Vol 4 Chapter 34: Linkage

Because he was also in Silicon Valley, Netflix’s Hastings got the news for the first time. After reading the first few lines of the news, he slammed the table, "I knew it!"

He always felt that after Feng Yiping got the strong support of the Bank of China, he immediately went on vacation. No matter how it looked, it was so.

Then he didn’t understand. He studied the merger announcement several times and spent more than four billion US dollars in cash to acquire a company that is not related to the business direction of his current company. For what reason?

He didn't agree with the reason Feng Yiping said. What is better service to users?

If you follow this logical reasoning, Feng Yiping can use this reason for buying any company. There are too many companies to buy, food, clothing, housing, and everything can be included, because these can better and more comprehensively serve users. .

He would not be so naive as to think that this was a casual decision made by Feng Yiping when he was on vacation in Seattle. How could such a deal be so hasty? I would not even think that Feng Yiping was headstrong because he had money in his hands.

In the past few months, although he has not been able to find out which new direction Feng Yiping has seen, he has studied Feng Yiping thoroughly.

That is by no means a person who will be dizzy and throw money at will.

Judging from his past decisions, he was a keen and accurate person who seemed to be able to predict the future, and his style was steady and old enough to look like a person older than himself and more experienced. He spent such a large price and energy to acquire this A listed company in, will never be as simple as it seems, let alone as simple as he said.

Feng Yiping must have a deeper purpose in doing this. What is the purpose?

Looking at the webpage, the young man who holds his hands in front of his abdomen, has no youthful ambitions at all, has a humble oriental smile on his face, and is slightly shy. What do you want to do? he asks.

It stands to reason that he should relax when he sees this news, but he always feels that it is not that simple, just like having a delusion of being acquired. He always feels that Feng Yiping is preparing for the acquisition of his company.

If it is really for this purpose, what is the motivation for Feng Yiping's move? How does the coin exchange company relate to its own business? What should he do next?

Although I feel that if I made this acquisition myself, the next most important task is to change the current state of stagnation and stagnation of Coin Star, but this is the idea of ​​ordinary people, and Feng Yiping is definitely not an ordinary person.

Hastings swears that he has never tried so hard to figure out a person's thoughts, even when he was pursuing his current wife, he had never done so.

What's uncomfortable is that although he is very sure that Feng Yiping's ultimate goal must be his own Netflix, the more he tries to figure it out, the more and more fog is between the present and the definite end point.

The smile on Feng Yiping's face, he now looks, is not humble, but a bit unpredictable.

…………

In Seattle, Amazon's Bezos also saw this news. He was a little surprised. He didn't expect that Feng Yiping, like himself, is also a man with a strong style and dare to engage in mergers and acquisitions.

I just said that it hasn't been a long time since the acquisition of his company. He has already acquired a company simply and neatly, and the amount is not small, more than four billion US dollars. What is the amount of his first acquisition?

At the same time, he also didn't understand Feng Yiping's purpose for doing this.

He had heard of Coin Star, a company also in Seattle, that it could be regarded as a company that partially solved a problem. The question is, for what purpose did Feng Yiping acquire such an unrelated company?

He also doesn't underestimate Feng Yiping, he believes Feng Yiping's doing this is somewhat profound.

Whether it’s from the book he wrote or from the perspective of his venture capital, that’s by no means a person who has gained a reputation. Google accepted his investment and appointed him as strategic director. Jobs also hired him as a special assistant. It illustrates this point well.

However, he is not as entangled as Hastings. If he doesn't understand, it doesn't matter at all. In short, even if Feng Yiping rejected his acquisition proposal, even Amazon's group buying business still cannot surpass nextdoor, even if imdb cannot. It completely suppresses the comment section of nextdoor, but its own Amazon, whether it is now or in the future, will be the object Feng Yiping and his company need to look up to.

"You said, for what purpose did he do this?" Turning off the webpage and throwing the briefing aside, he casually asked

The boss asked casually, but the people below would not say casually.

One of his subordinates shook his head, "I really don't understand it. Maybe it will be clearer when he establishes Blue Ocean 2."

