"Yesterday, the two sides fought, we shook hands. "On October 8, the group network founder and CEO (Chief Executive Officer), Wang sent internal mail to all staff, announced that the United States Mission and the bloody end of the public comment, the two merged into a new company, China O2O (line to line)" eat "big Macs.
Public comments founder and CEO Zhang Tao said in an internal message like this sentence. After receiving the message, applauding public comment staff happy. "Very much hope to merge, it is vicious competition, and bad for the industry. "Shanghai worker told the Word Press (www.thepaper.CN).
Think back to early 2015, fast, 58 of the fair to the last drop when the Internet industry's leading companies, such as mergers and acquisitions, Zhang also said to the media like to guess, public comments and beauty merge time has not come, there are many differences. However, six months later, in the winter capital, wills retreated after shareholders of the founder, the Giants will have to hold together for warmth, love kills.
"Behind the congratulations Sequoia Shen. "Same glutinous rice coupon sites founder, now LinkedIn Global Vice President Shen Boyang, said. Sequoia also a round of the public comments and the Group Investor.
A mountain can have two Tigers
"Bezos (Amazon founder) said that no medium of the Internet business, you go big, either out of the game. First name, second name when fighting a price war and the third died, the rest do not know where. When category so when the opportunity came, must lay down one run, you quickly run up to monopoly status, you must occupy the consumers mind. "
"A company financing must be large to competitors far behind, don't care too much about equity dilution, founder, control board just fine. Sufficient capital is also rapidly expand threshold. "
Xu Xin, founder of capital today in a new entrepreneurs say these words, surging audience tell News (www.thepaper.CN) journalist, it makes them seem to play chicken blood. Xu Xin is one of the investors in public comments. With her logic in one continuous line, in public comments and the US Mission in the capital carried burning money, "thousand wars" stand out among the Group buys the first echelon.
In 2014, Tencent's strategy of investing public reviews when the "beautiful round platform, Tencent reviews Ali-backed" situation. Public comments from "slow company" emphasized "Wolf competition," the company, both from the site, grab the market to tailor financing, O2O out fighting in the area. Both use different business models. Public comment is that the user only after the evaluation information in contrast to many businesses make further spending. Beauty is, user browsing a lot of group packages and spending and then evaluated.
--Bitter price war. In 2014, the Group spent hundreds of millions of, intends to underwrite brand businesses realize the buying pattern conversion in a better competitive position. Public comment is forced tightly, more "free drink", "5-Yuan ticket" marketing campaign to attract three or four cities, such as users, erode the buying market.
--Exclusive exclusive agreements. In order to prevent the hard work of businesses being taken away, group small and medium businesses to sign "exclusive" agreement to prevent competitors from poaching "corner" and subsequent public comments announcement set up specifically for this "Flying Tigers" in each city to break the exclusive plan.
--Bloody fighting. According to police, on June 12, the US mission staff in partnership with Zhang Yang, who, in the escalator of Changzhou commercial Street, for public comment staff kicked and beaten, their waist, head, and shoulder injuries.
On the vertical category, both sides are scrambling and flooding. In May 2014, the public comments did $ 80 million stake in hungry, early next year in its e round of funding. Then hungry CEO Zhang Xuhao said, the market share has reached 60%. Wang, of course, is not far behind, then announced that the United States is the largest foreign sell third-party platform.
Slowly, the staff were tired of beating. Public comment staff told the Word Press (www.thepaper.CN), company philosophy changed, only the truly valuable buy, but in order to fully GMV (total volume), also began to make us do the price list.
"You said we did with beautiful round must be a life? Models are not the same. We do more in the future marriage, beauty services, and did it while playing hungry, playing go, ctrip, actually has nothing to do with us. "Zhang said in a media interview in July this year.
Today, public comments tend to focus on food and beverage at the core, while low frequency O2O business such as wedding, more enthusiasm, along with area companies and vertical way to rewarding. United States Mission all self-employed models, hotels, movies, take-out launched its own independent operation of the product.
Merge capital boost
Unlike drops and quick, 58 city merged with the market case, analysts say, seems to be the basis of the combined group and public comments are not clear, despite the large, but did not achieve the degree of annexation of the other. In the past, market share Yi、erwei the two giants have healthy development, independent public space.
