Chapter 1011
Google is currently the world's largest search engine and the second largest advertiser in the United States. It has so many advertising orders every year that it can't even handle it.
Google uses its own resources to help Facebook, which is equivalent to getting an advertising order for Facebook in the form of an intermediary, worth 150 million US dollars in three years.
This is really not small.
According to the normal website development logic, 150 million US dollars is enough for Facebook's daily expenses in the past three years.
In other words, if Dunn accepted Google's assistance package, New Universal would no longer even need to invest a penny for Facebook!
This is really a good deal for businessmen.
And Google will also become Facebook's only search engine supplier, which is definitely a mutually beneficial deal.
Facebook is still in its infancy, very small, with very few users.
However, behind Facebook is New Universal, and behind New Universal is Dunn Walker!
Google knows Tang En's investment vision too well.
The three giants of Google almost unanimously believe that the future of Facebook will be promising.
The earlier the investment, the sooner the cooperation, the better for Google.
Unexpectedly, Tang En actually refused!
A large order of 150 million US dollars in 3 years!
Not only refused, he even said that at this stage, Facebook is not suitable to be a partner of Google, and Myspace is more suitable!
Oh, God!
Could it be that Tang En is really a selfless guy?
In terms of business logic, Myspace is indeed more suitable to be Google's partner than Facebook.
Myspace is a SNS lifestyle portal, a big brother in the field of social interaction!
The form of blog is very popular among users, and even many Hollywood stars, writers, screenwriters, and musicians are recruited by News Corporation to register on Myspace immediately.
Higher traffic, more users, higher number of unique visitors, greater reputation... With so many advantages, Myspace is indeed Google's best partner.
In fact, at the very beginning, when Google decided to make money through the middleman’s price difference, outsource the advertising business, and obtain the exclusive operating range of the other party’s search engine, Google’s top executives did generally propose to become a partner with Myspace .
However, Myspace is a community website invested by News Corporation, and it has been spread in the industry for a long time. News Corporation attaches great importance to this website!
Negotiations are currently underway. News Corporation plans to pay a high price to buy all the shares held by other Myspace shareholders! Make Myspace a real subsidiary of News Corporation!
When the traditional media is declining, Murdoch very much hopes to continue to occupy a temporary place in the Internet age through Myspace!
This idea is certainly correct.
Just imagine, if Myspace did not make many strategic mistakes and was not defeated by Facebook, then the territory that belongs to Facebook in the Internet world in the future will belong to Myspace.
At that time, News Corporation was in charge of Myspace and would continue to occupy the core circle of the world media field.
What kind of strategic mistakes did Myspace make, leading to being replaced by Facebook, a small company with no background?
The answer is simple: greed for money.
"Profit is the only goal pursued by enterprises. However, for Internet companies in the early stage, they must not focus on immediate interests, and then ignore user experience, product improvement and competitors. Now Facebook does not need funds, but It is development. New Universal is not short of money!"
Tang En's answer did not make Larry Page feel relieved, and he was still confused: "But...but if the order is given to Myspace, well, given Myspace's current size and scale, it may be difficult to order an order of 150 million US dollars. Satisfy their appetite, and this order could be even bigger! With the help of so much money, Myspace will only grow faster and faster."
Tang En said with a smile: "Indeed, an order of 150 million US dollars is really not enough to satisfy Myspace's appetite, especially when News Corporation is eyeing Myspace and is determined to win it. If you want to impress Murdoch, you may... need a A huge order worth 500 million US dollars, or even 1 billion US dollars!"
Larry Page took a deep breath and said: "Myspace is backed by News Corporation and has a large amount of cash flow. They will immediately launch an international strategy, take the lead in entering the online social networking market, and invade overseas markets. At that time... Does Facebook really have a chance?"
New Universal is strong.
But News Corporation is not bad either!
When Myspace grows bigger, even New Universal, even Dunn Walker, may not be able to contain its fast-growing rivals.
Tang En said with a smile: "Google is not a charity organization. If it is really possible to make an order of 500 million dollars...or even higher value, there will definitely be very high requirements for cooperation."
Larry Page said: "Of course, we will ask Google to become Myspace's exclusive search engine supplier and sign a series of gambling agreements. Only when clicks reach a certain level can the full revenue in the contract be fulfilled.”
Tang En snapped his fingers and said happily, "This is what I want!"