Like the sensitive reporter, the name of the new company established by Feng Yiping was so special that this subordinate was aware of it.

"I look forward to a third party coming out soon," another subordinate said, implying that he hoped that this merger would not go too smoothly.

Bezos quickly went through it in his mind, "They already have provisions in the agreement. Even if there is no such provision, the possibility is relatively small. Nextdoor's quotation is not low, and the conditions are very good. There are more than four. Billion, all are cash, and there are not many companies that can be linked to the business of Coin Star."

"Well, continue to focus on our own work. On his side, just pay attention and see what kind of surprises he can bring us this time."

At this time Bezos didn't know, Feng Yiping would take the initiative to find him soon.

…………

If the merger and acquisition brought pressure to Hastings and some doubts to Bezos, it would bring more directness to Feng Yiping.

In the market, people who did not understand Feng Yiping's merger and acquisition appeared to be a large number of people. Soon after the announcement was made, the calls came in one by one.

"Since the news was released, the share prices of Yijia and Auto.com have both fallen by nearly 5%," Jin Ling said to Feng Yiping, covering his phone.

"I know," Feng Yiping had just put down the phone. Those representatives of venture capital and investment banks who did not quit all when they were in Yijia and Auto Online were expressing their dissatisfaction with Feng Yiping.

"Wait," the call came again, and it was not easy to answer, this is Moretz of Sequoia, "Hello Moretz,"

"Feng, we need an explanation. Why did you make such a decision that may affect everyone's common interests without discussing it with everyone in advance?" Moritz was very polite.

"Moritz, first of all, I have suffered the most,"

Damn it, that's just such a short period of time. The two companies added up, and their apparent net worth has shrunk by more than 200 million US dollars, which is more than half of the purchase amount. Feng Yiping is also in flames.

"Secondly, this merger and acquisition is not related to those two listed companies. I have no need to seek your opinions."

Just kidding, how can you ask for their opinions in advance for something that also requires a high degree of confidentiality?

"But Feng, you have to consider your identity, and your every move will now indirectly affect the stocks of those two listed companies,"

"Then you mean, I have to ask for your opinions on my every move?" Moritz is welcome, and Feng Yiping is not welcome.

It's no wonder that Page and Brin are so unwelcome to venture capital. It's not for no reason. It's enough to point their fingers at them if they catch a chance.

"Please Moretz, are you not clear about this kind of linkage reaction. After the smooth integration of Coin Star, will it drive the stock prices of those two companies to rise?"

"Which company do you invest and hold, the stocks only go up but not down?"

Feng Yiping is so tough, Moritz softened, "Haha, Feng, we have no other intentions. We just hope that you will be more considerate when making relevant decisions in the future."

"I will definitely consider, but I cannot guarantee the result,"

Many people hope that the world is peaceful, and many people hope that things happen all the time, such as those who play stocks.

Only when the market fluctuates can they have a chance to make a profit. Therefore, as long as related things happen, even if the relevance is not great, they will hype up. The market is so sensitive, how can Feng Yiping guarantee other things to do in the future? , Will not affect the stock price?

He just doesn't do anything, which will also affect the stock price because of his inaction.

"Feng, we mean that we hope your nextdoor can start financing as soon as possible. I believe that our joining will make you easier on similar things, and the effect will be better, such as your merger this time."

Let's just say how these guys are calling one after another. It turns out that they are all doing this wishful thinking. Seeing the rapid development of Nextdoor, they are so jealous that they can't sit still?

"Thank you Moretz, I will carefully consider your proposal,"

He is not the one who just arrived in the United States. Wall Street is definitely inseparable, but venture capital is really optional.

"It's still falling, 6%," Jin Ling walked over and said.

Such a thing has been predicted before, "It is estimated that it is not over yet. Inform the Securities Department that 10% is a red line. If it exceeds this line, we will start repurchasing ourselves."

There are two purposes for repurchasing stocks. One is naturally to boost the confidence of the market. Real money is used to repurchase their own stocks. This is one of the best ways to raise stock prices.

