Cheng Congwu and Lei Yijun were from the sa hotown. Both ca from humble beginnings in a small town, acing exams and clawing their way to the top.
After finishing graduate school, he joined a state-owned enterprise, then dove into the world of business in ’94. It took him over a decade of hard work to finally establish a foothold in the digital map industry.
In reality, Gaode had three founders. Before Cheng Congwu beca CEO, the one holding the reins was the forr CEO, Hou Jun. But on the eve of the company’s IPO, the three were locked in constant internal conflict.
In the end, to ensure the company could go public smoothly, Hou Jun voluntarily stepped down from the CEO position.
Cheng Congwu successfully took his place, hired a batch of professional executives from outside the company, and sidelined the other founder as well.
Relying on his extrely strong-arm tactics and networking skills, he finally secured his position as CEO of Gaode.
But during the transition from PC to mobile internet, Gaode’s developnt fell short of expectations. It was like a herdsman in the age of sail—he had skills, but no arena to apply them.
From 2011 to 2012, Gaode Map’s stock price hovered around 12 US Dollars for a long ti. After the new year, it dropped even further to 11.4 US Dollars per share.
To put it bluntly, Cheng Congwu was originally a financial investor, and his abilities in business developnt were nothing special.
At the very least, they were insufficient to et Gaode Map’s current developnt needs.
So, when Liu Zhiping approached him and told him that Chen Yansen of Senlian Capital was planning a strategic investnt or a full acquisition of Gaode, Cheng Congwu agreed without a mont’s hesitation.
As he was sizing up Chen Yansen, Chen Yansen was also secretly observing Cheng Congwu’s expression and subtle body language.
"Don’t just stand there. Sit down, let’s talk."
Zhang Chaoyang pulled Cheng Congwu and Chen Yansen to their seats.
His assistant, ever so astute, stepped out of the private room to signal the waiters that they could start serving the food.
As one of the original godfathers of the internet, it was no exaggeration to say he knew the CEOs of all the top 500 companies in Hua Country.
And it was true!
Although he and Cheng Congwu didn’t interact much publicly, they both moved in Yanjing’s business circles and had often gone out for drinks privately.
This was precisely why Liu Zhiping had insisted on bringing him along.
"President Cheng, please have a seat," Chen Yansen said with a smile.
Cheng Congwu gave a slight smile and sat down, not forgetting to greet Liu Zhiping as well.
Investnts and acquisitions might seem grand and complex, but in reality, the core process of the transaction was no different from buying groceries.
Chen Yansen wanted to buy low, and Cheng Congwu wanted to sell high.
As long as they could find a balance point that satisfied both parties, the deal was as good as done.
Gao Weilin and Song Yuncheng sat on Chen Yansen’s left and right, respectively. They maintained faint smiles the entire ti, remaining silent when their input wasn’t needed.
Before long, a series of exquisite cold appetizers were brought to the table.
Liu Zhiping, acting as the middleman, took off his jacket, picked up a bottle of liquor, and filled everyone’s glasses.
"President Cheng, I’m sure you’re aware of Senlian Capital’s purpose for this eting. Regarding the sale of Gaode, I’d like to hear your thoughts."
After a few rounds of drinks, Chen Yansen put down his glass and cut straight to the chase.
Currently, Gaode’s three major shareholders were Hou Jun, Cheng Congwu, and Xiao Jun. If Cheng Congwu got too greedy, Chen Yansen would simply bypass him and negotiate directly with Hou Jun and Xiao Jun.
After all, the three of them had a falling out long ago, and in terms of shareholding, Hou Jun was the largest shareholder.
’Here we go!’
Cheng Congwu felt a jolt. He knew they had finally gotten to the main event. Of course he was interested in selling; otherwise, he wouldn’t have co to the eting.
"I have no objections. As long as President Chen’s offer can move , Gaode can be taken private and delisted at any ti to beco a subsidiary of Senlian Capital."
Cheng Congwu shrugged, feigning indifference.
Before the mobile internet had entered its golden age of developnt, many entrepreneurs felt that the era of PC internet would eventually end, but no one could say for sure whether that decline and transition would take five, ten, or twenty years.
But from Cheng Congwu’s perspective, the B2B business (in-car navigation systems) was becoming increasingly cutthroat, while the B2C business showed no signs of improvent. Rather than waste ti, it was better to cash out sooner.
Back in 2012, electronic maps and navigation software were separate. The maps themselves were free, but the navigation feature required a fee.
Gaode charged 50 yuan, Qian Du charged 30, and Kailide even charged a whopping 108 yuan.
But what is the core of the internet business model?
Free!
Therefore, whether it was Qian Du Map or Gaode Map, their performance in the B2C sector was abysmal.
Most drivers would rather use a physical map than pay for an electronic navigation service.
"What price does President Cheng have in mind?"
Chen Yansen smiled faintly, kicking the question back to him.
After selling FoxTao to Ah Li and cashing out 12 billion yuan, he hadn’t spent much money aside from purchasing Jingdongfang shares and investing in Orange Mobile Phone’s Factory No. 3 and Kuai Pao.
Orange Technology had raised 1.35 billion US Dollars from DST Capital, and Pinbei had raised 300 million US Dollars from Penguin, so there was no need for Senlian Capital to invest any more money.
So for Chen Yansen, the funds in his account were more than enough to buy Gaode.
Cheng Congwu’s eyes narrowed slightly. He glanced at Liu Zhiping and Zhang Chaoyang, pondered for a mont, and then nad a price: "14 US Dollars."
This figure was a price he was happy with, and it was also sothing he could justify to the investors in the Lighthouse Country.
Although major shareholders have a greater say in the privatization process, the final outco isn’t decided by them alone.
If small shareholders and retail investors felt the privatization plan was unfair, unreasonable, or detrintal to their interests, they could still file a complaint with the regulatory commission.
User Comments
0 comments from readers