Larry Page narrowed his eyes slightly, seemed to have finally come to his senses, and exclaimed, "Twain, you mean... to increase the burden on Myspace's operations, and let the management focus all their attention on the contract. Every quarter, I have to work hard to complete the revenue target, and then ignore many more core issues..."
"As I said, a start-up Internet company only needs to focus on three aspects: user experience, product improvement, and competitors. Google's order is exciting for News Corp., which will make the old guy Murdoch The excitement seems to be back to the youth. However, for a new company in a new industry like Myspace, it is undoubtedly fatal. Revenue pressure and contract pressure will make the management breathless and will seriously drag down Myspace's benign develop!"
Tang En's words made Larry Pagemass suddenly realize.
At this moment, his respect and admiration for Tang En also further increased.
Tang En's understanding of business has reached another level.
Treat money as nothing, regard money as dung!
Exactly, this is the only way for Internet companies to rise!
Give up profits and continue to burn money!
When the money is burned until all investors are jealous, and when users praise it and form an absolute word-of-mouth advantage and usage habits, it is the real explosion time!
Larry Page has even imagined something.
After News Corporation completes the acquisition of Myspace, Murdoch will definitely be ambitious and try to build a new News Corporation Internet empire relying on Myspace!
And the large order sent by Google is a "gift"!
Not to mention a traditional and old businessman like Murdoch, even the new generation of Internet entrepreneurs, I am afraid it is difficult to have such a long-term and profound vision as Tang En.
For such a large order, there is only one answer - accept!
Even... Looking at this era, apart from Tang En, I am afraid that no company or businessman would refuse a contract worth 500 million US dollars in real money.
If Myspace accepts this big order... Hehe, the consequences can be imagined!
In the short term, Myspace has received a large amount of financial support, and it will definitely develop rapidly. It will first spread across the United States, then enter Europe, and then Asia, Australia and Latin America.
With the support of News Corporation's channels, Myspace can complete its global layout within one or two years.
However, Google's large order will inevitably make Myspace load more and more advertisements. This will make the website slower and slower, and the user experience will be worse and worse.
It would be fine if they were all high-end advertisements like Dior and Mercedes-Benz, but some advertisements like slimming tea, rotten teeth, adult products, etc. will definitely affect the user experience greatly!
It is conceivable that when Myspace and Google fulfill the long-term contract, Myspace at that time has already become notorious, completely lost the love of users, and will inevitably lose its position as the market leader!
Facebook, with better user experience, fresher operating methods, and more youthful product functions, will explode suddenly and become the new overlord in the field of online social networking!
Larry Page took a deep breath. He felt more and more that Tang En was unfathomable. His advanced ideas and vision beyond the times are really amazing.
Eliminate opponents by making them earn more money.
This really overturns all previous business logic.
"Fortunately, he is a shareholder of Google, otherwise..."
He was a little afraid to think about it.
Back then, if it wasn't for his alumni Reese Witherspoon's connection, they would have accepted investment from Twain. Whether Google will be as successful as it is today is not certain.
"Twain, you convinced me. Really, your thinking... always gives me a feeling of enlightenment." Larry Page paused, then tentatively said, "However, I still I have a question. This Sun Valley meeting, our purpose is very consistent, which is to obstruct the cooperation between Microsoft, News Corp. and Time Warner, and make them give up their plan to acquire Yahoo. Does it matter?"
Giving Google orders to Myspace will bring greater benefits to Google. In this way, Myspace can also be suppressed; it can also indirectly help Facebook. Even after Myspace's word-of-mouth declines and the number of users plummets, the gambling agreement between Myspace and Google fails, and Google can still get back a large part of the money...
This is simply a trick to kill four birds with one stone!
But, does this have something to do with News Corporation's participation in the acquisition of Yahoo?
Tang En smiled confidently, "Trust me, Larry. I know Murdoch. He wants to build an Internet-based news corporation. However, he has a traditional business mindset. He is afraid of spending money and he is greedy for profits. He will agree to cooperate with Microsoft to carry out the acquisition of Yahoo. What is the purpose? Isn’t it to enhance the value of Myspace through Yahoo’s brand, channels and user traffic? If Google sends Myspace an irresistible offer early Is there any need for News Corporation to acquire Yahoo? Given the current situation, Google is a stronger partner than Yahoo.”
Larry Page was shocked.
Desperate account!
It's really a trick!
Kill five birds with one stone!