Chapter 2852 Money Burning Game

The Internet age is actually not as good as people see it.

Usually, many of the grand occasions that everyone sees are caused by burning money.

The first time the Internet era was shattered was around 2000. In the first few years before that time, various websites were very popular. YAHOO had a market value of 300 to 400 billion U.S. dollars, and Cisco broke through more than 500 billion U.S. dollars. Nortel Networks, which was almost acquired by Xiao Qi, also has a market value of hundreds of billions of dollars...

In people's eyes, this seems to be the advent of the Internet age.

But the facts quickly gave everyone a slap in the face. Around 2000, the Internet bubble collapsed, and batches of major websites died one after another.

Even after 2010, as the economy slowly began to recover and Internet technology was hyped again, there are still very few people who can actually make money.

Many successful sites simply find a chance to survive before their money burns out.

And those websites that have not yet found a breakthrough will be finished after burning money, and there will be no shadow left.

Although we can see GOOGLE, Facebook, and Twitter becoming famous, few people know that there are as many as hundreds of Internet companies starting and closing down in the United States every year.

The Internet is not so warm, and the competition is so cruel everywhere.

After 2010, there has been a trend that giants continue to devour small and promising companies to increase their own strength, and at the same time prevent new competitors from growing.

GOOGLE, Apple, Samsung, Microsoft, Amazon, Facebook... and other companies have at least several acquisitions a year, and even more than 20 or 30 acquisitions.

Many potential companies, such as YOUTUBE, Zappos, Skybe, Foursquare, Instagram, AdMob... These companies have all been acquired by large companies, and small companies seem to have no room for development.

Of course, this is a good thing for large companies, they can achieve the most with the least cost.

Xiao Qi likes this too. Especially the acquisition of American companies to strengthen the Xiao family industry. And distributed to wives as private property.

Intercom was established under such circumstances.

Intercom's model is AdMob, but there are not many patent restrictions on the whiteness and GOOGLE advertising forms on mobile smartphones. Xiao Qi himself has Infineon, Nortel Networks, and GOOGLE exchange. The obtained patents are enough for him to use.

No one knows better than Xiao Qi how big the mobile phone market will be in the future.

By the end of 2013. Smartphone users alone have reached more than 1.5 billion people, and as more and cheaper smartphones come out, this number will increase to at least 3 billion.

In a market of 3 billion people, even if it does not occupy a monopoly position, it only occupies more than 20% of the share, which is already remarkable.

But now is the time when mobile phone advertising has just developed, and the market size is about 700 million people, and it is not so mature, so AdMob was bought by Google for 750 million US dollars in November last year. Not too expensive.

GOOGLE bought AdMob, not to say that it wants to develop the mobile phone advertising market on a large scale, but as a reserve. Prepare to wait until they promote the Android system and greatly develop the smartphone system market. Only then turned around to develop AdMob.

At that time, just running AdMob ads on the Android system will be enough for Google to make a lot of money.

Xiao Qi has known Google's plan for a long time, and what he has to do now is to let Intercom enter the mobile phone advertising market generously, greatly increase its market share, and confirm its leading position in the market.

In fact, there is no difficulty in this. After finding advertising talents, especially after poaching a few elites from AdMob, Intercom is under the leadership of CEO Bogsola. With Xiao Qi's investment of 1 billion U.S. dollars, he frantically opened up the market.

Borgsola was the executive vice president of Sophia International Advertising Company, one of the largest advertising companies in the United States. He was recruited by Xiao Qi with a super high salary of 6 million euros plus dry stock dividends.

Facing a new field, Bogsola is ambitious. In addition to building his own network platform and writing various advertising programs, the most important thing is to start cooperating with major social platforms and websites.

The release of advertisements on the Internet does not mean that you can directly send them to which webpage or which social platform you send them to.

If people don't agree with you to do this, but you promote advertisements on their copyrighted pages, then people can sue you.

It is necessary to solicit their cooperation intention before placing advertisements on these websites.

Although Intercom has Xiao Qi's investment of 1 billion US dollars, they are a new company and have no reputation at all.

