58 City mergers and acquisitions thinking: Help entrepreneurs build a new ecosystem through resource support

Now, on the whole, O2O Local service or a tuyere, if you are in this inside, you do not do long-term things for the short-term benefit, in fact, as a CEO is incompetent, I have to do is to ensure the success of 5 years, 10, rather than short-term profits and share prices.

Newspaper reporter Jiapeng Beijing report

58 recent mergers and acquisitions in the city are a lot of action. After a 267 million dollar merger and acquisition of the tenant, and in the recent announced to participate in the decoration site of the rabbit's C round of financing, in addition to 34 million U.S. dollars in cash, 58 with the city will also invest tens of millions of U.S. dollars in advertising resources and strategic cooperation resources.

Combined with last year's investment in e-generation, the acquisition of Charm 91, driving school a little pass and other companies, 58 with the city has been from a local life information platform, expanded to a real estate, automotive, Internet finance and other fields have layout of the O2O company.

"So much investment in mergers and acquisitions and layout, 58 of the city is not in transition, we just expanded the border." "58 of the same city CEO Yiu Jingbo received an interview with the 21st century economic reporting reporter, said, in the information class to achieve the ultimate model, based on this classification information platform can do more things, each vertical subdivision of the area is a natural thing."

Many of the investment and mergers and acquisitions, so that 58 of the city in talent, management, operations have higher requirements and challenges. The recent 58 city also announced that the structure from the original according to functional division, into the Internet enterprises commonly used in the Enterprise group model. Yiu Jingbo to reporters that 58 of the city is not a tall team, but after a few victories, all levels of people have grown up.

Yiu Jingbo, 2015 58 City will be a loss of 200 million U.S. dollars, continue to expand the territory, so that users can feel in 58 and other platforms are not the same service. "We want to help entrepreneurs build a new ecosystem with investment and 58 of resources," he said. ”

58 thought of mergers and acquisitions

"21st century": 58 with the city at one breath to do so many big acquisitions, why choose these standard? What is your merger logic?

Yiu Jingbo: Local Life Information Service is the cornerstone of the business of the 58 city, we have this information class model to achieve the ultimate, the current 58 of the development direction is from the information model to expand to the local life of some of the non-information model, we invest in the company is in fact the information model on the basis of an upgrade. 58 has 300 million users, we can see the overall user preferences, so this data on investment is very instructive.

In this kind of data support, we cast the field will be faster, at the same time 58 of the city can also help busy, such as 58 of the traffic, the size of the merchant will help us to be voted enterprises. In turn, the data and services of the enterprise can be integrated into the 58 platform in some way in the future.

When we invest enough enterprise, the user can feel in 58 with other platform is not the same service, this is a big logic. We want to help entrepreneurs build a new ecosystem with investment and 58 of resources.

"21st century": there is a trend in the last two years that investment and mergers are becoming more expensive, and that a company that was founded soon may be highly valued. Did you meet the problem? How do you make a reasonable valuation of the object of investment acquisition?

Yiu Jingbo: On the one hand, valuations are determined by the market; On the other hand, we have our own judgment, and we know how big the industry is and how much the user needs.

In fact we are not particularly willing to pay high prices, but entrepreneurs tend to be willing to take our money on the same terms, even in almost every situation. This is because our understanding of the industry should be deeper than the average fund, and many times, we can see an opportunity before other funds. Another advantage, entrepreneurs are more willing to take our money, whether it is a rabbit or other investment projects, there are many funds to rob us, but entrepreneurs willing to accept 58 of the investment, because 58 understand them very much support their direction. We can give the resources to support, they also value, 58 of the brand itself will be more favorable publicity. In addition to money and traffic, entrepreneurs in each step how to play ads, how to do offline, how to open a branch, each step we can give him a lot of real guidance.

"21st century": 58 of the investment in mergers and acquisitions, how to make decisions?

Yiu Jingbo: Our investment department now has almost 10 people, we have to do the analysis of the Department, there are our business group departments, business groups will feel good projects submitted to the investment department. Business Department will tell the investment department, you have to be able to vote for this enterprise, then I will not compete with him, immediately "pro"; So this is a very important channel, so, in addition to this investment sector, our business unit is our investment in the target of the important source of mergers and acquisitions.

Another source, now 58 in the investment sector, at least in the O2O local services within the circle of investment, but also more famous. Several of the most active companies, such as Sequoia, Jingwei, are with us many times. So this relationship of trust is built up, and maybe they see some businesses that will also be recommended to us. They think that some of the help that we can give to entrepreneurs may be something they can't give, such as traffic or some management guidance, and so on. So under the same conditions he will tell the entrepreneur, you choose our fund investment may be a little more, but you might as well choose 58, so we make investment still have a good advantage.

200 million dollars in advance this year.

"21st century": Do you invest in mergers and acquisitions of the company, in terms of business and other aspects must have synergies with 58?

