Feature Chao: Entrepreneur who looks like a professional manager

Titanium Media Note: 2009, Chao entered the 10 anniversary of Sina. Mr Chao, the famous "CFO", has repeatedly stood on the cusp of Sina, a veteran internet company. Sina Mbo Identity Change, how did it affect his mentality? In the 2014 Sina Weibo IPO day, from "Together" 17.8 U.S. dollars, to the final 17 dollars, how he and Goldman Sachs to negotiate the issue price of Sina Weibo? What kind of man and friend is he in the memory of a distinguished and successful Fudan University classmate (including Qiu, Changtian, etc.)? This article by the "blog World" authorized network starting in Titanium Media, edited by Titanium Media:

Along with the accumulation of these successful capital operations, Chao also stepped out of a steady upward curve from the CFO to COO to the CEO to the Chairman. His personal characteristics of thinking about things also reinforce that feeling. The tone and speed of his speech would hardly change, and his delight and fear would not be noticed when he was rarely agitated, which meant he was not a whim, but a thoughtful, calm balancing expert.

But he is not mediocre, tough and diligent, one of the evidence is also sports.

Just entered the university, the need for physical quality of university sports, Cao Chao took a breath to do more than 40 primers upward, the hands of the skin are worn, can be seen in the need to insist on the stock way. These features are pieced together into a brilliant golden mean practitioner and a master of dealing with complex relationships. Sometimes you feel like he's too boring to be normal. In the geek-lined internet world, it has been a long time since people have been attracted to a normal winner. But looking back on Chao's past, we can understand the value of this charm. He does not highlight personal temperament, not experienced a great ups and downs, not like to talk about the wind and cloud. He has always made the right choice, completed his studies and his job, and made individuals and Sina move forward together. This is the unique feature of Chao. He is an "extraordinary" person, and this success is more mundane, easier to approach, but also behind the legend to support the foundation of business Development.

In 2009, when Chao entered the 10 anniversary of Sina, he and Sina Management managed to achieve the management stake, although not as a major shareholder, but this change of identity apparently affected his mentality. In an email to all employees, Chao wrote: "From today on, we will transform our roles and confront our future with an entrepreneurial mindset." ”

Later he summed up the "blog World": In making a major decision, the founder and professional managers will have a subtle psychological difference, the founder will always be bolder and more emboldened.

Charles Chao, who is familiar with the system of American professional managers, said to the world of blogs the Chinese business community is currently thinking of the company like the United States in the 1920 's, and in the future more mature business society, "a company without the founder itself is not a big problem, because the founder will be at a certain stage away." ”

But he admits that Sina shares are fragmented and has been hoping not to be tied to the reality. When the management has not yet completed the ownership of ownership, failed to acquire the mentality of the master, Chao decided to decide the online micro-blog. At the time, he had to be determined enough to experiment with an uncertain prospect of innovation.

Bring Weibo to Nasdaq

The Eastern Time April 17 9:30 A.M., Cao Chao appeared on the Nasdaq exchange on time, he is medium, stature medium, the facial features are round, appearance has no obvious characteristic. He is not as noticeable as the guests who come to the ceremony, such as Chen Yao, a 68.57 million-fan, and Wang Leehom, who has sparked a microblogging issue. In China's most influential social media platform-micro-blog, Chao has 1.47 million fans, which is a very unusual number, not too much, not too little, it is hard to believe that the impact of the whole China Weibo is his creation.

After a subversive impact on the Chinese public opinion field, Cao Chao finally started the IPO with Weibo and the environment was fraught with crisis.

At home, Chao began to "notice the micro-letter" and felt some pressure. He had hoped that Weibo would have more social networking attributes, "but when it's hard to develop social networking attributes, we're more focused on developing social media attributes." "said Chao.

U.S. capital markets are also not optimistic about China's technology stocks, the first quarter of 2014, the U.S. listing of the Chinese stock market is bleak: April 3 The listed on the next day to fall below the IPO price, the April 9-listed AI-Kang ambassador on the shoulder to four days later also fell below the IPO price. In early March, the Nasdaq Composite index fell more than 5%, and Twitter, a similar company in the United States, fell 17%.

In a microblog prospectus released on April 5, the price per share was $17 to $19 trillion, which, according to the pricing range, was valued at nearly $3.9 billion trillion, a 20% drop from the previously expected median of $5 billion trillion.

