Revisiting Future Path

092 gambling agreement

Tencent is prepared for Wei Dongsheng's attitude.

Zeng Liqing negotiated with Wei Dongsheng on behalf of Tencent: "What about your opinion?"

Wei Dongsheng talked eloquently: "You know, I am very optimistic about Tencent. Even if I don’t want a controlling stake or voting rights, I’m willing to value Tencent at 5 billion yuan. Instead of conservatively listing, you might as well let me buy it at a median price of 1.5 billion Hong Kong dollars. Suspension of the additional 25% equity."

Zeng Liqing asked, "Chunqiu has 1.5 billion cash flow?"

Wei Dongsheng decisively presented "The Spring and Autumn of the Ten Kingdoms": "The sales of "Spring and Autumn of the Ten Kingdoms" in January were 142.59 million yuan; the sales in February were 142.52 million yuan. Although it experienced negative growth for the first time, revenue was still very impressive. What do you think? "

Hearing the exaggerated monthly sales of "The Spring and Autumn of the Ten Kingdoms", everyone unconsciously showed envy. Just two months after 2004, "The Spring and Autumn of the Ten Kingdoms" has accumulated revenue of 2.8511 yuan, while Tencent's total annual revenue in 2003 was only 735 million yuan. If you simply compare revenue and profit margins, one piece of "Ten Kingdoms Spring and Autumn" is worth two Tencents.

The team of Tencent founders researched the online game market through personal relationships, and learned that the old operator Shanda Networks also earns a lot of money. The first quarter of 2004 revenue is estimated to be as much as 250 million; the owner of NetEase Bubble, which is a threat in the instant messaging market NetEase, based on the accumulation of "Western Journey 2" and the outstanding performance of "Fantasy Westward Journey", the online game business revenue in the first quarter of 2004 is also estimated to be 100 million.

The Tencent founder team couldn't help but sigh: "Online games are really profitable."

This is the era of online games.

Tencent, which lacks online game business, is tantamount to walking on a lame leg.

Tencent's founder team is increasingly eager to cooperate with Chunqiu Network.

Although Tencent's founder team is eager to develop online games, it is impossible to sell 25% of its shares to Wei Dongsheng. Zeng Liqing euphemistically rejected Wei Dongsheng’s proposal and continued to stubbornly cash in the words: "Although "The Spring and Autumn of the Ten Kingdoms" is a phenomenon-level online game, after all, it has only been on the market less than September. Chunqiu should not be able to get it out for a while. More cash, right?"

In November 2003, the monthly sales of "The Spring and Autumn of the Ten Kingdoms" exceeded 100 million for the first time. Naturally, it is impossible to accumulate 1.5 billion in cash flow in just April. Wei Dongsheng avoided talking about the shortcomings of the Spring and Autumn Company, and offered a tactic of dragging words commonly used in business negotiations: "The Spring and Autumn of the Ten Kingdoms can bring in 100 million profits every month. In two or three years, you can make up 15 100 million yuan in cash."

Zeng Liqing refused: "The purpose of Tencent's listing is to raise more than one billion funds at the fastest speed. In the past development, we deeply understand the pain of lack of funds, and aim to gather more users of QQ. In order to relieve the pressure on the server, we must not Time and time again, barriers have been set up to prevent new users from registering. Tencent’s profit in 2003 was 322 million yuan. If we are willing to wait, in four or five years, we can collect 1.5 billion yuan. Tencent wants fast and healthy For development, we must raise sufficient funds as soon as possible. The faster the better. I hope you can understand this."

Wei Dongsheng’s request for 25% of the equity is just a negotiation skill. Following Zeng Liqing’s tone, he lowered his requirements: “I can understand Tencent’s shortage of funds, but I cannot accept dilution of equity.”

Zeng Liqing suddenly took out a copy and handed it to Wei Dongsheng: "We have another equity distribution plan."

The plan proposed by Zeng Liqing is as follows: 25% of new shares are issued, and the 7.2% equity held by Chunqiu Company will be diluted to 5.4%. It must be implemented and there is no room for negotiation. However, if certain conditions are met, MIH and Tencent’s founder team are willing to compensate and transfer the equity at the reserve price, increasing the shareholding ratio of Chunqiu to between 8% and 15%.

Wei Dongsheng read it briefly, and asked: "A certain condition means...?"

Zeng Liqing: "We hope to reach a strategic cooperation with Chunqiu Network in the field of online games."

Wei Dongsheng nodded: "I said a long time ago that Chunqiu Network has technology and experience, Tencent has an environment and traffic, and cooperation between the two parties is a good thing that one plus one is greater than two. However, I also have the conditions. Tencent's online recharge system must be introduced into Chunqiu. Third-party payment credit treasure."

Zeng Liqing frowned upon hearing this.

The taciturn Ma Huateng took the responsibility in time and rejected Wei Dongsheng's condition with a serious expression: "Tencent needs its own third-party payment."

Wei Dongsheng: "But, now, Tencent does not."

Ma Huateng: "There will always be."

Ma Huateng understands the role of third-party payment, and Wei Dongsheng also understands that Ma Huateng will not give up the third-party payment business. He said, "At least, not now."

Ma Huateng is not proficient in debate, and simply repeats his opinion: "Tencent will always have it."

Wei Dongsheng: "Before Tencent launches its own third-party payment, it will support Xinbao first; after Tencent's technology matures, it will stop supporting Xinbao. Is that good?"

Ma Huateng was stunned: "You are like this, it makes no sense."

