Cao Chao, Sina: Start a business now

In the past ten years, if I have proven myself to be a more successful professional manager, I want to be in the next 10 years with an entrepreneurial spirit to do my business, over the past decade, my Sina and I have made the most influential portal in the country, the next ten years I hope that my team and I can create a cross-platform, multimedia platform, The so-called cross-platform is across the PC Internet, across mobile phones, and television terminals in the field of the new media platform.

September 28, 2009, 44-Year-old Chao and Sina management to 180 million U.S. dollars to get a 9.41% stake in Sina to become Sina's largest shareholder. Chao almost single-handedly managed to get 180 million of billions of dollars in funding and, within two months, helped Sina's management to complete a controlled stake in the company. So far, Sina ten years of "no master" state of the end, and Cao Chao also logically become China's internet first media boss.

Chao's predecessors, including Zhidong, Yongji, Mao Daolin and Yan, have tried similar efforts, but the only result of these efforts is the same turnover as Sina's CEO Merry-go.

Chao, "Hang on and take" Sina, Sina also from this entered the "Tsao Sina" stage. Into the Sina decade, Chao not only for Sina clear the direction of development, to solve the problem of decentralization of equity, its superb capital operation means for the future of Sina to bring countless imaginary space.

Sina enters "Tsao Sina"

"From today onwards, we will transform our roles and face our future with an entrepreneur's mindset," Cao said in an email to employees after announcing the end of the merger with the audience and announcing the management buyout plan, the company announced on September 28, 2009. ”

Cao Chao's message on Sina Weibo (http://t.sina.com.cn) is quite a reflection of his mood, "today is destined to be an important day." Some excitement, and some tension. ”

Sina in the bulletin on Mbo clearly said: Directed additional about 5.6 million shares, Sina CEO Cao Chao, led by Sina Management, will be about 180 million U.S. dollars in the price, to buy the shares. After the completion of the acquisition, Cao Chao, led by the Sina management, will hold more than 10% of Sina shares, become the largest shareholder Sina.

"It took only two months from the decision to the execution, because the process was not complicated and more courageous. "Sina CEO Cao Chao revealed to reporters the decision-making process of MBO," I personally have been thinking about MBO for a long time, decided to do after no hesitation. "The change in the deal is only" management's decision-making environment "and will not have any concrete impact on Sina's business and strategy, Chao said.

Obviously, although before this, Sina has experienced many changes the Bureau, because its shareholding is dispersed, does not have the real big shareholder to be able to control the situation to be subjected to the criticism, but has not experienced Sina to start a business, has been only a professional manager's to make this decision, has made the big determination.

Chao, who has made Sina's history, also believes that "the stakes in this acquisition, combined with our management's original holdings, have exceeded 10%, and it is impossible to have other players invade Sina from the capital level." ”

In order to successfully implement the MBO, Cao Chao and his management team specifically registered to set up the Sina Investment company. According to the financing agreement, three venture capital companies have the right to appoint a director to the new company's board, but Sina's management has 4 board seats and has control over it.

After 10 years, Sina Mbo finally drew a full stop. Sina employees sigh: "This is one of the most important events in the history of Sina." ”

Chao said that 10 years ago, Sina wanted to solve the problem of decentralization of equity, but the time has not come, MBO has not been promoted. In early 2009, because of the economic crisis, Sina performance growth slowed down, the share price fell below 20 U.S. dollars, Chao thought, the time is ripe, should be able to advance. At this time Sina is doing another big thing, that is, the merger of the media outdoor media business. The merger of the media business occupies almost all the energy, Cao Chao has no time to operate MBO. Then, Sina's share price rebounded, and the 10-year plan was postponed again.

Because of the merger with SINA by the regulatory authorities veto, September 25, 2009, Jason announced overweight media shares, again mountain. Three days later, Sina also announced successful MBO. "The two things happen at the same time, thus creating a coincidence of time," Cao said. ”

Split the market to open up imaginary space

In just one months, Chao has done two things, MBO is one thing, CRIC listing is another. MBO solves the historical problem of Sina, and the CRIC listing provides Sina with an imaginary space for the future rapid expansion and development.