The only famous one is Bogsola, who has worked in the advertising industry for 20 years.

Borgsola's most important wealth is his contacts.

As long as he deals with companies related to advertising, he has dealt with Bogsola. He has dealt with 238 advertising production companies in the United States, and he is familiar with 177 companies.

Moreover, since 5 years ago, he has been in charge of one more task of dealing with network content providers, and has a good relationship with Internet giants such as Mark Zuckerberg, Page, and Bill Gates.

This is why Xiao Qi valued him.

Borgsola is very realistic. He knows that others have a good relationship with him, which is a personal relationship. If you want to link company affairs with personal relationships, it would be too naive.

But now that he has money in his hands, and he is backed by Xiao Qi, the richest man in the world, he can use the money to create a market and let everyone cooperate with him.

Today's Internet companies, where is the biggest profit point?

It's not about advertising!

So as long as they do more advertising and the share is good enough, there is no reason for them not to join their own advertising network.

On the other hand, those product manufacturers who want to advertise on the new media of the Internet, who doesn't want to advertise more and spend less money?

Simple!

I have a lot of money here. In the beginning, in order to attract you to give me the advertisement, I can charge you 20% or even 30% off the market price.

As long as you get used to advertising with me, I can in turn bind content providers and make them more willing to join my network.

In this way, when the three parties are integrated into one, Intercom will become famous!

Borgsola thought so, and he did the same.

Since its official launch in May, Intercom has increased the share of content providers by 30%, and at the same time reduced the advertising costs of advertisers by 20%.

Calculated in this way, Intercom's gross profit is only 12%, and after deducting taxes, office work, maintenance, etc., it still has a lot of losses.

But after such a month of development, under the promotion of Borgesola, the total amount of advertising of Intercom has exceeded 32 million US dollars, which is almost the same as the monthly results of AdMob in the middle of last year.

GOOGLE has long noticed the market-disturbing behavior of Intercom, but after Page inquired about its background, it was a little silent.

After all, compared to burning money, few people can compare to Google, but Xiao Qi is the one who is better than Google.

Moreover, Xiao Qi can ignore profits at all, and can always cultivate the market at a loss, but GOOGLE must be responsible to the shareholders. How can it be possible to continue to lose money in business?

But even so, Page still issued an order to increase the capital of 300 million U.S. dollars to AdMob, allowing them to accelerate their development and compete with intercom companies for market share.

Since Xiao Qi is so optimistic about this business, then GOOGLE must also go in and compete for it.

Although GOOGLE does not have as much money as Xiao Qi, sometimes money is not enough!

For a while, Paige regretted that he gave in last time and reached an agreement with Xiao Qi. At that time, Google handed over too many exclusive patents. Otherwise, this time Xiao Qi would not have entered the mobile phone advertising market so easily. !

Compared with the smooth sailing of the Intercom Company, the Soundwave Company that Xiao Qi wants to acquire is not so easy.

Even though Milner has raised the purchase price to 370 million US dollars, and the founding team can become multi-millionaires as long as they sell their shares, many of them are still hesitant, unwilling to let their company be controlled by Xiao Qi.

To be honest, Sweden is a high-welfare country. Entrepreneurs like them don’t have to worry about food and clothing, and they are not even poor. So far, they have only introduced one investment.

It's a pity that the capital company introduced only occupies 15% of the shares, otherwise they would have made more than 700% in one year, and they had already announced in a hurry that they would sell all of them to Xiao Qi.

So Milner replied that it might take some time to work hard to acquire Soundwave.

Xiao Qi didn't worry much.

First of all, his minimum limit is not 500 million, if he can get it around 800 million, Xiao Qi will not hesitate.

Secondly, what Milner is best at is communicating with people. In this regard, he understands the true meaning of Huaguo's "grinding" tactic. Anyone who is entangled by him usually submits under such circumstances.

Milner can handle even Zuckerberg, so it's no problem for a mere Sonic company!

(Brothers please subscribe more!) (to be continued ~^~)