Chapter 731 New Dream Launched

Although Duffield was old, his thinking was very quick. He immediately caught the flaw in Xu Liang's words and continued:

"Mr. Xu, you have also admitted this. Working days are an unsettling factor for Oracle and PeopleSoft.

If our unstable factor continues to develop, we may become a spoiler and make all of Oracle's 10 billion US dollars wasted! "

"I don't deny that Workday poses a certain threat to PeopleSoft."

Xu Liang looked into Duffield's eyes and said very sincerely.

"Because Oracle's acquisition this time is obviously not satisfactory. It acquired the company's assets, but let go of its most valuable asset - talent."

Hearing Xu Liang's comments about Oracle's acquisition, Duffield couldn't help but smile.

“Because it is a hostile takeover, Oracle is destined to be unable to satisfactorily take over everything from PeopleSoft.

Everything that leaks out from the fingers will flow to the working day, including talents, customers, etc. "

Xu Liang waved his hand.

"We no longer need to argue about the threat this company poses to Oracle, what I want now is an answer.

Please tell me, how do you deal with Oracle's suppression?

This issue is important and forms the basis of financing negotiations. "

Dudufield's expression also became solemn.

"Oracle and PeopleSoft cannot monopolize the entire market. We are negotiating with several large companies. If we win them, it will serve as a bellwether."

Duffield asked Bousri to bring a few stacks of documents and handed them to Xu Liang. They were all intended cooperation agreements.

Xu Liang looked through it carefully and could only say that Duffield's industry prestige was indeed high. The company had only been established for a few months and it had already pried away PeopleSoft's major customers.

No wonder Larry Ellison is so crazy. He really wants to let people's 10 billion US dollars be wasted and buy an empty shell.

but.

I like.

Despite the inner turmoil, Xu Liang remained calm on the surface.

Although he was determined to cause trouble for Ellison, every penny of his own money must generate enough value.

"This kind of relationship-based business is destined to be unsustainable in the long term. If we want to attract more small and medium-sized customers, the focus must be on the product itself."

Xu Liang gently put the file back on the desktop and said calmly.

"Yes, so we recently organized a meeting with technical backbones to discuss and prepare for a major upgrade of PeopleSoft's original human resources management software to solve the original shortcomings or defects in one fell swoop."

Duffield shrugged, "At that point, customers will know which company's product to choose."

At this time, the concept of cloud computing has not yet become popular, and Workday Company is obviously not thinking in this direction, or it is already working in this direction without knowing it.

Xu Liang didn't want to go out and encourage it right now, not to mention that the investment issue hadn't been discussed yet, so it wasn't his turn to point fingers.

After asking a few more questions, Duffield gave the answers one by one.

"Okay, let's talk about valuation."

Duffield was delighted, this was exactly what he wanted.

"I heard from Sequoia that you plan to raise $10 million at a post-money valuation of $200 million?"

Duffield said seriously: "Yes, a few months ago, when the company was first founded, Bousri, Greylock, and I invested a total of US$15 million. At that time, the company was valued at US$100 million."

Hearing this, Xu Liang couldn't help but smile.

The world is as dark as crows. No matter how good your words are, in the end it’s all about the word ‘money’.

"Working Day was established in March, less than half a year ago, and the product has not been officially launched on the market. The valuation will not double, right?

Moreover, Workday’s Series A financing does not have the support of actual products, and founders join in. It is more similar to seed round and angel round financing, right? "

Dudufield looked calm, "Human resources software is a tens-billion-dollar industry, and the market potential has been verified by PeopleSoft.

It is no exaggeration to say that Workday currently has 70 engineers, plus Bhusri and I’s industry experience, this can be valued at US$100 million.

Coupled with the current semi-finished software, I think there is no problem at all with a valuation of 200 million US dollars. "

Xu Liang knows that no matter how harmonious the conversation with the founder is, no entrepreneur is willing to give in easily when it comes to issues such as valuation and equity dilution ratio.

After pondering for a while.

"Mr. Duffield, do you know Hongmeng?"

"Of course, this is another masterpiece of Mr. Xu, a world-class Internet giant."

“In addition to Hongmeng, I also own China’s largest food and beverage company ‘Master Kong’, the largest education and training institution ‘New Dream’, and the largest commercial real estate company ‘Taihua’.

Moreover, Hanhua also owns equity interests in dozens of Huaxia companies.

If Hanhua becomes a shareholder of ‘Working Day’, we can give priority to using your human resources management software.

The exemplary role of many leading companies will, I believe, greatly promote your development in China and even Asia as a whole. "

Duffield was instantly moved.

He is well aware of the influence of Hanhua and Hongmeng. If everything goes as Xu Liang said, they will not only get many big customers.

In the future, if there are examples of Hanhua and Hongmeng, it will be easier to promote them.

