Especially now that Baidu is still celebrating, and about to pop champagne!
It's simply ironic!
Qu Xin opened his mouth, truly not knowing how to shatter Li Yan and others' beautiful dreams, to tell them to celebrate what, Baidu is finished!
Under the bright lights and wine, Li Yan also noticed Qu Xin's abnormality and asked with concern:
"Old Qu, why do you look so bad? Did we spend too much money by investing in NavInfo?"
"It's fine, it's all minor. As long as we can ensure the strategic security of Baidu Maps' underlying map data, it's worth it, no problem. Come, drink! '82 Lafite!"
Saying that, Li Yan handed over the Lafite.
Qu Xin, however, dared not take it, only saying:
"Chairman, Baidu is finished!"
"???"
Li Yan looked bewildered:
"What's finished?"
"Baidu Maps is finished, AI intelligent driving is finished, everything is f***ing finished!"
Qu Xin said hysterically.
"???"
Li Yan was stunned, and a terrifying reality immediately came to mind:
"Could it be NavInfo..."
"Yes, yesterday when I was negotiating to acquire Amap at Xingyi Technology, Tencent and Alibaba sent vice presidents to NavInfo, scrambling to invest."
Li Yan: "..."
"Today, Chairman Wang Yi rejected our acquisition of Amap. When I rushed to NavInfo this afternoon, Alibaba was out, and Tencent acquired 10% of NavInfo's shares for 1.5 billion. From now on, NavInfo belongs to the Tencent ecosystem, and our Baidu Maps is finished!"
Li Yan's face turned pale: "!!!"
His hand holding the Lafite was trembling.
His face instantly became ashen.
His wide eyes were filled with anger and despair!
"NavInfo is now part of the Tencent ecosystem. As sworn enemies, they will no longer cooperate with us after the authorization expires next year."
"Amap, the other underlying map data provider, has been wholly acquired by Wang Yi. Given our hostile relationship, it's even more impossible for him to grant us authorization."
"Without even underlying map data, the future of Baidu Maps is completely ruined!"
"It can operate at most until next year, and will be completely finished the year after!"
"Baidu Maps is finished, and our heavily invested AI intelligent driving is also finished!"
"F*** it, the entire strategy is finished!"
"Bang!"
The goblet filled with Lafite crashed heavily to the ground, shattering into pieces.
What '82 Lafite, what celebration banquet?
At this moment, Li Yan only felt ironic!
Baidu Maps and intelligent driving are about to be finished, yet they are still holding a celebration?
How ironic!
Even worse, they just held a press conference today, arranged trending topics, heavily promoted Baidu Maps + AI intelligent driving's grand strategic vision, and even disparaged Xingyi Technology and Amap!
Now they tell me there's no underlying map data left!
What's there to do then?
The grand ambition of Baidu Maps + AI intelligent driving has just begun, and it's already over!
Isn't this a joke?
It's too funny!
Even worse, there's the stock price!
The stock price, which was boosted by Baidu Maps + AI intelligent driving, will also completely collapse because of this.
"It's over, everything is over!"
Li Yan's expression changed drastically, and he quickly said:
"We must control the information, it absolutely cannot leak. Once it leaks, not only will our Baidu stock price not rise back, it will plummet again! It will fall even harder, becoming even more unbearable!"
However, what one fears, comes true.
A subordinate, holding his phone, couldn't help but say:
"Chairman, the news has already leaked!"
"What! So fast!"
Li Yan broke into a cold sweat and snatched the phone, only to see a news item trending:
[Tencent strategically invests 1.5 billion in NavInfo, becoming NavInfo's second largest shareholder!]
"Damn it! They're so fast, they intentionally want our Baidu to die!"
Li Yan's face was pale, and he instantly thought of the consequences!
Sure enough, as soon as this news was released, Baidu's V-shaped rebounding stock price quickly stopped surging, then plummeted rapidly again!
The market value, which had just barely risen back to 205 billion, fell back in the blink of an eye.
And it fell even lower, dropping to 185 billion, then 180 billion, 175 billion... still plummeting wildly!
Plummeting as if endlessly.
