After this evening dinner, the first module of the CEO class in Hong Kong was completed, and the next day, the students disbanded on the spot and took flights to Beijing, Shanghai and other places to return to their own companies.

They are all the soul of the company, and after a week away, although they can command remotely, I believe that there are still a lot of things to deal with in the company.

The next session is a month later, at the Wharton School of Business in the United States (Philadelphia, USA, May 29-June 2, 2006). When the time comes, everyone will fly directly to Philadelphia to meet the peace.

Lin Feng continued to accompany Ye Weiyu in Hong Kong for a few days before flying back to the capital.

After this study and exchange in Hong Kong, he suddenly felt a sense of urgency.

At this stage of business, no one is an idle person, Fengxing has not yet reached the unshakable leading position of BAT in his previous life, and he must seize the time to promote the listing of Fengxing as soon as possible.

Whether it is the next acquisition, investment layout, or R&D and manufacturing of smartphone projects, a large amount of capital is required.

The popular capitalization process is about to speed up.

At the same time, the time node has come to 2006, whether it is from the decline cycle of wireless value-added services, or from the layout of the future mobile Internet, Menglong has reached the stage of starting privatization.

After the privatization of Menglong, it merged with Fengxing to form the overall listing of the group, which was the route that Lin Feng had planned very early.

Relying on the familiarity of China Mobile's wireless value-added services in his previous life, Lin Feng has stepped on the node of wireless value-added business development at almost every step since the establishment of Menglong, from the SMS interactive platform to the CRBT service download, Menglong is the first stock of China's SP concept to land on the NASDAQ at the end of 2003.

From its inception to the present, Menglong has always achieved positive cash flow, providing a large amount of funds for Lin Feng's own wealth and later in the Internet field.

However, basically by 2006, the domestic SP industry and wireless value-added services have reached an industry inflection point.

The wireless value-added service represented by Monternet was originally a measure to attract a large number of partners to jointly promote business development in order to realize the publicity and content of the new service as soon as possible.

Things have changed over time, and now mobile has developed into a majestic thing, but SP companies have caused a lot of negative impacts on society because of a large number of illegal operations.

The situation is starting to change......

In 2004, when China Mobile began to supervise, although the value-added business had increased to 31.6 billion yuan, it accounted for only 6% of Mobile's revenue, and with the 15:85 sharing ratio, it became "a troublesome commodity that could not receive much money" in the eyes of China Mobile.

Therefore, from 2004 to 2006, rounds of industry supervision and new policies have been introduced: first, it prohibits SMS collection on behalf of others, unifies the MISC platform, and cleans up SMS silent users, and then promulgates documents requiring SP to obtain an inter-provincial business license issued by the Ministry of Information Industry in order to conduct business in the country; the registered capital of SP applying for inter-provincial business shall not be less than 10 million yuan, and the registered capital of SP applying for provincial network shall not be less than 1 million yuan.

In 2005, the sharing ratio with SP began to be adjusted, divided into three grades, except for some high-quality large SP companies such as Fengxing, TOM, Air, Sina, etc., the vast majority of SP companies from the previous 15:85, changed to 3:7 sharing, and even some became 5:5 sharing.

By 2006, China Mobile once again introduced the "second confirmation" policy. In accordance with the requirements of the headquarters, the provincial mobile has also formulated various assessment and punishment methods for SP.

The above-mentioned series of policies have brought about a large-scale reshuffle in the SP field, almost all SPs have been impacted, small companies have been eliminated, and large companies have been frequently named and required to rectify.

For example, in 2006, TOM was notified by GD Mobile for rectification due to customer complaints caused by illegal operations. The Ministry of Information Industry exposed 13 illegal SPs, including BJ Thunder Ball (TOM) and Shenzhen Tencent, for violations involving business names and content inconsistencies, false propaganda and other similar "collection of fees".

Although Menglong has been under Lin Feng's emphasis and insistence, there are relatively few illegal operations, but after all, as the No. 1 company in the industry, it is still greatly affected by the industry environment.

Among them, the fatal blow to Menglong is also the key point why Lin Feng decided to start the privatization process of Menglong at this point in time.

In March 2006, China Mobile established a "wireless music base" in SC, and independently controlled China's wireless music market through the establishment of a "central music platform" and a "12530 music portal".

This has had two effects on Menglong:

1. According to the new rules, all SP companies that operate wireless music (MP3, ringtones, and ringtones) need to re-sign an agreement with the central music platform, instead of each province accessing it by itself, especially the operation rights and promotion resources of the CRBT business have also been received by the wireless music base. In this way, Menglong's previous offices all over the country and the relationship between local provincial and municipal operators that have been operating for many years are all useless.

Second, China Mobile directly signed a contract with CP (content provider), gradually forcing SP (access service provider) to launch a wireless music industry chain, China Mobile and China Unicom have signed contracts with the world's four largest record companies and local record companies to directly purchase CRBT. In 2006, China Mobile also implemented the CRBT bidding purchase mechanism, directly leaving SP aside.

To be honest, if it weren't for the popularity of Menglong's brother company, its Fenghua Records and My Love Music Network, its huge influence in the domestic music market, and making Mobile more cautious, it is estimated that a sharp decline in performance would be inevitable - just like other SP companies such as TOM.

Although Menglong has not received a significant impact on its performance in a short period of time, this is the general trend, and Lin Feng is powerless to change it.

He has three options:

1. Let Menglong be like SP concept stocks such as Lingtong, Air, and TOM in the previous life, the stock price fell all the way to the price of cabbage, and then passively delisted. In this way, it will have a great impact on Lin Feng's reputation in the US capital market, and Lin Feng will not make such a choice.

Second, inject new business into Menglong, such as the smartphone business, so that Menglong can change the attributes of SP and become a new technology company, but this will be a big trouble for the business cooperation and profit delivery between Menglong and Fengxing in the future in the mobile Internet era. The hardware and software must be in the same company, so Lin Feng will not choose.

Third, it is at a suitable price and time to privatize Menglong.

The advantage of this is that for the capital market, especially investors who held Menglong shares at the time of the initial listing, they can still have investment income.

For Lin Feng, Menglong has acquired a lot of mobile Internet companies over the years, and has mature experience in talent and technology, which is the basis for the future company's mobile Internet direction.

……

After Lin Feng returned to the capital, he summoned Li Dong, Wang Hao, and Li Mengyuan for a two-day closed-door discussion.

Subsequently, a final decision was made.

Initiation of the privatization of Menglong!

Li Mengyuan is responsible for the specific implementation of Menglong's privatization, from formulating the privatization plan, forming an acquisition consortium, obtaining bank support (using the leveraged buyout model), hiring financial advisers, legal advisers, etc......

Lin Feng, Wang Hao, and Li Dong, as major shareholders and persons acting in concert with the acquirer, need to carry out a series of capital operations at this time for the Menglong stocks and options held by the opponents.

Privatization is a very complex process, especially the privatization of Menglong, the purpose is to merge with Fengxing after delisting, so how to design the acquisition model, especially how to allocate shares or give returns to the private equity funds and other consortiums involved, all need to be designed and negotiated.

Lin Feng hopes that Li Dong and Li Mengyuan can form a team within a month and make a feasible privatization plan for his reference.

In this way, he can have face-to-face communication with those classmates, including institutions in the U.S. capital market, during the CEO course in Philadelphia, USA, to form a preliminary intention.