The Tiger Fund team, which has a good personal relationship with Mr. Chao, warmly received the Chao and Weibo listing team before the microblogging market. Tiger funds have made a profit from Sina's stock.

Some Sina investors believe that Weibo independent listing will affect Sina's performance and then affect their earnings, Chao, before heading to Nasdaq, also told Weibo CEO Wang Gaofei, the previous investors to buy Sina shares will be their biggest resistance, those who bought Sina stock investors are likely not to buy micro-blog shares. The result, as Chao predicted, was that two days before the IPO, when Goldman Sachs, the microblog's underwriter, called Tiger funds to ask if they had any intention to buy Weibo shares, the Tiger fund changed its hospitality and responded with a cold tone: "What's the joke?" What market are you asking me to buy stocks? Wang Gaofei said that, like many fund investors at the time, the fund manager of the Tiger fund believed that Weibo would break on the first day of the IPO, waiting to be bought at a low price and making a big profit when prices rebounded.

This is the capital market, people on the one hand polite, get along well, but on the other hand to maintain a proper distance, so that the business can be accurate calculation, not because of friendship.

Outside the market, the policy factor has brought more serious challenge to the microblog listing. During the American Roadshow, Wang Gaofei, CEO of the United States, said that when the U.S. Eastern time on the market was 7:30, Beijing might report a negative news about Sina, and the clock was 9:30 two hours later. Wang Gaofei was frantic, calling everywhere hoping to solve the problem.

At this time, in the face of adverse market conditions and the unexpected crisis, Chao is still able to calm down in a nearby bar drinking. Wang Gaofei described him as "Tarzan collapses before the color changes."

"Calm", "calm" is the student era since the people around him commonly used evaluation. His high school classmate Xu Zhiho evaluation Cao Chao in the tense period also has been relatively relaxed, rarely see him seriously study. And he in the Fudan 84 Journalism Department counselor Zhang Lixian also evaluation said, Cao Chao this person is very calm, these years, did not feel he has a high complacent state, also did not feel he showed anxiety. Zhang Lixian is now the editor of the FT's Chinese network.

In the eyes of unfamiliar people, Cao Chao's "calm" more of the expression of anger is not in the form of color elusive. He is an easy-going gentleman, polite and not offensive, but at the same time difficult to be persuaded.

In negotiations with Goldman Sachs, the main underwriter, on the eve of the April 16 listing, Charles Chao demonstrated the persistence and even stubbornness of the soft band.

In the final negotiations, Chao has carried out nearly 10 days of road performance, see seven or eight investors every day, talk 1 hours, 7 o'clock in the morning up, always see the Night 9, 10 to return to the hotel. He has been in the market many times and is familiar with the capital markets, but still meticulous and serious. He told Wang Gaofei to be sure to look at each other when answering investors ' questions, not to look elsewhere, or to look at the information at hand.

April 16 Two o'clock in the afternoon, Chao returned to the Four Seasons Hotel in New York. The 208-metre-high Four Seasons Hotel is the tallest hotel building in New York City, with a panoramic view of Manhattan Central Park through the top windows. On Sina side, Cao Chao, Wang Gaofei, Yu Zhengjun and Zhang Yi to participate in the negotiations, Cao Chao is the main speaker, the Goldman side is in charge of the Nasdaq listed three representatives.

In the beginning, he wanted to set the issue price at 17.8 dollars, to take the homophonic of Chinese "hair together" and to seek a luck. Wang Gaofei is not superstitious about why Chao is so priced, but Chao said to Wang Gaofei: "Chinese investors will love this." "Giving in to a few unimportant questions is a common skill for him to turn around."

But Goldman opposed the pricing, preferring to forgo higher commissions and insist that the IPO price should not be higher than $17 trillion. Karen, a member of the Goldman Sachs IPO team, told the blogosphere, "considering the whole market is not good, our idea is not to set too high at the outset, our team also heard that some companies to go public, not to lower the price, or reduce the number of shares." "Goldman Sachs has priced 16 dollars. But Chao refused to concede. His negotiating strategy is simple: talk about your own truth.

