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Chapter 1277: Chapter 1133: Yahoo Beaten into Confusion (Please Subscribe!)
Ma Yun left.
That afternoon, he took a plane back to the headquarters.
The first thing he did
was to convene a Board of Directors meeting.
He officially proposed the plan discussed with Tang Qing, mainly involving two points, one being the stock swap and the other, inviting Tang Qing to join the Board of Directors. Of course, some matters would not be openly discussed.
"This time, introducing Tang Qing’s capital is firstly due to Xiao Xiao’s software. Although its user base is currently far smaller than Ali’s, its professionalism and disruptiveness are also undeniable."
"Secondly, Ali is going public at the end of the year, and with the launch of ’Epoch,’ I think everyone can see the acumen of tycoon Tang Qing. Having him on board would give the investors more confidence..."
The first point.
was to persuade those within the company.
The second point.
was aimed at persuading the directors.
The directors were most concerned about the return on capital. With the upcoming IPO, they had high hopes, and in Ma Yun’s view, such positive news aligns with the interests of all the shareholders.
"Is a one-to-two ratio not too significant a loss for us?" asked a representative of the independent shareholders. After all, Ali is a major power, whereas Xiao Xiao is merely a software under the Tianyan Group.
There was no comparison.
This question.
was the crux of the issue.
It was also the main issue Ma Yun was pushing.
Tang Qing had described to him the future of Xiao Xiao, which wouldn’t be inferior to Ali. Having seen the business Xiao Xiao was preparing to launch and Tang Qing’s strategy, Ma Yun could not help but respect it.
"You’re right, but things constantly evolve. If it were before, I would have had doubts too. Why should Ali, with such a large enterprise, agree to a one-to-two ratio?"
"However, when questioning why, have we considered if they would be willing? What their future could be like? After one month, would it still be as you see it now?"
Ma Yun posed several questions in succession.
Without waiting for someone to answer.
Ma Yun continued.
"Before the meeting, I had a long conversation with Boss Tang. His vision for the future positioning of Xiao Xiao is disruptive for Ali and a crucial supplement."
"What exactly this entails, I can’t disclose yet. As the chairman of Ali’s Board of Directors, I can responsibly say that this stock swap is an opportunity for Ali."
"It’s not that they are pleading with us, but rather, it has already penetrated our core business. Our own territory is being eroded. We need cooperation with a formidable opponent."
"..."
Ma Yun felt quite helpless.
Some things.
couldn’t be said.
Tang Qing had shared with him the future, strategy, and positioning of Xiao Xiao. If he dared to disclose it or use it as a competitive strategy, he would face a powerful opponent that Ali might not be able to withstand.
Because.
You can never predict what Tang Qing would do next to disrupt you. ’Epoch’ launched the mobile internet, turning even Apple on its head, while Tang Qing seized the high ground.
Even Ma Yun, having learned about the Tianyan Group, found it terrifying.
What is Tianyan Group’s business?
Enterprise services.
Currently.
Its operations are expanding in major countries worldwide, serving global enterprises, and for these enterprises, its Xiao Xiao also provides tailor-made enterprise management systems. Compared to this, Ali’s platform operates on a broader, less focused scale.
Tianyan’s strategy is meticulous.
The former.
Grows quickly in volume, but lacks cohesion.
And the latter.
By establishing cooperation with various enterprises in finance, legal, and strategic aspects, it has built more harmonious and deeper relationships. As long as Tianyan proceeds methodically, Ali’s international business really can’t compete.
Ma Yun once envisioned big data, cloud computing, finance, logistics, among others, all of which haven’t been implemented yet. In the future, Ali might be strong, but Xiao Xiao and Tianyan could be stronger.
This was also why he was so eager to discuss the acquisition of Xiao Xiao in the Shanghai Stock Market.
It had already posed a substantial threat to Ali.
Joining benefits both, but separating.
He felt that Ali might not necessarily succeed, but Tang Qing would definitely thrive. The diversification of his industries was something Ali could only dream of and would never attain even if they envied it to death.