For a moment, many shareholders were bewildered:
"How could this happen? Baidu's V-shaped rebound turned into a vertical plunge again?"
"Yeah, Baidu's stock price was surging just now, I just heavily invested, how could it crash?"
"Incomprehensible, isn't AI very strong? Very promising. How could it fall so badly?"
"I came to buy at the bottom, but ended up trapped! It's just ridiculous!"
For more professional news, retail investors don't understand it.
Even if it's trending, they don't understand, they just know to buy, buy, buy.
But capital institutions have professional analysts, who naturally understand.
When they saw Tencent investing in NavInfo, the institutions understood the consequences and knew that the grand ambition of Baidu Maps + AI autonomous driving was over before it even began.
They decisively sold off the heavily invested stocks at low prices, even if it meant some loss.
But retail investors didn't understand, they were still frantically buying and taking over the falling shares.
It wasn't until Baidu's stock price completely collapsed that retail investors reacted and started asking why.
A few industry insiders couldn't stand it anymore and explained:
"Baidu doesn't even have a foundation, what future does it have?"
"What do you mean? Please enlighten me, expert, I just bought some Baidu stock."
"Latest news, Tencent invested in NavInfo. As a competitor, it will no longer grant Baidu underlying map authorization in the future. Baidu Maps has no underlying data available, it's completely finished."
"Baidu can use other companies."
"Useless. The other company, Amap, was acquired by Xingyi Technology. Baidu is blocking Xingyi Video, and disparaging Xingyi Technology and Chairman Wang Yi, how could Chairman Wang Yi grant them authorization?"
"Without underlying map data authorization, Baidu Maps is finished. If Baidu Maps is finished, then the so-called AI autonomous driving becomes a fantasy! Baidu is also finished!"
"So that's it, no wonder Baidu, which was a bull market just now, turned into a bear market."
"Damn it, why didn't you say so earlier, I've already heavily invested in Baidu!"
"Me too, I'm crying! By the way, what exactly is underlying map data?"
"My goodness, you don't even understand this, yet you dare to buy stocks?"
"What do I understand? I just follow the trend, buying what others buy."
"Brother, promise me you won't trade stocks anymore, find a factory job! You'll thank me."
"Watching him build tall buildings, watching him entertain guests, watching his buildings collapse. This wave for Baidu is unbearable."
"Yes, it's only to blame for courting disaster itself, offending Chairman Wang Yi too badly. And being a sworn enemy with Tencent, it's truly over."
"Baidu's stock price tonight is likely to fall to an extremely terrifying level!"
"When I saw the news of Tencent investing in NavInfo, I decisively sold everything at a 20% loss."
"Amazing, I acted too slowly, sold half at a 25% loss, and half are trapped."
"I just bought more at a bargain, taking over your shares! Now they're all trapped!"
"Thanks, good people!"
"Thanks, leeks!"
"..."
"Baidu is so f***ing funny. They haven't even sorted out the underlying map data, yet they want to do AI autonomous driving. What a joke."
"Baidu also said Amap wasn't worthy of being their competitor. Now look, even if they begged Amap, Amap wouldn't help."
"Baidu is a typical 'drawing a big picture' player, wanting to fly before learning to walk. Baidu is too unrealistic."
"Yes, the existence of such a company is just to deceive people."
"Li Yan talked big, saying Amap is just maps, while Baidu is AI autonomous driving. It's hilarious, without maps, how can Baidu have autonomous driving?"
"Baidu has never lost at bragging, but never won at actual work!"
"When it comes to doing things practically, you still have to look at Xingyi Technology."
"Exactly, Chairman Wang Yi first acquired Amap outright, directly ensuring the strategic security of underlying map data. Based on this, whether developing O2O or intelligent driving, the future is limitless."
"Hahaha. Baidu's grand ambition actually needs Xingyi Technology to achieve it. It's truly hilarious."
"Baidu is useless, I'll never believe Baidu's PPTs again."
"Alas, poor Li Yan. He just boasted about the grand ambition of Baidu Maps + AI autonomous driving during the day, and at night, his ambition went bankrupt. It's truly laughable!"
