On July 25, Yu Minhong published an "Open Letter to Friends of Oriental Selection Shareholders" on his personal WeChat public account in response to Dong Yuhui's resignation. The open letter shows that starting today (July 25), Oriental Selection’s wholly-owned subsidiary Hehui Peer will officially become independent from Oriental Selection, with Dong Yuhui personally holding 100% of its shares.
Dong Yuhui officially left the Oriental Screening Company, and this day has come. According to the Oriental Selection announcement, 100% of the equity of Yixingping was sold to Dong Yuhui for a consideration of 76.5855 million yuan. Next, Yingping will be completely independent and become Dong Yuhui's personal company. Dong Yuhui will also transform from an anchor with goods to this independent model. The leader of the platform.
Yu Minhong (right) and Dong Yuhui (left). Visual China Picture
Although the news of his resignation triggered public opinion, Dong Yuhui’s departure is, to a certain extent, a less surprising result. The small essay turmoil at the end of last year completely exposed the internal conflicts of Dongfang Selection, and the strategic adjustment of "removing Dong Yuhui" failed. In order to calm down the turmoil, Dong Yuhui set up his own business and created a new account called Youhui. With the strong support of his "mother-in-law fans", he became the industry leader.
However, this formal separation failed to completely resolve the internal contradictions of Oriental Selection. Although the new account is operated independently, it still maintains close ties with Oriental Selection and exists as a sub-brand. This means that issues such as the original management structure and resource allocation still need to be properly resolved.
Under the deep binding relationship, as Peer With Hui continues to grow and Dong Yuhui's personal influence continues to increase, the tension of the original contradiction may gradually increase, which may not be conducive to the continued development of Peer With Hui. Of course, it will also further marginalize Oriental Selection.
On the other hand, Oriental Selection itself is a listed company, but as Yu Minhong mentioned, it has been repeatedly criticized by public opinion in the past six months or so, and the company's business and stock price have been affected. This has undoubtedly hindered the company's long-term development. A layer of uncertainty.
Therefore, after careful weighing, both parties made the decision to "break up", which was actually a helpless move based on realistic considerations. Being completely independent with Hui, under the leadership of Dong Yuhui, he can implement his personal philosophy and vision more purely and achieve more independent development.
According to Yuhui Peer’s current ability to carry goods, Dong Yuhui’s “redemption” price of 76.5855 million yuan is indeed within a reasonable range. In addition, according to the announcement, all the net profits of Going with Hui will be awarded to Dong Yuhui. This shows that although the internal conflicts have become irreconcilable, Yu Minhong still shows the demeanor of an entrepreneur. He is not as big as a lion, but has the beauty of an adult, and is praised by many netizens for his style.
In fact, this "perfect breakup" still cannot escape the common game model between Internet mcn organizations and "Internet celebrities": organizations "broadcast seeds, reap small harvests", "a seedling in a thousand hectares of land", finally hatched When a super Internet celebrity emerges, the honeymoon period for both parties may be over. The organization will need to get rewards from the Internet celebrity, while the Internet celebrity thinks that the Internet celebrity is famous because of his ability and hopes to get more benefits. The conflict between the two parties will inevitably escalate. There have been many stories like this before, the most typical one being the fight between Li Ziqi and the MCN organization.
This is the inherent risk of the special Internet celebrity business model: fans are highly bound to Internet celebrities and recognize personal IP addresses rather than institutions. It is difficult for Internet celebrities hatched by institutions to become company "assets" in the true sense. Live broadcasts highlight the role of fans. Fans have changed from passive receivers of media information to active screeners and "agenda" setters. They follow, leave messages, comment, consume, reverse trampling, and "go to friends and businessmen" and other methods to reversely guide idols and the institutions behind them.
After the "perfect breakup", Oriental Selection lost its largest product IP, and it will inevitably be "revalued" in the capital market. Especially after the overall adjustment of the education and training industry, where will New Oriental transform again in the future? Uncertainty and operational risks have been intensified.
On the other hand, after Dong Yuhui's "solo career", he will also face greater challenges in maintaining his personal IP, maintaining relationships with fans, especially in terms of quality control and logistics management of goods. We should also consider that Dong Yuhui himself is also a person with a strong book business, and he often behaves inconsistently with his de facto "Internet celebrity" status. For example, if he clears his Weibo, can he run a large enterprise for a long time? How long can Dong Yuhui’s “mother-in-law fans” remain fans? These still need to pass the test of time.
"The general trend of the world is that if we unite for a long time, we will separate, and if we divide for a long time, we will unite." From Dong Yuhui's alternative sales model of teaching English while selling goods, to Sun Dongxu being dismissed from the CEO position of Oriental Selection at the end of last year, and now Dong Yuhui and Oriental Selection have completely separated , people lament the changes in the shopping mall, and hope that the protagonists can continue to perform the wonderful "Chinese Internet Heroes" for everyone.
"Look up to the sky and laugh loudly and go out, how can we be the people of Penghao", perhaps this is the poem that Dong Yuhui wants to recite the most. I wish Teacher Dong good luck, and I also wish Teacher Yu good luck.
Source: The Paper
