8.7 billion US dollars privatization:58.com helps 58.com to perform in 15 years!

Industry Information 04 Sep 2023 02:00:59 PM By:DN platform editor
Abstract:

"Magical Website" 58.com Privatization Finally SettlesOn the evening of June 15th, 58.com announced that it had signed a merger agreement with Quantum Bloom Group Ltd. According to the terms of the merger agreement, the buyer consortium wil

"Magical Website" 58.com Privatization Finally Settles

On the evening of June 15th, 58.com announced that it had signed a merger agreement with Quantum Bloom Group Ltd. According to the terms of the merger agreement, the buyer consortium will acquire all of 58.com's issued common stock at a cash price of $28 per share (equivalent to $56 per American depositary share), with a total estimated transaction value of approximately $8.7 billion (approximately 61.7 billion RMB).

In response to this news, as of June 16, 2020, 58.com's stock price surged by 9.55% to $54.58, with a market capitalization of $8.18 billion.

Founded in 2005, the classifieds website 58.com, which is dedicated to daily life information, has gradually grown from a small startup into a giant in China's classifieds industry, thanks in large part to the leadership of 58.com's CEO, Yao Jinbo.

Now that the privatization has been finalized, let's take a look at how premium domain names like 58.com have played a role in the 15-year development journey of 58.com.

8.7 billion US dollars privatization:58.com helps 58.com to perform in 15 years!

Tasting the Sweetness of Domain Names and Earning the First Pot of Gold at 23

Shortly after graduating, Yao Jinbo started dealing with domain names. He was one of the earliest pioneers in domain names in China and founded the website "Yidu.com" dedicated to domain name trading. Unlike others who focused on Pinyin domain names, Yao Jinbo specialized in numeric domain names. At that time, he was known as the "King of 2-Digit Domain Names" and had over 5,000 numeric domain names in his possession. He successfully sold high-value domain names like 28.com and 30.com at a high price until Yidu.com was acquired by Net.cn in 2000. It was through domain name trading that 23-year-old Yao Jinbo earned his first pot of gold and built connections with many grassroots experts in the internet industry, such as Cai Wensheng and Wu Xinhong.

Establishing the Independent Classifieds Website 58.com

As is well known, Yao Jinbo was a renowned investor in the domain name industry. At the beginning of his entrepreneurial journey, he paved the way for "58.com" with premium 2-digit numeric domain names: he protected the premium numeric domain names 58.com/.cn and acquired the brand Pinyin domain name wuba.com for nearly 350,000 RMB. Today, 58.com owns 120 domains, most of which are high-value premium domains. In 2013, Yao Jinbo broke through obstacles and led the company to go public overseas, successfully listing on the New York Stock Exchange. After more than a decade of development, from going public to privatization, 58.com's market capitalization has reached $8.18 billion.

Acquiring Anjuke for Nearly $300 Million, Expanding into the Real Estate Industry

In March 2015, 58.com acquired Anjuke Group for $267.01 million in cash and stock. Anjuke owned several premium Pinyin domain names related to real estate: haozu.com for rentals, anjuke.com for second-hand homes, aifang.com for new homes, and jinpu.com for commercial real estate. This move was a strategic expansion into the real estate rental and sales market for 58.com.

Merging with Ganji.com, Joining Forces

In April 2015, 58.com announced a merger with its biggest competitor at the time, Ganji.com, ending the fierce competition in the classifieds information industry. Ganji.com was also a company that highly valued domain names, using the domain name ganji.com while protecting brand domain names ganji.cn/.com.cn. These double-pin domain names were short and memorable in China, contributing to the promotion of the brand.

Shortly after the merger of 58.com and Ganji.com, Ganji.com's founder Yang Haoyong announced his departure from 58 Ganji Group to start a new venture called Chehaodu Group, which includes subsidiaries like Guazi.com (guazi.com) and Maodou New Car (maodou.com). This shift led Yao Jinbo to focus on the automotive industry again, and he subsequently participated in the financing of these two brands.

Never Standing Still, Continuously Expanding Boundaries

- On May 8, 2015, 58.com announced the acquisition of Zhonghua Yingcai Network.

- On August 7, 2015, it increased its shareholding in Lifetech Hundred by 70%, strengthening its position in the automotive industry.

In March 2020, 58.com announced an agreement to acquire assets related to Uxin's auction business for $105 million.

While protecting premium domain names is already commendable in the industry, 58.com went above and beyond. They secured nearly every valuable domain name, utilizing them to their full potential:

- zushou.com (rent/sell)

- zhaogong.com (recruitment)

- jianli.com (resumes)

- maipiao.com (buy/sell tickets)

- chuyou.com (travel)

- ganjiwang.com (Ganji.com) and many more.

These premium industry domain names redirect to various related websites on 58.com. The official website domain name for 58 Daojia (58 To Home) is daojia.com, and the official website domain name for 58 Enterprise Services is 58qf.com, which was acquired through the Yuming.com platform. In summary, 58.com has covered a wide range of popular industry domain names, a feat that is unparalleled among its peers.

The reason why 58.com has been able to firmly establish itself as a leader in the classified information website industry and become known as the "magical website" is because Yao Jinbo leveraged his deep understanding and sensitivity to domain names. He used domain names as leverage to seize opportunities, resources, and influence that benefited the company's development.

Now, with many internet companies preparing for the future, the privatization of 58.com is a strategic move in line with the trends of the industry. Where 58.com, under Yao Jinbo's leadership, will head next is something we eagerly await!

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8.7 billion US dollars privatization:58.com helps 58.com to perform in 15 years!