Chapter 96 The Compromise of the Five Tiger Generals
"If Tencent has no value, why did Mr. Xu acquire the equity of IDG and Yingke? And why did he fly all the way from Beijing to Pengcheng to discuss financing with us?"
"I didn't say that I was not optimistic about Tencent. Your huge users have a certain temptation for any investment institution. The reason why I invest is that I hope not to miss the opportunity.
And I don't pay a high price, Are you worried about whether you can find your own profit model?
My investment will be worthwhile if you can find it in a short time.
If you still can't find it, then my investment will be a loss.
The risk involved is why I am unwilling to pay a high price. If you can convince me with your profit model, I will accept even 20 million US dollars, not to mention 17 million US dollars. ”
A trace of bitterness appeared on Zeng Liqing’s face.
If they could come up with a profit model, Tencent would have made a profit long ago, and there would be no need to find Hanhua for financing.
During this period, they have approached all Internet companies that might invest in Tencent, including China.com, NetEase, and Sina, but they all rejected them
Hanhua was the only institution that was willing to come and talk to them after hearing their valuation conditions.
“Eight million US dollars is too low.”
Tonyma couldn’t help but say.
He spoke for the first time, but it also represented Tencent’s attitude.
Xu Liang smiled lightly, "If you are willing to accept this price, I can promise on behalf of Hanhua that our voting rights will always be maintained at 49%, and the excess voting rights will be exercised by the entrepreneurial team."
One sentence instantly caused Tony Ma and others to change their expressions.
The leadership of the founding team is what they value most, and it is also the reason why they were reluctant to seek financing from Hanhua at the beginning.
But now that the other party has given up this part of the power, Tony Ma's heart is moved.
Zeng Liqing saw this and instantly understood the thoughts of several friends.
"I'm sorry, Mr. Xu. We would like to temporarily adjourn the meeting for discussion."
"No problem."
After leaving the most beautiful female employee in the company to serve tea and water, Tony Ma, Zeng Liqing, Xu Chenye, Zhang Zhidong, and Chen Yidan gathered in Tony Ma's office.
"Tony, what do you think?" Zhang Zhidong asked directly.
“Tencent’s control comes first, but the valuation of US$8 million is a little less after all.” Tony Ma said.
“It’s a little less, but it can also be seen that the other party is indeed a financial investment and does not want to control the company.” Chen Yidan said.
"It's not that simple. Hanhua doesn't plan to control the company now, but we will always go public in the future.
Once listed, part of the equity will be released. Hanhua already holds nearly half of the shares. By then, it will be freely traded on the stock market. If you acquire some, you can easily get a controlling stake and directly control the life and death of Tencent," Zeng Li Qingdao.
Everyone nodded in agreement.
Xu Chenye said: "We can add one more thing. No matter how many shares Hanhua holds in the future, half of the voting rights of the shares in their hands must belong to the founding team."
"This is good. But they may not agree," Zeng Li Qing said.
Tony Ma pondered for a while, "We can use the valuation of 8 million US dollars as a test condition in exchange. If they agree, then sign the contract. If they don't agree..."
Everyone's expressions changed.
Not agreeing means that the other party has ideas about Tencent.
In this case, the only choice is to find other financing channels, or sell Tencent directly!
But who can replace Hanhua?
With heavy hearts, the five people returned to the conference room again.
"What do you think?"
"Mr. Xu, we agree with your conditions in principle, but some details still need to be discussed." Zeng Li Qing said.
Xu Liang made a gesture of all ears.
“The valuation of US$800 is acceptable, but 49% of the effective voting rights is too much. We hope that you can hand over half of the voting rights of the stocks to the founding team.”
Xu Liang nodded after thinking for a moment.
“I can agree to this condition, but I also hope that you will agree to my three conditions.”
Hearing this, Tony Ma, Zeng Liqing and others instantly became excited.
I didn’t expect the other party to agree so easily.
After taking a few deep breaths to calm down, Zeng Liqing said in a deep voice.
"Please speak."
"First, I do not interfere in Tencent's management, but I have the right to make suggestions. Of course, you are the specific managers. It is up to you whether to listen or not."
"No. Question, we can agree to this," Tonyma said directly.
“Second, Tencent’s financing will be handed over to Hanhua in the future. Without Hanhua’s consent, Tencent shall not raise funds externally.”
Xu Liang’s market value in Tencent has not reached Management will never be allowed to dilute its equity until conditions are satisfied.
Tonyma frowned.
"Mr. Xu, the financing problem is our internal management problem..."
Xu Liang interrupted him.
"Mr. Ma, I have made the greatest concession to you and will never back down. The financing issue is my bottom line and is non-negotiable. If you do not agree, all previous conditions will be invalid."
The decisive tone made Tony Ma change his expression, and after weighing it for a moment.
"I can promise you, but funding cannot be a problem that restricts Tencent's development."
"Of course."
"Third, if Tencent's revenue and net profit will improve under your leadership, The two indicators have declined by more than 20% for two consecutive quarters. I have the right to intervene in any affairs of Tencent."
"Mr. Xu, we are not profitable yet," Tony Madao said.
“I know. But I’m talking about making profits in the future.”
"Mr. Xu, 20% is too little. I think it should be 30%." Zeng Liqing said.
