Chapter 362 I rule as a dictator
Xie Jingxing received a call from Zhang Lei in the morning and walked into the new headquarters in the afternoon, accompanied by Su He.

There are also Liu Chih-ping and Shen Nanpeng, who came from Shenzhen and Beijing respectively. How to merge is worth careful consideration.

"Leaving aside the financial and legal details at the project execution level, we have initially proposed two solutions."

There were only five people in the chairman's office. Su He opened the discussion first: "The first is to fully integrate platform data, integrate business and adjust the strategic focus of each brand; the second is that New DAE will exercise financial control over Meituan as the parent company, and both parties will maintain independent operation and development."

"Comprehensive business integration requires a period of pain and is difficult to implement, but its advantage lies in clear long-term strategic development." Xie Jingxing added on the advantages and disadvantages.

Shen Nanpeng exchanged glances with Liu Chih-Ping without making any comment, and then asked, "What do you think, Mr. Zhang?"

"The overall tone of comprehensive business integration should be that Ele.me is responsible for food delivery, Meituan is responsible for group buying, and Dianping is responsible for content review and offline store business."

During this period, Zhang Tao communicated with Su He frequently and was ruthless in his efforts to dismantle Meituan.

All the same-city logistics and home delivery services centered around the food delivery business were given to Ele.me, while Dianping took over the most profitable hotel and tourism store business, leaving the ToB merchant services and group buying business to Meituan.

The overall look is neat and tidy, with the three platform brand businesses each having their own distinct strategic focus.

"In the Internet industry, mergers and acquisitions only require three things: brand, platform, and team. It's simple, but none of them can be missing."

Shen Nanpeng spoke softly and calmly, not at all like Zeng had an angry look or was on the verge of a fight.

Liu Chih-ping was no less objective in his analysis: "This kind of brand merger is guaranteed to cause great harm to the team and the platform, and it is easy to get overindigested."

"Yes, the pressure mainly comes from outside, and we don't have enough space to rest and recuperate."

Xie Jingxing returned the favor by only raising questions regardless of feasibility. The right time and place for the merger came from the prophet's plug-in, while harmony among people required real ability to solve the problem. There was no shortcut.

After all, he was just reborn, not Yuri who can control minds.

The word "indigestion" used by Liu Chih-ping is extremely euphemistic. The reality is that if one is not careful in a merger and acquisition, it will lead to failure, just like two high-speed trains colliding.

Taking Microfilm Times, which has just completed financing and expansion, as an example, Xinda E has brought in many investors including Wanda and CCB Culture, but the equity is dispersed and cannot reach a controlling stake.

On the other hand, the controlling stake of Meituan Maoyan is even in the hands of Light Media. After the merger of the two parent companies, how will these businesses be integrated?

Should Weying and Maoyan be forced to play the role of Kong Rong giving up his pear to his wife, or should the two companies also merge? In that case, Wanda's Qu Dejun would probably have to pick up a gun and shoot Xie Jingxing.

I took the risk and went to great lengths to invest heavily in the New Big Elephant camp just to fight against Meituan, Guangguang, Nuomi and China Film, and now you say you want to merge. Are you going to die?

There are countless other similar businesses, and this is just the trouble for internal small and medium-sized investors, strategic investors, and business teams.

And the outside...

"Once Ctrip and Qunar complete their merger, the online travel landscape will be clear, and New DAEON + Meituan will be the only competitors."

Shen Nanpeng has very good information channels, but he can't say it clearly, and can only emphasize seemingly correct nonsense.

This morning, the founder of Qunar.com, Zhuang Chenchao, started cursing in his circle of friends. His curse was directed to Baidu and other shareholders, and they have completely broken up.

Put yourself in their shoes. Even though Xindana and Meituan are in such a mess, the relevant stakeholders are still doing their best to broker negotiations.

