Media Tycoon since 1999

Chapter 529

On the afternoon of November 11, when Wu Wenfei, the main founder of Qidian Literature.com, received a call from Li Qin, he was very surprised.

Li Qin represented the 51 Group, and Xu Xin, the chief investment officer of the 51 Group, invited Wu Wenfei to have dinner together in the evening.

After Wu Wenfei hesitated for a moment, he still agreed.

In 2007, Qidian Literature hosted by Wu Wenfei had a difficult life.

In October 2004, Wu Wenfei and other founders of Qidian packaged and sold Qidian Literature to Shanda for US$10 million.

Soon, Shanda began to promote game recharge cards in Qidian and established Qidian's recharge system.

In 2005, Qidian lost a lot of money because of a loophole in the recharge card.

In 2006, 71K Literature poached half of the editors from the starting point, as well as a group of top popular writers such as Xuehong and Yuntian.

In 2007, Shanda injected RMB 1 million into Qidian, trying to restore Qidian's decline and industry reputation.

2007 is almost over, and the revenue of Qidian Literature is less than 4000 million, and the loss exceeds 3000 million.

Wu Wenfei and his operation team have a growing sense of crisis, because Boss Chen has recently sent someone to negotiate with Jinjiang Novels, planning to acquire this 4-year-old literary website and form Shanda Literature.

Wu Wenfei understood that the powerful boss Chen was very dissatisfied with the development of Qidian in the past two years. After the establishment of Shanda Literature, the new company is likely to parachute a boss.

Wu Wenfei even heard that Boss Chen intends to recruit a vice president from Xinglang to host Shanda Literature.At that time, there will be an extra "mother-in-law" on his head.

At 6:[-] in the evening, Wu Wenfei rushed to Pudong Shangri-La Hotel and met Xu Xin and Li Qin.

Sitting down to eat and drink, Xu Xin was straightforward:
"Mr. Wu, I invite you to dinner today. We represent 51 Group and would like to communicate with you. If 51 Group acquires Qidian Literature, what will be your attitude as the main founder of Qidian?"

Wu Wenfei asked in surprise, "The 51 Group wants to enter online literature?"

Xu Xin smiled slightly: "Yes, online literature is an important part of 51 Group's layout of pan-entertainment.

In the field of online literature, 51 Group's goal is to be the largest original literature platform with the widest audience and the strongest strength, and to establish a huge original literary boutique IP pool.

At the same time, it will also expand to peripheral products.

In the direction of pan-entertainment, 51 Group already has a performing arts brokerage service company such as 51 Entertainment, and will also invest heavily in film and television dramas, movie theaters, online music, video websites, etc., to build a complete pan-entertainment business system.

In the field of online literature, we plan to build a 51 literature group, which will develop to the point where it can be IPO in five or six years, with the goal of occupying about 60% of the online literature market. "

Wu Wenfei shook his head and smiled: "Mr. Xu, after Shanda acquired Qidian in October 2004, it has made three capital injections and already invested 10 million.

Shanda also has a plan to build a large online literature platform. Now, Shanda’s game business is very profitable. It has been listed on Nasdaq for three years. Boss Chen has no shortage of funds, so the possibility of giving up the strategy of the online literature platform is very small. "

Xu Xin said: "Thank you, Mr. Wu, for your reminder. However, this is something we are worried about. I would like to ask you personally, including the current operation and management team, your true attitude towards this matter."

Wu Wenfei took out a pack of cigarettes and asked, "Mind if I smoke a cigarette?"

Xu Xin smiled and said, "You can do whatever you want, I also smoke occasionally."

Wu Wenfei lit a cigarette, thought for a while, and suddenly laughed:

"Mr. Xu, I'm actually not qualified to talk about this kind of capital-level matter. Now, Shanda is the controlling party of Qidian, and the decision-making power rests with Boss Chen.

In 2002, five of our friends officially founded Qidian Literature because of their interests and shared goals.

We like to read and even write online articles, hoping to embark on a commercial path, attract more people to create online articles, and more people to read online articles, so as to support the development of original Internet literature.