Xu Liang didn't want to argue about this. The reason why he left this condition was more to put a halter on Tony Ma and the others, so that they would not have any pressure at all and damage their own rights and interests.
"Then let's each take a step back, 25%." Tonima nodded.
After the two parties reached an agreement, they hired a lawyer to draw up a contract and sign it.
Tencent's pre-investment valuation was US$8 million, and Xu Liang invested US$2 million with Xiangjiang Hongyan Fund, accounting for 25% of the total equity.
Hanhua Capital, which originally held 40% of the shares, did not choose to participate in the investment, so its equity was reduced to 32%.
The founding team’s equity was reduced to 43%.
An agreement was reached, and the tense atmosphere between the two parties was reduced by most.
"Tony, I noticed that you haven't changed the name of the website yet?" Xu Liang said.
In October 1999, America Online sued Tencent for infringing on their domain name.
On March 21, 2000, the US National Arbitration Forum ruled that Tencent should return OICQ.com and OICQ.net to AOL.
It has been five months now and Tencent has not made any move.
“We are developing a new version of the program. When the new program is launched, the client will be renamed QQ.” Tony Ma said.
Xu Liang nodded.
“I also noticed that Tencent has been using Disney cartoon characters such as Donald Duck, Popeye, and Mickey Mouse. Although it has not been sued by Disney yet, if the company continues to grow, it will definitely be sued.
Tencent must eliminate this hidden danger.”
Tony Ma and others nodded. They also knew that this was not good, but they would not have the money to find a design company to design a special icon for a while.
Xu Liang reached out and took the briefcase from Lu Hui, opened it, took out two pieces of paper and handed it over.
“This is the icon I designed for Tencent. Do you think it suits me?”
Tony Ma and others took it and took a look.
On A4 paper are two fat penguins.
One wears an eye-catching red scarf, and the other wears a pink bow. They are so naive that people can't help but feel close to them at first sight.
"Tony, this is good."
Zhang Zhidong is a technical person, so he doesn't have to worry about it, so he said directly.
Tony Ma also liked it.
Looking at Xu Liangdao.
"Mr. Xu, thank you very much for the icon you designed for Tencent, which is very consistent with the image of our company."
Looking at Tony Ma with a smile on his face, Xu Liangliang secretly cursed .
If you like it, you should give me money.
"I can license these two icons to Tencent for free, but the ownership of the icons belongs to me, and you cannot develop peripheral products for the icons."
Tony Ma wants to hack the fruits of his labor as an old capitalist, but there is no way.
Tonima thought for a while and nodded.
As long as you can do it for free, as for the peripherals, they are not selling toys.
After signing a supplementary document, another legal loophole of Tencent was finally solved.
Next, Xu Liang went to visit the QQ2000 version that Tencent is developing and will become a classic in the future.
With more than ten years of experience in the future, QQ’s client is too crude in his eyes, and he can put forward a lot of modification suggestions at will. However, he didn’t say much, leaving it up to Tencent to do its own thing.
As for the reason, it’s not that he doesn’t want to say it. But the current network speed does not allow the QQ client to carry too many applications, otherwise the opening speed will be too slow, affecting the user experience.
Only when the network environment improves in the future can we talk about revision.
After finalizing the contract with Tencent, Xu Liang did not stay any longer.
——
Pengcheng Cultural and Creative Park.
Through the window, look at the students inside who are painting seriously.
After a moment, Xu Liang turned his head.
"Old Teng, Pengcheng is now the branch with the most students outside of Beijing, and you have contributed a lot to it."
Teng Huaming smiled and said: "It's not just me who deserves the credit, the teachers and colleagues who came here with me to work hard are the biggest contributors."
Xu Liang said with a smile: "I don't deny their credit. But I also know that if you hadn’t led them, Pengcheng’s students would not have nearly 500 students now, let alone achieve a performance of 2.3 million in the first quarter.”
Teng Huaming smiled and did not stop. Open your mouth.
I have said what needs to be said, and being too modest is hypocrisy.
“Are you planning to return to the headquarters?”
Teng Huaming came to New Dream with a bachelor's degree in education from Zhejiang University, a master's degree in psychology from Columbia University, a doctorate in education, a former lecturer at Columbia University's School of Education, and the vice president of Pearson Education Group's Greater China region.
But he did not choose to stay at the headquarters as the chief operating officer. Instead, he came to Pengcheng and established Pengcheng New Dream Art Training Center from scratch.
Remarkable results after more than three months.
Xu Liang transferred him back to the headquarters and he was able to convince the public.
Teng Huaming thought for a while and shook his head.
"The time is too short. I want to lay a solid foundation in Pengcheng and summarize some theoretical things. When I return to the headquarters in the future, I can also promote the development of other branches."
Xu Liang didn't either reluctantly.
"Okay, you can follow your own plan and call me when you want to come back. I will reserve the position of New Dream CEO for you."
The Road to New Dream We have already made it out, and the next step is to develop step by step.
He doesn't need to be there all the time.
Just make sure the general direction is not messy.
In contrast, Hongmeng, which is still struggling in the Internet winter, will soon compete with Baidu, Google, and other Internet search engines in the market.
His main focus should be on it.
(End of this chapter)