In the early morning of October 16, 2009, the other end of the ocean call, everyone clearly heard the usual laughter.

The same day, Sina's China Real Estate Information Group (NASDAQ: CRIC) landed on Nasdaq. This is the second time Chao has led the company to the IPO, the first is 10 years ago Sina's listing, when he had just joined Sina from PwC, the status of the Vice-President in charge of finance, and 10 years later today, he has become the new owner of the portal site.

On the first day of the CRIC listing, the market capitalisation exceeded its 51% stake in China. The next day, Sina, the second-largest shareholder of 33% per cent, was overtaken.

"This means that Sina's market capitalisation has been seriously underestimated." "On the November 26 CRIC, Cao Chao blurted out without consideration." However, the capital market is also mending to Sina's "underestimate", at present, Sina stock price is about 45 US dollars, compared to the Chao's mbo when 32.14 dollars per share buy price is much higher.

In fact, investors see two companies after the integration of the synergy effect, Sina's user data plus easy to live in the channel to support a future of the listed companies.

CRIC's win model opened another growth model for Sina, but Chao admits it is not a simple model to replicate. "I'm not going to take Sina down," he said. " ”

Cao said that in the trilogy of splitting, merging and listing, the focus is on merging, which is the purpose of CRIC listing. Sina Real Estate channel is a provider of internet advertising business, grams and Rui to provide real estate consulting and data analysis. Their common customers are real estate developers, and two companies will be able to provide the real estate business with the overall internet marketing program.

The timing of the IPO for CRIC does not seem to be good: CRIC listed in the first three months of the IPO, both in the US and in Hong Kong, have fallen below the IPO price, with many companies falling more than 10% per cent. Cao thought: Although the economic environment is not good, but since the end of 2008, China's real estate market is the scenery alone.

Chao said: "The economic environment is not good, there is no future investment, SINA offers investors a new possibility: the choice of promising Chinese real estate." That's why CRIC's share price has exceeded everyone's expectations, except for Charles Chao.

CRIC's significance for Chao is not just a financial support. In 2009, Chinese Internet companies blew up a "spin-off wave". Sohu, China Network, Shanda are listed under the separate listing of their business. In contrast to the listing of these companies, Chao said, Sina's model is characterized by the acquisition of more external resources through SINA resources. External resources are amplifiers that magnify Sina's influence as a media player. Chao believes that the CRIC model can be applied to Sina's other business units to replicate the role of amplifiers.

Capital Operation Master

Sina's MBO and the listing of CRIC, let Chao put on the "2009 CCTV China Economic figures" aura. But in fact, not only these two operations, Sina's major capital operations have always been by Cao Chao himself.

Chao has no secret that he is a master of capital operations. He took part in Sina's "Sina model", a Chinese internet company listed overseas, he presided over the SP company and the acquisition model of the network Hing, as a sample of other Internet companies, he designed Yahoo to buy shares in Sina, Sina acquisition of Yahoo, China's architecture, and later, this framework was used by MA in Alibaba, Although the merger with the CRIC has not been completed, there is also a lot of innovation, after the listing, many business people call him, "how can this be done?" This can also be listed? Market value so high after the listing? "They never thought they could do a deal like this. Chao was a little complacent.

In September 1999, Chao was going to jump from PwC to consider two American companies, and he called and asked for help from Sina's COO Mao Daolin. Sina was preparing for the IPO and was looking for a CFO. In the Mao introduced, Cao Chao met CEO Zhidong. A few days later, Chao promised to be vice president of finance in charge of Sina.

In his promotion, Sina in 2003 and 2004 respectively completed the Guangzhou Dragon and Shenzhen crillion two wireless value-added services company's important mergers and acquisitions, so that Sina into the forefront of wireless value-added areas, and from the loss of gradually to profit.