"By the way, does this damn company only know how to brag?"
...
Half an hour after Tencent's trending topic was posted, Baidu's stock price completely collapsed.
The stock price further dropped from $108 half an hour ago to $85.
Compared to its previous peak price of $148, it was almost halved!
For a time, institutions and investors who had heavily invested in Baidu were all indiscriminately harvested and trapped.
Those who ran fast lost 20% or 30%.
Those who ran slowly, especially those who entered at $148, lost 42.3% and were completely trapped.
And Baidu's market value also dropped from the previous 280 billion to 160.8 billion, almost halved.
Looking at the unbearable stock price, the entire Baidu was plunged into melancholy.
Surveying the brightly lit celebration banquet, Li Yan's mouth twitched, not knowing what to say.
Half an hour ago, Baidu's stock price saw a V-shaped rebound, surging tens of billions in market value in one day!
Half an hour later, Baidu's stock price plummeted vertically, falling tens of billions in one day!
Truly, extreme joy turns to sorrow!
People's joys and sorrows are not the same.
Watching Baidu's plummeting stock price and market value, Jian Ziyan felt triumphant:
"Chairman Wang Yi is brilliant. Tencent indeed made a move, directly using a trending topic to block Baidu Maps' authorization, hahaha!"
"Everything is as you predicted. Xingyi Technology and Tencent have jointly blocked Baidu! So that Baidu will have no underlying map data available after next year!"
Wang Yi smiled slightly, also in a great mood:
"This is tacit understanding."
Wang Yi and Chairman Ma did not communicate, did not discuss, and did not even meet.
But their actions were consistent: refusing to authorize Baidu and jointly blocking it!
The map market is limited; it's one less competitor if you can take one down.
As for Baidu Maps, it was the first to die.
After taking down Careland Map, the domestic map market will be dominated by Amap and Tencent Soso Map.
Of course, primarily Amap, after all, Tencent Soso Map's market share is too small, even smaller than Sogou Map.
But Amap has limitless prospects, and monopolizing the market is only a matter of time.
However, Wang Yi was even happier about Baidu's plummeting stock price, as he earned more by shorting Baidu.
As early as when Baidu blocked Xingyi Video, Wang Yi had already arranged to short Baidu!
With the previous experience of shorting HM, operating it now was second nature.
Some time ago, Wang Yi had specifically built a team of traders, precisely for shorting Baidu!
Since they were already mortal enemies, they might as well go all out.
After all, in such a sure-win situation, not shorting would be unforgivable.
As for the scale, Wang Yi still decided to short 4 billion RMB, plus a five-fold leverage!
This allows for flexibility, ensuring considerable returns without too much risk.
When shorting a few days ago, Baidu's stock price was $148, with a market value of 280 billion RMB.
After Wang Yi shorted Baidu, he directly sold all his shares, cashing out 20 billion at a high price.
Later, when Baidu's stock price plummeted, Wang Yi would buy back the borrowed shares and return them.
The difference between the two is Wang Yi's profit.
That's right, the 1.65 billion for acquiring Sogou, and the subsequent 3.55 billion for acquiring Amap, all came from the money cashed out from shorting Baidu.
It means Wang Yi used the funds from shorting Baidu to acquire Sogou and Amap, and then used Sogou and Amap to fight Baidu!
It was almost equivalent to fighting Baidu empty-handed!
As for Xingyi Technology's own money, there was still some, but it was saved for other uses.
Whether it's data centers, cloud computing R&D, or chip R&D, purchasing lithography machines and other equipment, all require burning money!
And developing food delivery and ride-hailing services also requires money.
Even though Xingyi mobile phones are selling well and making a lot of money, it's still not enough!
Wang Yi had to be meticulous, expanding income and cutting expenses.
For example, Alibaba Cloud computing invested 1-2 billion annually, and Wang Yi started even later.
To develop quickly, he could only invest more money!
Nothing else, Alibaba Cloud computing is not a simple Alibaba Cloud Drive, but the Alibaba Cloud Apsara System!
Alibaba Cloud Drive doesn't have much technical content; Baidu, Tencent, even 360, Weibo, and Xiaomi can do it.
