Volume 3: Taking Roots 2016 Chapter 466 Current Status of Short Video Industry
[Ni Ni]: Sure, no problem! Then I am the first celebrity to join the short video platform of Douyin, right? Don’t forget me when you become successful in the future (playful).
Zhou Dongsheng originally just wanted to trick her, but he didn't expect Ni Ni to agree so readily.
[Zhou Dongsheng]: You agreed so easily? Didn't you ask the company?
[Ni Ni]: My company is not stupid. Okay, it’s settled. I still have to rush an announcement. Let’s talk next time!
After saying that, he sent a cute emoticon and then disappeared. Zhou Dongsheng thought about it for a while and finally came to his senses.
One Golden Second Award is enough to push the Douyin short video platform to the forefront, not to mention the support of Ding Sanshi, the boss of the pig factory . No matter how you look at it, Douyin short video is a potential stock with great potential.
For celebrities who rely on traffic and exposure, being able to cooperate with such a platform is naturally a win-win situation. Even the company behind Ni Ni has no reason to refuse.
It doesn’t matter even if it’s free. After all, it’s just a so-called entry. Just think of it as an exchange of resources. It’s not like becoming a celebrity spokesperson for the platform. That’s another matter.
What's more, since it was Zhou Dongsheng who invited her, Ni Ni had no reason to refuse. Or was this her original purpose?
Zhou Dongsheng thought about it for a while and found it interesting. He didn't think much about it and instead opened Principal Wang's WeChat and started typing away to accuse him.
[Zhou Dongsheng]: Good fellow, you are putting your brothers on the fire and adding fuel to the fire.
Principal Wang over there was obviously enjoying the show, and he immediately replied when he saw Zhou Dongsheng's message.
[Principal Wang]: I didn’t say that. Don’t say anything nonsense. I just made a random comment and I didn’t expect it to be picked out by netizens.
Faced with Principal Wang's denial, Zhou Dongsheng couldn't help but laugh and shook his head. It was a bit difficult for him to get so much attention all of a sudden.
But...anyway, he has nothing to fear as he is upright. No matter how outrageous his resume is, nothing can be found wrong under the magnifying glass of public opinion. After all, he is also an excellent citizen who pays taxes legally.
What's more, the most outrageous things are not on his resume. If he were to reveal them himself, I wonder if countless jaws would drop and eyeglasses would fall off in shock?
Thinking of this, Zhou Dongsheng couldn't help but feel full of bad taste, and felt that this matter had great potential, and he could even regard it as a traffic killer in his hands.
Maybe if used at the right time, it can produce unexpected results?
While Zhou Dongsheng was joking and chatting, the tug-of-war between Yang Luyu and the head of the pig farm's investment department was coming to an end.
Referring to the leaders in the domestic short video field, whether it is Kuaishou or Meipai and other top short video platforms, their current valuations have already been based on 10 billion US dollars.
After all, both Kuaishou and Meipai have hundreds of millions of users in the domestic market, among which Kuaishou has the fastest user growth rate.
According to incomplete statistics, the number of Kuaishou users has now exceeded 200 million and is rapidly heading towards the 300 million mark, accounting for half of the entire mobile Internet users.
In the field of domestic short videos, it is far ahead of others and it is conservatively estimated that the next round of financing will start at US$2 billion.
As a rising star, Douyin has accumulated tens of millions of users in just a few months, although it is less than one-tenth of Kuaishou's user base, or even only about one-twentieth.
But compared to Kuaishou, which has been developing for 4 or 5 years, the potential of this up-and-coming company cannot be underestimated.
What's more, Wenxue Network also has an overseas market that it is proud of. This unique advantage also accounts for a large proportion in the valuation process.
In the Series A financing, Dongsheng Investment gave a valuation of US$50 million and acquired 30% of the equity with tens of millions of US dollars and resource exchange.
As for Zhou Dongsheng's title of strategic investor and 5% personal equity, they are naturally not included in this category.
Times have changed. Over the past six months, as Zhou Dongsheng fulfilled all the resource exchange conditions he promised, Wenxue Network has experienced a wave of rapid development, as evidenced by the fact that it has increased several times in all aspects.
After comprehensive consideration, the person in charge of the pig factory investment finally gave a relatively conservative valuation range of US$300 million, and acquired 10% of the equity at this price, while also promising the condition of corresponding resource allocation.
This price is in line with Yang Luyu's expectations. Not only can he get a large sum of cash for development, but most importantly, he can get the pig farm as a backer and resource channel.
At the same time, as the founder, he still holds more than 50% of the company's shares. Combined with the AB equity structure, the double insurance firmly controls Wenxue Network.
Moreover, based on this valuation, Yang Luyu has already successfully joined the ranks of billionaires with a net worth of billionaires. Even if we look at the world as a whole, he is also among the richest people at the top of the pyramid.
And he is only 34 years old now, in the prime of his life, and can definitely be considered an elite in the business world.
Zhou Dongsheng naturally had no objection to this. Although the investment had already multiplied its profit several times, for Zhou Dongsheng, who had a long-term vision, this temporary profit was indeed insignificant.
After all, he is not in a hurry to cash out, and it is even more impossible for him to make a profit and exit early.
The most important thing is to ensure that Wenxue Network can survive in the short video field. As long as it persists long enough, Wenxue Network will not end up being acquired by Toutiao for US$1 billion.
And the pig farm is naturally a reliable insurance.
After reaching a preliminary financing intention, Zhou Dongsheng also informed Lu Sifang of the news and asked him to follow up simultaneously.
Zhou Dongsheng has proven his worth through his previous successive actions, whether it is hosting the Golden Second Award, holding a number of high-quality creators on the platform such as [Papi Jiang], [Mu Ziqi], [PDD]...
Therefore, in this round of financing, both parties also agreed that Zhou Dongsheng’s shares would not be diluted. As for the angel investors, Zhou Dongsheng no longer needed to worry about it.
When we saw off the people from the pig farm, night had already fallen unknowingly. The first day of the new year had passed. Looking back at 2015, it seemed like it was just yesterday...
"Mr. Zhou should have already made an appointment for the New Year's Day, right?" Yang Luyu was in a good mood and joked with a smile. After this matter was settled, the development of Wenxue Network would not be a problem in a short period of time.
And then, all you need to do is focus on improving your own competitiveness to deal with your competitors.
"If Mr. Yang wants to treat me to a meal, I can also go without an appointment." Zhou Dongsheng said with a smile. In fact, this was true. After the Golden Second Award was over, Li Jiajia had already set off to return to Miancheng today.
She also sent a message to Zhou Dongsheng, asking him to wait for good news, as the first episode of her series of videos on the Four Treasures of the Study was already being finalized and would be released soon.
He also vowed: "I will definitely win the honor of the best creator of the year ."
Zhou Dongsheng naturally gave full affirmation and encouragement to Li Jiajia who was so positive.
"Hey, isn't this being too formal? You can pick any restaurant in Shanghai. I will treat you to a meal even if it means spending a lot of money today." Yang Luyu put his arm around Zhou Dongsheng's shoulder and said with high spirits.
"Then I won't be polite."