The last negotiations before the IPO from 2 o'clock in the afternoon to 6 o'clock in the afternoon, Weibo CEO Wang Gaofei told the blog world: "If it is me, I will give in." "In the afternoon, Chao showed a moderate and firm attitude, and the Goldman negotiators walked 3 times to the corner and headquarters to discuss pricing strategies." Goldman raised the price to $16.5 and later suggested that if it were to be priced at $17, it would require a proper reduction in the number of shares. And Chao insisted on 17 dollars and 16.8 million shares. He promised again and again: "You don't worry, but Weibo has much more clout in China than Twitter has in the US." ”

Chao explains the subtle psychology of Chinese investors:

"In fact, microblogs in China affect these people need to have a suitable price, 17 to 19 has been set relatively low, most people in the country do not think the U.S. market is poor, if the price of less than 17 dollars, they instead of buying, but feel that your things will not rise. ”

"The whole IPO process is also quicker than we expected because the company did do a couple of listings before, and Cao sum was familiar with all these, and we were originally scheduled to do it in May, but the IPO was completed in April, nearly one months early." General IPO is to do six month, Micro Bo this time 4 months finished. Karen, a member of the Goldman Sachs IPO team, told the blogosphere.

When the negotiations were finally over, it was already 6 o'clock in the afternoon. Goldman eventually Ao Chao's insistence that the Weibo IPO price was set at $17 trillion.

9:30 Bell Bells After the ceremony, the code for the WB Weibo official landing on the Nasdaq, the opening price is 16.27 U.S. dollars, below the issue price, Micro Bo open the wrong direction? But not long ago, Weibo began to rise against the city, once hit a 24.48-dollar high, the final day of 20.24 U.S. dollars, compared to the price of 17 U.S. dollars rose 19.06%. The fact that Charles Chao's precise judgment of the trend was once again verified.

Speaking to Chao, a lawyer who asked to be anonymous on Weibo's listing business said the CEOs of most Internet or technology companies in China are familiar with the company's business, but are unfamiliar with the capital markets, overseas markets and laws, "I do a listing, a lot of direct contact with the company CFO, strategic issues meet the CEO." But he found that Chao was equally proficient in finance and legal business.

"Chao is a professional and less emotional fellow than any other CEO," he said. He says, "Chao's style is more like the CEO of a big corporate board elected by the United States, the founder of the company, and the feeling of the elite of the big American companies." ”

In the wake of the twists, Mr. Chao sent a brief message on Weibo on a daily basis: "Weibo is on the market." Thanks to all the employees, users and partners. Let us with the power of micro-blogging, make the world more beautiful! ”

The microblog, published at an important moment, appears to be lacking in literary talent, well-organized, and uninteresting. Even at such times, Chao was firmly committed to his personal style. In the logic of his micro-blogging reinforcement, people are more interested in chasing people who can speak beautiful words and have profound truths and personalities. But Chao reveals the kind of temperament that Weibo does not recommend.

Engine and brake Pads

Weibo listed nearly one months later, Chao accepted the "blog World" interview. His eyes were full of blood: He took an early flight from his home in Shanghai to Beijing for the "government" meeting when he got up 6 o'clock. Unlike their legendary peers who never leave their offices, Chao will try to get back to Shanghai and spend the weekend with his family when circumstances permit.

He quit smoking a long time ago and smoked for 30 years since 1984, a little corroboration of his perseverance. The interview site in the Chinese entrepreneur club, surrounded by photos of entrepreneurs, and wearing Tibetan clothing jack Ma, dressed as the Tang Seng Yu and holding a billiard rod antics of Liu, Chao only appeared in the formal photo, suits, difficult to identify.

His resume is also normal and stable in comparison. And those who have struggled with inspirational stories of the same peers, in addition to the university era leading roommates operating small business, Chao did not have entrepreneurial experience, all the way from professional elite to do professional managers. He is difficult to be a language, low-key and not love self-expression, more like a senior white-collar, the professional image has become his unconscious habit.

His university counselor, Zhang Lixian, also assessed that Chao was not a person with a special long-term plan for the future. "He won't plan what he's going to do in 5 years, but he's been thinking a question about how I can handle what I'm seeing." In the changeable scene, he has the ability to survive the fittest. "Zhang Lixian said.

Chao admits to "the world of blogs" that he does not like to do too much planning for his personal affairs, including career development, but he has been making long-term plans and strategies for companies and products. "For users, a good Internet product is very simple, need to meet a clear and clear demand, such products will have a strong communication." "said Chao.

Behind this indefinable "feeling," he was a shrewd businessman in Shanghai and a keen sense of business that he developed in the 80 's Fudan and later in his career.

