Chapter 17 Acquisition of Federal Software and Unexpected Surprises

It's the National Day in a blink of an eye, and in 98 years, China has not yet had the tradition of a seven-day long holiday. Pen × fun × Pavilion www. biquge。 info

Overtime is the norm in the IT industry, and Depth only has one day off like other companies.

There are also a lot of things that need to be done to go public. Therefore, Chen Fan also ignores his conscience and does not speak, and he is a black-hearted capitalist.

Chen Fan had a dispute with the venture capitalist before, and finally reluctantly reached an agreement: Deepin Company mainly focused on strengthening non-expense investments such as hardware facilities in 98, minimizing current expenses, expanding current income, and achieving the goal of pre-tax profit of more than 1 million US dollars in 98.

However, the premise of controlling costs is to maintain a high growth rate of website traffic, otherwise it will not be sought after by investors as a high-growth enterprise, and the prerequisite for listing will be lost.

Therefore, although Chen Fan decided to strictly control the depth of expenses, the increase in hardware will incur depreciation expenses, the increase in personnel will increase salary costs, and the network bandwidth must also be expanded after the traffic increases, and it is still inevitable that the expenses will increase significantly in the last few months of '98.

The cost is destined to increase significantly, and the pitiful advertising cost of Deepnet and the natural growth of Guardian Management System sales are not enough to make up for this cost, and another way must be found.

At this time, federated software came into Chen Fan's field of vision.

Federal Software Co., Ltd. was established in 94 years, and quickly became the first brand in the field of genuine software circulation in China in the mid-90s, with strong software service capabilities, perfect service system and mature software service platform.

With a good business model, in 98 years, the United Software has established more than 300 software chain stores distributed throughout the country, and established the first brand image in the field of genuine software circulation in China.

In 98, the domestic genuine software market was not large, but federal software has occupied a leading position in this market. In 98, Microsoft's windows 98 Chinese version of the system was launched at the Beijing Federal Software Store, and at the same time through the Federal Software national chain stores for sale.

Federated Software also provides IT technical support services to enterprise users.

For Deepin, the acquisition of Federated Software can not only further expand the promotion channels of Guardian Software, but also integrate its own extensive agency channels; It can also bring a part of the consolidated profits of federal software and decorate the business combination statements.

In October 1998, Deepin Company formally proposed a merger and acquisition request to Beijing Federal Software Co., Ltd., at which time the shareholders and senior management of Federal Software were meeting in Hainan.

On October 8, Su Qiming, chairman of Federated Software, invited Deepin to Hainan to discuss the acquisition.

On October 9, Chen Fan asked for leave from the school, and was approved by the head teacher Liao Liao Jiajun, and accompanied Deepin Company to Hainan to meet with Su Qiming and others of Federal Software.

On October 20, Deepin Company and Federated Software reached an acquisition intention, and Deepin acquired 51% of the equity from the shareholders of Beijing Lianbang for 32.64 million yuan, and invested 30 million yuan in Beijing Lianbang Software, becoming the largest shareholder of Federated Software with 81% of the shares.

What is surprising is that in addition to reaching an acquisition intention with Federated Software, Chen Fan has gained another top student in Hainan.

That is Wang Haitao, who was later known as the godfather of China's e-commerce.

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Wang Haitao, a native of Fuzhou, southern Fujian, was admitted to the Computer Science Department of Harbin Institute of Technology in 1978 and obtained a bachelor's degree in 1982.

In 1992, Wang Haitao began to set up his own business, which became the largest circulation channel for computer products and books in southern Fujian.

Since the establishment of the Federal Software National Sales Chain Organization, his company has joined the Federal Software and is the sales champion of the national Federal Software foreign stores every year.

At the same time, Wang Haitao was also an Internet celebrity in the 90s, and in November 1997, after the Chinese national men's football team lost the top ten, his "Dalian Golden State Does Not Believe in Tears" published by the then Sitong Lifang once caused a strong resonance in the global Chinese Internet world.

Beginning in 1998, Wang Haitao began to try to sell software online, and after achieving good results, Wang Haitao wanted to move the business of Federated Software online.

In October 1998, Wang Haitao formally put forward this proposal to the headquarters of Lianbang Software, which attracted great attention from the senior management of the headquarters.

At this time, the board members and senior management of Federated Software were holding a meeting in Hainan, and Wang Haitao, who was far away in Fuzhou, was invited to attend.

When Chen Fan unexpectedly saw Wang Haitao, a burst of happiness came to his face: 8818 was sent to the door by himself, what should Alibaba do in the future?

8818 is the flagship website of China's first e-commerce business, founded in 1999.

When 8818 was established, China did not even have the concept of e-commerce, and when Wang Haitao registered "Everest E-commerce Company", the Industrial and Commercial Bureau actually refused to approve it, on the grounds that there was no such industry!

In more than two years from 1999 to 2000, 8818 grew rapidly and was almost close to success!

Before the turn of the millennium, 8818 was synonymous with e-commerce and online shopping in China!

8818's online payment and website reputation are widely accepted by domestic netizens, and 8818's market share is more than the other more than 1,000 competitors that emerged later!

At that time, more than 70% of Internet users chose 8818 as the first choice for online shopping.

It's a pity that the 8818 website in its most glorious period was ruined by foreign venture capital.

In 2000, the listing plan of 8818 has been approved, which coincided with the bursting of the NASDAQ Internet technology bubble, the general decline of Internet technology stocks, and the stocks of Amazon, which is similar to 8818's BTOC model, were also abandoned by the market.

At that time, 8818 had been controlled by foreign venture capital after multiple rounds of financing, and they decided to abandon the overwhelming advantage that 8818 already occupied in the Chinese B2C market and package 8818 into a BTOB model.

Although Wang Haitao did not budge an inch on this issue, he was powerless to change the decision of the venture capitalists with only 8,818 percent of the shares of 2.75 percent in his hands.

Since then, Wang Haitao has withdrawn from the stage of 8818, and 8818 has collapsed.

Although Wang Haitao's experience in 8818 ended in failure, his contribution to the development of China's e-commerce will not be erased, his romantic feelings and pragmatic style led 8818 from the beginning to glory, his biggest mistake is not to seize the control of 8818.

And the final fall of 8818 has also enlightened the entire e-commerce of China!

Such a man of the hour ran in front of Chen Fan by himself, and sent his business plan to his hands, you can imagine how comfortable Chen Fan's heart was!