Chapter 260 Billion-Dollar Wealth Plan

"Afan, I heard from Desha that your newly opened optical shop seems to be doing very well?" Ye Niya took a sip of the "Singapore Sling" cocktail.

"Well, it's pretty good. Desha has been helping in the optical shop these days since the opening of the optical shop. She is very capable and has helped me a lot!" Li Xiaofan smiled.

As he was talking, Li Xiaofan's cell phone rang. He opened it and saw that it was Jerry Yang calling from San Francisco.

"Afan, good evening! I have good news for you. Mr. Masayoshi Son of SoftBank Group came to our company office in Silicon Valley again yesterday to see me and Filo. This time he proposed a new plan for increasing capital and equity..." It sounded like Jerry Yang was a little excited.

Li Xiaofan greeted, "Good morning, Jerry, how is SoftBank's new plan this time? Netscape's stock price broke through $75 yesterday, with a market value of more than $1.2 billion. Microsoft's Windows 95 system has been so popular recently, the valuation of our Yahoo should have increased significantly, right?"

Li Xiaofan remembered that the last time Son Masayoshi came to Singapore to negotiate with him, he offered $2 million to buy out Li Xiaofan's 10% Yahoo shares, which means that the overall valuation of Yahoo was $20 million, which was five times higher than the $4 million when Sequoia Capital and Singapore Yifan Company invested.

Jerry Yang said happily, "Well, yes, Mr. Sun has greatly increased the valuation of our company this time. SoftBank's latest valuation of Yahoo is $40 million, and their latest plan is to increase the capital of Yahoo by $4 million, accounting for 10% of the shares..."

According to SoftBank's new plan, Yahoo's valuation has increased 10 times in just four months from April to August.

During the call, Li Xiaofan felt that Jerry Yang was very happy and seemed to be willing to accept the conditions proposed by SoftBank Group. After all, in just four months, the valuation of Yahoo, which he had just founded, increased tenfold. As a founder, he already felt very accomplished.

At present, the first $2 million investment from Sequoia Capital and Singapore Yifan Company in Yahoo's account has burned more than $1 million, and there is less than $800,000 left, which can probably support it until the end of this year at most. Jerry Yang and Filo, the two founders, are actually very anxious and want to finalize new investors as soon as possible.

At Sequoia Capital, although Moritz is doing his best to lobby the high-ranking members of the company's investment decision-making committee, hoping to promote the second round of capital increase plan for Yahoo. However, the old antiques in the investment decision-making committee are quite conservative. They only look at the financial statements and do not believe in the so-called Internet traffic can be monetized. There are very few people in the investment decision-making committee who support him, leaving Moritz at a loss.

The most active person at the moment is Masayoshi Son of SoftBank Group. Especially after Netscape successfully went public and ignited the Internet boom, he has clearly seen the dazzling light from the huge gold mountain of the Internet! Yahoo is one of his main targets.

Unexpectedly, what surprised Jerry Yang was that Li Xiaofan said to him on the phone: "Jerry, according to our company's articles of association, when the company increases capital and expands shares, the original shareholders have priority subscription rights. If you other shareholders agree that the current valuation of Yahoo is 40 million US dollars, then this 4 million US dollars of capital increase will be paid by my Singapore Yifan Company. Our Yifan Company is willing to take out 4 million US dollars to increase capital and hold a new 10% stake..."

"Afan, is this true? Are you kidding?" Jerry Yang confirmed again on the phone. Last time when several old Yahoo shareholders collectively negotiated with SoftBank Group in the Yahoo office in Silicon Valley, Li Xiaofan suddenly proposed that their Singapore Yifan Company was also willing to increase capital and invest in Yahoo according to SoftBank Group's plan. Afterwards, Jerry Yang thought that might just be a negotiation strategy of Li Xiaofan.

"It's true! Jerry, if necessary, I can write an email to you, Filo, and Mr. Moritz of Sequoia Capital, and other three shareholders, to formally propose our Singapore Yifan company's capital increase plan!"

Li Xiaofan's tone on the phone was very serious. Jerry Yang didn't expect Li Xiaofan to really pay 4 million US dollars to increase Yahoo's capital, which surprised him.

"Afan, if you are really willing to increase capital, then I will quickly communicate with Mr. Filo and Mr. Moritz, listen to their ideas and opinions, and then contact you. How about it?"

"No problem, Jerry, I'm waiting for the final confirmation of you shareholders. As long as Yahoo's shareholders meeting approves my capital increase plan, I can transfer the 4 million US dollars to your Yahoo account at any time!"

Li Xiaofan has this confidence because his agent Abao sent a text message just now, and the price of Netscape stock has just opened and has exceeded 78 US dollars. The market value of the 69,000 Netscape shares he holds is about 5.4 million US dollars.

If several old shareholders of Yahoo can approve the new plan proposed by Li Xiaofan, which refers to the capital increase of SoftBank Group, and Singapore Yifan Company invests 4 million US dollars to hold 10% of the shares, the original old shareholders will have their shares diluted by 10%.

After the new capital increase, the new shareholding ratio of Yahoo is: Singapore Yifan Company will hold 19%, Sequoia Capital will hold 36%, and Jerry Yang and Filo will each hold 22.5%.

This new shareholding ratio is very cost-effective for Li Xiaofan.

In his previous life, Yahoo went public on NASDAQ in April 1996. On the first day, the stock price tripled, and the market value reached 1 billion US dollars. Before Yahoo went public, Softbank Group invested 100 million US dollars in Yahoo in March 1996, accounting for 33% of the shares.

Li Xiaofan calculated that if he increased his investment in Yahoo by 4 million US dollars this time, and waited until Softbank Group invested 100 million US dollars in Yahoo in March 1996 to hold 33% of the shares, his shares in Yahoo would be diluted, but still %.

When Yahoo officially went public in April next year, his shares in Yahoo would be diluted again, but it is estimated that it can still be maintained at around 10%.

If Yahoo goes public in April next year and its market value exceeds 1 billion US dollars, the market value of Yahoo shares held by Yifan Company in Singapore, which he controls, will also reach an astonishing 100 million US dollars!

Oh my God, in another 8 months, he may become a billionaire with a net worth of hundreds of millions of dollars!

After hanging up the phone, Li Xiaofan raised his glass excitedly to Lin Muchu, Ye Niya and others and said, "Come on, cheers! What else do you want to drink? Order whatever you want. I'm treating you tonight, and no one is allowed to compete with me!"

Lin Muchu had just listened to the conversation between Li Xiaofan and Jerry Yang, and probably knew that Li Xiaofan was going to increase the capital of Yahoo. She also raised her glass happily and said, "Mr. Li, I wish you a successful investment!"

Because Li Xiaofan and Jerry Yang were communicating on the phone in Mandarin, Ye Niya and others didn't understand. They just felt that Li Xiaofan was particularly excited after the call, and maybe something good was going to happen.

"Afan, I wish you a more prosperous career!" Ye Niya also took the lead in raising her glass to congratulate.