One day after the national day holiday on October 8, the two sides announced a merger, confirmed the rumored. Shen Boyang wrote a Tweet: "congratulations to Zhang Tao, gongxiwangxing, behind the more congratulations Sequoia Capital (founding and managing partner of China) Shen. The merger on the China Internet as a whole, especially the O2O great influence future trends in the field. A new entrance and platform was born, to be seen. "
Shen Boyang points out, this merger behind is not a founding team, but capital.
Neil Shen, the trade in this industry the eldest two quite skilled. Similar transactions are not happening in Redwood company was for the first time, and only + bee. Sequoia Capital is reviews and beautiful round series a investment, respectively, in 2006, $ 1 million series a investment in public comments, 2010 a round of investment of 12 million US dollars, after two subsequent financing were told to vote.
In addition, this deal served as a financial adviser to China's capital for such cooperation is also familiar. YouTube + potatoes, 58+ fair, fast drops +, USA + reviews, Hua XING is involved. On October 5, Hua XING Bao Fan selected for Bloomberg, the founder of capital named the 22nd most influential in global financial markets, Bloomberg is about him: "the rhetoric of ' relationship ' almost all of China's scientific and technological community to arrange events. "
According to BusinessWeek/Chinese, was held on October 1, Beijing Dong Liu, founder of the great barrier reef wedding, Tencent CEO Ma Huateng, high capital founder Ling Zhang, Neil Shen, Bao Fan, Internet investors change their minds, determined the public comments and the final details of the merger. They were investors in Jingdong, respectively the United States Mission and the public comments of investors.
"In 2015, sudden change of situation in the second half, capital markets increasingly challenging, whether the group or the public comment, are facing financing difficulties, capital dare to vote in one of the most important reasons are: uncertain patterns, burn too fast, profit is not. "Million euro-net founder Huang Yuanpu said.
People familiar with the matter said, because of the market downturn this year and different valuations, financing of Wang and Zhang finally sat down, a consensus in the negotiations in Hong Kong.
Merge details official avoided
"Public comment non-buying business has a good income, capital eye, public comments because of the lighter but less risky by many recognized. Mission to the United States, it merged with the public comment is a last resort and under circumstances dictate it. Swap reached in accordance with the proud beauty has made enough concessions, and the concession for public comment and could not refuse. "Huang Yuanpu said.
Public comments and related parties refused to disclose the respective shareholder's stake in the new company.
The above publication quoted an anonymous investor as saying that after the merger the new company, Sequoia Capital will become the largest shareholder, more shares of Alibaba and Tencent.
Sequoia Capital to a surging News (www.thepaper.CN) sent a statement made no mention of whether's largest shareholder. Shen did not answer the phone.
News about the surging, according to Ali, "kiss the son" Ant-gold reputation network serving local platform, the Group has been placed competitors. After the merger was no exception. Meituan has more independent, refusing to further Ali.
Analysts believe that the combined group and public comments, to some extent, is looking towards the company.
Co-CEO merger system, Zhang and Wang an equal voice. But in terms of business consolidation amid questionable. The strengths of the group are trading (buying), the main area in 234 cities, its business dining, film is a typical high-frequency, low price. The strengths of public comments is information (comments), the major city areas in one or two lines, their wedding, event and other advantages, is a typical low-frequency, high-price business. Officials said current business is still independently, but it is widely believed, public comments will give up high-frequency business in the future.
"The shift from is the way to fall in love with just one long holiday, from love to marriage must be operating for a long time. This change is very dramatic, you more or less are not used. Now that we have decided to cooperate, will cling to the old faith. This requires that we must give up our prejudices rivalries, learn to appreciate each other and encourage each other, which required, needed more patience. "Wang wrote in an e-mail message. September City North high tech or 92 in the table
Expected new financing will open soon, valued at up to 15 billion dollars (about 95.3 billion yuan). This figure will be second only to rice and drops the two unlisted start-up technology enterprises. After January 2015, the United States announced to raise $ 700 million, valued at $ 7 billion. In April, public comments are blasting a new $ 850 million in financing, valued at more than 4 billion dollars.