Wei Dongsheng shook his head: "It's not that there is no meaning, but I think products like Xinbao have its threshold. Xinbao and the Spring and Autumn Security Butler fit closely together, and then they dare to shout, "You dare to use, I dare to compensate, the highest The slogan of'No Limit on Payments', even so, Xinbao has a monthly compensation bill to perform. Tencent wants to develop its own third-party payment, there must be a long way to go, these time is enough for Xinbao to spread its influence."

With a word of safety, Ma Huateng fell into thinking.

After dozens of seconds, Ma Huateng insisted: "What the Spring and Autumn Security Butler can do, Tencent can definitely do it too."

Ma Huateng immediately added: "However, before Tencent launches its own third-party payment, it can first access Chunqiu's credit treasure."

Wei Dongsheng is satisfied with Ma Huateng's concession: "Talk about the cooperation in the online game business. How are you going to cooperate?"

Ma Huateng returned to his taciturn state, and Zeng Liqing continued to speak on behalf of Tencent: "We have two cooperation scenarios. The first is that Chunqiu Network dispatches a team to help Tencent jointly operate one or three online games. We are willing to transfer 3.6% of the equity at a low price. In other words, after the issuance of new shares, Chunqiu holds 8% of the equity; the second type, Chunqiu Software specializes in making an online game, which is jointly operated by Chunqiu Network and Tencent. We are willing to transfer 4.6% to 9.6% of the equity and treat it as such. How the situation determines the transfer price."

Wei Dongsheng: "Depending on the situation, how should we treat it?"

Zeng Liqing did not give a detailed standard, and said with a smile: "The average online number of players or monthly sales is the standard. If you can average 100,000 people online, everything is definitely easy to say."

Wei Dongsheng: "The daily average online is 100,000 yuan, calculated at 0.25 yuan per hour, which is equivalent to daily sales of 600,000 yuan and monthly sales of 18 million yuan. Spring and Autumn Software has experience in making free value-added games, so let’s use monthly sales as our heroes. Right. If the new game launched by Chunqiu Network can reach monthly sales of 18 million yuan, how much equity is Tencent willing to transfer to us at what price?"

Zeng Liqing didn't want Wei Dongsheng to directly lock the highest standards, and was stunned: "Of course it is the most favorable terms."

Wei Dongsheng: "Where is the discount?"

Zeng Liqing deliberated for a while and elaborated on the numbers: "If this game goes live within one year, that is, before April 2005, and the monthly sales in 2005 or 2006 reaches 18 million yuan for six months. , Or the annual average monthly sales reached 18 million yuan, we are willing to transfer 9.6% of the equity to Chunqiu for 50 million yuan. That is to say, after Tencent goes public, Chunqiu owns 15% of the equity."

With a valuation of 5 billion, the 9.6% equity is 480 million.

The previous valuation was 480 million yuan, and Tencent refused to transfer the equity; at this time, Tencent was willing to transfer 9.6% of the equity for 50 million yuan.

Tencent's coveting of the online game business can be seen.

Tencent is not selling equity, but trying to open the door to online games.

The average monthly sales are 18 million yuan, and the annual sales are 216 million. After deducting the issuer’s sales share, operating expenses and tax burden, the annual profit is between 60 million and 90 million. Considering the life span of online games, it is difficult for this game to balance the gap between 480 million yuan and 50 million yuan.

However, the account cannot be calculated this way.

Looking back at 2003, apart from the "Ten Kingdoms Spring and Autumn" and the legendary series and "Miracle MU", few had a monthly sales volume of 18 million yuan. In 2003, Huaguo’s online game market’s annual revenue was 17.22 yuan. After deducting Shanda’s 633 million yuan and Chunqiu Network’s 468 million yuan, the remaining total revenue of online game manufacturers including the Ninth City and Guangtong Communications and Netease 621 million yuan. The average monthly sales of 18 million yuan is the annual sales of 216 million. If you think about the ratio of 216 million to 621 million, you can clearly understand what kind of online game the average monthly sales of 18 million is.

In fact, Shanda Network hopes to replace "Legend of Legends", and its current monthly sales are only more than 20 million yuan.

Looking at the online game industry from the perspective of 2003, it is able to operate an online game with monthly sales of 18 million yuan, which is at least the second-tier online game operator. With such a reputation and actual operating experience, Tencent will be able to slowly open the door of online games and move toward a healthy development like NetEase.

In Zeng Liqing's mind, online games with monthly sales of 18 million yuan are of a high level.

In order to avoid frightening Wei Dongsheng away, Zeng Liqing immediately explained the cooperation conditions of other grades: "If this game, monthly sales reach 10 million yuan..."

Wei Dongsheng very rudely cut off Zeng Liqing’s speech: “It goes without saying that 10 million yuan is needed. If the online game produced by Chunqiu Software cannot exceed the monthly sales of 18 million yuan, the cooperation between Chunqiu and Tencent will be meaningless.”

Zeng Liqing smiled awkwardly.

It's too domineering.

The sales of 18 million yuan can't be seen.

Is this taking the miracle of "The Spring and Autumn of the Ten Kingdoms" as a natural phenomenon?

Wei Dongsheng ended the cooperation negotiations domineeringly: "Let’s take the monthly sales of 18 million yuan as the standard. However, how do joint operations work together? Chunqiu Network has its own online games to operate, and online games are not Tencent’s main business. There are various contradictions. Let’s do this, Chunqiu and Tencent each invested 25 million yuan to register a new company to be responsible for the targeted R&D and operation of new games."

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