Chapter 308 My Wife
On the last day of August, the entire city of Peking was shrouded in violent winds and heavy rain.
In a conference room in the Science and Technology Building, an important financing negotiation concerning the fate of Tengda Group has lasted for six hours.
There was a tense and depressing atmosphere in the air, and everyone's face in the conference room was filled with concentration and fatigue.
Song Ci looked at the representatives of famous international investment institutions such as Google, BlackRock, Goldman Sachs, Softbank, and Temasek sitting opposite him, and felt deeply how difficult these guys were.
Since the financing negotiations started at 9 a.m., he has been talking until his mouth is dry and his voice is almost hoarse, but the other party remains unmoved.
Song Ci tapped lightly on the conference table with his slender fingers. He glanced sideways at the group's financial report displayed on the electronic screen, then turned his gaze to the representatives of the investment institutions.
“Ladies and gentlemen, the pre-investment valuation of US$55 billion is by no means a figment of our imagination. Rather, it is a reasonable valuation based on Tenda’s current revenue, profit, number of users, and product market share.
I have answered all your questions before. If you still have any questions, you can ask them now. I will answer them. But the valuation of 55 billion is my bottom line, and this is non-negotiable. "
Mark Wilson, President of Goldman Sachs Asia, had a cold gleam in his gold-rimmed glasses, and his tone was filled with a hint of doubt and scrutiny:
"Mr. Song, it is undeniable that your company's financial report is indeed impressive, but the profit contributed by the gaming business accounts for 70% of the total profit of the entire group.
As far as I know, your country's regulation of online games is becoming increasingly strict. Under the current situation, how do you ensure that the profits of your gaming business can be sustained and stable? "
Song Ci chuckled, he liked these foreigners asking questions and raising doubts, Tengda's valuation of 55 billion US dollars had risen little by little in the process of him refuting these investors speechless.
"Mr. Wilson, with all due respect, you obviously have only a limited understanding of the relevant policies. Any industry will develop from disorder at the beginning to orderly and standardized, which is the only way for the industry to mature and grow.
Only by establishing a standardized market order can large and powerful enterprises like Tenda clear out those unqualified small workshops on the market and bring into play the Matthew effect in the Internet industry.
What’s more important is that as the world’s largest digital game platform, our TD game platform only has a small share of the domestic market.
Looking around the world, there is a broader market waiting for us to explore. I predict that the game business will develop rapidly in the next ten years and will not encounter the so-called bottleneck period. "
At this time, Emily, a female representative from Google's strategic investment department, suddenly interrupted and asked, "Mr. Song, can WeChat really beat Facebook in the field of instant messaging?"
Song Ci was elegant and unhurried. After drinking a sip of tea to moisten his dry throat, he talked freely:
"Ms. Emily, I don't think I need to elaborate on WeChat and its value, as I have already explained it in detail before.
The data speaks for itself. If Facebook had a way, someone wouldn’t have slandered and defamed Tenda at a hearing in your country.”
Emily nodded slightly, as if to express her approval of Song Ci's answer, but then changed the subject:
“Mr. Larry Page is very optimistic about the development prospects of your company, and Google is also sincere about this investment, but the valuation of 55 billion US dollars you proposed is too exaggerated.
You see, Google's market value is currently around 140 billion US dollars, and its revenue in the first half of the year was 10.8 billion US dollars, while your company's revenue in the first half of the year was only a quarter of Google's.
Compared with Google, Tencent's valuation of US$35 billion to US$40 billion is more reasonable."
"Ms. Emily, it is a generalization to only look at revenue and not profits. Besides, Google is mainly engaged in search, while Tenda is the market leader in many fields such as games, social networking, and pan-entertainment media. Our business layout is more diversified, and our future development space and potential are broader and brighter."
Emily responded with a little emotion: "Mr. Song, you are really eloquent. Representatives from more than a dozen of our institutions are no match for you."
"Because you all know that Tengda is worth the price, you sit here patiently and listen to me build a beautiful blueprint."
In this fierce negotiation, both sides went back and forth, neither side gave in. On Song Ci's side, not only did he argue his case, but Zhang Yong, Wang Jing, and representatives from BOC Capital, ICBC Capital, and Peking University Investment Fund also expressed their opinions.
From different angles and levels, we tried our best to persuade a number of investment institutions to accept the valuation of US$55 billion. After all, on this key issue, the interests of several shareholders are consistent.
When the negotiations reached a deadlock again, SoftBank Group's Masayoshi Son suddenly spoke up in fluent Chinese: "Mr. Song, I have invested in more than 500 companies."
This legendary figure, who is well-known in the world investment community, drew an arc in the air with his skinny fingers:
"In fact, SoftBank can accept a valuation of US$55 billion, but we invest to make money. You need to leave room for imagination in the capital market."
