Liang Botao and others proposed to Fang Zhe a valuation of 5-10 billion U.S. dollars for Huizhong. Fang Zhe just smiled and said nothing at the time, because he knew in his heart that when WeChat was not officially linked to the stage by Huizhong and did Before some results, Huizhong could only get a P/E ratio of 5-20 times for the game company.

However, when WeChat was pushed to the front desk by Huizhong, and the number of global users exceeded 100 million, which was considered a small achievement, all this changed!

"So, how do you define your Huizhong company, or what kind of company do you think your Huizhong company is, a game company? A mobile social software company? Or?"

This is Fang Zhe, Zheng Siwen and others. When they met with the executives of the Carlyle Group at HSD in the United States, an investment president of the Carlyle Group asked, he hoped that Fang Zhe, the young founder of Huizhong, could Explain to them bluntly what kind of company Huizhong is and whether it is worth their investment.

The Carlyle Group is the second stop of Fang Zhe and others in the United States. Fang Zhe and others visited Sequoia Capital, which is well-known in the domestic Internet investment circle. Although this capital has branches in China, Obviously, at the level of Huizhong, the domestic person in charge is a bit unqualified. Therefore, Fang Zhe and others directly contacted the U.S. headquarters of Sequoia Capital after greeted the domestic person in charge of Sequoia Capital.

However, although Sequoia Capital is well-known in the global Internet industry and has successively invested in top multinational giants such as Google, Apple, Cisco, Yahoo, etc., Sequoia Capital’s investment is generally biased towards the early stage, in the Internet and other TMT The industry is very influential, but in terms of political resources that are vital to the future development of WeChat, it is somewhat inconclusive.

Therefore, the Carlyle Group, which has abundant resources in the political circles of the United States and Europe, has become the second stop of Fang Zhe and others. You must know that this company is known as the "Presidential Club" of the investment banking industry, including the former president of the United States. The elder Bush, former British Prime Minister Major and other political figures in many countries have served as the advisory chairman of this company!

"We, Huizhong, are a mobile Internet company!

We, Huizhong, started with mobile games from the very beginning. Later, although we entered the field of web games and mobile games, mobile Internet business has always been our core business. Huizhong is involved in the business of mobile games and other mobile games such as Steam China. In order to better serve the mobile business and to serve WeChat, which we have achieved in the world, wechat!......"

Fang Zhe succinctly explained in English to several executives that the Carlyle Group met with them. Although Huizhong is now a giant of BATH in China, there is still Microsoft in the world. The world's top companies that Huizhong needs to look up to, such as Apple and IBM, still have Carlyle, Blackstone and other capital giants that Huizhong needs to deal with carefully and even cannot afford!

Because Huizhong is a mobile Internet company, its valuation P/E ratio is twice as high as that of game companies, fluctuating between 30-50, because Huizhong’s performance and layout in the mobile Internet industry have a huge global share Leading advantage and advantage so that these capitals have been difficult to choose between re-supporting a non-Chinese startup company and investing in Huizhong.

Capital pursues profit. For capital, what they will always pursue is the greatest benefit and return. With Huizhong having such a big lead and development prospects, re-support a startup company to compete with Huizhong and win How much is there and what is the success rate?What is the final return profit?

Yes, these top-tier capitals can exert influence around the world, making Huizhong’s WeChat unable to survive in many countries around the world. However, the problem lies in the fact that there are more than one or two top-tier capitals and forces in the world that have this capability. We don't want Huizhong's WeChat to develop, but others want Huizhong's WeChat to develop. Even the top capitals of Western countries that were monolithic in the past have different opinions.

Because Huizhong is a Chinese company, a company that has made achievements and achievements in China, a large market with a population of 1.3 billion. Many Western capitals do not want Huizhong to continue to grow in overseas regions such as Europe and the United States, but also hope to use Huizhong. Zhonghe WeChat enters the Chinese market with this opportunity to transform the mobile Internet industry!

More than ten years ago, when companies such as Tencent, Alibaba and Baidu were just founded, a small number of overseas capitals, including MIH, DFJ and Japan’s SoftBank, all made a fortune from China and made a fortune. s return.

Nowadays, these three investment companies control a considerable portion of the shares of three companies including Tencent, and continue to make huge profits from the huge market of China. Even the top capitals in the world are greedy.

It is the temptation of China's huge market that the world's top capitalists have their own ghosts, and the mentality that every capital will not have this shop after passing this village, let Fang Zhe see WeChat and Huizhong, the opportunity to gain a foothold in the world !