Chapter 122 Valuation over 100 million
Moretz was startled, "This can't be!" Moretz yelled, "Do you think the ICQ is worth 130 million dollars, are you crazy or am I crazy?"
Zhang Chen chuckled, "Mr. Moretz, don't get excited, for Sequoia's sake, I'll explain it to you." β
"First, ICQ is still the only instant messaging app on the market, and according to our statistics, the number of sign-ups will exceed 3 million at the end of the month. Do you know what this means?" Zhang Chen paused, "It means that we have achieved more than 20% market share, you know, after statistics, there are only about 12 million Americans who regularly use the Internet." β
Moretz couldn't help but retort: "Microsoft and Yahoo are also ready to step into the instant messaging field, and with their size, it's only a matter of time before they catch up." β
Zhang Chen agreed, "You're right, but when will they really get involved? Two months, three months? Taking Microsoft's development cycle as an example, I guess it won't be until at least around Christmas? And by then, we have already captured the entire instant messaging market, I think there is no doubt about that." Zhang Chen's hand gradually moved down Tang Miaomiao's slender waist and stuck to her round and straight buttocks. Tang Miaomiao sighed softly, feeling the heat from her hips circling around her body a few times and turning into a stream of heat rushing to an indescribable place.
The strong confidence in Zhang Chen's words made Moretz speechless.
"Second, the reason why the instant messaging business is not taken seriously at the moment is simply because there is no very good profit model, but this is not a problem at all. Zhang Chen said slowly but clearly: "The biggest advantage of instant messaging software is that its super user stickiness makes it a natural entrance to Internet traffic. You know, there are just a few Internet entrances now, Netscape, Yahoo, AOL, that is, ICQ has the potential to become a giant alongside these companies just now!"
"Thirdly, ICQ has a feature that other portals don't have, which is connectivity. For example, why AOL invests in ICQ is actually because of the connection characteristics of ICQ. The Internet services provided by AOL are very complex, but they are not interoperable, resulting in a great waste of resources. And there is no way to let his customers know what services he has in the first place, and all things have to be discovered by the users themselves. But if he integrates these services into ICQ, it means that ICQ becomes a bridge between all his products, reducing a lot of promotion costs and improving efficiency. What's more important than being more efficient?"
Of course, this is AOL's wishful thinking, and ICQ's ambition is not just to become an affiliate of AOL. So, now please tell me, if you want to take 20% of the shares for ICQ by bidding 10 million, are you crazy or am I crazy?" Zhang Chen's hand kneading subconsciously.
Moretz was speechless by Zhang Chen's words, and it stands to reason that he, as an old man in Silicon Valley, will not be fooled by this word. However, AOL's investment has added a footnote to Zhang's words and added rationality. More importantly, Zhang Chen has mixed a large number of Internet theories from later generations, although it is not operable, but the effect of fooling people is obvious.
In fact, the platform role of instant messaging software is of course the biggest advantage, but this advantage can only be manifested in the era of mobile Internet. In the PC era, the biggest source of profit for instant messaging software is still value-added services! In this regard, it has been repeatedly proven by the later generations of Tencent and other dead instant messaging software.
This is just like the reason why people of insight in the early 20 th century were inevitably fooled by certain isms and forgot to die.
The more Moretz thought about it, the more he felt that what Zhang Chen said made sense, and hurriedly said, "Zack," as soon as the voice came out, Moretz himself was startled, and he felt that his voice just now was greasy and scary. Adjusting his voice, Moretz continued, "Zack, your analysis makes a lot of sense. I regret not contacting you sooner, I can't imagine that at your age, you understand the Internet so thoroughly. β
Zhang Chen chuckled, "Mr. Moretzγγγγγγ β
Moretz interrupted Zhang Chen, "Just call me Michael." β
Zhang Chen continued: "Michael, I don't need to be modest in this regard, because you are right. β
Moretz smiled dumbly, he didn't think Zhang Chen was arrogant, because just now Zhang Chen had already proved his depth of understanding of the Internet. He just didn't expect Zhang Chen to have this kind of cold humor.
Moretz said kindly: "Zack, let me tell you the truth, 20 million dollars and 15% non-voting shares are unacceptable to Sequoia in any way. $20 million is not much, but it is already the maximum authority I can use at the moment, and I only have 15% of the shares, and I have no way to explain it to the committee. Also, if you're leading the ICQ, Sequoia can do without voting rights, but unfortunately, the current ICQ team doesn't have my trust. β
Zhang Chen said in a deep voice: "Then how many shares do you want?"
"$20 million, 30% of which goes directly to your founding team, and the rest is injected into the company as working capital. Sequoia owns 20% of the shares, with full rights to the shares. You and I must both dilute another 10% of the stake as an option pool for employees,"
Zhang Chen said categorically: "17.5%, take a step back, this is the limit." Michael, you know, institutions like Blackstone and KPCB are also interested in us. And even Webvan's kind of garbage can be valued at $500 million, and ICQ will never be worse off than it. Zhang Chen said in his heart, of course, it will not be worse than it, later generations have never heard the name of this company, and it is estimated that when the Internet bubble bursts, it will be the first to die.
Moretz was silent for a moment, "Okay, I agree, I'll have a discussion with the committee in the evening, you wait for my call." β
Zhang Chen suppressed his excitement and said lightly: "Okay." Good bye. β
Hanging up the phone, Zhang Chen jumped up from Tang Miaomiao's lap, walked a few steps on the ground excitedly, turned his head and wanted to talk to Tang Miaomiao about the situation, but he couldn't help but be stunned, only to see the girl in front of him with a flushed face, a blurred eye, and a gentle panting.
Damnγγγγγγ Why are you so sensitive?