But Alibaba Cloud computing took Alibaba ten years to develop, Tencent felt it was too advanced, and Baidu couldn't even understand it directly...
For example, last year's Double Eleven, why didn't Meiyou have any big promotional activities?
It wasn't that Wang Yi was unwilling to spend money, nor that he didn't want to do it; it was that Meiyou Technology at the time didn't have the cloud computing capability, and the servers couldn't handle it!
The Double Eleven in 2011 still offered genuine discounts.
Although it wasn't a 50% off big sale from the original price, 30-40% off was real.
It wasn't like years later, where prices are raised first and then lowered, seemingly 50% off but actually 10% off, or even more expensive than usual!
It was precisely because of the genuine 50% to 30% off big sales that the Double Eleven event was very popular at the time.
Coupled with Meiyou's influence, if Wang Yi dared to launch a Double Eleven big sale, the servers Meiyou was leasing at the time would crash in minutes!
It would be an absolute disaster.
No way, Wang Yi didn't have Alibaba Cloud computing, nor his own data centers, so he couldn't support such a huge surge in traffic.
As for adding dozens of times more servers for a one or two-day big sale... this was neither realistic nor cost-effective.
After all, after the big sale, traffic would return to its original level, and adding dozens of times more servers would be a waste.
So Wang Yi could only give up on the Double Eleven big sale.
For the development of Meiyou and Xingyi Technology, he also had to build data centers and develop cloud computing, adding another money-burning ancestor!
With so many money-burning ancestors, Wang Yi could only set aside sufficient funds.
As for fighting Baidu, he could only use the money cashed out from shorting Baidu to acquire Sogou and Amap, and continue to fight Baidu!
The main idea is a perfect closed loop!
Once Baidu is defeated, Wang Yi will make a huge profit by shorting Baidu, and then have even more ample funds to continue fighting Baidu!
This is another perfect closed loop!
In terms of business warfare, Baidu only knew to use its monopoly position to block and suppress, or to use crisis PR to boost itself and disparage others.
Too low-level.
But Wang Yi proceeded step by step, using the funds cashed out from shorting Baidu to strategically develop and fight Baidu!
This was much more brilliant.
But the premise for this was that Baidu's stock price had to hit rock bottom and absolutely could not rise.
Otherwise, Wang Yi would suffer huge losses!
After all, a 4 billion plate, five times leverage!
Watching Baidu's continuously falling stock price, Wang Yi smiled slightly:
"Today is Christmas Eve, Baidu is destined not to have peace!"
Jian Ziyan was in a great mood:
"Yes, I'm afraid Baidu's days ahead won't be easy."
The current situation for Baidu was unsolvable.
"Let's go, Ziyan, go back to sleep. Don't worry about it."
Wang Yi said with a smile.
"Okay!"
Wang Yi went straight to Lin Shu's home and went to sleep holding his little rich wife.
But before going to sleep, he sent an instruction to the short-selling team:
[Monitor the market. If Baidu's stock price falls below $78, buy back 2 million shares! If it falls to around $75, buy back another 3 million shares.]
This short-selling position was very large, and with five times leverage, Wang Yi couldn't wait until close to the settlement deadline to buy back 20 million shares all at once.
That would certainly cause Baidu's stock price to skyrocket, the cost would be too high, and it could easily backfire.
So Wang Yi still adopted a conservative strategy, starting to buy back in batches from tonight, as long as the price was right.
By operating this way in separate stages, he could gradually buy back enough shares over a period of time and deliver them to the broker.
At that point, this short sale would be stable.
Earning a decent amount was enough, Wang Yi was not greedy.
Afterward, Wang Yi held Lin Shu and fell into a deep sleep.
Lin Shu blinked her big eyes, gave him a kiss, but murmured in her heart:
"Xiao Yi is so good. After all this time, he hasn't forced me to do anything bad. He really loves me, hehe!"
Then she closed her eyes and fell asleep in Wang Yi's arms.
But at Baidu headquarters, the lights were still brightly lit.
Whether it was Li Yan, Qu Xin, or other senior executives, all were sleepless.
