Google's position in the American Internet network industry is very special, and it is also very popular with the investment community, if the American branch of Tudou can introduce Google as a shareholder, it will be very beneficial to the company's development in Europe and the United States and its future listing.

As a company with a background in the Celestial Empire, Tudou has developed to the current scale, and if it does not attract some investors with American background, then it is likely that its development in the United States will be disturbed, and even the US government will come forward to stumble. The most typical example in later generations is the various obstacles encountered by Huawei to enter the US market.

As the most famous supplier of communications equipment to the Celestial Empire, Huawei has been dealing with the U.S. government for a long time and can be called a "veteran athlete". Huawei was forced to temporarily abandon the U.S. market due to repeated deliberate repression by the U.S. government. In 2010, Huawei tried to buy Motorola's wireless network business, but in the end the U.S. government used "national security" After 2012, the U.S. government intensified, and the U.S. House of Representatives issued a report that determined that Huawei and ZTE posed a national security risk to the United States and may have violated U.S. laws; in 2013, U.S. President Barack Obama signed a bill requiring relevant U.S. government departments not to purchase information technology system equipment without permission, especially to formally evaluate the equipment produced by Celestial Empire.

The bill restricts Huawei's expansion into the U.S. market, which is to sell communications network equipment. As a result, in the U.S. market, the four major U.S. telecom operators have excluded Huawei's system equipment from the bidding list.

Although Tudou is an Internet company, and a communication company like Huawei, the sensitivity is not so high. But it's not easy to find trouble, so it's also a good idea to transfer a portion of your stake to Google with a strong background.

"Google originally wanted to buy the U.S. branch of Tudou.com as a wholly owned company, but Mr. Jiang should not approve of this plan. We have researched the shareholder information of Tudou's US branch, and although there is no final result, I believe that Mr. Jiang should have the majority of the shares, right?" said Page.

"How much stake I have, that's not the point, you just need to know that I can decide the things of Tudou", Jiang Hui did not directly answer Page's question.

"OK, I see what you mean. Thirty percent, we Google only need 30 percent of Tudou's shares, and we are willing to accept a valuation of up to $3 billion", Page began to explain Google's plan.

The valuation of $3 billion is not high, but it is not low either. An Internet company that has only been established for more than two years can be regarded as very good to have this value.

"How much is Google ready to premium?".

A premium acquisition is a partial value paid by the acquirer company to the shareholders of the target company above its market price in order to acquire equity in the target company. According to Wall Street's M&A theory, the main reason why the acquiring company pays a premium to the target company in corporate M&A is due to the development prospects of the target company and the synergies generated by the merger.

"One billion US dollars, in exchange for 30% of Tudou's shares, are you satisfied with this premium?"

"Page, don't you think unicorns like Tudou should have a higher premium?"

"What do you mean by a unicorn?".

The unicorn is a mythical creature that is rare and noble. In 2013, Aileen Lee, a well-known American investor, classified private and public market startups valued at more than $1 billion and called these companies "unicorns". Then the term quickly became popular in Silicon Valley and appeared on the cover of Fortune.

When the so-called "unicorn company" invented the concept of unicorn, she was describing a situation under specific historical conditions. Between 2003 and 2013, only 39 companies stood out from more than 60,000 competitors and achieved valuations of $1 billion+.

Jiang Hui launched the concept of "unicorn enterprise" in advance, and Guanghui Group is not only a unicorn of Tudou.com, if this concept is quickly accepted by Silicon Valley, it will also be beneficial to the valuation of companies under Guanghui Group.

This is equivalent to invisibly dividing each company into unicorn companies and other enterprises, and pulling the hierarchy out at once.

"The so-called unicorn company, first of all, must be valued at more than $1 billion and has not been established for a long time, and in addition, the products brought by unicorn companies are unbelievable when they first appear, but when people get used to this method, they will feel accustomed and indispensable," Jiang Hui explained to Page.

"That seems like a good word, so Google is a former unicorn."

"It has to be".

"Jiang, although Tudou is a unicorn company, our billion-dollar investment is not low, and it can even be said that this is the world's largest share acquisition among Internet companies this year."

"If Google can accept that half of the stock is non-voting, then I agree with your proposal in principle."

"Jiang, your request is too embarrassing for me. But if you allow us to swap Google shares, then I have no problem."

"If I want to use Google's shares for exchange, then I ask for a 2x premium, otherwise I have to pay all the cash."

"Jiang, do you think Google's stock price is inflated?"

"Google's stock price will definitely be much higher than it is now in the future, but in the current situation, it is a bit high."

Google's revenues continued to increase over the next four to five years, but its stock price barely rose until 2013, when it re-entered the fast lane. In Jiang Hui's view, it is because Google's stock price has been too much in the past two years.

"The demand for a double premium is too high for the board of directors to agree to. Well, let's follow the plan you said, but Google is going to send a vice president and finance staff to Tudou."

"No problem, but can you interfere with the company's development plans, unless the company's actions clearly damage Google's interest."

"Of course, Google is only a minority shareholder in Tudou, and we will do our job as a minority shareholder."

"Sancheng shares, this is already the largest shareholder of Tudou US branch, not a small shareholder," Jiang Hui said with a smile.

"Jiang, you're insulting my IQ by saying this, punish me with a glass of wine," Page said.

Although the various offshore companies in Tudou are messy, although they hold no more than ten shares, because Jiang Hui is controlling behind them, in fact, the rights of Tudou are still in Jiang Hui's hands.

"Happy cooperation," Jiang Hui said with a smile as he raised his glass.

"Happy Cooperation"!

(End of chapter)