In addition to serving as BlackRock's Head of Asia Pacific, Bao also serves as Senior Managing Director, Global Leader of Corporate Strategy, and member of the Global Executive Committee. Watermark Ad Test: Watermark Ad Test

He has a high status at BlackRock, and his words basically represent the will of this giant financial institution with $6 trillion in assets under management.

It was the first time that many young people in the West learned that they had such a great boss who was playing every day.

This time, there is no need to be tied with Brother Hiccup, and the media has hung the title of "the world's youngest billionaire with tens of billions of dollars" on his head.

Including the founder Zhang Yida, the products of Zhonghe Group, and the number of users, all made relevant introductions and elaborations.

Many well-known foreign media, including Wall Street Journal, New York Times, The Times, and Every Post...... A whole bunch of media outlets also did in-depth coverage.

Penguin consists of three main revenue segments: advertising, finance, and games. After the merger of Ruixiang and Zhonghe Group, the main business can also be carried out around the three major sectors of finance, e-commerce and advertising.

And it is reasonable, and the penguin came out to make a comparison.

There are also some media that are too idle to express their opinions: Ruixiang Group and Zhonghe Group merged, instantly surpassing 1,000 degrees, with a valuation of nearly 100 billion US dollars.

This time, Zhonghe Group reached a valuation of 40 billion US dollars, which slightly brought back a city for Zhang Yida.

Ruixiang's official valuation is still stuck at $27.5 billion, which is already far behind Didi, which is valued at more than $50 billion.

There are also many people who say that Zhang Yida is lagging behind in the battle for the throne of the "third largest Internet company".

Can such a person be called a failure in entrepreneurship? Can it be called a Waterloo?

Sold a $6 billion company, and had two companies valued at tens of billions of dollars.

Regardless of the thousands of reasons, Zhang Yida's sale of Huimin Travel is showing a declining trend.

In the eyes of the public, selling the company is the behavior of a loser.

This news slightly diluted the negative impact of Zhang Yida's sale of Huimin travel.

Together with Ruixiang, Didi, Toutiao, and Magnesium, they are known as the five small giants "RTMDZ", which are all unlisted Internet companies with a valuation of $10 billion.

Many netizens know that there is another small giant in China, Zhonghe Group.

It has to be said that the media's unremitting publicity has brought high exposure to Zhonghe Group.

This kind of title is still very eye-catching, and countless netizens have been deceived by clicking and.

"Founded less than 3 years ago, this company is valued at nearly 300 billion!"

"Zhonghe Group Completes the World's Largest Round of Financing of $4.5 billion!"

Although Zhonghe Group claims to be a Series B financing, the media still calls it a round of financing.

Since Zhonghe Group was formed by the merger of Dododo and Doushi, after the merger, it was still the first round of financing.

Whether the $40 billion valuation can stand firm depends on the business development in a year.

But valuation, in addition to the current value of the company, also contains investors' expectations for the future.

Regarding the valuation of Zhonghe Group of 40 billion US dollars, Zhang Yida himself feels that it is still a little overestimated.

But Zhang Yida has always stretched out his hand not to hit smiling people, and the two senior brothers want to buy shares, or at a very public price, so naturally they will not push it out.

To be honest, these two shares don't make much sense for Zhonghe Group.

Robin Lee and Dongfang Yu's family fund holdings are even lower, each paying $200 million in exchange for a 0.5% stake in Zhonghe Group.

The shareholding ratio is not high, and it is mainly a financial investment.

BlackRock and Blackstone each acquired a 2% stake in Zhonghe Group.

The penguin side finally gave up its plan to hold 20% of the shares.

In addition, Zhang Yida brought in Blackstone and BlackRock on the grounds that he needed to introduce large international capital to help with overseas expansion.

But it's not a small amount of money, and it's hard for the penguins to come up with.

This is also deliberately done by Zhang Yida, if the penguin invests 4.5 billion US dollars alone, it will almost achieve the goal of holding 20% of the shares.

Penguin's shareholding rose from 9.47% to 14.65%, missing the target of 20%.

Blackshirt Capital, Zhenke Fund, and Huayi Capital have also diluted their shares in the same proportion.

Ruixiang Industrial Investment Fund's shareholding decreased from 3.8% to 3.37%;

Zhang Yida's Cayman company's shareholding will drop from 71.39% to 63.36%;

After the completion of this round of financing, Zhonghe Group will be valued at $40 billion.

The funding amount is set at $4.5 billion, with $2.5 billion led by Penguin, $800 million each from Blackstone and BlackRock, and $200 million each from Robin Lee Family Fund and Oriental Yu Family Fund.

Zhonghe Group's pre-investment valuation is fixed at $35.5 billion, of which Pindodo's valuation is $10 billion, Doushi's valuation is $25 billion, and the equity valuation of Bilibili and Canxing Culture is $500 million.

It's about having enough confidence in the company. In the previous life, Douyin could reach a height, and Douyin was naturally no worse than them.

Zhang Yida agreed to these conditions, and he naturally would not think of relying on related party transactions to support Doushi's 20 billion revenue.

In order to prevent Zhang Yida from picking wool, several investment institutions also took great pains.

In addition, several investors also sent financial audit consultants to Zhonghe Group to audit all advertising contracts and finances.

Exceeding this number is not to be included in the VAM assessment index.

