Although the investment bank compromised through a tough attitude, Lin Feng also knew that if the current pricing and valuation of Fengxing want to be recognized by investors, or even coaxed to be popular, the necessary momentum and IR are indispensable.

It is necessary to constantly have new surprises and imaginative news to make investors excited and more optimistic about the future of Fengxing!

So, what can be done to increase the company's valuation in the short term?

The answer is very simple, mergers and acquisitions!

This is also something that Lin Feng has been considering after Fengxing has gone through the Menglong merger and a new round of private financing.

Fengxing's cash reserves are very abundant now!

Before the merger of Menglong, Fengxing's own cash reserves were nearly 400 million US dollars, and after the merger with Menglong, it got the 300 million US dollars of cash reserves retained by Menglong, as well as the 400 million US dollars of syndicated loans obtained by Menglong's privatization (the remaining funds after paying the privatization costs), plus the issuance of new shares, Lin Feng and other original shareholders invested nearly 400 million US dollars, and the cash reserves of Fengxing Group after the merger reached as much as 1.5 billion US dollars (11.7 billion yuan)!

The money in hand was already enough, but out of various expediency and considerations, Fengxing had to conduct another round of Pre-IPO and raised $1 billion again...... (In fact, there is really no shortage of money)

Well, it is obviously going public to raise funds, but the cash reserves of Ke Feng are as high as 2.5 billion US dollars, and the game business, which is a cash cow, is still contributing nearly 100 million US dollars in cash flow every month.

It's really drunk that a company like Fengxing, which has a lot of cash in hand and is not short of money, wants to go public......

Lin Feng promoted Fengxing to go public in 07, on the one hand, he was worried that Ali would go public, and after obtaining sufficient funds, it would be possible to compete with Fengxing in many aspects, and it could not be allowed to develop, and it must be checked and balanced in all aspects.

On the other hand, it is also necessary to raise a large amount of money before the financial crisis, so as not to be delayed by the financial crisis The market timing and popular development time, if the global capital market recovers before listing, at least until about 2010.

Having lost three years, if the opponent is allowed to surpass him, this kind of mistake Lin Feng must not be forgiven!

And this popular listing, conservatively estimated to be able to raise at least another $5 billion.

Too much money in his hand is also a problem, Lin Feng must turn these funds into an advantage in future competition, and card positions and layouts in advance.

In this case, for the sake of listing momentum and early layout, it is imperative to carry out a series of mergers and acquisitions and investments at this point in time!

To be honest, at this time in 2007, there were not many Internet companies attractive to Lin Feng in China, and a large number of Internet companies with good future had already invested in Fengxing as early as 2005.

Therefore, Lin Feng set his sights on other related industries, as well as overseas markets!

The listing has involved a lot of Li Dong's energy, and this merger and acquisition plan, Lin Feng was mainly handed over to Zhao Yihua, the company's vice president in charge of investment and mergers and acquisitions.

First of all, in the field of entertainment, this direction is closely related to Fengxing's own interactive entertainment content business, covering many aspects such as games, music, literature, film and television, etc., Lin Feng made up his mind to take this opportunity to completely consolidate the foundation of Fengxing's entertainment sector.

Since May 2007, Zhao Yihua, general manager of the investment and M&A department of Fengxing, has once again become one of the most exposed figures in major financial media!

On May 10, Fengxing announced that it would acquire a 25% stake in VinaGame, Vietnam's largest game company, and the investment amount was not disclosed. This company will be the largest game operation company in Vietnam in the future, and the early stake will be of great benefit to the expansion of the Southeast Asian market in the mobile Internet era.

On May 12, Fengxing announced that it would invest 2.5 billion won (20 million yuan) in Eyedentity Games, a newly founded game company in South Korea, and obtain a 48% stake. Although this company was a start-up, Lin Feng knew that the first game they were going to develop was the famous "Dragon Nest", and according to the memory of his previous life, he might be able to make Chen Tianqiao a fortune at the right time.

On May 18, Fengxing announced that it would acquire 100% of the shares of Riot Games, an American game development company, for $100 million. Lin Feng has been coveting Riot Games for a long time to develop League of Legends (LOL) in the future, so this time he simply started first and bought it first to feel at ease.

On May 20, Fengxing announced that it would invest $120 million to acquire a 22% stake in Epic Games, the world's leading developer of digital games and graphic interactive technology. This is the company that developed the Unreal Engine (UnrealEngine), and it is very cost-effective to take some of its shares at this price!

In just one month, Fengxing acquired the shares of 4 overseas game companies one after another, fully demonstrating its determination and courage to consolidate China's No. 1 game company, which shocked the market.

The sudden start of this acquisition frenzy is reminiscent of the previous acquisitions of Hao123 and Faxmail in succession, and the large-scale acquisition of a series of start-up Internet companies in late 2005.