The Temasek representative also quickly agreed, “Yes, with such a terrifying valuation of Tengda, how much room for growth will there be when it goes public in the future.
Moreover, the financing plan proposed by Mr. Song is a very demanding AB share, which is equivalent to cutting off our possibility of intervening in the affairs of Tengda Group. "
Song Ci understood what Masayoshi Son meant, which was simply that he wanted him to guarantee the shareholders' investment returns while he was unable to interfere in Tenda's operations.
After weighing the pros and cons in his mind, he knew that wasting time was not a solution, so he decided to come up with a big move: "Everyone, are you interested in making a bet with me?"
Feeling Song Ci's confident gaze, Masayoshi Son leaned forward slightly and was very interested in what Song Ci said. He himself was a person with a strong gambling nature, so he often spent a lot of money on some new companies.
"Mr. Song, please tell me how to bet."
Song Ci sat upright with a serious face, and told the final plan in his mind: "Tengda Group raised 15% of the financing at a valuation of 55 billion US dollars. As the actual controlling shareholder of Tengda Group, I promise that the company's valuation will not be less than 250 billion US dollars in four years.
If this condition is not met, the valuation of this financing will be recalculated to US$40 billion, and the corrected financing equity ratio will be 20.625%, which will be compensated by me and the management team. "
Upon hearing this, Son Masayoshi calculated in his mind, a shrewd and experienced look flashed in his eyes, and then he clapped his hands and praised: "Mr. Song is quick to speak. SoftBank Group has accepted this bet agreement."
When Song Ci heard that Masayoshi Son was the first to take up the bet, he breathed a sigh of relief. The tacit understanding among the investors on the other side finally began to crack and was no longer solid.
Representatives of Temasek Holdings carefully calculated that the valuation jumped from 55 billion to 250 billion in four years, with an annual return on investment of about 50%, which is already an extremely terrifying increase.
Without hesitation, he said: "Temasek is willing to accept the bet proposed by Mr. Song."
Two investors are already willing to accept the bet, and the remaining representatives of investment institutions are gradually wavering in their determination.
Song Ci then turned his attention to representatives of several North American investment institutions such as Google and Goldman Sachs. Compared with SoftBank and Temasek, these were the shareholders he needed most.
"Ms. Emily, what do you think of my plan?"
Being singled out by Song Ci, Emily felt tremendous pressure. Unlike the pure financial investment of other financial institutions, Google plans to have multiple collaborations with Tenda in the future, which requires her to consider more factors when making decisions.
"Mr. Song, please wait a moment. I need to make a phone call for instructions."
"Please."
Emily hurried out of the conference room and returned soon after, looking relaxed. As soon as she sat down, she said, "Mr. Song, Mr. Larry Page agreed to your bet and is willing to lead the investment."
"It's done!" Even though Song Ci was always calm, he was delighted at this moment. Google's participation meant that the financing negotiations had been won.
Goldman Sachs President Wilson and the BlackRock Group representative looked at each other, as if they were having a silent communication, but after a moment, they followed suit and expressed their opinions.
"Goldman Sachs is willing to accept it!" "BlackRock has no problem with it either."
After the general direction was decided, the subsequent details such as investment shares, deadline for funds arrival, equity exchange, etc. were discussed very quickly. In just half an hour, several major investment institutions reached an agreement with Tengda Group.
After evaluation and negotiation by both parties, this round of financing, based on a pre-investment valuation of US$55 billion, raised a total of 15% of the total share capital and a financing amount of US$8.25 billion.
Google led the investment with 5%, and Goldman Sachs, BlackRock, SoftBank, Temasek, and China Development Bank each followed with 2%.
After the financing, the equity structure of Tengda Group changed to:
Songci: 24.225%; Shanhai Capital: 24.225%; Zhongxin Investment: 23.75%;
Zhang Yong: 2.4225%; Wang Jing: 1.615%; ICBC Capital: 2.55%;
BOC Capital: 1.02%; Peking University Investment Fund: 0.68%; Employee option pool: 8.075%.
After signing the financing letter of intent, Wilson smiled and said, "Mr. Song, tomorrow the joint audit team of six institutions will enter your company to review the financial statements."
Song Ci nodded gently: "As you should, I will ask the group's chief financial officer to fully cooperate and complete the review as soon as possible."
After several institutions signed the letter of intent, applause broke out in the conference room.
Song Ci was in high spirits, all the tiredness on his face was gone: "To celebrate this successful cooperation, I have prepared some wine at the Peking Hotel, please come and enjoy it tonight."
Around 4pm, at Huairou Film and Television Base, the crew of "The Founding of a New Era".
Jiang Yuanyuan stood outside the studio, looking down at the time on her mobile phone from time to time, waiting anxiously.
In the center of the set, Liu Shishi, dressed in simple and elegant clothes from the Republic of China period, was fully concentrating on acting opposite Liu Ye.