Now, we are only minority shareholders and are not qualified to evaluate transactions at the capital level. In the past two years, the operation of Qidian has also been relatively difficult.

If 51 Group can acquire a majority stake in Qidian from Shanda, we just hope that 51 Group can strongly support Qidian, sincerely promote the development of original online literature, and make this platform bigger. "

Xu Xin smiled again: "Mr. Wu, you might as well take a longer view. 51 Group will naturally attach great importance to and fully support the pan-entertainment business.

In fact, we just discussed the acquisition of Xiaoxiang Literature yesterday. Besides Starting Point, 51 Group has other goals, and Starting Point is the core of it.

Mr. Gao Yang, the founder of 51 Group, hopes to invite you to preside over the overall situation of 51 Literature.

What Mr. Gao means is that in the initial stage, 51 Literature will invest heavily in cultivating the group of authors and readers. It does not pursue short-term profits, but to create a healthy and sustainable network original literature market ecology.

Once this step has been achieved, the project will be profitable, and it will be a matter of course. "

Wu Wenfei was quite surprised: "A big man like Mr. Gao also knows about us?"

Li Qindao: "Mr. Wu, our Mr. Gao is also a fan of online literature. Mr. Gao hopes to establish 51 Literature Group, relying on such a powerful platform as 51 Group, to promote the prosperity of the original online literature market step by step.

Mr. Gao said that through 51 Literature, building a high-quality original web literature IP pool is one of the important foundations for the development of 51 Group in the direction of pan-entertainment. "

Xu Xin said again: "Mr. Wu, we have already negotiated with Xiaoxiang Literature to get 1500% of Xiaoxiang's shares for 75 million. Next, 51 Group will inject 5000 million into Xiaoxiang to support its upgrade and shift.

If Mr. Wu wants to realize his dream of becoming bigger and stronger, 51 Group is the best investor, and our Mr. Gao is the best boss. "

Wu Wenfei exclaimed: "The 51 Group gave Xiaoxiang a valuation of 2000 million, which is a sky-high price. Compared with the starting point, Xiaoxiang is just a very small online platform."

Xu Xin asked again: "Mr. Wu, assuming that Boss Chen is unwilling to sell the majority stake in Qidian, are you and your team willing to join 51 Group and start anew?"

Wu Wenfei was slightly taken aback when he heard the words: "Mr. Xu, how determined is 51 Group to invest in the web platform?"

Xu Xin smiled slightly: "Mr. Wu, what is the measure of your determination?"

Wu Wenfei said: "For the tolerance of losses, this year, Qidian is expected to lose more than 3000 million, or even 4000 million."

Xu Xin said with a smile: "If Mr. Wu only considers the issue of capital investment, it is the easiest thing for 51 Group.

Next year, the 51 Group will invest billions in the construction of regional headquarters buildings in seven major regional central cities across the country, including Shanghai, Special Zone, Shudu, and Jiangcheng.

After that, it will also invest in self-construction or purchase of office buildings in major provincial capitals and key prefecture-level cities across the country.

At the same time, we will also cooperate with real estate developers in various cities to customize employee dormitories, and rent them to employees who need housing at a price 50% lower than the market price.

For the 51 Group, this is a cost of more than [-] billion yuan, and it will not generate a penny of profit.

51 Group attaches great importance to all kinds of talents. As long as they are talents and work hard enough, they will be useful in 51 Group, and there will be a clear upward path. "

Wu Wenfei said in amazement: "Has the 51 Group such a strong capital strength?"

Xu Xin smiled and said: "Yes, it is that strong. I have been a VC for more than ten years, and Gao is always the best for employees and the most generous boss I have ever met. It can be said that the current 51 Group is the strongest in China. Big and the best internet company.”

Wu Wenfei lit another cigarette, pondered for a while, and said, "President Xu, my team and I are willing to cooperate with 51 Group.

Of course, we hope that 51 Group can acquire Qidian Literature. We have devoted a lot of effort to this platform. It is really not easy to develop to the current scale, and we are very reluctant. "

Xu Xin smiled sweetly: "President Wu, please rest assured, I think it will be very difficult for Shanda to refuse the sincerity of 51 Group..."

(End of this chapter)