The acquisition of MIPS is not over yet, and the transfer of Alibaba's shares has finally officially begun. Before the Spring Festival arrived, Ali was officially delisted from the Hong Kong Stock Exchange, and then began equity adjustment. That is, all the shareholders of Alibaba's companies will become shareholders of Alibaba's group of companies. This is certainly not a simple matter, how to valuate, how to balance the interests of various shareholders is very complicated. There are also many old employees who want to cash out some of their shares due to various problems, and too high valuations are not conducive to investors acquiring shares. Zhou Shi's previous attempt to transfer Alibaba's shares at a valuation of 500 dollars ultimately failed, at least nominally. They bought Yahoo's stake for $420 at a market value, but paid Yahoo cash for it after Alibaba's valuation reached certain conditions. In fact, it was still traded at a market value of 500 US dollars, and only Ali employees suffered losses. Capital is never charitable, and beneath the glossy exterior is often a bloody reality.

After a series of complex changes, Alibaba's equity distribution has also been basically established. Yahoo holds 35 percent, SoftBank holds 25 percent, Galaxy Four Elephant Fund holds 10 percent, Ali team holds 18 percent, and other investors hold 12 percent. However, it also received more than $2 billion in cash, which greatly eased Yahoo's cash flow.

"What about our numbers this year?" Zhou Shi asked his CFO, Tim Morse

"Yahoo's full-year revenue this year is up significantly from last year." Morse

"It's no nonsense, we acquired two big companies. Zhou Shi said impatiently

"Last year's full-year revenue was $8.2 billion, up 22 percent from last year's $6.7 billion, including Yahoo's revenue of $5.5 billion, profitable Yelp's revenue of $2.15 billion, and Linkedin's revenue of $550 million," Morse ignored Zhou Shi's complaints, explaining in detail the company's revenue composition.

Yahoo's two major acquisitions last year were both expensive, with the acquisition of Yelp not as much cash as the acquisition of Linkedin because most of it was a capital increase and share expansion. There are other small expenditures, such as the acquisition of Time's Toutiao and the UK's Deepmind, that don't have much money. The company itself also sold off a lot of miscellaneous businesses, and also had some one-time income. If you take into account the cash outlay of all acquisitions, Yahoo spent about $4.2 billion for the year, but Yahoo's profit for the year was only about $900 million, and Yelp and Linkedin had negative profits. Fortunately, the loan in the second half of the year was $3 billion, and this time the income of more than $2 billion, plus the previous $1 billion or two billion in cash and cash equivalents, etc., the current funds are not too tight.

Not only that, in the middle of the year, Yahoo began to recruit a large number of high-quality personnel to invest in artificial intelligence, coupled with a lot of investment in the transformation of the mobile Internet, and at the end of the year, it set foot in cloud computing, and every industry is a gold-swallowing monster. At the beginning of this year, MIPS was acquired, although the actual expenditure will not be too much, but if you want to develop, you must invest a lot of manpower and material resources. In the current situation, open source is a realistic and helpless choice for them.

"Yahoo must not expand again this year, we must concentrate on doing the things we are doing now!" Zhou Shi said both to Tim Morse and to himself. Returning to the future is not that there are no choices for a person, but that there are too many choices, each of which looks very promising, and is reluctant to give up, and in the end it will only achieve nothing.

The expansion of traditional enterprises has two modes of horizontal and vertical expansion, while the expansion of Internet enterprises is much rougher, and they are the expansion of the ecological chain. If it is not contained, I am afraid that one day Internet companies will occupy all industries with huge financial advantages, such as Google, Microsoft, Amazon and other giants are later developing their own chips. Zhou Shi also has this tendency now, always wants to get all the good things he can think of in the future, MIPS is just a small matter, and he also wants to acquire AMD.

Just think about it, Yahoo itself has not come back to life, how can it have the ability to save others. However, you can dig up the hero who saved AMD, Jim Keller, who developed the zen architecture. Jim Keller is a technology guru who is now developing chips at Apple and is one of the most important contributors to the development of Apple's A4 chips. He is a dreamer in the field of chips, and it is really difficult to quantify how good he is. Anyway, he is known as AMD's "father of zen architecture".

"You must help me restrain Yahoo's desire to buy it, or we may die in the pre-dawn darkness. "Zhou Shi

"I'll try, but it's up to you. "Morse

"Simon, many people can't understand the current development of Yahoo, and there is some confusion within the company, can you have a clearer explanation of the future of Yahoo?"

"Everyone can't understand it?" Zhou Shi asked strangely, he seemed to have said it many times.

"I know what I'm going to do, but I don't know what Yahoo's overall strategy is!" said Marissa Mayer

"I'm a little confused too"

“”

"In that case, I'm going to talk about what kind of company Yahoo will be, and the first thing that can be sure is that we will be a technology-driven company. Secondly, Yahoo and Yelp are two different companies. Zhou Shi said, marking out a whiteboard and dividing Yahoo and Yelp into two centers.

"In my vision, Yahoo will have three divisions of artificial intelligence, big data and cloud computing, among which Yahoo Research, Yahoo Brain, Yahoo Search and MIPS belong to the artificial intelligence department, Yahoo Portal, email, maps, news, photo applications, Yahoo Messenger and Stripe Pay belong to the big data department, and Linkedin and the public cloud projects in preparation belong to the cloud computing department. The big data accumulated by Yahoo and YELP provides the data foundation for artificial intelligence, cloud computing provides infrastructure for big data, and artificial intelligence can also provide reference for the development direction of big data companies, etc., these three are inseparable, but everyone has their own focus. Zhou Shi said as he watched everyone listen carefully, and he still felt a sense of accomplishment.

"YELP also has three divisions, namely Life Services, Accommodation Services and Mobility Services. Among them, review group buying and crowdfunding belong to the life service department, Airbnb and hotel villa booking are accommodation services, and as for travel, we have not yet established, that is, the former lyft, the online car-hailing platform, which is as famous as Uber. At the same time, I also want to buy a car rental company and also provide our air and train ticket purchase service. After Yahoo Cloud is perfected, YELP will migrate from Time Cloud to Yahoo Cloud, and use Yahoo's big data and artificial intelligence advantages to feed YELP. Yelp is not a group buying company, nor is it an OTA (online travel) company, we are a service company, a service company that meets the basic needs of consumers, such as food, clothing, housing and transportation. ”

"In general, Yahoo is a company with two cores, each with three businesses. As for the relationship between Yahoo and YELP, it is the relationship between technology and application, and Yahoo can use technology to improve the level and quality of YELP's services. "Zhou Shi

(End of chapter)