Chapter 159

In late February, Zheng Siwen worked for Huizhong offshore company for more than a month and finally got it done.

Registering offshore companies is one of the common practices for most domestic companies to reasonably avoid taxes, conduct business, invest or list overseas. Bat, the three major domestic Internet giants, are also registered in the Cayman Islands and directly or indirectly control a number of offshore companies overseas.

The direct benefit of registering an offshore company to Huizhong is that in the future, Huizhong's overseas business can be settled through the offshore company, which can save a lot of tax expenses.

In addition, Huizhong's overseas business and investment are also more hidden. For example, before, it was easy for both American companies and domestic Tencent to investigate Huizhong's business and equity information. This time, through the multi-layer offshore company structure adjustment, these information has become more secret. At the same time, the current offshore company structure adjustment, It is also prepared for Huizhong's listing overseas or in Hong Kong in the future.

After the registration of the offshore company, Fang zhe had been thinking about investing in twitter, and finally made further progress.

Since its establishment in 2006, Twitter has more than 50 million users worldwide. Due to the relationship between products and service content, there is still a large gap between twitter and Facebook, but this does not affect its influence in the Internet new media industry.

Since its inception, its valuation has exceeded US $200 million. On the surface, it looks a lot worse than the valuation of US $15 billion of Facebook. The actual reason is that Twitter has not yet achieved profits. Even when Fang zhe was reborn, Twitter's profits were pitiful compared with giants such as Facebook. This is also one of the main reasons why its valuation has been unable to go up.

The valuation of twitter in the previous generation peaked at nearly $50 billion in 13 years. Later, due to constant losses and weak growth in the number of users, the valuation slowly fell again. When it was low, the valuation of the company was less than 25% of the peak period. Later, it slowly boosted the stock price because of profits. Before Fang zhe was reborn, The company's valuation remains at about $20 billion, comparable to that of domestic microblogs.

Although twitter can't compare with giants such as Facebook in terms of money making ability, Twitter is no worse in terms of new media influence. After the former president of the United States, who is known as "Twitter ruling the country", took office, he gave full play to this influence of twitter, and Fang Zhe valued the media influence of formal twitter.

Because he was targeted by the traditional American public opinion circles last time, Fang Zhe always felt that Huizhong's overseas media influence was insufficient. If Huizhong had its own voice channel overseas, at least in terms of public opinion confrontation, Huizhong would not weaken its momentum, nor would it be induced by the public opinion media that discredit Huizhong and affect Huizhong's overseas business.

Now, taking a stake in twitter is an opportunity. Although Twitter has a certain influence in the new media industry, it is still a true start-up company in the Internet industry. Therefore, in the previous investment contact process, Huizhong did not receive much resistance from the U.S. government, just as domestic bat accepted foreign venture capital to take a stake, If Huizhong wants to invest in Facebook, it is unclear whether the U.S. government can agree.

The top management of twitter also welcomes Huizhong's investment. At present, Twitter is still in its infancy and development stage. The most important thing for external investment is still money, not the influence and potential value of investment institutions, as Facebook does now. Therefore, after Huizhong took out a huge sum of US $20 million, the top management of twitter, Agreed to give Huizhong an investment quota.

This twitter financing has been reported in the circle since the end of last year, and Fang zhe also knows that Twitter will get a financing of $35 million in February this year, with a valuation of $250 million, because of the advantages of the reborn. Therefore, when he first decided to invest in twitter, Fang zhe paid close attention to letting Zheng Siwen operate the offshore company registration. At the same time, he also began to sort out Huizhong's finance to raise funds and send people to contact the top management of twitter.

Because of Huizhong's participation, another company that participated in this investment in history did not invest. Therefore, the total investment amount is only $5 million more than the previous 35 million, and the valuation is still $250 million. After this investment, Huizhong obtained 8% of the shares of Twitter and became the seventh largest shareholder of twitter, Has a seat on the twitter board.

In Fang Zhe's plan, Huizhong's investment in twitter is just the beginning. One of Fang Zhe's goals is to get more equity and even control of twitter in the future. Although the company had a great influence in the new media industry in its previous life, it was a mess in terms of profits and product content. If the domestic Sina Weibo team were to do it, With the company's global influence, the number of users and profitability, it is bound to become a big giant.

Fang zhe has the idea of controlling and transforming the company, and he is sure to make it better. At worst, he can't do worse than twitter in his previous life.

Huizhong's stake in twitter raised more than US $20 million, which is nearly RMB 140 million at the current exchange rate. Such a large sum of money is already a huge sum for Huizhong, whose monthly revenue has just exceeded RMB 300 million.

Therefore, in order not to have an adverse impact on the business development of Huizhong, only 50 million of this fund comes from the financial profits of Huizhong, and the rest comes from various trust funds and bank loans. Until now, Zheng Siwen's financial talent has not been fully brought into play.

At the end of February, Huizhong completed its investment in twitter. At the same time, an American Chinese named Zhu Jun joined Twitter as an agent of Huizhong on the twitter board. He was a colleague whom Zheng Siwen knew when he studied abroad in the United States. Like Zheng Siwen, he went to the United States in the tide of studying abroad at the end of the last century. Later, he worked hard to obtain an American green card and stayed in the United States.

In fact, while Zheng Siwen operated and registered Huizhong offshore company this time, Fang zhe also instructed him to operate and prepare venture capital funds.

The era of mobile Internet has come. For a reborn person like Fang Zhe, one of the best ways to make money is to invest in a variety of potential stocks and unicorns.

In a few years, there will be hundreds of mobile Internet companies valued at hundreds of millions of dollars, dozens of Unicorns valued at billions of dollars, and more than a dozen small giants valued at tens of billions of dollars. Fang zhe naturally can't miss the dividends of the general trend of the times.