In the 2005, Cao Chao, a pioneer, was sent to take charge of the advertising business. After his arrival, Chao replaced the main person in charge and adjusted the internal organization. In the second quarter of 2005, Sina successfully opened the gap with its rivals. Cao Chao is also Sina blog most positive impetus. In particular, widely disseminated by the media is, in the face of a huge sudden massive equity acquisition, Chao and Yan fought three days and three nights to develop a "poison pill plan", repulsed Chen flyover.

These, all for Cao Chao won the honor and status. He is the most knowledgeable person in Sina. "Chen evaluation. Sina inside also early circulated "only the CEO can not control, there is no Cao Guan not to the place", Yongji to "heavy digital, calm, rational" such words to describe Chao.

Sina 7 years CFO's experience, 3 years CEO's experience, makes the adventurous he becomes very practical, also very self-confident, he once told the media, "no one is more thorough to the Sina business than me; no one can approach me for the whole operation of the line of business." ”

The trip of Mbo is regarded as the official beginning of Sina's "search for lost decade". From leading Sina to the Nasdaq listing to the acquisition of Guangzhou Dragon, and then to successfully prevent the grand raid Sina malicious takeover, until now the beginning of MBO, Chao in Sina 10, almost dominated and influenced the development of Sina's every process.

For Sina's successful MBO, Chao said, "Over the past 10 years, I have been CEO of the CFO, COO and president." In the real sense of the professional manager at this level, I have achieved the culmination, and for me is not particularly excited or challenging me. How do I position myself to play the role of the next 10-year period? According to the original way may not have much meaning. ”

"I believe that the deals and mergers I have made are worth a fortune in history," he said. He said confidently.

Planning for the next 10 years

After the completion of the capital operation, Sina's business direction is very interesting. And with the core management, will it give Sina a long-term and steadfast future? This is also Sina CEO Cao Chao now faces one of the most questions.

"Sina will not downplay the core business and core competencies of ' content-portal '," said Chao. In the new business we will have different ideas, including the acquisition, cooperation, investment in the way to intervene, especially those with us is not very relevant to the business, we may take the system outside the practice of hatching, with the advantage of others. We are working with a strong partner in the industry, and this cooperation brings with it new mechanisms, new structures, and new platforms that enable our business to be fully expanded. ”

In Chao's view, in addition to wireless services, China's internet has only three profitable business, advertising, online games and E-commerce.

Sina's subtext is still "content" as the core of continuous innovation. Chao uses the "scarf" (Weibo) to give everyone a clear answer. In the second half of last year, Sina quietly opened up a "scarf" business, but almost sparked a revolution in the Internet. The reason is not that Sina pioneered a new model Sina's user base and "scarf" This carrier blend, took place a wonderful chemical reaction, this chemical reaction gradually brought a kind of butterfly flap effect, and finally at the end of 2009, to China's internet brought a "scarf" tornado.

Chao said that for an internet company, can not separate individual products, the products are integrated together, only fighting. In terms of products, Sina short-term, medium-term focus areas include video, wireless, community three. such as video, Sina podcast (video sharing), Sina TV. More important, says Chao, is the combination of three areas, the discovery of new patterns, such as podcasts (video-sharing), the combination of video and community, and the just-launched microblog, a combination of wireless and community. Three areas of integration, there will be greater innovation space.

According to the future planning of Chao, in the profit mode, Sina more than advertising this piece, including games, E-commerce, Sina must find ways to enter. The game is called the gold mine that passes with Sina. Chao regained the business, because Sina has been different: after MBO, Sina can calm down, for long-term development to do some investment.

Chao believes that in E-commerce, Sina can do a lot of things, one is to help E-commerce enterprises to carry out internet marketing, the second is Sina netizens have a strong purchasing power, Sina can be used as a platform, so that the purchasing power of netizens in SINA implementation. For Sina, the environment still has the uncertainty, at present only belongs to the future plan.