Chapter 553

Although the gambling agreement of Huizhong to be listed at the end of this year has long been a well-known thing in the industry, when Huizhong officially announced the launch of listing, it still caused a sensation in the global Internet industry like a bomb.

Since the birth of Huizhong, in just five years, it has grown from an unknown small Chinese company to a multinational company with users all over the world. Now Huizhong's core product wechat has more than 1 billion users. No one doubts the strength of this company and its future development potential!

Not only that, Huizhong is the first multinational Internet company to come out of China, but also the first multinational Internet company in the world to truly blossom on both sides of the East and the West. In the words of many investment bank analysts, as long as there are smart phones, there are wechat users!

Now Huizhong has launched its listing in the attention and expectation of the public. There is a lot of talk about it from the Internet industry to the financial industry, and then to various wechat users who serve as melon eaters.

"Huizhong finally launched the listing? Just help us explore the way first!" Arima always showed a calm look when he heard the news. In fact, he didn't even notice it. When he talked to the secretary who reported the news, his tone was mixed with a trace of envy and jealousy.

Now Huizhong has started to go public. Arima is both happy and worried. He is glad that Huizhong went to the United States for listing before Ali. He can see the stock market of U.S. stocks in the past two years according to the performance of Huizhong's listing.

You know, since the financial crisis, the Chinese concept stocks in the United States have basically fallen again and again, a bleak scene. For example, the share price of Tudou, which was merged with Youku before, fell 50% within a year after it was listed in the United States. Otherwise, it would not easily accept the fate of being merged by Youku.

Companies such as 360 and perfect world are considering privatization, delisting from the United States and returning to domestic A shares to cut leeks.

Mr. Ma is worried that listing in the United States with Huizhong's current volume will inevitably achieve the effect of absorbing water, absorb a lot of funds from the stock market, and even create the largest IPO in the world's history. Then Alibaba listed after Huizhong will not have enough gimmicks and tricks.

Compared with Mr. Ma's mixed mood, the mood of his peers from other Internet companies at home and abroad is much clearer. For example, Mr. Ma of Tencent, overseas mysapce executives, declining Facebook executives and other peers competing with Huizhong, the mood is naturally not much better.

On the other hand, companies like Xiaomi, Sina, Kuai'an, meituan, hungry, twitter, valve and other "Huizhong" companies that have investment relations or business cooperation with Huizhong are naturally happy. Huizhong is already the leader of these companies. If Huizhong's listing can be successful, the prospects of these companies will be bright.

To the surprise of many domestic Internet companies listed in U.S. stocks, such as Baidu and Netease, Huizhong announced the launch of listing, which even led to the rise of all China concept stocks in U.S. stocks. For companies invested by Huizhong, such as Sina, the share price directly rose by nearly 10%, which directly closed the mouth of sina CEO Cao zongle.

If Huizhong took a stake in Sina Weibo, a new prodigal subsidiary, and directly gave Sina Weibo a CEO, Wang Gaofei, this also gave President Cao a little pimple in his heart.

However, since Wang Gaofei took over Sina Weibo, Sina Weibo has been in its second spring, various data have been rising, and the pimple in President Cao's heart has gradually disappeared. Now Huizhong only announced the news of starting listing, which has increased Sina's share price by nearly 10%, and made president Cao feel happy. This thigh is right!

Compared with peers in the Internet industry who only express their exclamations and feelings orally, financial analysts, stock analysts and even Harvard financial interns from Wall Street to major investment banks around the world are scrambling to publish various analysis articles to make fun of the fun. Of course, there are only two information that the minions of these capitalists pay most attention to, The valuation and fund-raising scale of Huizhong listing.

What is the valuation of Huizhong? How should Huizhong's valuation be calculated?

Not to mention the analysts around the world who write reports by collecting all kinds of scattered information about Huizhong, but also the listing team composed of six major investment banks and various top elites in the industry.

From Huizhong's core business, wechat social networking, games, cloud computing, to wechat payment and other financial businesses, it is a pan entertainment business in various entertainment fields such as film and television, music, novels and so on.

Then go to Gaode map, 91 assistant, cleaning master, happy input method, happy browser and other independent mobile application matrices with hundreds of millions of users.

And finally, the most complex investment in Xiaomi, JD, meituan, hungry, Kuai'an, Sina, twitter, aibiying, Tesla and other enterprises in all walks of life around the world.

With such a large and complex business scale, if you want to calculate the valuation of Huizhong clearly, you must first calculate the valuation of Huizhong investment and various enterprises associated with Huizhong.

Of course, among all kinds of multinational corporations in the world, many are more complex and larger than Huizhong's business. Therefore, on the one hand, it is estimated according to the split of Huizhong's core business, on the other hand, it is estimated according to the revenue, profit and P / E ratio of different businesses, and finally make comprehensive calculation, which is also one of the commonly used valuation algorithms in the industry.

