Chapter 782: 786

Just a few days after Valentine's day, an explosive news spread rapidly is undoubtedly the large-scale employee stock ownership plan of Internet industry giant igritte.

This issue has been the target of a lot of media attention before, and most of the related news thinks that Simon westero may try to reduce the equity reward that should be paid as much as possible. When the huge equity distribution plan, which accounts for 25% of the total equity of igritte company and is worth 25 billion US dollars, was announced, the award quota far exceeding the industry's expectation was astonishing.

25 billion US dollars, which is more than all the wealth of many traditional rich people. Once fully realized, it will undoubtedly create hundreds of billionaires and millionaires.

Is Simon westlow going crazy again when he suddenly takes out so many shares as a reward?

Hundreds of media reporters from all over the world gathered in San Francisco because of this news, and more and more inside stories were revealed.

Apart from the flying rumors, a piece of news officially confirmed by igritte has finally made the public feel that things are normal: there is nothing wrong with the employee stock ownership plan with a total value of 25 billion US dollars. However, this batch of shares is not unconditionally distributed to the total 25000 employees of igritte worldwide, but accompanied by a variety of changes All kinds of restrictive clauses.

In short, the more rewards you get, the more shackles you are bound to.

Tim Berners Lee, Jeff Bezos, Carol Bartz and Alice Ferguson, the four most watched igritte giants, are said to have to sign a new five-year employment contract if they want to get 17% of the total shares promised in their contracts.

Because the original contract has not yet expired, some of the three people's bonus shares will be postponed to their next five years in office, and they still have strict performance growth indicators. Not only that, with these shares, the four will be subject to many restrictions in the future.

If the next contract period forced to leave, it is necessary to return a large part of the stock.

The big four have already accounted for the majority of the ESOP, but the remaining shares for other management and ordinary employees are only 8%, but the total value is still as high as $8 billion. According to the total size of the company's 25000 employees, it is equivalent to 320000 dollars per person.

In Silicon Valley, where the demand for talents is very hungry at this stage, the average annual salary has rapidly increased to $80000, with an average bonus of $320000, equivalent to the salary of many programmers for four years.

What's more, the distribution of these shares will not be evenly apportioned. Most people can only get a small amount of shares symbolically, and more of them are low price subscription rather than direct free reward. This time, the focus will be on the management and technology core who will make more contributions to igritte, many of whom will be billionaires and millionaires.

There is also a key prerequisite: most employees participating in the incentive and subscription schemes need to sign a non compete agreement for at least three years.

Many of igritte's products, at least on the surface, are easy to copy.

With the surge of new technology, other capitals who want to enter the Internet industry tend to first target igritte, which has formed a number of sustainable business models. They can recruit people from igritte to form a team, whether it's portal sites, search engines, social websites or online communities. If they want to copy these business models, they can achieve the goal Double work and half effect.

In recent years, the biggest headache of igritte is the continuous loss of a large number of employees under the tireless hoe of competitors.

As long as the large-scale employee stock ownership plan is completed, it will not be easy for other companies to dig from igritte for at least the next three years, depending on the extensive non competition agreement.

For the rapidly changing field of new technology, even if some employees insist on leaving their jobs and are bound by the competition agreement, they can no longer engage in relevant occupations within the specified period, then most of the very formal skills and experience at this time will be out of date after the deadline of the competition agreement.

Such a period of time is enough for igritte to completely consolidate its own industry advantages and get rid of most potential competitors.

On the whole, with the huge valuation of igritte at the level of 100 billion US dollars, Simon westero can maintain the industry advantage of the company for at least three years with only 8 billion US dollars of shares in addition to the contracts of the big four, which is still very cost-effective.

You know, in February, as one of the three technology giants at the core of the westero system, Cisco's market value has easily exceeded $150 billion and gone straight to $200 billion.

The development momentum and monopoly pattern are no less than that of Cisco's igritte company. The IPO valuation has reached 100 billion yuan. After listing, it may also be a super giant with the level of 200 billion US dollars. Compared with this income, even the entire $25 billion incentive plan is worth it.

Naturally, there is no lack of doubt.

For most of the general public, the biggest question is whether igritte is really worth $100 billion?Many reporters began to dig deeply for this problem.

There will be news soon.

The New York Times, a paper giant on the east coast, specially made a related topic on the Sunday edition of February 19. The core information involved in it surprised people in the industry even more than the $100 billion valuation of igritte: igritte's revenue in 1994 will reach the $10 billion level of terrorism.

Compared with the establishment period of igritte, it will generate 10 billion US dollars of revenue from zero in five years. As long as the public has a little idea about this, they should understand how terrible this is.

At this stage, most of the world's top 500 enterprises with a long history have a revenue of less than 10 billion US dollars. In fact, according to last year's data, the revenue threshold of fortune's top 500 enterprises in the world is only 1.8 billion US dollars, while among the 500 enterprises around the world, only 97 enterprises have revenue of 10 billion US dollars.

Igritte company just established for more than five years, it has achieved the goal that many enterprises can't reach for generations. How can it not be said to be a miracle!

Even in the field of new technology, take Microsoft, which has many businesses overlapping with igritte.

Microsoft's fiscal year was in July of the previous year. When the New York Times article was published, it achieved revenue of 10 billion US dollars in five years. Even some professional financial media had to question this.