Even the major shareholders couldn't sit still and rushed over.
Baidu's stock price tonight had fallen too frighteningly.
During this period, Baidu's stock price had fallen from $148 all the way to $98.
Today, after crisis PR, using the hype of Baidu Maps + AI intelligent driving, it had barely recovered to $108.
However, the news of Tencent investing in NavInfo again drove Baidu back to its original state, directly down to $85!
It had now reached $83!
If it continued to fall like this, a halving was very possible!
Li Yan's head was as big as a bushel:
"Tencent's moves are too fast. They actually acquired NavInfo, cutting off the future of Baidu Maps, and also cutting off the future of AI autonomous driving. Even Baidu's future! Everyone, tell me, how can we solve this life-or-death crisis?"
Li Yan spoke heavily, life-or-death crisis!
But no one thought it unreasonable.
Baidu Maps + AI autonomous driving was Baidu's core development direction at the moment.
If this went wrong, it truly was a life-or-death crisis.
Qu Xin took a deep breath and spoke first:
"Chairman, Baidu currently relies on search, but it cannot rely on search engines ten years from now, constantly living off past achievements is not good! So autonomous driving must be our main business! We absolutely cannot give up!"
Other executives also agreed:
"Yes, if Baidu Maps + autonomous driving fails, our current strategy for Baidu will have to be completely revamped. So the underlying map data must be resolved!"
"Resolved?"
Li Yan laughed:
"Come, tell me, how to resolve it? Will Tencent grant us authorization? Or will Wang Yi grant us authorization?"
"This..."
Everyone fell silent.
Li Yan sighed:
"Such a great opportunity to kill Baidu Maps, neither Tencent nor Xingyi Technology will let it go. Alas!"
"Chairman, things are not necessarily absolute. As long as the conditions are good enough, we still have hope."
Qu Xin still did not give up:
"Although the chances are slim, I plan to try again. Even if we can't acquire Amap, as long as we can get authorization for Amap's underlying data, even if it's only for three years, our Baidu Maps can survive!"
"As long as we have a three-year buffer period, we can acquire a company with Class A map surveying and mapping qualifications, obtain the qualifications, and build our own Baidu underlying map data! At that time, we won't be afraid of being blocked by anyone."
"Good!"
Li Yan heartily agreed:
"This two-pronged strategy is excellent. First, a delaying tactic, relying on Amap's authorization to survive, while simultaneously planning for surveying and mapping qualifications to map our own underlying maps! I'll leave this to you. The authorization fee is not a problem; as long as we can sign it, even a five-fold price increase is fine!"
Qu Xin nodded solemnly:
"Don't worry, Chairman, I will go to Xingyi Technology again tomorrow. In addition, we need to prepare for crisis PR to stabilize users. Currently, a large number of Baidu Maps users are uninstalling and switching to Amap!"
"Okay, I understand this matter. We also need to secure Amap's authorization as soon as possible."
Li Yan's face was very grim:
"I'm just afraid we won't get Amap's authorization. If that's the case, we can also try Tencent. After all, Amap has too high a market share, and Tencent Soso Map is too small in scale, simply no match for Amap. This might make Tencent willing to cooperate with Baidu Maps to jointly deal with Amap!"
Qu Xin, however, waved his hand:
"It's also possible that Tencent wants to kill Baidu Maps, then acquire Baidu Maps and merge it with Soso Map. That way, Tencent will have the ability to compete with Amap!"
"This..."
Li Yan's face turned pale, but he had to admit that this was very likely:
"Regardless, let's try it first. If we can drag it out for three more years, then drag it out for three more years!"
"Okay."
...
The next day, Wang Yi went straight to the enclosed hotel where the short-selling team was located.
"Chairman, Baidu's stock price plunged all night. We bought back 5 million shares in batches as you instructed, at an average price of $77."
"Very good, thank you for your hard work. Everyone, please take a break!"
Wang Yi said with a smile.
Afterward, service staff brought food to entertain everyone.
Of course, there was also a large red envelope to reward them!
With these people, Wang Yi found it very convenient whether selling to cash out or buying back.
Wang Yi then went to Xingyi Technology, only to find a figure already waiting in the conference room.
