From Becoming Penguin's Major Shareholder to Building an Entertainment Empire

Note that this book is a slow-burn novel, and it will become increasingly exciting as the story progresses.

It starts from 2002, beginning at the Beijing Film Academy, and starting with the H...

Chapter 76 Negotiations End

Xu Xin composed herself and looked at Shen Fang with a smile.

"Mr. Shen, I'm sorry, I just apologized for your disrespect."

Shen Fang smiled slightly: "It's alright, I'm a very magnanimous person. I usually don't hold grudges against others."

Looking at this domineering young man, Xu Xin honestly knew that if she wanted to get the shares today, she would probably have to pay a heavy price.

"Mr. Shen, I am genuinely interested in acquiring Tencent's shares this time. I have a very positive outlook on Tencent. Name your price, and I will not haggle."

Upon hearing this, Shen Fang smiled slightly: "I can sell you 2% of the shares for a fixed price of 50 million, but you must agree to two conditions."

Xu Xin shook her head: "2% is too little, I can't agree to that."

Shen Fang smiled and said, "Don't rush to refuse, Mr. Xu. Let me tell you about my plans for the future of Tencent before you decide whether to agree."

Xu Xin nodded: "Then I'm all ears."

Shen Fang smiled and said, "First of all, our Penguin Group has already achieved its initial business goals. Now we have Q coins, a huge user base, and Feilong novels and game copyrights. This will greatly increase Penguin's valuation when it goes public. I have divided Penguin's development plan into three stages."

The first phase, which took place 8 years ago, aimed to establish Tencent Games as the leading game provider in China, with a target of reaching 200 million monthly active users.

The second phase is to make Penguin the number one online communication platform in China, with a total user base of 500 million.

The third stage is to make Tencent the leading internet entertainment platform in China. Whether it's novels, animation, merchandise, games, online video, or internet communication, Tencent will achieve industry leadership in all these areas.

Xu Xin smiled: "President Shen, talking is fine, but the road ahead is difficult. I want to know some concrete details. I support Tencent's move into gaming. Communication is number one, and Tencent is already at that level. The 500 million target shouldn't be difficult for Tencent to achieve once the internet becomes widespread. I don't know much about the entertainment industry, so I won't comment much, but President Shen, just talking about it isn't enough to convince me. I know Tencent has unlimited potential, but it takes time, and Tencent also needs funding to develop."

Shen Fang nodded: "That's true. Then I'll drop some information. Starting next year, Tencent's strategic development goal will be directly shifted to 'online life.' Tencent will position itself as an internet development company that meets people's different levels of online life needs. The company's existing thirty departments will be reorganized into five business modules, and we will recruit senior management talent and computer professionals to ensure that Tencent's various business processes are gradually standardized. We want to move towards standardization and unification, no longer letting one change affect the whole situation. Tencent's goal is to reach for the stars and the sea. Tencent will be the leading, regular force among internet companies."

Starting next year, China Mobile, China Unicom, and China Telecom will all expand their Mobile Dream Network services. We, Penguin, have already obtained the first authorization. Once it is opened up, everyone with a mobile phone can subscribe to our Penguin Network service. Generally, it is very difficult to unsubscribe from such a service after subscription. The cheapest Penguin membership costs 10 yuan per month, which is 120 yuan per year. If 10 million people consume this service, that would be 1.2 billion yuan.

Xu Xin looked at Shen Fang: "Mr. Shen, how can you be sure that Tencent can get so many people to subscribe to this service?"

Shen Fang smiled and asked, "Brother Zeng, how many Tencent members do you have now?"

Zeng Liqing thought for a moment: "Yesterday's figure should be 1.58 million. This number is still increasing rapidly every day, and our Tencent public relations department is currently guiding consumption."

"Mr. Xu, do you play with QQ?"

Xu Xin nodded: "I've tried your farm game and pet battle royale, and they're really good. But I didn't subscribe. I think the internet is virtual, so there's no need to pay money."

Shen Fang looked at Xu Xin and said, "Sister Xu, a stubborn player like you is the kind of user that Tencent doesn't welcome the most. But we do have ways to get you to spend money."

"First of all, many of Penguin's services, activities, and in-game items require a membership to unlock. If you don't have one, you're considered inferior. Penguin's distinctive red identity makes you stand out in Penguin's services and is a symbol of prestige. For example, in Penguin Farm, pet dogs, dog food, and premium seeds are all paid items, but you can get them for free as long as you become a member. You'll also get discounts when you buy other things."

"This is our bundled sales strategy. Our upcoming online card and board game platform will also offer special services to members. As long as you are an internet enthusiast, you will spend money. Spending money will make you different, you will become stronger, and you can dominate the online world. As long as you spend money, you can achieve what you cannot achieve in reality online. As the first online value-added service developed in China, do you think netizens can resist this temptation? It's only 10 yuan a month."

Then let's talk about our Penguin online card game platform. It will lead a new trend. If the domestic online card game industry is done well, making nearly 1 billion yuan a year is not a problem. Penguin's huge user base is our continuous source of customers. With these businesses, Penguin is not short of funds at all. To be honest, Sister Xu, I'm only selling you shares because of Pony Ma's face. If it were anyone else, I would just kick them out.

"We're offering 2% of Tencent Asia's shares for a flat price of $50 million. Tencent will go public in less than two years. Holding onto those 2% shares will be like holding a golden goose."

Xu Xin thought for a moment and nodded: "Mr. Shen, what you said is indeed very true. I also have a very positive view of Tencent, but I can't make the decision on this matter. I need to ask my boss for some time."

Shen Fang smiled and said, "No problem, Mr. Xu."

Xu Xin nodded and looked at Brother Ma.

"Mr. Ma, Mr. Shen, Mr. Zeng, Mr. Jiang, I have to take my leave now. I'll let you know once the boss has made his decision."

Little Ma smiled and said, "I'll take you, Sister Xu."

Little Ma escorted Xu Xin out of the conference room.