On the one hand, Zhuang Chenchao's swearing shows that he is irrational, but on the other hand, it further highlights that Robin Li has completely lost his patience and is pushing for mergers and acquisitions at all costs to end the money-burning in the online travel industry.

Baidu will control Qunar and make a strategic investment in Ctrip, while Ctrip will have a relative controlling stake in eLong and hold shares in Tongcheng and Tuniu.

The entire online tourism industry has been unified, with a market share of nearly 70%, ignoring Nuomi.com, whose continuous blood loss caused Li Yanhong to suffer a cerebral thrombosis.

It can be predicted that as much as he is willing to kill Zhuang Chenchao at all costs now, he will be even more ruthless in the future to kill the new Dangshun + Meituan that have crossed over to seize nearly 30% of the hotel and tourism business.

By then, the external enemy Ctrip will be gritting its teeth and hating it to the core, and the internal business teams of Xin and Mei will be fighting each other with endless internal consumption. Even if Han Xin were reborn, he would not be able to say, "Brother, the more soldiers the better."

But the reality is that after the merger, New Mei is led by only Zhang Tao, even if Wang Xing is put in charge!

In the dull silence, Liu Chih-ping glanced at Zhang who was full of thoughts and stated his position: "Ali Koubei.com has a strong momentum. We are not without competitors in the field of group buying and food delivery."

"This is a common drawback in mergers and acquisitions in the same industry. Didi took half a year to recover from its fastest acquisition. Now New DAE and Meituan are much larger than them."

Xie Jingxing stood up and walked to the window, turning his back to the others and said lightly: "M&A between the industry leader and the runner-up is not a panacea. It is often the case that a journey of a hundred miles begins with a single step, and the last ten miles all depends on a single breath."

"...A comprehensive merger is indeed very difficult, so there is a lot of room for discussion on merger plans that maintain independent operations." Su He tried to ease the atmosphere.

Zhang Tao coughed lightly and nodded calmly, "New DAE and Meituan will maintain independent operations. The team's combat effectiveness is guaranteed. Whether we fight with Koubei, Ctrip or other competitors, we will be fine."

"The only problem is the waste of resources. For example, if Koubei spends 1 yuan on promotion, we have to spend 1 yuan twice."

He concluded: "From the perspective of long-term development with the goal of going public, this is a half-cooked meal that does not meet the tastes of small and medium-sized investors."

The complete overlap of businesses causing waste of resources and lowering the group's valuation is secondary. The key point is that it is a bit like the separatist rule of warlords in the late Tang Dynasty in history.

Independence means being disobedient. If you send in a large number of people to replace the management team, it would be better to directly integrate the business in an all-round way.

If you don't change your blood, I will turn the table when you pass the food to me, and I won't drink when you toast me.

“Can we compromise, with New DAE and Meituan gradually connecting their platform data and agreeing on a time limit to peacefully integrate their businesses?”

Liu Chih-ping derived a third M&A plan from this: "New Danghe can focus on the food delivery business in first- and second-tier cities first, while Meituan will focus on third- and fourth-tier cities. Dianping will be responsible for the in-store business in East China, while Meituan will be responsible for the in-store business in North China."

"Everyone works together and complements each other, and gradually finds a comfortable strategic position for each of them." He pondered and deduced.

Shen Nanpeng remained silent. This was an outbreak of Internet giant disease, with internal horse racing and biased hatred.

Not to mention the five-year-long fight between Dianping and Meituan, the employees that Ele.me recruited for on-the-job training and boxing during Zhang Xuhao's era have now gradually grown into the backbone of the business.

Don't ask why the Ele.me team focuses on first- and second-tier cities while the Meituan team is sent to third- and fourth-tier rural areas to develop business with their feet in the mud and cow dung. The answer is that we are the ones who lead the mergers and acquisitions and you are being absorbed.

You're not convinced, right? It just so happens that I haven't had enough boxing training, so I can still beat you even if we become a family.