"Chairman Wang Yi, I'm here again!"
Qu Xin greeted him with a smile.
Wang Yi frowned slightly:
"Are you here for Amap again?"
"No, Chairman Wang Yi, don't misunderstand. This time, I'm not here to acquire Amap; I know you won't sell. But Baidu Maps and Amap can cooperate. We are willing to pay a huge sum to purchase authorization for Amap's underlying map data, what do you think..."
"Stop!"
Wang Yi decisively interrupted him:
"Our Amap is just a map maker; how can we cooperate with a giant like Baidu, which does both maps and AI intelligent driving? We are not worthy!"
Qu Xin's mouth twitched: "..."
The arrogance Chairman Li Yan showed yesterday, disparaging Amap, now it came back to bite him!
The boomerang really hurts!
"Chairman Wang Yi, we are willing to offer five times the authorization fee! Please seriously consider it!"
Qu Xin was unwilling to give up; if he did, it would be even worse.
"Sorry, not even ten times. We are just a three-year-old child, and Baidu is a thirty-year-old adult. Why would an adult need a child's authorization?"
Wang Yi smiled slightly:
"Ziyan, show him out!"
"Chairman Wang Yi!"
Qu Xin's expression changed drastically, he wanted to say something, but Wang Yi had already given the order to leave.
Jian Ziyan was even more decisive:
"Vice President Qu, please!"
Qu Xin sighed:
"It's all the Chairman's fault for speaking so harshly, disparaging Xingyi Technology, Chairman Wang Yi, Amap, and Sogou all at once. Now going to them to ask for authorization, it would be a miracle if they agreed. Alas!"
He could only leave dejectedly.
On the other side, the person who went to Tencent to request authorization also hit a wall!
As sworn enemies, who would let go of such a great opportunity to kill Baidu Maps?
This made Baidu furious but helpless.
Xingyi Technology and Tencent, not even giving underlying authorization, not even giving a transition period, Baidu Maps is truly crippled!
Being strategically blocked, the outcome was extremely miserable.
That night, news stories once again rushed to the top of trending searches:
[Xingyi Technology and Tencent both refuse authorization, Baidu Maps is completely finished!]
[Blocking Xingyi Video + rampant disparagement, Li Yan personally cut off Baidu Maps' last hope of survival!]
[After NavInfo's authorization expires next year, Baidu Maps will face no underlying map data available, or may go bankrupt!]
[Without even underlying map data, Baidu Maps + AI autonomous driving is the biggest joke of the 21st century!]
As soon as these trending topics appeared, they caused a global sensation.
Immediately, everyone understood the stakes involved, everyone understood the future of Baidu Maps.
And Li Yan and Baidu became a laughingstock!
This made Li Yan furious:
"Damn Tencent and Xingyi Technology, it's bad enough they don't authorize, but they also arrange trending topics to let the whole world see Baidu's predicament!"
"What does this mean?"
"They really want to drive Baidu to its death!"
"Too much!"
Li Yan was enraged but helpless.
He never imagined that his grand ambition would die because of underlying map data security!
Without any surprise, when the US stock market opened that night, Baidu's stock price plummeted again.
It fell from $75, all the way to $73, then $70...
Wang Yi did not hesitate, decisively giving instructions to the short-selling team to buy back another wave of shares.
Below $70, buy in batches!
Even for a behemoth like Baidu, even if Baidu Maps + AI autonomous driving had problems, a halving of the stock price was probably the limit.
Their foundation was still there, the search engine was still there, they were still a BAT giant!
By adjusting their strategy in time, there was still hope for some recovery.
Although returning to the peak price of $148 was unrealistic, if there were favorable policies, returning to $80 or $90 was hopeful.
Wang Yi would not be carried away by victory; naturally, he had to know when to quit and buy back in batches.
That night, another 5 million shares of Baidu stock were bought back at an average price of $69.
"This wave of short-selling is estimated to earn tens of billions, perhaps even close to a hundred billion!" Wang Yi was in a great mood.
This way, chip R&D, cloud computing, and data centers all had money to work with!
(End of Chapter)