Lin Feng is always like this, after a period of low-key hibernation, as soon as he makes a move, it is thunderous, and the momentum is amazing.

And that's just the beginning.

Entering June, Lin Feng and Fengxing's buy, buy, buy and buy mode is still continuing!

On June 5, Fengxing announced that it had reached a strategic cooperation agreement with one of China's largest private program entertainment media companies, Guangguang Media, and the two sides would carry out in-depth cooperation in film investment, Internet film and television, program production, and even music, games, etc., at the same time, Fengxing will invest 1 billion yuan (128 million US dollars) to obtain 30% of the shares of Guangguang Media, becoming the second largest shareholder of Guangguang.

On June 15, Fengxing announced that it would invest 150 million yuan to obtain a 25% stake in Zhejiang Huace Film and Television, a film and television production company, which also indicates that Fengxing has begun to be deeply involved in the production of TV dramas in the content field.

These two investments in cultural film and television content involve the production of variety shows and TV dramas that are currently open to private companies in the domestic cultural media field, combined with Fengxing's FF video and Tudou.com, which obviously show Fengxing's ambition in the layout of cultural and entertainment content.

…………

For a time, the financial media, the Internet industry, and the domestic economic circles were in an uproar.

Investors in the global capital market, after seeing the news of these popular pre-IPO expansion acquisitions, naturally have higher expectations for the popular market......

As a trader in the popular M&A investment business, Zhao Yihua is really painful and happy during this time!

The big boss's decision-making has always been imaginative, never traceable, he will only assign down the task, tell you the target, the acceptable price and time.

But in such a short period of time, how difficult it is to complete the process of an acquisition from the initial contact, negotiation, to the final signing, which is really only experienced by Zhao Yihua and his entire M&A team......

It is important to know that M&A is a complex system engineering, from research and preparation to scheme design, to negotiation and signing, to transaction to post-merger integration, the whole process is organically combined by a series of activities. There are at least six stages in a normal process:

1. Strategic Preparation Stage: The strategic preparation stage is the beginning of M&A activities and provides guidance for the entire M&A activities. The strategy preparation phase includes defining the M&A strategy and searching for M&A targets.

Of course, because the M&A targets this time were directly selected by Lin Feng, Zhao Yihua and the M&A team were omitted at this stage.

2. Plan design stage: The second stage of M&A is the plan design stage, including due diligence and transaction structure design.

This is a meticulous work, especially due diligence, which is essential to investigate the finances, corporate operations and business status of the target company, which will take at least 2 weeks or so. Moreover, some companies do not have plans to raise funds at this stage, and negotiations are also essential.

Lin Feng was so eager for time that Zhao Yihua had no choice but to divide the M&A team into several groups, and several projects were carried out in parallel according to the industry, and a number of financial consulting companies were hired as auxiliaries.

3. Negotiation and signing stage: The focus of M&A transaction negotiation is the price and conditions of M&A, including: the total price of M&A, payment method, payment period, transaction protection, damages, post-M&A personnel arrangements, tax burden, etc. After the parties have reached agreement on the main aspects through negotiation, a Letter of Intent (or Memorandum of Understanding for M&A) is usually signed.

In fact, this stage is the most troublesome, and it is always very sensitive to price negotiations, and it is normal to have at least a few rounds of back and forth.

Fortunately, Fengxing is not bad at this stage, Lin Feng wants to invest in the company, and he is quite generous in terms of price, so a lot of time is saved at this stage.

Special affairs, due to the company's listing IR needs, basically this merger and acquisition project has reached the third stage, and the news can already be disclosed to the outside world.

As for the subsequent post-merger takeover, integration and evaluation phases, it is left to the business group leaders of the relevant businesses to handle on their own...... (The latter three stages are: fourth, the merger and takeover stage; 5. Post-merger integration stage; 6. Post-merger evaluation stage)

Despite this, in the past two months, Zhao Yihua has basically been busy!

He may be in the capital in the morning, in South Korea in the afternoon, and then to Hangzhou in the evening, and to the United States in between......

Barely touching the ground, he flew in the air for two months.

Lin Feng's request is that the first goal of this merger and acquisition is to concentrate on the field of mutual entertainment, in addition to the games and films that have been announced, there are also several record company targets and literary websites, but after the first few large projects are completed, the remaining case targets are relatively small, and Zhao Yihua handed them over to the following team to follow up.

His task now is on the second major sector that Lin Feng requires: the online advertising business.

Advertising is one of the four pillars of income determined by Lin Feng in the future, with Liu Shengyi's joining, the network media resources under Fengxing have been integrated, and the online advertising revenue has increased significantly, but Lin Feng hopes to have more advertising resources to come in, and this merger and acquisition task has also been handed over to Zhao Yihua.

Zhao Yihua's head is big, and the first case he has to deal with now looks like an impossible task......

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