"Mr. Xu, I can make a concession and raise US$20 million at a post-money valuation of US$200 million; but the conditions you mentioned before must be solidified in the contract."

Xu Liang smiled and shook his head.

"20 million US dollars, 20% of the shares, plus the conditions I mentioned before, this is my final offer, you should think about it carefully."

After that, he picked up the tea on the table and tasted it slowly.

Duffield and Bushri looked at each other.

The latter said: "Mr. Xu, we need to think about it."

Putting down the teacup, Xu Liang smiled and nodded and stood up.

"Then I'll take my leave first."

——

"Mr. Xu, New Dream will be listed in Hong Kong in three days. Mr. Teng Huaming asked if you would attend the listing ceremony of New Dream?"

Lv Hui walked over and said.

Xu Liang patted his head, "I have been so busy that I forgot about this matter. Tell him that I will attend on time."

Lv Hui nodded.

"Show me the prospectus of New Dream."

Lv Hui opened the folder and handed over a thick document.

Take it and take a look.

In the 11 months from 2004 to now, it has created revenue of 3.95 billion Chinese yuan and net profit of 780 million Chinese yuan.

The estimated annual revenue is 4.5 billion Chinese Yuan and the net profit is 1.2 billion Chinese Yuan.

New Dream has a total asset of 3.78 billion Chinese Yuan, 1.32 billion long-term liabilities, and 470 million in cash and cash equivalents.

The brokers are Merrill Lynch and CITIC.

Based on 25 times the net profit, the valuation is 30 billion Chinese Yuan.

The total share capital is 1 billion shares, 3.3 Hong Kong dollars per share, 100 million shares issued, and 3.3 billion Hong Kong dollars raised.

The current equity structure of New Dream is IDG 3.1% and Yingke 2%.

After Ideal Education was integrated into New Dream, their shareholdings were basically reduced by about half.

In addition, there is 15% in the option pool, and the remaining 79.9% of the shares are in Xu Liang's hands.

This time, Yingke and IDG cashed out half, but Xu Liang did not plan to cash out.

The foundation of New Dream has been laid, but its value is far from its peak.

Xu Liang is not short of money, so of course he will not sell shares at this time.

In addition, as an education group comparable to New Oriental in China, New Dream started late, but with the support of this world-class rich man, it has developed rapidly.

It is also favored by many investment institutions.

After several months of roadshows, the subscription funds exceeded 21.9 billion Hong Kong dollars, which is 6.6 times the fundraising amount.

Very good.

The next day, Xu Liang returned to Hong Kong on the Kunpeng.

After attending the listing ceremony of New Dream, he spent a few days with Qiao Yuhui and Zhang Junning, and told Xia Changsheng to continue to acquire Unocal’s equity and bonds, as well as US real estate subprime loans, and then returned to the United States.

It took a total of one week.

During this week, Duffield called him every day, and the content of the call was basically around the investment in "Workday".

After a week of tug-of-war, both sides finally took a step back.

With a pre-investment valuation of US$120 million, Hanhua Capital Mars 2 Fund invested US$25 million in Workday, accounting for 16.7% of the shares.

Sequoia Capital followed up with US$5 million, accounting for 3.3% of the shares.

Duffield didn't want to dilute so much equity, but Xu Liang made some concessions on the valuation, so he thought about it and agreed.

Xu Liang was generally satisfied with this result.

Of course, he did not think about continuing to increase the valuation, or like Alibaba, giving Duffield the voting rights represented by half of the equity.

In exchange for more equity in the "Workday" company.

But although Duffield was tempted, he finally refused.

They now have enough funds to support the software until it goes public.

After the software goes public, if it succeeds, the valuation will soar; if it fails, everything will be zero.

Although you can get more funds in your hands and try a second time.

But Duffield has his own ideas. If he really fails, he will retire completely. Anyway, he has enough money for retirement.

——

"Mr. Xu, happy cooperation."

"Happy cooperation."

Xu Liang shook hands with Duffield, and the two parties formally signed the contract.

Of course, Sequoia Capital is also included.

A simple lunch was held, and after everyone had dinner, Xu Liang said goodbye.

But Michael Moritz followed.

After more than a week of buffering, the reporters surrounding Hanhua Capital also dispersed.

After all, the world is so big, and there are so many news every day. There are already new hot spots that have surpassed Xu Liang.

Arrived at the office of Hanhua Capital.

After both parties sat down.

"I didn't expect Mr. Xu to be so optimistic about the company "Workday".

Looking at the man with a probing look in his eyes.

Xu Liang didn't understand his thoughts, and smiled.

"It's a rare opportunity to give Ellison, that idiot, such a good opportunity, of course I have to support it."

Looking at Xu Liang deeply, although Moritz believed that this was definitely not the whole reason, he did not intend to invest too much in "Workday".

He was not very optimistic about this company.

If Xu Liang hadn't invested so much at once, Sequoia would have given up the investment.