Chapter 114
Ma Huateng’s face changed repeatedly, his heart sinking. Could it be a leak from within his own company? Or did Zhibei tell him? Unable to think of a reason, he directly asked, “The recent financing difficulties are indeed a problem, but how did you, brother Yi, come to know about it?”
Yi Feng smiled mysteriously, “Your recent version updates have been slow, and the product lacks monetization capability, continuously burning money, which is not a sustainable situation.”
“So… this was my guess, and it turns out I was right.” Ma Huateng’s face showed a bit of embarrassment, not expecting their company’s plight to be perceived by others. Whether it was perceived or someone told him, Ma Huateng had no clue, but he couldn’t afford to speculate further.
“God Feng, you just mentioned there are still opportunities for cooperation between us, do you have any solutions?” Zhang Zhibei, being straightforward, immediately asked Yi Feng for a solution. He was truly anxious.
QQ was the result of his and his team’s hard work; he didn’t want it to end in vain. Ma Huateng internally shook his head, not expecting Zhang Zhibei to be so impatient, thus breaking the delicate balance between himself and Yi Feng!
With less confidence now, he was sure to be at a disadvantage. But since Zhang Zhibei had already made the request, there was nothing he could do but say, “Zhibei is too impatient, brother Yi, please don’t mind.”
Yi Feng smiled, “I can understand Brother Zhibei’s feelings.”
“I did say there is room for cooperation, and… I indeed have a way to help Tencent QQ overcome its current difficulties.” Zhang Zhibei, excited, quickly asked, “What way?!” Ma Huateng also listened intently.
He had initially come here to see Yi Feng also for the purpose of making the 361 project profitable, then to provide Tencent with financial support to get through the tough times. Now hearing Yi Feng had a solution, he was naturally eager to listen.
Yi Feng raised one finger, calmly stating, “Firstly, financing, to continue expanding servers, maintain business operations, and product development.” Zhang Zhibei and Ma Huateng looked at each other, puzzled.
What kind of solution was this? If it were possible to secure financing, they wouldn’t be here in the first place.
“Uh, brother Yi, we are indeed seeking financing, but as you know, there’s currently an internet bubble crisis in the US stock market, and it’s a sensitive time. The Asian financial crisis was just over a year ago, and now it’s too difficult for internet companies to secure financing, private capital is very cautious.”
“The current environment makes it difficult to secure financing, where else can we go for funding?” Ma Huateng sighed. He had even considered selling Tencent several nights and starting over.
Yi Feng smiled, “Boss Ma, the reason I say this is that I naturally have my reasons.” Ma Huateng paused, pondering his words, then suddenly exclaimed in surprise, “Could it be… brother Yi, you can secure financing for us?!”
Yi Feng nodded, “I can invest one million in your Tencent.”
“Uh… one million? But…” Ma Huateng felt somewhat disappointed, thinking one million wouldn’t solve the problem. But Yi Feng immediately interrupted him.
“Boss Ma, don’t rush, let me finish.” Yi Feng’s tone became stronger, more assertive. Because he was now the one in the dominant position.
“Uh okay, I was being hasty, please go ahead, brother Yi.” Boss Ma gave a wry smile, feeling cornered by Yi Feng.
“I won’t just invest one million in Tencent; moreover, I can help Tencent achieve over ten million in revenue within a year!” Yi Feng stated confidently. Ma Huateng and Zhang Zhibei didn’t understand the profit model of Tencent QQ, but he did.
Achieving ten million in annual revenue was not difficult; there were many ways to do it, especially since QQ was the leading social software in the country, with 5 million registered users and 100,000 real-time online users! But this year was also the most difficult for Tencent, with the risk of bankruptcy at any time.
“What?! Ten million in revenue?!” Zhang Zhibei and Ma Huateng exclaimed in unison, equally astonished. They didn’t know where Yi Feng’s confidence came from, but from his demeanor, he didn’t seem to be joking. There was no need for jokes in this matter.
Ma Huateng took a deep breath to calm himself. Such an offer was incredibly tempting; one million in investment might not be much, but ten million in revenue was even more enticing. He didn’t doubt Yi Feng’s ability, having developed the 361 software independently and started a business at a young age, he definitely wasn’t a fool. But with such an offer, he surely had his own demands!
Ma Huateng looked at Yi Feng, calmly asking, “Brother Yi, you’re making this offer, you must have your demands, right?” Yi Feng poured him a cup of tea, smiling, “Indeed, as I said, I’m very interested in Tencent QQ, and I recognize its future potential, especially since I use QQ myself.”
“My investment of one million is just a foot in the door; my real intention is to participate in Tencent’s operations and help it succeed.”
“Indeed, I have demands. Let’s be clear, for a one million cash investment, I want 10% equity.”
“If within a year, I achieve more than ten million in revenue, I want 51% of the absolute controlling stake.” Ma Huateng and Zhang Zhibei fell silent, each with their own thoughts. Zhang Zhibei, already holding a small share, didn’t mind; what he cared about was whether QQ could survive, then successfully generate ten million in revenue and develop further.
But it was different for Ma Huateng; he held the most shares, currently owning 40%, with IDG and Telecom having invested 2.2 million US dollars last year, each holding 20%, making up 80% of the equity together. The remaining 20% was shared among Zhang Zhibei and three other co-founders.
Ma Huateng sipped the tea Yi Feng had poured, not rushing to speak but pondering deeply. Investing one million for 10% equity wasn’t much, and for the currently cash-strapped Tencent, this money was like a lifesaver.
However… if achieving ten million in revenue meant handing over absolute control… He couldn’t decide alone since he didn’t have absolute control. But he was tempted by Yi Feng’s offer of ten million in revenue; if achieved, it could revitalize Tencent. Surviving was the only way to victory, a truth he understood.
If he refused… whether Tencent could survive this year was still uncertain.
“Brother Yi, are you really confident in achieving ten million in revenue within a year? Really?” Ma Huateng asked solemnly.
“What if, I mean if, you can’t achieve it?” “Would you dare to make a wager agreement?” Yi Feng understood what a wager agreement was: a bet between parties on a certain matter, often included in investment conditions.
For Yi Feng, making a wager agreement couldn’t be better! “Of course, Boss Ma, we can make a wager agreement. If I can’t achieve ten million in revenue within a year, I will invest an additional five million and not seek additional equity.”
“If I can achieve ten million in revenue within the year, then I want 51% of the absolute controlling stake.” “This wager agreement, I can sign with all shareholders of Tencent.” Yi Feng smiled, his expression calm, his tone full of confidence.
Ma Huateng, hearing that Yi Feng would invest an additional five million if the wager failed without seeking additional equity, was even more moved. If Yi Feng really achieved ten million in revenue within a year, giving him 51% of the absolute controlling stake might be acceptable. Because with annual revenue of ten million, the company’s market value could reach hundreds of millions, by then, the value of everyone’s shares would increase tenfold or more.
Zhang Zhibei was excited to hear this, eager to agree immediately, but Ma Huateng raised his hand to stop him. Ma Huateng squinted at Yi Feng, smiling, “Brother Yi’s proposal is really good, but this is a major matter, I need to discuss it with the other shareholders.”
“How about I give you a response after some time, brother Yi?”
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