A series of companies controlled and invested by Zhang Yida led by Ruixiang can only place a maximum of 10 billion advertisements on Douyin in the next year.

In order to prevent Zhang Yida from engaging in related-party transactions, the investor also added a restrictive condition.

With revenue of $19.9 billion and revenue of $20.1 billion, the valuation gap reached $6 billion.

The revenue of 20 billion has become a very clear dividing line, and whether to cross this line or not, the treatment is very different.

Penguins, BlackRock, and Blackstone are not soft persimmons, how can they be taken at will.

This plan seems to be unfair to the original shareholders on the founder's side, but it is actually relatively fair.

Less than $20 billion in revenue, for every $1 billion in revenue, the valuation is reduced by $1 billion on the basis of $20 billion. ”

Liu Zhiping made the final decision, "Choose a range of 1 billion in the revenue range." More than $21 billion in revenue, with every $1 billion in revenue, the valuation is $1 billion higher than $25 billion.

The biggest controversy between several parties on the VAM is the division of revenue ranges and the increase in valuation of performance exceeding expectations.

But what if something goes wrong in the middle? So you need to leave yourself a way out.

Zhang Yida naturally did not agree, although he was very sure that he would complete the revenue task of 20 billion.

But Blackstone also has its own conditions. The specific conditions are also related to the details of the VAM plan, which are similar to the conditions proposed by BlackRock, and are also more beneficial to the investor.

Not long after, Zhang Liping also returned, and he said that Blackstone could agree to bet.

Therefore, Bao Zheyu was very dissatisfied and resolutely refused to agree to Zhang Yida's plan.

This is a gap of billions of dollars from the $10 billion valuation he proposed, and the impact is not small.

According to the plan proposed by Zhang Yida, if the revenue is more than 14 billion in the end, the valuation of Douyin is about the same number, but the unit is US dollars.

But whether the specific revenue is more than 100 billion or more than 14 billion, he can't predict it accurately.

With a little effort, it is still possible to achieve more than 10 billion revenues.

Because according to the current monthly advertising revenue of nearly 400 million on Douyin, it will almost reach nearly 5 billion if it does not grow in the next year.

According to the various data of Shake, Bao Zheyu speculated that Shake Vision is likely to be able to reach 10 billion ~ 15 billion revenue.

This scheme is not very beneficial to BlackRock, and greatly reduces the return on winning the bet.

20.5 billion ~ 21 billion, and the valuation was raised to 26 billion US dollars. And so on. ”

For example, in the range of 19.5 billion ~ 20 billion, 20 billion ~ 20.5 billion is regarded as the normal completion of the bet.

He said with a smile: "The range of 5 billion in the revenue gambling plan is too broad, and I think it is better to set it at 5 billion."

However, Zhonghe Group is not an ordinary company, and Zhang Yida is not an ordinary founder.

There are many conveniences for international expansion, refinancing, and more. Therefore, they negotiate relatively strongly and do not give too many generous terms to the startup.

And BlackRock, the world's top asset management company, they take a stake in a company, and they will provide a very strong credit endorsement to the company.

If the company is good enough and investors rush to invest, the reward conditions are not negotiable.

Of course, it depends on the strength of the company and the scarcity of the target, as well as the energy of the investment institution.

This is the real world of investing, and it's very unfair.

If the company's performance exceeds expectations, the investment institution rarely compensates the founder.

That is, after the company's performance does not match and the listing schedule is not met, the investor directly asks the founder to compensate.

The VAM signed by a start-up company is generally a one-way adjustment.

Zhang Yida chuckled, you foreigner are pretending to be confused for me here?

"More than $20 billion, that's in line with a $25 billion valuation. ”

Zhang Yida smiled and asked: "What about the revenue exceeding 20 billion?"

No matter how many and active users are, what's the use of not making money.

If the revenue can't even reach 5 billion yuan, then there is not much investment value.

Bao Zheyu also thinks about the problem comprehensively, and this year is a crucial year to prove the business value of shaking.

If the revenue is less than 5 billion yuan, the founding major shareholders and management will repurchase the shares of Series B investors at a premium of 20%. ”

The revenue is between 5 billion ~ 10 billion, and the valuation of Douyin is lowered to 5 billion US dollars;

The revenue is between 10 billion ~ 15 billion, and the valuation of Douyin is lowered to 10 billion US dollars;

The revenue is between 15 billion ~ 20 billion, and the valuation of Douyin is lowered to 15 billion US dollars;

"The revenue does not reach 20 billion, and according to the actual completion of the revenue, the founding major shareholders and management will compensate the B round investors for equity.

After Zhang Liping left, Liu Zhiping fiddled with the teacup in his hand and asked Bao Zheyu casually.

"How do you bet on it?"

But the $25 billion valuation and the VAM clause still gave him a headache about how to maximize the interests of the penguins.

Liu Zhiping had discussed with Bonima in advance, and for Zhonghe Group, it was necessary to carry out the layout.

He asked Zhang Yida to suspend the talks, and he needed to ask the headquarters for advice.

But when it comes to billions of dollars in big bets, he is not qualified to call the shots for headquarters.

As a senior partner of Blackstone Group and chairman of Greater China, Zhang Liping has no less authority.

The degree of cattle is not inferior to Zuckerberg at all.

The news of "senior students" and "three listed companies under its umbrella" has all been dug up by the Western media.

Zhang Yida's popularity around the world has also made a qualitative leap through this huge financing!