"The Meituan team is quite capable, but everyone is in a state of crisis where they may be eliminated at any time due to business integration, so the employees' mentality will be very delicate."

Su He still respects the industry leaders and uses inappropriate words and sentences, although in her opinion this is a very stupid human logic.

The Meituan team knew that they were being incorporated, so it is understandable that they were eliminated after a comprehensive and forced integration of businesses. At least the new DAEI team has the psychological advantage and can exert its full combat effectiveness.

It would be best if each side could maintain its independence, and both sides would maximize their fighting power, competing not only externally but also internally, but they would not be afraid of being eliminated as it has nothing to do with their business.

The so-called peaceful integration of business is precisely the integration of all the shortcomings. "Either the business integration is forced, or each side develops independently. If you want both business integration and independent development, the result will be nothing."

Xie Jingxing made up his mind and turned around to look at Zhang Tao: "You guys chat first, I'm going to the bathroom."

"Then take a break. I'll call Zhang Lei back."

Liu Chih-Ping walked out of the office first, holding his phone, and Xie Jingxing followed behind him. The two of them walked slowly through the corridor.

“Mr. Zhang is not optimistic about independent operation.”

"He is the chairman when fully integrating the business, and he has an employee mentality when operating it independently."

"Human nature."

Liu Chih-Ping stopped at the end of the corridor. For Zhang Tao personally, if the independently operated New DAELE fails to outperform Meituan, there is a possibility that he will be kicked out by shareholders.

Xie Jing Xing leaned against the wall on one side of the corridor with his hands folded in front of his chest: "He is a bit of a rare commodity now."

"This is a problem you created."

In a private conversation, Liu Chih-Ping spoke frankly and said that before the merger and acquisition was launched, it was Zhang Tao who cooperated with Xie's capital and dragged the shareholders to fight with Meituan.

After the merger and acquisition is truly launched, the positions will be reversed. Xie's capital will have to cooperate with him to manage the company, unless Xie Jingxing is willing to slap himself in the face and accept Wang Xing.

"And this problem will become more and more serious in the future," Liu Chih-ping continued.

When market competition was the most intense, Yunhe Logistics strongly supported Ele.me in building its delivery system, and everyone praised Xie Shaoshuai as unparalleled.

The future market will enter the second half of the stock competition. Everyone is questioning why Yunhe Logistics crowdsourcing delivery charges 2 yuan for one order, while other logistics crowdsourcing only charges 1.8 yuan!
Xie Jingxing's related-party transactions oppressed small shareholders. As the chairman, Zhang Tao had no choice but to consider the interests of the majority of shareholders and cut ties with Xie's capital.

"It doesn't matter who sits in Zhang Tao's position."

Xie Jingxing was prepared for this, but he didn't expect Zhang Tao to be so eager to take power. What's wrong with being a vassal mascot? Why bother?

He shook his head slightly in confusion: "I am in favor of independent operation."

Liu Chih-Ping didn't know what to say for a moment. Comprehensive integration would be more conducive to connecting with Yunshan Group's upstream business. This was also the reason why Su He supported Zhang Tao implicitly and implicitly.

Independent operation is not a good idea. As Xie Jingxing said, no matter whether it is Zhang Tao or Wang Xing, whoever sits in the chairman's position and holds the power, it is impossible for them to be willing to obey Xie's capital.

In this case, choosing the lesser of two evils, supporting Zhang Tao's full integration is obviously the best solution. At least their cooperation has been going smoothly for a long time.

There is no need to worry about other shareholders making trouble for the independently operated Meituan and increasing the uncontrollability.

Liu Chih-Ping and Shen Nanpeng had already reached a tacit understanding and paved the way through Zhang Lei in case the Xie-affiliated capital really damaged the interests of New World to support Yunshan Group in the future.

——That is, through the independently operated Meituan, invite Wang Xing back and stage the comeback drama of Steve Jobs to Apple.

