Facebook of Another World, when it acquired Instagram and its company, paid $750 million in cash and $250 million worth of Facebook shares, for a total purchase price of $1 billion.

Of course, the $250 million in Facebook stock has since multiplied many times, completely exceeding the total purchase price of $1 billion.

The company that developed Instagram had only 13 people at the time, and the company did not have any other products other than INS.

"The offer we made was $1.2 billion."

Teresa Roy's investment company sent their team to Boston, the purpose of which was to negotiate with Wen Ming on the offer of ins, as well as follow-up negotiations.

The number of people in a team of investment companies alone has reached 8, which is twice the number of people in Apple's legal department. It is said that there are still some people in this team who are preparing other materials and carrying out a new round of promotion of ins.

"At the moment, Facebook has not responded positively to the offer we have made, nor has it made their offer. According to them, it is still their inspection period. ”

Wen Ming was a little embarrassed in the conference room, because he was the absolute majority shareholder of ins, sitting on 90% of the shares, and it could be said that ins still belonged to him. But this time in the merger and acquisition negotiations with Facebook, he was not the one who led the negotiations.

Sith, Cage and other four positions within Apple are all from the legal department. Although they are also engaged in some business negotiation work, they are not real professionals after all. Therefore, after Wen Ming discussed with Teresa Roy, Teresa Roy was very generous and sent one of her own teams.

"Aren't they worried that our user base is going to grow exponentially again during this time, and that they will have to pay a bigger price?"

Wen Ming asked curiously, he needs money now, the $100 million on Apple's books, and the $80 million that will be received from the sale of all the rights and interests of "Plants vs. Zombies", these two sums of money add up, just enough for him to pay a deposit of 1 million Iphone4 hardware.

But as the hardware began to be manufactured, he also needed to contact the foundry, and he needed to start leasing stores, decorating stores, and recruiting sales personnel. And none of these jobs cost money.

The most important thing is that these works are urgent, if you don't start doing it now, when the foundry starts to assemble the finished iPhone4, he will not be able to return the funds in time, and he will not be able to prove the charm of the iPhone4 to those hardware manufacturers.

Only when the iphone4 is recognized by the market, he can order parts on a large scale, and there will be no hardware manufacturers who require him to pay a 60% deposit, and there will be no hardware manufacturers who require him to pay the balance when he delivers the goods.

The leader of Teresa Roy's team, named Jerrys, replied after hearing Wen Ming's question: "Of course Facebook knows that the later it is acquired, the greater the price they pay." But there are two reasons why they can't quote directly, one of which is that our asking price is too high, beyond the value of the ins itself, and the other reason is that Facebook needs to think about how much they want to give up their shares, and who should give these shares to. ”

Facebook, which has a valuation of more than $10 billion, is undoubtedly already a behemoth, and this behemoth involves too many interests. When everyone wants a stake in Facebook, it proves that everyone knows that Facebook will be valuable when it goes public in the future, and since everyone else knows, there is no reason why Facebook itself should not know.

Wen Ming nodded and asked, "How much is Li Jiacheng willing to contribute in this merger and acquisition?" ”

Jerreth replied: "He wants to get as much equity in Facebook as possible, which means that if our $1.2 billion offer is accepted, he's willing to pay it all in exchange for a stake in Facebook." ”

Sure enough, he is the richest man in China for many consecutive years, and his wealth is not negotiable.

Wen Ming asked again: "The key is, is Facebook willing to give so many shares to one person?" ”

How much a shareholder owns is a testament to how much he speaks on the board and how much influence he has over the company. And now Facebook is not a company with a market value of $487 billion in later generations, and $1.2 billion can really buy a lot of shares.

Jerry replied: "In 2007, Li Jiacheng acquired a 0.8 percent stake in Facebook for $120 million, and Facebook was valued at $15 billion when Microsoft bought a 1.6 percent stake in Facebook for $240 million. As far as we know, Li Jiacheng also received a certain amount of preferential financing rights at that time. ”

"The so-called preferential financing right means that if Facebook needs financing, as long as Li Jiacheng recognizes Facebook's valuation at that time and is willing to provide the funds required for financing, then Facebook must let Li Jiacheng complete the financing."

"So, we chose to cooperate with Li Jiacheng."

In another world, Li Jiacheng invested a total of $450 million from 2007 to before Facebook went public, and got a 3% stake in Facebook. It's not that he doesn't want to pitch more, it's that he doesn't have the opportunity to pitch more.

And this time, because of the sudden rise of ins, Facebook felt threatened, so they desperately wanted to acquire ins, which also gave Li Jiacheng a chance.

Wen Ming asked his last question: "So, can Facebook accept an offer of $1.2 billion?" ”

None of them knew that Facebook had already given Instagram a $750 million valuation in internal discussions. Of course, it is difficult for sellers and buyers to give a price that is satisfactory to both parties during the first negotiation.

"They're definitely not going to take it, because our Instagram isn't worth $1.2 billion to any company other than them," Jareth said. At present, the real valuation of INS should be around $800 million. ”

"But what does it matter?"

Jerry spread his hands and said, "They need ins, they have to buy ins, and if they successfully buy ins, then, the valuation of their company will rise again." It is conservatively estimated that it can raise at least $3 billion. ”

Facebook would hesitate to spend $1.2 billion on a threatening competitor, but in reality, the valuation of a company is directly related to the industry it owns.

With one more ins, the valuation will naturally increase.

The most important thing is that in the hands of Wen Ming, it is difficult for ins to create actual revenue, because it is very difficult for him to beat Facebook with ins. But if ins is in the hands of Facebook, then, after the product is integrated, it will definitely be able to add a very considerable number to Facebook's receivables report.

Wen Ming is now like a blacksmith, creating a peerless sword, but he doesn't know martial arts and can't play the true role of this peerless sword. And Facebook has become a peerless swordsman, and in his hands, this sword can really shine.

"Very well, then I'll trouble you with this matter."

After Jean Jarres and Sith and others began to contact, Wen Ming no longer paid attention to this matter, the higher the price of ins, the more money Wen Ming and Teresa Roy earned, so there was no need to worry about Teresa Roy wanting to sell ins cheaply.

Of course, the main reason is that there is no interest between Teresa Roy and Facebook, as well as Facebook's current shareholders. Therefore, Wen Ming can rest assured.

On top of that, he owns 90% of ins, and if the price is really low, then he won't sell it.

After coming out of the conference room, Wen Ming thought that the Sith was still talking about the sale of "Plants vs. Zombies", and wanted to go back and ask, but also thought that the Sith must be a big head now.

With a helpless sigh, Wen Ming found the human resources department with only 5 people.

"Can you get some of the right people over as soon as possible? How many people are in a team? ”