The current Internet corporate bubble has been blown up, but compared with later generations, Silicon Valley's power is far from comparable to that of Wall Street.

The future of Ameriken's triumph of Silicon Valley, Wall Street and Washington has not yet taken shape, and the A/B share structure has a long history, but the number of Internet companies that have adopted it is very small.

Peter Thiel and Max Levchen said they would go back and talk about it.

"I think we should agree to Newman's terms, and to be honest, our products don't have any advantages over NewPay.

Probably the only advantage is the first-mover advantage of the handheld, the problem is that we don't have the funds to promote our products on the handheld.

In the case of NewPay's incentive program, they burned tens of millions of dollars in incentives alone, while our investment was only $5 million.

We have a big gap with NewPay in all aspects. ”

Peter Thiel does not have strong control, and he is not too stubborn about selling the business, if he is too obsessed with this, then Confiniti will not choose to merge with Musk and become the later PayPal.

Max thought for a moment and said: "Actually, we are not without opportunities, the field of electronic payment is close to zero-sum game, but it is not a complete zero-sum game.

Washington will also not accept that there is only one player in this field.

In the early stage, we can survive in areas that NewPay's tentacles can't reach, especially in recent years, the Internet has been showing a trend of rapid expansion, and we will definitely have room for survival. ”

Peter nodded, "Okay." He thought Max was reluctant to be acquired by NewPay.

Max interrupted him: "I'm not done yet, I just hope we make the pros and cons clear and avoid regretting this decision in the future."

We need to decide if electronic payments are something we will fight for all our lives, or if they are just something we can do at this stage? ”

Peter: "Obviously it's something we can do, we first set up Confiniti because we wanted to develop a technology in information security, and then we couldn't find a corresponding application for this technology, so we tried to do electronic payments. ”

"That's right," Max got up and circled around the room, "so electronic payment is a means rather than an end for us, and I don't rule out selling Confiniti to NewPay."

Because this is not something we will strive for in the long run, we need to weigh the benefits between selling and not selling from a secular perspective.

Whether it is in the long term or now, there is no doubt that it will definitely be a good deal to exchange Confiniti for NewPay shares.

Although I don't know what the Wall Street gangs like about NewPay, and even such harsh conditions will be agreed, but the value of NewPay is definitely high enough.

In the long run, the growth of a company that ranks first in a field must be better than that of a company that ranks second. ”

Peter Thiel nodded: "Then I'll send Newman an email back tomorrow, and we'll negotiate around the valuation." ”

Like accepting an acquisition, the investor needs to be notified in the terms of the investment.

When Clawson and Kleist learned that NewPay was willing to buy Confiniti and was willing to buy Confiniti through a share swap, they were in ecstasy.

It was a windfall, and it was because NewPay was overvalued that they retreated to Confiniti.

Now, you can directly exchange it for NewPay shares.

Both investment firms replied to Peter Thiel in agreement, and said that their bottom line was that Confiniti was valued at more than $15 million.

NewPay's angel round has a valuation of $1 billion, and it has to buy 5% at one time, which means that a single investment will cost $50 million, which is unacceptable for these two investment institutions.

It's like if you buy a house and fancy the location, degree and business of a certain community, but the lowest price of the house in this community has to start at 5 million, and you can't afford it at all, and then you would rather buy a small apartment and want to buy this community, but the problem is that you can't buy it.

Nokia Investment Fund and Deutsche Bank are such a mentality, not that they can't afford to pay 50 million, but the upper echelons are unwilling to invest so much money at once.

50 million yuan was invested in NewPay, which is enough to participate in more than a dozen angel round investments.

And at that time, it was an Internet company that could be listed, investing in more than a dozen angel rounds, with a listing probability of about 30%, which is not higher than investing in NewPay?

This is true from a profit perspective, but from the perspective of pursuing long-term returns, NewPay's potential is obviously much greater.

Ordinary Internet companies are listed on the NASDAQ and raise tens of millions of dollars, which is not as good as NewPay's angel round of financing.

After simple negotiations, NewPay acquired Confiniti for $25 million in a share swap.

On the other side of Silicon Valley

"Peter Thiel, Max Levchen, welcome to NewPay's executive team, this is Warren Jensen, our CEO, I usually don't care about the specific operation of the company, he is in charge, and then this is von Lewis, he is the head of technology.

I'm going to divide it up like this, Peter Thiel, you're going to be the VP, you're going to be in charge of NewPay's marketing and then we're going to split the technology department into the information security and development department, with von Luis in charge of the information security department and Max in charge of the development department. ”

Compared with Max Levchen, Zhou Xin still believes in von Lewis's ability and loyalty.

As a start-up that followed him all the way from Angry Birds, von Louis is graduating from college this year, and he spent most of his senior year in the company.

In the acquisition agreement, the founding team of Confiniti needs to work for NewPay for at least three years, and if they leave after three years, they will have a three-year non-compete agreement, which means that they cannot work in the same industry.

Without Confiniti, PayPal equals less legs.

PayPal was created by the merger of Confiniti, a payment app that is more like online banking.

It wasn't officially launched until December 1999, but Musk wanted to create a full-service online bank that offered checking and savings accounts, brokerage and insurance throughout the '90s.

In January 1999, Musk had already begun preparations.

Newman's press conference to attend Confiniti's acceptance of financing was covered by major media outlets in Silicon Valley, and it didn't take long for the news to change to NewPay's acquisition of Confiniti.

"NewPay acquires Confiniti, and startup NewPay buys competitor Confiniti to enable a huge online payment business."

"It is reported that this is the first time that Newman has acquired other startups since its inception, and Confiniti's leadership in the PDA field is a decisive factor in this acquisition."

News of Newman's participation in the press conference was only seen in the Silicon Valley media, while news of NewPay's acquisition of Confiniti flooded major media outlets, from the New York Times to the Wall Street Journal.

After Musk saw the news, he had a vague illusion that he had lost something.