The meeting soon ended.
An emergency board meeting.
Most attendees were representatives.
As for what to do next, they would need to report back to their respective superiors. It wasn’t possible to make a decision in the first meeting. Whether it could succeed still required Ma Yun to work behind the scenes.
...
After the meeting.
He waited for half an hour.
Ma Yun then called the president of Yahoo.
"Mr. Semel, did you receive the minutes of the Ali Board of Directors meeting?" Ma Yun asked.
"I’ve read them, but to be honest, I think both plans are feasible. I’ve always admired your insight and I admire Tang Qing’s insight as well, but this matter depends on the Board of Directors."
Selling Ali’s stocks. 𝒏𝒐𝒗𝒑𝒖𝙗.𝒄𝒐𝒎
It wasn’t up to him to decide.
"Thank you for your long-term support. In this matter, we at Ali are serious," Ma Yun said, because Semel was about to end his six-year tenure.
Leaving Yahoo.
The next president had already been decided.
One of Yahoo’s founders.
---Yang Zhiyuan.
During the six years since Semel took over, Yahoo’s market value had been continually falling, now only a third of its peak value, and then this year, when it rains, it pours, with a few moves by ERV, Yahoo’s market value was halved again.
Therefore.
The Board of Directors was utterly disappointed with Semel.
Regarding Yahoo’s plight.
Ma Yun was helpless.
In 1997.
Yahoo had the chance to acquire Google for peanuts, but they missed it and later regretted it deeply, last year, they bid a billion dollars to acquire Facebook, but breached the agreement, bargaining down to eight hundred and fifty million dollars, and they refused to sell.
Now.
Facebook was also rising.
That’s why.
Yahoo had almost no unique business to boast of, caught red-handed by ERV, swiftly brought to its knees, and today’s market value would have been even more pitiful if Yahoo hadn’t emptied its cash reserves to pay off debts.
"I’ll suggest it to the Board of Directors," sighed Semel. This month, Yang Zhiyuan would replace him and he could only depart in disappointment.
"Thank you."
...
Ending the call.
Ma Yun then called Yang Zhiyuan, who had been a longtime friend.
"Director Ma, I’m aware of this matter. Regarding Ali’s stocks, I personally am interested in selling a part," Yang Zhiyuan had always worked at Yahoo, now taking on a critical role to try and save face.
He understood Ma Yun’s intention.
Actually.
Yahoo had no other options left.
If it had been before.
Yahoo could still rely on its size to maintain its livelihood, optimistic about Ali, not really interested in selling shares, but now it was different, beaten senseless by ERV, depleting its financial reserves.
The industry’s view on Yahoo’s future was nearly unanimous.
---Barely alive.
Such was the fate when your core business is lackluster, almost instantly toppled by others, now, to keep Yahoo alive, Ali’s shares were no longer significant, though they couldn’t sell all, they had to retain some.
...
Shanghai Stock Market.
Tang Qing was looking at Yahoo’s cliff-like stock price.
To avoid the Board of Directors taking too long, making him wait too much, he felt a bit of an urge to turn up the heat.
After a bit of thought.
"Tang Yi, add some fuel to the short sellers for Yahoo."
"Yes, Commander."
Thus.
In just half an hour.
News broke that Yahoo’s funding chain had snapped, the article pointed out that in buying back its own stocks to stabilize the stock price, Yahoo had exhausted its liquid assets, even the funds pledged on stock rights were nearly depleted.
At this moment.
The U.S. Stock Market had just opened.
Suddenly.
The market became lively, Yahoo’s stocks fell by three percent at the opening, and it seemed to be an unstoppable trend, Yahoo’s market rescue funds also panicked, unsure whether to intervene or not.
Yahoo urgently convened a Board of Directors meeting.
The first order of business was to ’dispel rumors’, the second was interbank borrowing, and the third matter... the proposal to sell Ali’s shares was brought up and unanimously passed by the Board of Directors members.
There was only disagreement over how much of a premium to charge.
