Ran Caijing (ID: rancaijing) original
Author | Tang Yahua
Edit | Wei Jia
The first stock of Jumei, a beauty e-commerce company, fell to the altar within five years. Chen Ou, the youngest CEO in the history of the New York Stock Exchange and Internet celebrity with goods, also fell from “I speak for myself” to “Chen Chen”.
Recently, Chen Ou once again proposed a privatization offer for Jumei Youpin, planning to purchase all publicly issued common shares of the company that are not held by Chen Ou and its related parties at a price of US $ 20 / ADS. This price appears to have a 14.7% premium, but Jumei Youpin adjusted the ratio of ADS to the number of A shares before conversion, and it was only 2 dollars per share. The original issue price of Jumei Youpin was 22 dollars per share.
This behavior of Chen Ou has been criticized by some investors as “ugly eating.” On January 19, some small and medium investors in Jumei Youpin wrote to the SEC to oppose the privatization, saying it was a long-planned robbery.
Jumei Youpin, which was founded in 2010, is targeting the field of beauty sales. In 2014, it was the first to land in US stocks with a maximum market value of 5.65 billion US dollars. In the near future, the turmoil of fakes and the changing market environment made Jumei Youpin quickly go downhill, and the stock price fell to $ 2 all the way. As of January 20, 2020, the total market value of Jumei Youpin is only US $ 222 million.
In recent years, I have missed Jumei Youpin, a social e-commerce, live streaming, and sinking the market. I have also tried to diversify my business. In the end, in addition to the shared power bank business, it brought some revenue. Other businesses have been rigid for a long time, and the e-commerce market share has dropped to 0.1%, demonstrating how to beat a good hand.
A number of people in the industry said that the privatization may be motivated by Chen Ou or some investors, and the possibility of splitting or selling street electricity is not ruled out. Privatization is a good thing for Jumeiyupin and its founders who are not very liquid, but it is a “huge pit” for shareholders who have been locked in for many years.
Looking at the entire industry, there are currently few players in vertical e-commerce that can occupy a place. This is due to the relatively small demand for vertical e-commerce, and also because giants such as Alibaba and JD.com are too powerful, squeezing vertical e-commerce without differentiation advantages. In the future, no matter whether the privatization is successful or not, Jumei Youpin will have a hard time to turn around in the short term, and it may be slowly disappearing waiting for it.