Reborn Russia as an oligarch

Chapter 261 Privatization and Delisting

Wang Ye didn't know much about Voloz. After all, in his "previous life", the company Yandex was not very famous, and he didn't even know the name of the company's founder.

According to the information collected by the employees of Polar Bear Investment Company, Wang Yecai had a little understanding of Voloz.

This guy is an absolute technical genius!
Voroz was one of the first people in Russia to get in touch with computers in 1984 during the former Soviet Union...

At that time, there were only a dozen computers in the entire former Soviet Union!

And in the early 90s, Voloz founded a company and began to specialize in search engine technology.

In terms of technical level, it is definitely leading the world!
In 97, Voroz founded Yandex with two partners and officially launched the Russian search service, which was one year earlier than the establishment of Google.

In Russia in 2001, Yandex was the largest search service provider in Russian!
At present, Voloz is the largest individual shareholder and CEO of Yandex, accounting for 15.00% of the shares.

The other 80.00% five are owned by multiple investment institutions and individual investors, because the stock price has plummeted by 90.00% seven, so the current market value of the company is less than $400 million...

These are the current situation of Yandex company.

………………

Under the leadership of Voloz, they briefly visited the company, and then everyone entered the large conference room, ready to start negotiations.

Internet companies, in fact, there is nothing to look at.

In addition, the company has already laid off nearly half of its staff, and the whole building looks empty and deserted.

Voloz took the lead in speaking: "Welcome to Mr. Mikhail and everyone in Polar Bear Investment Company, and thank you for your trust in Yandex. Under the current environment, you are still willing to invest in our company. It is undeniable that from last year At the beginning, the Internet industry around the world is facing great difficulties, and Yandex is no exception. At present, the company's funds are very tight, and it really needs new funds to enter..."

He was very frank, telling the external environment and internal difficulties without any concealment.

Of course, even if you want to hide these things, you can't hide them. After all, investment companies are not vegetarians, so they must have investigated clearly before coming here.

Therefore, if he speaks out on his own initiative, he can still gain a good impression.

After listening to Voloz's words, Wang Ye smiled and nodded, and said: "Yes, the global Internet is in a cold winter, but in the long run, I still insist on the development of the Internet industry. We established the Polar Bear Investment Company , the goal is to invest in global Internet companies, and Yandex is the first investment target we choose!"

Voloz's face was full of gratitude, expressing his great honor.

The two parties have had contact in the early stage, and Voloz certainly knows the public background of Polar Bear Investment Company.

This company is backed by the Yukos Group, an energy giant, and just bought Siberia Petroleum for 50 billion dollars a few days ago!
Although the news was not widely publicized, it has already been widely circulated in some circles.

Obviously, this investment company is definitely financially strong!

If Yandex, which is in trouble, can get the share investment of Polar Bear Company, it can basically be brought back to life.

"Mr. Mikhail, how much do you plan to invest, and what are your requirements for shares or board seats?" Voloz asked cautiously.

These are the core issues!
How much money to give, how many shares to ask for...

Wang Ye smiled and said directly: "The market value of Yandex is very low now, only a few million dollars. We must buy it wholly. If Yandex is privatized and delisted, how much will it cost?"

Voloz was taken aback, and shook his head again and again: "Mr. Mikhail, although Yandex's current market value is indeed only a few million dollars, everyone understands that this is only affected by the cold winter of the Internet, and the company is seriously underestimated! Fact In fact, the headquarters building of our company alone may be sold for more than a few million dollars. Plus..."

Before he finished speaking, he was interrupted by Wang Ye.

"Mr. Voloz, please pay attention to one thing, that is, Yandex is still not making any profit! Every month's expenditure needs a lot of money, and in a few months, your company is estimated to sell the headquarters building It's time to pay the employees wages." Wang Ye said with a smile.

On the surface, Yandex’s market value of several million dollars is indeed low. The fixed assets alone are more than that, plus the company’s website, technology patents, etc., no matter how you calculate it, it will cost 3000 to [-] million dollars.

But for any company, it is reasonable to have a low valuation, and you can't just look at the surface!
Because Yandex does not make any profit, although it is also advertising, the Internet is not very popular, so there are not many advertisements, and the income from this area is far from the company's monthly expenses.

So the company is still losing money.

When the Internet industry was booming, no one cared about these losses, because everyone was looking at the company's earnings ten years later, and there were a lot of venture capital funds for Internet companies to burn to seize market share.

But when the Internet was in the cold winter, no one dared to invest money, and the consequences of these losses began to be revealed.

There is no money in the company's account, but employees' salaries still have to be paid every month, and the money for various broadband fees and hardware purchases has not decreased...

Sitting on the mountain, the company's market value will only fall all the way!
What the stock price reflects is only what will inevitably happen to your company in the future, so it really can't be called an undervaluation.

…………

Being exposed by Wang Ye's words, Voloz had nothing to say, because he knew well that the company was indeed in this situation.

If there is no new capital coming in, it really won't last.

Even if layoffs continue, severance pay must be paid to employees, which also requires a lot of money.

Moreover, the wages of employees in the Internet industry are generally relatively high. Take Yandex as an example, the average salary of employees has exceeded two thousand dollars!

The salary of one employee is equivalent to that of four university teachers...

Of course, because it is the top Internet in Russia, the employees they recruit are indeed top programmers, worth the price!

Now the remaining hundreds of employees need to spend 100 million US dollars every month just for salary!
"Okay, Mr. Mikhail, how much are you willing to pay for the privatization and delisting of the company? In addition, I also want to know your plans for the company's future development." Voloz said weakly.

If Yandex is indeed privatized, it is not necessarily a bad thing.

Of course, this is for the company.

But for founders of companies like Voloz, that is definitely not a good thing.

After all, they are all so-called executives of listed companies now!

After being acquired, it is up to the face of the new boss to do things...

(End of this chapter)