As an unlisted company, Huizhong does not need to publish its financial reports. Therefore, various powerful analysts can only estimate the valuation of Huizhong through the financial reports of listed companies associated with Huizhong and various information published by Huizhong in the past.

The first is Huizhong's core business, wechat. Since the wechat valuation of Huizhong's round a financing exceeded US $10 billion three years ago, the industry has a simple and rough algorithm for the valuation of wechat. The total number of wechat users * the value of each user shocked the world more than a month ago.

After three years of development, WeChat started from simple chat software to the public subscription number, opened WeChat mobile payment of global mobile payment, and opened up two game menu with China's official account. In China, it has access to Tmall and other electronic business platforms. WeChat's user value has been rising every time a new function is launched.

Now, it is generally believed in the industry that the value of each user of wechat has more than doubled from about $70 three years ago to about $150. In the future, with the continuous introduction of new functions and the continuous expansion of various ecosystems around wechat, the user value of wechat is still rising.

In a simple calculation, the valuation of wechat alone is more than US $150 billion.

Next, calculate Huizhong's game business and cloud computing business. Three years ago, Huizhong's valuation without wechat was as high as $35 billion, and the components of these valuations basically came from Huizhong's game business, cloud computing and independent application matrix.

Now three years have passed. Needless to say, Huizhong's game business has firmly held the first position in the world in these three game sub fields, from the steam of the end game platform, to the Zhongle of the page game platform, and then to the mobile game business started by Huizhong.

The revenue of Huizhong game business has accounted for half of the domestic game market and more than a quarter of the global game market. With the continuous outbreak of the global mobile Internet, Huizhong game business, which has mastered many IP addresses, is still growing rapidly.

According to industry rumors, the net profit of Huizhong game business last year was as high as more than 30 billion yuan. According to the valuation of 15-20 times the P / E ratio of the game industry, the valuation of Huizhong game business alone was nearly 100 billion US dollars.

Three years ago, Fang zhe invested US $1 billion in the trench of round a financing to nurture the cloud computing business, which quickly opened the gap between Huizhong cloud, which is already a leader in China, and Alibaba cloud, a domestic competitor.

At the same time, Huizhong relies on the strong distribution advantages of steam and 91 assistant in the field of games and mobile applications, as well as investing in a large number of small giants and unicorns with great development potential around the world. Now these enterprises have basically become users of Huizhong cloud.

Huizhong cloud has been listed as the world's two major cloud computing providers together with Amazon cloud, and even Microsoft cloud, which makes frequent mistakes in mobile strategy and does not pay enough attention to office cloud, is the loser of Huizhong cloud.

Today, cloud computing has become a common term in the Internet industry at home and abroad. It is no longer like a few years ago. It is just a term popularized by Fang zhe at the IT summit. If an Internet company's business is not on the cloud, investors will doubt the company's business stability and technology leadership.

Last year, Huizhong cloud's global revenue exceeded US $3 billion and its net profit exceeded US $500 million. If Huizhong cloud is independent, its valuation alone will be nearly US $20 billion in view of the current hot global cloud computing industry and generally high P / E ratio.

In addition to the three core businesses of Huizhong, namely wechat, games and cloud computing, Huizhong's independent application matrix can not be underestimated. Even if it is independent, it is valued at more than $5 billion, such as 91 assistant, the largest application distribution channel on the global Android mobile platform.

You know, google spent a huge amount of $1.9 billion just to buy 91 assistant, which ranked first in the field of domestic application distribution. According to the market share of 91 assistant at home and abroad, the valuation of only $5 billion is not high.

In addition to 91 assistants, others, such as Gaode map, cleaning master, happy input method, etc., have basically grown into independent applications with hundreds of millions of users under the nurturing of wechat's huge traffic system. These applications are properly valued at more than $10 billion.

After calculating these core businesses of Huizhong, other businesses such as Huizhong investment and shareholding are packaged and calculated by categories.

Enterprises such as Xiaomi belong to hardware business, tmall Jingdong belong to e-commerce business, meituan, hungry, Uber belong to o2o business, Sina and twitter belong to new media business, Huiwen group established through acquisition and reorganization, Youku Tudou invested are classified as entertainment business, and all these businesses are counted, The final overall valuation is $60 billion.

According to the future potential of these investment enterprises, the valuation of US $60 billion is somewhat low, but the stock market always looks at the profit before the potential. These enterprises invested by Huizhong are either not listed or are still in continuous losses.

Although we all know that they have great potential, only leeks are willing to pay for them before these potential are transformed into real gold and silver. American stocks have always been a market where rationality is greater than madness. It is common for stocks to fall by 10% once the earnings of a listed company are not good.

So in the end, Huizhong's approximate valuation fell to about $350 billion!

350 billion US dollars. After the global financial analysts, stock analysts and major investment banks released their calculation results, the global Internet industry, financial industry and Internet users who eat melons were boiling!