Rebirth of the big era of online games

Chapter 126 Goose Factory Burning Money

For the Internet cafe management system, Fang Jie plans to do it himself, instead of handing it over to Tencent.

Nails are nails and nails are nails. Brothers settle accounts clearly. If different businesses should be separated, they should be separated.

If this thing is done well, it will also be a great source of income. Of course, it can't be cheap for Tencent!
Uh, it seems that Tencent is now its own?
Affected by the memory of his previous life, Fang Jie always felt that controlling Tencent was a bit of a violation. It didn't feel like his own company, but a behemoth with a high mountain to look up to.

But if you think about it carefully, now you are the big boss of Tencent!
67% of the absolute controlling right is equivalent to 100% of the controlling right. Even if the management team sets various restrictions, it is actually completely useless.

Because the law stipulates that shareholders who account for more than two-thirds of the shares can vote on any matter of the company, and he alone owns more than two-thirds of the shares. ...

Ah this...

At present, Papa Ma has not played this kind of coquettish operation. With the imagination of Tencent's management, it has not been imagined.

Moreover, domestic laws do not support the rule of different rights for the same share. Before overseas listings apply to overseas securities laws, different rights for the same share have no legal effect.

Even if they have it, it is useless. The management team only owns 28% of the shares, and within 34%, there is not even a veto right.

This time he came to the provincial capital to do business, and before going back, he stopped by the Tencent Jiangcheng branch to take a look.

Everything in the company is normal, but the scale is too small. More than a dozen newly recruited employees are huddled in a small office. It is no different from an ordinary company. It is difficult to equate it with Tencent in the previous life.

Although he is the big boss, in fact, except for the top management of the company, the employees below basically don't know him, so his appearance did not attract the attention of the employees.

Only a technician who was in charge of handing over the computer server to him accidentally discovered the big boss, but he didn't dare to publicize it everywhere. He just secretly made a phone call and reported the matter to the Shenzhen City Headquarters.

As soon as Fang Jie left the company, he received a long-distance call from the chief operating officer, Zeng Liqin, from Shenzhen City.

During the phone call, Zeng Liqin exchanged pleasantries and talked nonsense for a long time, until Fang Jie spouted: "What the hell are you trying to say? I don't know that long-distance calls are very expensive, and they are two-way!"

Only then did the other party express his purpose: "It's like this...Recently, the number of registered and online users of QQ and 51wan have skyrocketed, and the number of servers has also doubled. It's not enough, and the company is almost out of money..."

Fang Jie was speechless for a moment.

This is the case in the Internet industry. Most of the money is burned on the server. Not to mention the burning is extremely fast. It will be difficult to make a profit for a long time, so we can only continue to burn money in it.

Moreover, Tencent's servers are not owned by itself, but rented, because if they buy them, the investment will be greater, and it is impossible to maintain them.

In the long run, the cost of renting a server is higher, and everyone understands this truth.

This is like buying a house and renting a house. Buying a house involves a lot of investment but once and for all. If you rent a house, you can afford the monthly rent. After renting for 1 or 2 years, you can make a down payment on a suite.

At present, Tencent rents a server for 1300-1500 per month, which is equivalent to the nature of an Internet cafe charter flight, and its performance and security cannot be compared with Fang Jie's own server.

In short, Tencent is struggling now. Even if he holds a controlling stake and invested 400 million in it, it is still a drop in the bucket.

Especially after QQ hitched a ride on 51wan, the effect of 1+1 greater than 2 was obvious, but while the number of online users soared, the number of servers also soared, and it doubled.

If you don't lease it, but buy it yourself, it is estimated that it has gone bankrupt by now.

Only Fang Jie, who is not short of money, will pay for the server himself, otherwise, who can afford it?

Regarding this, of course he also understood the problem, but he just pretended to be deaf and dumb and asked, "Then what do you think?"

"Borrowing money. Debt-to-equity swap..." Zeng Liqin smiled coyly.

"Don't even think about it, the 100 million server is thrown to you, and you still need to borrow it?"

Fang Jie rejected the other party's proposal without even thinking about it.

Just kidding, his money didn't come from the wind...

Well, anyway, if you want him to continue to invest, you must talk about business. One time is enough for debt-to-equity swaps. Don't keep thinking about taking advantage.

Zeng Liqin seemed to have expected this to happen, and was not angry. He just smiled and said, "Then follow the rules and let some money come in... You know the situation of the company. It can’t be done halfway.”

Of course, Fang Jie knew better than anyone else what the future of Tencent would be like. After weighing it up, he said: "I'll give you another 100 million, which will be included in the equity. Don't blame me for diluting your shares."

"It's only 100 million..." The other side was obviously very dissatisfied.

What can 100 do?

According to the current momentum, it will burn out in half a month at most.

Unexpectedly, Fang Jie said again: "I'm talking about US dollars! One million US dollars!"

"Eh? Oh~ha!"

The other party made three strange voices in a row, and then couldn't help but say in surprise: "Okay, well, 100 million US dollars, it should be enough to last until the end of the year!"

But after the surprise, the other party asked with some concern: "Then what is the valuation standard for the 100 million US dollars? You know that the company has changed its registered capital now, and several of our shareholders also agreed on 1500 million US dollars." The valuation of..."

Fang Jie rolled his eyes and said helplessly, "Of course it is based on the valuation of 1500 million US dollars. If it is still based on the previous 200 million US dollars, do you have so many shares diluted by me?"

"That's fine!" The opposite party was finally relieved.

In fact, Fang Jie didn't suffer at all.

It seems to be a loss, but in fact it has further consolidated Tencent's current valuation standards. When it refinances in the future, all new investors will have to buy shares at a total valuation of US$1500 million plus this time US$100 million.

After the US$100 million is invested, Tencent’s market value will be US$1600 million, and Fang Jie’s shareholding ratio will reach 69.06%, while the shares of Yingke Digital and the founder team will drop to 4.69% and 26.25%.

So the 100 million will be earned back sooner or later, and once it goes public, the rate of return will double hundreds of times without any problem.

In short, Tencent is a chicken that will lay golden eggs in the future, but before laying eggs, the chicken must be raised to a large size, otherwise if it starves to death halfway, it will have nothing.

Tencent, which is short of money, is extremely efficient.

On the next Sunday, the company's CAO, Chief Administrative Officer Chen Yidan left his vacation and hurried to Tongcheng, where he signed relevant legal documents with Fang Jie in the telecom Internet cafe.

Chen Yidan is a master of economic law from Jinling University School of Law and one of the founders of Tencent. As the chief administrative officer, he is fully responsible for the company's administration, law, intellectual property, public relations, human resources and other affairs, which can be described as a high position.

There is no need to hold a general meeting of shareholders for this shareholding increase, because Fang Jie alone is the general meeting of shareholders, and everything he says counts.

As for the source of funds, of course it came from overseas securities accounts. Anyway, there is no risk of liquidation, and the funds close to 800 million US dollars are still on the shelf. It is better to take out a little to give Tencent a blood transfusion.

After signing the document, Fang Jie gave him some extra instructions, asking the other party to help him with some personal affairs, and then let the other party go...

(End of this chapter)