However, it seems to be true.

The key is monopoly!

Igritte, together with Cisco and AOL, has created the Internet industry in the past five years, rapidly bringing the United States and the world into the information age.

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There is no doubt about that.

Because of its early advantages, Cisco has almost monopolized the professional router and switch market, and AOL's market share in the ISP field is far more than even the old giants like at & T. as for igrit, it not only has stronger monopoly advantages, but also covers a wider range of fields.

First of all, igritte has almost mastered all the basic tools and software of the Internet. Because of the perfect patent barrier built in advance, there is no other branch now.

Once we have the pricing power, the price is naturally high.

The wave of new technology is so turbulent. As long as you want to enter this field, as long as you want to create a website, you can't do without a series of basic tools and software of igritte. This is the most ideal "toll bridge" envisioned by Warren Buffett, and the only toll bridge facing the global market.

Moreover, with igrit's software business changing from the traditional sell-off mode to the new "rent collection" subscription mode, the damage of piracy has been largely avoided.

Even if it's a website hiding in a corner of Africa, if you use pirated software, just check the subscription information. If you don't subscribe to genuine software, first of all, your website can't appear in various recommendation systems of igritte company. Secondly, you may face lawsuits from igritte at any time.

Therefore, as long as enterprises want to make a difference in the Internet field, they must pay to igrit's "toll bridge".

In the past few years, there have been hundreds of thousands of Internet companies all over the world, but these companies have unconsciously contributed billions of dollars in revenue to igritte's software business.

Then there was advertising.

With Simon's mature business model in his memory, there is no need to grope too hard. Over the past few years, igrit's advertising business has been perfectly divided into four parts: portal advertising, social network advertising, search engine advertising and advertising alliance plan.

Because of the interface monopoly advantage that Internet Explorer brings to igritte, the enterprises outside the westero system can only advertise to igritte if they want to get more network traffic.

This is actually another "toll bridge.".

Moreover, with the rapid development of the Internet, network advertisers are not limited to new technology companies, and traditional industries have begun to advertise in this field.

In 1993, the advertising revenue of igritte company has reached 1.15 billion US dollars. With the boiling degree of the whole industry in 1994, the growth of this business will only be more crazy.

According to the media's general estimation, the total revenue of 1994 may exceed that of 1993.

This is also true for those who know the inside story.

In addition to the two cores of software and advertising, igrit also has YWS data center business, e-commerce business, application store business, online game business and even professional solutions and technology licensing business, etc., which generally have a strong advantage over other competitors in the industry.

Not to mention anything else, it's just an online game. Happy farm, which was popular all over the world last year, had brought a huge revenue of US $250 million to the operator of igrit within seven months of its launch by the end of 1994. The development cost of this game was only US $1.5 million, and the return on investment reached more than 100 times.And data center business.

With the continuous development of competitors in the industry in the past few years, igritte's cloud computing technology solutions gradually flow out. However, other competitors can not have all kinds of advantages of igritte in the development of cloud computing in the short term, and can only be positioned relative to the traditional data center business.

In order to confuse police opponents, ygrit's YWS also positioned itself as a data center (IDC) business.

Over the past year, igritte has successively invested in the construction of 11 large-scale data centers with an investment of over US $100 million in North America, Europe and Asia, far exceeding the investment of Amazon online mall limited to seven large-scale logistics distribution centers in North America.

It can be imagined that igritte would not have done so if there was not enough profit driven.

You know, although many of them are still under construction, they are only the parts that have been put into use. Compared with the requirements of igrit itself, there are too many redundancies.

Because the entry threshold of data center business is relatively low, not to mention igritte's core cloud computing technology, this field is not exclusive to igritte. In the past few years, IBM, HP, Microsoft and other established giants have entered the IDC field one after another, and many small and medium-sized independent IDC enterprises have opened.

According to some statistics in the industry, the market share of ygrit's YWS business is only about 50%.

However, it is only about 50%. Compared with the market size of the industry as a whole of nearly US $5 billion in the past year, we can probably imagine the revenue volume of igrit in this business.

Finally, e-commerce.

With Amazon's seven large-scale logistics distribution centers around the United States being opened one after another, the e-commerce business of igrit is obviously in a state of no dust compared with other competitors. Simon's memory of a lot of information about e-commerce, but also let Alice Ferguson responsible for e-commerce business less detours.

Although the development of e-commerce brings the biggest loss to igrit, no one doubts the huge commercial potential of this field with the rapid growth in recent years.

It can be said that if we do all the existing businesses of igrit alone, it will be difficult to achieve too much scale for each one. However, the concentration of all these businesses immediately gives igrit a strong synergy and monopoly advantage.

While other enterprises of the same type are still struggling to explore the business model or trying their best to pursue more market share, relying on their absolute advantages and a series of mature business models in Simon's memory, igritte easily pocketed most of the revenue in related fields. Among them, the data center business with the lowest share has reached more than 50%, the online advertising revenue share has reached more than 90%, and the basic tool software is planned to be 100% exclusive.

When the whole industry is burning money in order to carve up the Internet, a rapidly rising cake, a large part of these burning funds fall into the pocket of igritte company.

Such a monopolistic industry oligarch with a revenue volume of 10 billion US dollars and still showing super high growth, with a valuation of 100 billion US dollars, is absolutely rare.

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