Reborn multinational giant

At the beginning of May, the wind wave of 58 mergers with the city and catching up with the Internet slowly became calm in the domestic Internet industry. While people lamented the dramatic coming together of the old opponents for many years, they also created a sense of hope and awe for the “behind the scenes" Fang Zhe and the gathering of people who facilitated this transaction.

As Bao Fan, CEO of former Huaxing Capital, said, the gathering crowd is like the fairies in heaven, looking at the internet enterprises in the world to each other, the fairies on either side is the winning side.

In addition to the admiration of each other's philosophy and the energy of the conglomerates, Fang Zhe mentioned at the Davos Forum at the beginning of the year that the capital winter is cold, and the words of winter coming are also mentioned many times by the industry.

“Whether it is the quick and happy merger, or the 58 merger with the city to catch the net, it is actually the capital winter, winter coming performance characteristics.

They are both part of the merger between competitors. One of the important reasons for the merger is that the industry competition has intensified, the internalization has become severe, the cost of acquiring customers and flow has risen sharply, and it is impossible to live in the cold winter without sufficient capital or finding strong foreign aid for heating.

I am more and more in favor of the capital winter prophecy put forward by Fang Zhe at the Davos Forum, and I very much like and hope that Chinese internet enterprises will march along the Belt and Road, because only in this way can everyone escape the inner volume and open up enough markets for everyone to better survive.

Those enterprises that are unwilling to go out to sea and open up new markets and new tracks, especially those ranked below the top three in the industry, or even two or three, are likely to end up being annexed and merged, as Fang Chue predicted. ”

Li Kaiyu, the famous internet boss, wrote the above passage on his microblog.

It seems that Li Kaifu's words, like opening the spell of Fang Zhe's prophecy, a few days later, the leading company in the Internet travel industry joined Ctrip and announced that it would spend 400 million dollars, at a premium of 200%, from competitors

Expedia, Yilong's largest shareholder, has acquired 37.6% of Yilong's equity!

Yilong, like Ctrip, belongs to the online tourism industry. It is only the main business of Yilong. It is booked by a liquor store. Four years ago in 2011, Expedia, the largest online tourism company abroad, invested in Yilong and became the first shareholder of Yilong. In the same year, Baidu invested $300 million to invest in another giant company in the industry. Where to go online.

Since then, where to carry the thighs and Yilong, began to adopt a radical competition strategy of burning money for the market. Later, as an industry leader, Ctrip to secure market share, also joined the low-price subsidy war.

After 4 years of fierce war, all three sides suffered major energy damage. Last year, Ctrip's net profit fell by nearly 80% compared to the previous year. Where to go and Yilong, the two subsidies are tougher. Companies with earlier price wars are also in a loss. Where to go online last year's loss amount is as high as 1.85 billion!

Ctrip and Yilong were both founded in 1999. After more than 10 years of development, they have fallen into the bottleneck of development. Their domestic online tourism market has also become an extremely serious and competitive industry.

The natural growth of this market alone is far from satisfying the equal share of several of their travel giants, so annexing and merging competitors is the best way for them to break through bottlenecks.

For outdoor Expedia, investing in Yellow Dragon has not brought it any benefits in the past few years. Instead, it has dragged on its own performance due to Yellow's loss. Therefore, it can sell Yellow Dragon's shares to Ctrip. Expedia sells in a refreshing and eager manner.

On May 9, when Ctrip announced the acquisition of 37.6% of Yilong's shares, the share price of Yilong increased by 24% after the opening. As Ctrip and Expedia of both parties to the transaction, the share price of each party also rose by more than 5%.

At the same time, where the two competitors went, the share price fell sharply by 10% after opening.

It is clear that the attitude of the capital market towards the parties in this transaction has been expressed naked through banknotes.

Ctrip M&A Yilong has not only increased market share but also eliminated a strong competitor, consolidating and expanding Ctrip's leading position in China's online tourism market, so the capital market looks forward to Ctrip's future development.

Expedia got rid of Yilong, a losing baggage, and his stock price naturally went up.

Wherever it goes, it does not do anything, but the union and growth of competitors means that it is weak, Ctrip and Yilonghu group beat up where to go. In the future, the competition between the two sides will be more fierce, and the risk of investing in where to go is also increasing!

The news of Ctrip Merger and Acquisition of Yilong, although suddenly announced, has long seen fast, safe and fast merger, just witnessed 58 with the city merger to catch up with the industry colleagues and national netizens, on this has been nervous.

Both insiders and online friends are not very interested in the content of the message itself. Instead, they are more interested in Fang Zhe's prophecy.

“In my view, many companies founded around 2005 or even before today in China, including 58 cities and catch-up networks, Ctrip and go where, Yilong, even Meituan and the public review, after more than 10 years of development, have basically touched the bottleneck of development, and their industry has gradually developed internal volumes, and competition has become more intense.

The merger of Express Taxi and Express Taxi a month ago, and even a few years ago, the merger of Youku and potatoes, was also responsible for shuffling cards and rolls for these industries.

The entire domestic Internet industry will experience more mergers and acquisitions in the future! "

This prophecy of Fang Zhe in the classroom of Lakeside University was clipped into short television broadcasting crazy on the Internet, many online friends and industry people spoken directly, Fang Zhe is “the only true prophet in the whole scene".

This strange tribute stems from the recent fires of social amusement werewolves killed by the conglomerates.

Fang Zhe, a true prophet, predicted the fate of more than a dozen well-known domestic Internet companies in a short period of time.

Leaving aside what had happened before Fang Zhe made the prophecy, 58 with the city and catching up with the net, Ctrip and Yilong, can be truly found out by Fang Zhe, the true prophet “found out (the prophecy can be verified)".

So netizens can't help wondering, "Ctrip and go where, Yilong", where will this merge with Ctrip?

Meituan and public reviews? What stories do they have?

“What do you think of the prophecy made by Huizhong founder, the richest man in the world, the national old man, Xiaomi's chief advisor, the most handsome young man in the world under the age of 30, the most prominent young man in the world under the age of 30, the cover figure of Time magazine for 3 consecutive years, the most cowardly seniors since our founding of Anyang Polytechnic University, the youth idol Fangzhe, whom our software engineering faculty teacher talks about every day and whom we all admire in our dormitories, at the University of Lakeshore? Oh, by the way, Fang Zhe is still one of the expensive shareholders. ”

Zhihui Hotlist, a soul question from an online friend from Anyang Polytechnic University, was ranked first on the hot list.

The comments at the bottom are brilliant, and we'll talk about them in the next chapter.