The other, of course, is that the stocks of Yijia and Auto.com will definitely return to the current price after a period of time. Buying now and then selling will lock in at least 10% return?

Why not do something that kills two birds with one stone?

Anyway, I have sufficient funds now, and I have to start the next project anyway, and I have to wait for the merger to be approved by the regulatory authorities before we can act.

…………

Their stocks fell, and Coin Star was the opposite. As soon as the news of the merger came out, the stock price rose immediately after hearing the news, and it has now risen by nearly 10%.

Moreover, this should also not end. Although it is impossible to achieve the same rate of increase as Feng Yiping's offer, the increase will reach more than 40%, but an increase of 20% should not be difficult.

When Merbach came over, he took the initiative to comfort Feng Yiping, "Feng, this is a normal reaction, don't take it to heart."

"Old Mo, why are you so happy?" Feng Yiping smiled.

"Hehe, there is no way. I haven't seen such a big increase for a long time." In order to take care of Feng Yiping's emotions, Merbach, who deliberately held back a smile, finally laughed.

"I'm here to tell you that we need to go back to Seattle right away. Just received a notice that a law firm has already represented some shareholders and brought us to the Delaware Chancery Court."

This matter was also expected by both parties, so in the legal advisory team of Coin Star, there is a law firm that specializes in similar litigation.

"Haha, this is also a normal reaction, don't take it to heart," Feng Yiping returned what Merbach had just said intact.

Just like every domestic demolition, there are people who oppose it, every merger in the United States will have such a lawsuit.

And the action will be very fast. Just like now, shortly after the merger transaction was announced, several shareholder lawsuits against this transaction have now been submitted to the Court of Justice. Like other mergers and acquisitions, the content of the lawsuits is roughly the same.

For example, this time, the shareholders who initiated the lawsuit all stated that the M&A transaction seriously underestimated the value of CoinStar, and the members of the Board of Directors of CoinStar violated their fiduciary duties and had self-deal.

The reason why they violated their fiduciary responsibility is because of nextdoor and Blue Ocean 1. This merger is not conducive to Coin Star, and the terms of the agreement improperly exclude third parties from submitting higher quotations. Accordingly, they require The court issued an injunction to stop the transaction and ordered the responsible party to compensate the related losses.

However, when Feng Yiping and the others started the transaction, they had already considered the issue of relevant shareholder lawsuits, and they had made preparations in advance. The two parties also put a lawsuit against shareholders in the merger agreement ~www.wuxiaspot.com~ which is the coin star general. Nextdoor is given the opportunity to participate in a shareholder lawsuit against Coinstar or its directors. The settlement between Coinstar and shareholders requires the consent of nextdoor (not without reason).

Therefore, this matter is actually not a matter. This is also known to the shareholders who initiated the lawsuit.

However, just like demolition, although you are making trouble, you may not be able to get more compensation, but if you don’t make trouble, you will definitely not get it. Therefore, no matter what the result is, someone will always come out and make trouble. Jujube, let's talk about it with one shot, what if it works? ⑧☆miào⑧☆bi(.*)gé⑧☆.＄.

This is not uncommon. Not all companies that initiate mergers and acquisitions are as honest as Feng Yiping and nextdoor, and some companies often deliberately choose to quote when the target company's stock price is down.

And this kind of lawsuit is very suitable for prosecution in the court of justice, because in the court of justice, there is no jury, and the judge decides the case conscientiously, and often makes a judgment in favor of the litigant, ordering the party who initiated the acquisition to pay more. , And related interest.

However, this kind of extra payment only applies to the shares held by the person who initiated the lawsuit, and not all compensation. Therefore, even if Feng Yiping acquired 100% of the premium this time, the same thing would happen.

"Then I won't keep you, I will arrange the crew to prepare immediately,"

"No, when it's so sensitive, let's forget it," Merbach politely declined Feng Yiping's kindness. "Don't worry, I will prepare for the next work at the same time,"

"Thank you, old Mo, for your hard work, and hope we can get good news soon,"

"Don't worry, it will!" Merbach said confidently.