Hou, who was in charge of Sina's blog products and became the CEO of Shanda Literature, said that Chao, as a financially-born man, could have such a good grasp of business logic that he was surprised. He thinks that the person who usually does the CFO will be overly sensible and overly concerned about the gains and losses, but running the whole business needs to think about the long-term and sometimes take a little risk. Chao's turn, in Hou appears to be "brake pads" to the "Engine" leap: "Where is the car by brake pads?" In my opinion, Cao Chao played the role of brake pads when he was the CFO of Sina, and played the role of the engine when he was CEO. ”

Cao said that his personal life's major choices are determined by feeling. After graduating from college, he went to the United States for a year to study and began to read journalism, but transferred to finance for employment. After graduating, the other 5 Chinese students in the class went to Wall Street to do the tax, and only he flew to the west of Silicon Valley, just ushered in the Silicon Valley Take-off period. When considering Job-hopping in 1999, he chose to join Sina. This is considered to be a big decision for him, he told the blogosphere: "There are very few CFOs in the United States, and people like us still have a certain scarcity today." So when I joined Sina, I had no specific thought about what to do. ”

When Chao's Fudan dormitory classmate, the current Southern newspaper Media Group deputy editor-in-chief, the South is the President of the Department of Cao Shu that, enter Sina is the most important decision in life, "if not into Sina, perhaps he is now just one of thousands of outstanding accountants."

This person seems to have never "can replace" ambition, Sina, the company is also so, there is no attack, sometimes evaluated as "lack of innovation", "stable more than, enterprising." But also in the cumulative step-by-step, Cao Chao and Sina have grown into China's internet industry can not be ignored power.

Cao Chao once said that in the future to write memoirs, will certainly be from a night party to write. He said the party occurred on the evening of September 28, 2009, Sina Company's top executives gathered in Beijing kin a mansion, waiting for the party's protagonist Chao a surprise. This day, Chao has just announced the Sina management buyout, but also ushered in his 10 anniversary of Sina.

On the 10 anniversary party of the Grand Chao, he was given a set of 10 anniversary commemorative stamps designed in his own image. Usually do not drink the Chao rarely drink a lot of wine, liquor may have 782, to enjoy the place also with "deaf" voice sang a few songs.

The management stake of September 28 has made a new change in Cao's identity. From a pure manager who was promoted by the CFO to CEO, he became the controller of Sina, from a migrant worker to a real boss in charge of the company, from a housekeeper to a club.

The 2009 management shareholding is just a landmark ceremony in the way of Sina's power, and from 2004, as COO (Chief Operating Officer), Cao Chao began to gradually become Sina's internal "low-key powers."

In 2005, Chao was president and CFO, and under his leadership, Sina launched its first influential social product: blogs. In 2006, Chao officially took over Yan as Sina CEO. Chao said he struggled for six months before deciding to be CEO. Because to be the CEO of Sina is really a chore, as a media gene at the same time the diversification of the company's CEO, Chao must balance the users (netizens), customers (advertisers), employees, the board of directors and the government's multiple interests, each side of the appeal are different.

Chao finally decided to act as Sina CEO, continue to do on Sina. As soon as he took office, he set up an "interactive community division" to lay out social products. Weibo's predecessor, "Friends," is one of the social products developed by this interactive Community division.

Management shares gave Chao more space to display, he no longer like to practice gymnastics as a teenager, in the short-term interests and long-term investment contradictions between the grasp of difficult and delicate balance, but can be more calmly let go of the layout of the future development strategy. His focus is obviously "micro bo", this is the creation of Cao Chao's products, is the Hou known as not aggressive, elegant and easy "noble" Sina's most exciting products. "Sina was also a media first, and Cao Chao's journalism and media experience strengthened its media profile." The choice of Weibo is also a result of his understanding of the media. It can be said that without Chao, Sina may not have Weibo. "Chao's university classmate, Ray Media President Changtian said.

Chao himself likes another kind of understatement, claiming to be the CEO of an internet company with a media complex.

After graduating from the radio and television class in Fudan University, Chao has served as a journalist in Shanghai TV station for a year. In a later video interview, Cao Chao once casually pointed out that the other side of the flight settings have problems. But what Chao is now doing is transforming the technology and products of Sina, which has a media gene.

From the beginning of the establishment of Weibo, Chao wanted to make a new business with entrepreneurial mechanism in a more mature company system. He believes that the key to the success of Weibo is that from the beginning of its inception, Sina is using an independent team, independent thinking, independent incentive system and entrepreneurial system to do this product.