As the last line was finished, the director's voice soon came from the intercom. "Passed."
After hearing the director's order, Jiang Yuanyuan knew that her role for the day was over. She rushed into the studio and went straight to Liu Shishi. She leaned in and whispered in her ear:
"Shishi, Mr. Song asked you to accompany him to a cocktail party at the Beiping Hotel tonight. He has already sent someone to deliver the dress."
Liu Shishi was immersed in the relaxation state after finishing filming. When she heard the assistant's words, she was stunned: "What cocktail party?"
"Time is tight. Shishi, please go to the dressing room and change your makeup first. I will talk to you slowly on the way."
"Okay!" Liu Shishi nodded. Without asking any more questions, she said hello to Liu Ye and hurried to the dressing room in the other's surprised gaze.
Sister Yi ran quickly and asked her assistant, "What's going on? Tell me clearly."
Jiang Yuanyuan followed closely behind the young lady, panting, "It has been revealed on Weibo that Tengda Group raised 8.25 billion US dollars today. Mr. Song is hosting an investor appreciation dinner, and you are invited to attend."
Even though Liu Shishi usually doesn't care much about money, she took a deep breath when she heard this number: "How much? 8.25 billion, in US dollars!"
The assistant was also confused: "Yes! About 60 billion RMB."
Her husband asked her to accompany him to such an important cocktail party. Sister Yi was very happy, but she still said proudly:
"Stinky Yiyi, you only informed me of such an important cocktail party at this time, and didn't even give me enough time to put on makeup and prepare. You are deliberately trying to make me look bad in front of his investors!"
"Mr. Song has prepared the evening gown. It's at Xiaoxia's place. She's waiting in the dressing room."
The afterglow of the setting sun had not yet completely faded, and while Liu Shishi was busy putting on makeup and dressing up, the news that Tengda Group had completed a huge amount of financing had already occupied the front pages of major media outlets.
Weibo was in an uproar, with countless netizens leaving messages under the official accounts of Song Ci and Tengda Group.
"Oh my god, 8.25 billion US dollars! Tengda is going to defy the will of heaven!"
"Damn, it's already valued at 55 billion U.S. dollars before it's even listed. This is too much. Once it's listed, the market value will be hundreds of billions of U.S. dollars."
"Tengda should be the world's most valuable unlisted Internet company. Song Ci is really amazing."
"Boss Song, don't you mind taking a few more concubines?"
The news of Tengda’s financing not only caused a stir in China, but also spread rapidly to the other side of the ocean, allowing the whole world to know about China’s Tengda Group.
As night falls, the lights shine brightly and the Golden Ballroom of the Peking Hotel is magnificent.
Liu Shishi wore a light blue off-shoulder evening gown, with an elegant temperament. Her neat short hair was different from the gentle and delicate look of her long hair, making her look more delicate and lively, like a bright pearl, radiant and dazzling.
At this moment, Miss Liu was holding her husband's arm, feeling a little nervous, as it was her first time attending such a high-level banquet.
Looking around, the entire hall was filled with either Tengda executives or representatives of world-renowned investment institutions. It was completely different from the celebration banquets and brand cocktail parties she had attended before. It was not on the same level at all.
Song Ci was wearing a high-end suit, looking cool and handsome, with the jewel brooch on his chest sparkling. Standing together with Shishi, the handsome man and beautiful woman were the focus of the whole audience.
"Mr. Li, this is my wife, Liu Shishi. Shishi, this is Mr. Li from ICBC Capital."
"Mr. Sun, this is my wife, Liu Shishi. Shishi, this is Mr. Masayoshi Son, the founder of SoftBank Group."
At the cocktail party, everyone was toasting and chatting with each other, making connections, and Song Ci also introduced Liu Shishi to a group of CEOs and executives.
"Mr. Wilson, this is my wife."
Liu Shishi looked at the foreigner standing in front of her and her husband and talking in English, with a polite smile on her face.
But she felt awkward inside because her English was not very good and she could not understand what her husband had just introduced, the president of Goldman Sachs, the world's top investment bank, was saying.
Seeing the Goldman Sachs president talking a lot, toasting with her husband and leaving, Liu Shishi hurriedly asked quietly: "Yi Yi, what was he just saying?"
"He praised your good temperament. After learning that you are a star, he said he would introduce you to a brand endorsement. He is friends with the president of Bulgari Asia."
When Liu Shishi heard that someone wanted to introduce her to an endorsement, she immediately felt a liking for the foreigner, but then she became frustrated: "Husband, I can't even speak English well, isn't it embarrassing for you?"
Song Ci heard this and quickly comforted him: "How could that be? Don't think too much. English is not difficult. If you want to learn, find a teacher or I can tutor you."
(End of this chapter)
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