Yiu Jingbo: If the 58 acquisition of the business, is definitely to strengthen our platform properties. For example, we took the driving school a bit, the driving school is a huge user of the app, it in the App Store rankings, often more than our other major competitors. So it's a huge user, and we believe that everyone will have to learn a car in the future, so this is the source of a new user, so we tend to buy it. and 58 of investment companies, are generally pure users, pure products, 58 will output resources for them. We are inclined to buy for companies that can enhance the 58 platform properties, and we will choose to invest in 58 companies that can give support and help.

"21st century": 58 in the fourth quarter of last year's earnings, net profit fell 70%, investors have some pressure on you?

Yiu Jingbo: 58 of the investors are actually better investors, we are not large number of investors, can do with them one-on-one communication, you can even meet with him, and they know what 58 is doing.

That is not because some of the data is not good-looking, 58 of the stock price volatility. More importantly, we said that 2015 we will lose a lot of money, may be a loss of 200 million of dollars, which I directly in the earnings analyst meeting said.

If the market has investment opportunities, we think that is the right thing, then I do not care about three consecutive years of loss of 200 million dollars, I believe that even if we do this, 58 of the share price will be basically stable, volatility will not be too big, this is determined by the structure of our shareholders, they are comparing the long-term development. If the goal of 58 is to become the first in the Life service field after 5 years, I am now doing my best to plan for the goal of 5 years and 10, rather than losing or earning money in the short term.

Now, on the whole, O2O Local service or a tuyere, if you are in this inside, you do not do long-term things for the short-term benefit, in fact, as a CEO is incompetent, I have to do is to ensure the success of 5 years, 10, rather than short-term profits and share prices.

"21st century": This year is expected to lose 200 million, how to lose the law?

Yiu Jingbo: 58 home loss 100 million dollars, in fact not all enough. Because the other competitors in this field are losing billions of a year, so you have to put all that in here and the team dares to do things. At least I have told the capital market, to spend this money, not to say that the last sudden loss.

The logic of expansion

"21st century": 58 cut into so many vertical subdivisions, so much so that how do you compete with different opponents in every field?

Yiu Jingbo: These six areas I do not come in from the Zero Foundation, certainly I have the advantage here. You for example I entered the car field, because I was the car inside the second-hand cars first; I went to finance, I was in order to serve 58 of customers and users, so say I come in, I may be the most unique, I am not in the war, but in the service 58 the whole ecology.

Recently we have also made architectural adjustments. The original 58 structure is divided according to responsibility, sales, marketing, research and development, so divided. Now is divided by the business group, directly to the responsibilities of each division. Now we see a lot of potential areas, so these are not reported to me, are under a certain person, and then he has several entrepreneurial business, I think this structure can not ensure that the innovative business to get enough attention, the company should put more energy into the future, to allow the current business has enough space.

So in fact, we have a large number of revenue tasks are dumped in the name of one or two people, such as our property and classified information, may assume the bulk of the company's revenue tasks, and perhaps it because of this adjustment, to obtain more resources. More attention to innovation at higher levels.

When one day, 58 of classified information business will slow down, the other five departments, to be able to make up, I hope this company will always be 10 years, 20 years, can grow at the current speed, so we always have to invest in the future, which is why we dare to lose the ultimate reason.

I don't even think about the two-year meeting. What's going to happen in two or three years? I want to be five years, ten years later, we become a local service domain biggest platform, everybody can trust platform.

"21st century": 58 how to integrate investment and acquisition enterprises?

Yiu Jingbo: Small team We are directly and come in, generally come in, the entrepreneur or feel more novel, this side of the management atmosphere, the whole way of doing things, culture, will be their small team into a process of ascension.

The most recent integration is the tenants, it is really more energy, the integration is that we must personally participate, I will be there for some time. As a mergers and acquisitions company, the team may doubt and have bad assumptions, but once the trust is established, I think things will be more smooth behind.

The integration of the tenants is not to put them in so simple, but to explore a road together, after all, this level of mergers and acquisitions we are indeed the first time to do. Once we are able to integrate, we can integrate this scale, the 58 development may be one more way, we will continue to do.

Not only do we not lay off staff, but also add people, because the home is a steady pace of the company, especially in the past two or three years, relatively low-key more stable, and we are a sports car, anxious to put the accelerator stamped the sports car, we want to bring it to this runway.

"21st century": The next 58 will also have a settlement of this level of mergers and acquisitions?

Yiu Jingbo: This is hard to say, this kind of mergers and acquisitions is the right people and just. This merger, the timing is the real estate market development is bad, market development once good, do not say that we 267 million U.S. dollars, is another five times times may not be able to acquire a tenant. Geographical location, 58 relatively in the small and medium-sized cities have advantages, and tenants in the big cities more advantages, 58 of the real estate business more biased rental, they are more inclined to second-hand housing. People and just happens, that is, I talk to Liang Weiping better, he also happens to have new ideas, so reached.

I think it is not easy to meet the right and the right things, maybe we want to do, we want to and a company can be, such as the price of others is very expensive, the founder has other ideas and so on. (Edit Lu Aifang)