Revelation 58 The three problems of the city's acquisition and settlement

March 4 News, classified information Web site 58 with the city announced a few days ago to buy second-hand housing with cash plus shares, the transaction amount of 267 million U.S. dollars. After the transaction, the tenant integration into the 58 with the city, the original CEO Liang Weiping will start two times.


 


Why 58 with the city will buy a tenant? When did the two sides discuss the deal? Why would Liang Weiping start a business after the deal is over?


 


, a core person involved in the deal, said Tencent technology, 58 with the city and the tenants in the first six months before the contact, by December 2014, Liang Weiping and 58 with the city CEO Yiu Jingbo has discussed the general intention, the acquisition plan began to enter the implementation phase.


 


this time, Liang Weiping found many years friends, Huaxing Capital CEO Baofan, invited Huaxing Capital to do 58 with the city to acquire the financial advisers. Huaxing Capital after the intervention, and 58 with the city, the tenants and communication for 2 months, the transaction was formally completed.


 


before the tenants have been wanted to IPO, but March 2014 tenants unilaterally announced the port price hike, leading to the real estate intermediary, the business was affected, the IPO plan frustrated, by June, Liang Weiping has sprouted the idea of selling the company.


 


only 58 with the city agreed to Liang Weiping out of business


 


Liang Weiping Consideration is that the real estate industry as a whole downward situation, the real estate intermediary industry chaos, simple information communication platform meaningless, Sprint IPO has been hopeless, want to transition is too difficult, the best way is to leave the tenants and then start again.


 


for a long time, puzzled Liang Weiping is, do real estate trading platform and Information service platform business model is not the same, team style is very different, in the existing conditions on the basis of the transformation of the challenges are too big, not as good as a stove, light.


 


Liang Weiping This choice and the search House chairman Tianquan completely different approach, the equivalent of a left, a right. Search room in the conflict with the intermediary, into the real estate electric business transaction link difficult transformation, but faced with the embarrassment of the hands of each other.


 


This can be seen from the search house earnings data to see the obvious changes. House search from the electricity quotient of the rapid revenue growth, the fourth quarter of E-commerce services revenue reached 98.7 million U.S. dollars, compared with a year earlier 67.1 million U.S. dollars 47.2%, search house into the largest source of income.


 


but in the house and real estate intermediary "honeymoon" after the rupture, the search house classified information service revenue was hit Waterloo, the quarter of the quarterly revenue of 25.2 million U.S. dollars, down 49.7% year-on-year.


 


familiar with the details of the transaction of the reporter revealed that in the home to "prostitution" of the Wind, Liang Weiping and the mainstream of real estate or interested enterprises have repeatedly negotiated, 58 with the city is just one of them.


 


and when Liang Weiping mentioned to withdraw from the home, most enterprises retreat, fear of the loss of the soul of the people and instability. Only 58 with the city agreed to let Liang Weiping go out to start a business, the outside world, and only 58 with the city can pick up the plate of the tenants.


 


an investor to Tencent Technology said, when the house turned to real estate electric business transactions, tenants and "prostitution", which makes the original real estate information communication platform market appears very large vacancy, and real estate is 58 of the city's main vertical area.


 


The above people pointed out that the second-hand housing market is the strongest place, 58 with the city has been a unified large entrance, the lack of independent production flow entrance. With the help of the tenants, can be faster into the market, access to important vertical flow.


 


's acquisition of a home is a 58 chance of a city. According to the arrangements between the two parties, after the completion of the merger and acquisition, 58 together with the city will set up a real estate business group, the integration of 58 with the city and the real estate businesses, mainly concentrated in new homes, second-hand housing, rental areas.


 


Yiu Jingbo accepted Tencent Technology interview also said that after the integration of 58 of tenants still adhere to do information and service platform, resolutely do not make transactions, it also continues to the offline intermediary agencies to release goodwill signals. This is the traditional market for house search and housing.


 


new project based on O2O said VC line to enter


 


With 58 of the city and the settlement of the merger, the newly established 58 residential room production group, will be 58 entrepreneurial veteran Zhangjiandong as the head of the total, Liang Weiping is back behind the scenes, resigned from all the positions of the tenants only as a consultant role, focus on entrepreneurship.


 


Liang Weiping New venture is still in the property sector, belonging to the O2O project. According to people familiar with the situation, second-hand housing intermediary market once the transaction, the most opaque, involving a large amount of funds, Liang Weiping want to cut into line, the industry has profound changes.


 


said that the current Liang Weiping has been promoting the progress of new projects, but also in the development of new products, it is expected to take some time to travel. Liang Weiping recently said to Tencent technology, "I hope this project can make the real estate industry downstream become better."


 


the new venture, Liang Weiping appears confident. Talking about whether new projects need financing, Liang Weiping said, the current capital market enthusiasm is many, there are VC queue waiting to enter, there is no need for third-party assistance to finance.


 


with the exit from the lodgers, Liang Weiping also not lack of funds. 58 The 267 million-dollar deal with the city was cash plus stock, with most of the Liang Weiping individuals holding 58 of the stock, as long as they could have a large amount of cash to dominate.


 


this time the transaction, the tenant's shareholder Baidu, Jingwei creates the investment also to exit once. At the outset, the tenants said that the announcement was a total of 22 million U.S. dollars investment in Jingwei, Baidu received 50 million U.S. dollars.


 


an investor pointed out that Liang Weiping want to start a business this is the core, but in turn, the tenants are clearly on the market is hopeless, now "prostitution" for these investors is also an explanation.


 


of course, the challenge of the Yiu Jingbo test. A person in the industry pointed out that Yiu Jingbo to the acquisition of the risk assessment of the tenants must be clear, such as he can take what kind of risk, can control what kind of risk. Yiu Jingbo should feel that they can "fix" the tenants.


 


"More important is, 58 when the city buys a tenant, the tenant business is in the ascendant stage, the account still has tens of millions of US dollars, 58 is willing to make the transaction with the city." "It should be said that the worst is over and there will be no big problems," said the person.