Speaking of domestic Internet giants, many friends first thought of Alibaba, Tencent, but before that, there was also an Internet giant in China, which was called”magic website”58 same city, but in recent years, 58 same city However, the market value of the Internet has fallen sharply, and the market value is almost”halved”. The current market value is around 60 billion, but now this Internet giant is going to”privatize” and delist?

getUrls?link=35b0e97ad6acb12acfca4609c0189034 - Why is the"magic website" 58 same city no longer magical, and privatization and delisting?

September 7 On the same day, 58.com issued an announcement, which indicated that at the extraordinary general meeting of shareholders, more than 75%of the votes passed the privatization proposal. In fact, in June this year, 58.com had already signed a privatization contract with a buyer, with a transaction value of 59.4 billion. Yuan can be said to be the largest privatization transaction in history. So, why did 58.com choose to delist in the form of privatization?

getUrls?link=63cc150ca8c5d9622760720a7b35f4b1 - Why is the"magic website" 58 same city no longer magical, and privatization and delisting?

It is understood that For the privatization of 58.com, the buyer’s investment group includes Warburg Pincus, General Atlantic, Ouling Investment and 58.com Chairman and CEO Yao Jinbo. At present, the largest shareholder of 58.com is Tencent Holdings Limited, which holds 67,285,900 shares, with a shareholding ratio of over 22%, And Tencent Holdings Limited is one of the subsidiaries of the Tencent group, which means that Tencent is the largest shareholder of 58.com, and CEO Yao Jinbo only Holds about 10%of the equity.

getUrls?link=f9dc7def747cb84f837a0063d11663c0 - Why is the"magic website" 58 same city no longer magical, and privatization and delisting?

This Ma Huateng In terms of the privatization and delisting of 58 same city, Ma Huateng should be the one with the greatest profit, which means Tencent Group’s territory has expanded again. But entering 2020, so far, the stock price of 58.com has fallen by more than 13%. So, why did 58.com, which once occupied a relatively high market share, choose to privatize and delist?

In fact, the revenue growth rate of 58 same city has been compared Slow, although the gross profit margin is relatively objective, it is still one of the companies with relatively high gross profit margin in the Internet industry. At the same time, in terms of cash flow, 58.com is also eye-catching. In the last three years, the cash flow was 2.697 billion yuan. , 3.8 billion yuan, 4.354 billion yuan. In addition, the main business of 58.com is also growing, but since the listing at the end of October 2013, 58.com’s revenue is also growing.

But before listing, 58 same city The net profit is negative and in loss. After listing, the net profit for two consecutive years was only more than 100 million. In 2015, 58.com was even exposed. The loss was about 1.6 billion yuan, a decline of about 1200%compared to the same period last year. For a while, the development of 58 same city was also affected. It has attracted the attention of many people in the industry.

getUrls?link=57559a9cff324a8fc273736cd68c2a52 - Why is the"magic website" 58 same city no longer magical, and privatization and delisting?

Next, 58.com adjusted its business. Starting in 2016, net profit has increased again. From the perspective of the business scope of 58.com, the main revenue comes from membership revenue and online marketing revenue. But in fact, after 58.com has occupied a relatively high market share by virtue of”a magical website”, although it continues to expand , Acquired Ganji.com, Anjuke and so on. But the main business has not changed much.

On the contrary, with the rapid development of the Internet, traffic has also diverged, and many Internet users have poured into mobile phones. At this time, 58.com also ushered in a huge challenge. Especially in the real estate business, with the rise of platforms such as Lianjia, I Love My Home, and Shell, the market share of 58.com is also Continuous decline. Coupled with the previous 58 same city was trapped in”fake listings and black intermediaries”, and it lost its competitive advantage. However, these problems have not been resolved, and users no longer favor the same website as 58.com.

Finally, for 58 same city, can you continue To gain a firm foothold in the market and maintain business growth is also one of the most important issues for 58.com.