However, Zhang Tao lost control beyond expectations. When everyone put aside their own interests and objectively analyzed the pros and cons of the M&A plan, he was like a wild horse that had broken free from its reins and deviated from the path of full integration.

He completely ignored Xie Jingxing's repeated emphasis on the difficulty and risk, and behaved very irrationally.

If Liu Chih-ping previously only thought that this person was capable of maintaining the status quo, now even his only advantage of being steady has disappeared, and his eyes are fascinated by the throne of the king of local life services.

Therefore, he could not help but interrupt when Xie Jingxing hinted that Zhang Tao should have a private chat.

"If you support independent operation, there is no need to kick Wang Xing out." Liu Chih-ping changed his attitude and strategy to persuade him.

From the perspective of M&A plan execution, Su He felt that gradual integration was a stupid operation. He considered the interests of all shareholders and judged that gradual integration was the best solution.

Take into account the interests of Xie Xi-Zhang Tao and other shareholders respectively.

However, Zhang Tao's loss of control triggered a chain reaction, and Xie Jingxing made a 180-degree turn and agreed to independent operation, which instantly gave rise to some hope of keeping Wang Xing.

"Last year, when the Internet Conference was held in Wuzhen, Mr. Ma and I had a midnight snack and talked about the different strategic investment models of Tencent and Alibaba. He said that if Alibaba is not 'independent', it is not Alibaba."

Xie Jingxing thought leaped and said, "Then how can Tencent turn to the concept of open symbiosis and still be Tencent? I have been thinking about this question."

"The answer probably lies in the irreplaceable traffic pool of Tencent's social products. Even if you only hold 10% of Xindahang's shares, but sign a -year advertising operation contract worth tens of billions, no idiot would think it is a related-party transaction."

He smiled impatiently and sarcastically: "I hold a total of 25% of Xinda'e's shares. Yunhe Logistics fully supports it and even packaged its own business and gave it to Xinda'e as a price."

"Zhang Lei also reminded me to consider the interests of other shareholders, and if there are really idiots who think so, I must also seriously and carefully consider this issue."

Xie Jingxing exhaled faintly: "Because Yunhe Logistics is not unique, Taihe Pomelo and Yunshan Group are essentially unable to carry out a 100% open symbiotic strategy."

Liu Chi Ping frowned and said, "Xiao Xie, you are a little too radical. No one can deny your importance."

“Then you shouldn’t mention Wang Xing!”

Xie Jing Xing restrained his expression, raised his arm to his shoulder, and held up three fingers: "As a venture capitalist, I swear on my honor that I am always proud of my profession."

"I respect business rules and believe in capital principles, and I will always do so."

He paused briefly and concluded word by word: "So as of today, when I am irreplaceable to New Big Hungry, don't try to challenge me again."

"No, neither is Zhang Tao, nor is Tencent, that's the rule!"

Liu Chih-Ping had nothing to say.

Xie Jingxing is indeed putting his extreme ideas into practice with practical actions. It is obvious that comprehensive integration is most beneficial to Xie's capital, and Zhang Tao's loss of control will lead to excessive risks. He did not hesitate to change his position to suppress Zhang Tao.

Xie Jingxing did not make a decision out of consideration for the overall situation, but out of pure and extremely rational judgment, he determined that the risk-return was not proportional and that he should settle for the second best option for the time being.

So he may not think that kicking Wang Xing out is the best solution, but it must be the most reasonable and in line with the rules...

Liu Chih-Ping suddenly felt inexplicably powerless, because when a person holding the nuclear weapon button in his hand follows the rules, it is better to be grateful for it rather than try to break the rules actively.

"After the acquisition is completed, I will have a relatively controlling stake in New DAE, which means that New DAE will be a subsidiary of Yunshan Group, and there will be no related-party transactions. If anyone disagrees, they can withdraw and I will buy back the shares."

Xie Jingxing finally announced - cancel the open symbiosis and let me rule as a dictator.

(End of this chapter)