Revisiting Future Path

086 Why Go More For More

That's all about Baidu's shares. The search field is the step on which Wei Dongsheng is determined to set foot. Rather than talk with Luo Liluo, the founding team of Baidu, Wei Dongsheng simply launched the Chunqiu Qiaoqiu search engine to support Baidu, brutally snatching the market that originally belonged to Baidu. After Baidu was taken a look at it by the Spring and Autumn Period, IDG's Baidu shares were worthless, and it was useless for Wei Dongsheng to come.

Tencent's shares are different.

As mentioned earlier, Wei Dongsheng does not worship Tencent, nor does he envy Tencent, and he does not bother to spend his energy fighting with Tencent to grab the instant messaging market. However, the instant messaging market is after all an instant messaging market. Wei Dongsheng has no intention of operating the instant messaging market, but will not ignore its existence. That being the case, holding a certain share of Tencent may be a good way to cooperate.

At this time, IDG still held a 7.2% stake in Tencent.

Taking advantage of IDG's view of the value of Tencent, Wei Dongsheng's acquisition of 7.2% of its shares at a low price is definitely a successful investment. In all this, when Yang Fei expressed his willingness to invest in Chunqiu Network in August last year, Wei Dongsheng gave a positive reply: "IDG wants to invest in Chunqiu Network. Yes, it can be exchanged for shares in Tencent."

Wei Dongsheng's bidding time was very clever.

In August 2003, Tencent adjusted its shareholding structure and requested IDG to repurchase 7.2% of its shares for approximately US$4.579 million. IDG looked down on Tencent's profitability and had agreed to this transaction in principle, but it was unexpected that Wei Dongsheng was killed halfway through.

Chasing ups and downs is human nature.

Just as "World of Warcraft" sells agency rights to make money, venture capital transfers shares for profit. With Wei Dongsheng’s bid, Tencent’s request to repurchase shares was immediately suspended by IDG. IDG asked Chunqiu Network for quotation, Wei Dongsheng gave two plans: "The first plan, Chunqiu Network premium 31%, 6 million US dollars to buy 7.2% equity of Tencent; the second plan, IDG replaces Chunqiu Network with 7.2% equity of Tencent Or Chunqiu Software’s equity."

IDG was very satisfied with the US$6 million valuation, but with a mentality of being out of stock, it disagreed with the cash transfer and chose the second plan. However, the two parties hold different attitudes towards the value of Chunqiu Network and Chunqiu Software. IDG is amazed that the lions open their mouths and hope to obtain 30% of Chunqiu Network or 25% of Chunqiu Software with Tencent's 7.2% equity and US$4 million.

Wei Dongsheng vetoed it on the spot.

Just kidding, I want to ask for a 30% stake in Chunqiu.com for a mere ten million dollars. This is what I think of "Ten Kingdoms"!

The month after "Spring and Autumn of the Ten Kingdoms" was launched, sales in July amounted to 32.91 million yuan, which is approximately equal to 4 million US dollars. Later, when Chunqiu Network held a press conference to sue 3721 and Baidu, IDG also slapped IDG by the way, and announced that the total sales of "Ten Kingdoms" in August was 44.78 million yuan. From its launch on June 16 to the end of August, in just two months, "The Spring and Autumn of the Ten Kingdoms" sold for $10 million, and the idiot would sell its 30% stake for $10 million.

IDG restarted negotiations, and the asking price was reduced from 30% to 20%.

Chunqiu Networks real-time monitors its constantly refreshing sales records. How could it agree to such an unreasonable request and naturally refuse it again.

From September to October, and from November to December, Lei Jiafei, Chang Mingxia, Wei Dongsheng, Jing Minqiang led their teams to start several rounds of negotiations with IDG, and the two parties were always unable to reach a consensus on the valuation of Chunqiu Network. Because Wei Dongsheng is not eager for Tencent's shares, he only regards this investment as an ordinary strategic level negotiation. Le Zai Youzai and IDG drag the time. By the beginning of 2004, statistics showed that the operational data of "The Spring and Autumn of the Ten Kingdoms" once again set a new record, reaching an unprecedented 133 million yuan in the Chinese market.

The current situation is becoming clearer and clearer, and "The Spring and Autumn of the Ten Kingdoms" has become a cash cow.

Even if Chunqiu Network gave up its 7.2% stake in Tencent, it would never be able to transfer 20% of its shares cheaply.

The requirement for 10% equity is also IDG's daydream.

At the same time, Tencent is also urging IDG to give a clear attitude, asking IDG to continue to hold 7.2% equity, or to agree to the equity redemption request. IDG felt that it could no longer delay any more time, so Yang Fei came forward to invite Jing Minqiang and Wei Dongsheng for the last negotiation, trying to get the matter completely settled before the Spring Festival.

The final negotiation that determined the outcome was not chosen on a solemn occasion. In Spring and Autumn, Wei Dongsheng, Jing Minqiang, and Lei Jiafei; in IDG, Yang Fei, Zhou Quan, and Xiong Xiaoge, six people hid in a hall to chat and exchange their attitudes.

The light is slightly dim, and occasional reflections between cups and cups. IDG's top leader in China, Xiong Xiaoge, asked the bottom line of Chunqiu simply and frankly: "If IDG invests 10 million US dollars, how many shares will Chunqiu Network give us ?"

Wei Dongsheng frankly stated his bottom line: "In December 2003, the monthly sales of "The Spring and Autumn of the Ten Kingdoms" was 133 million yuan. If you multiply it by December, the minimum sales for the following year will be 1.596 billion yuan; The valuation is 4.788 billion yuan. Converted to US dollars at the current price of 8.2768, that is US$578 million. If IDG is only willing to invest US$10 million, Chunqiu Network can only give you 1.73% equity at most."

Xiong Xiaoge immediately shook his head: "This is impossible."

IDG decision-making model, each investment must have the opportunity to obtain a return of more than 10 times. Wei Dongsheng valued Chunqiu Network at US$578 million, which means that Chunqiu Network must skyrocket to US$5.78 billion before IDG can obtain sufficient compensation.

However, can Chunqiu Network grow to $5.78 billion?

Xiong Xiaoge doesn't think there is such a possibility.

Although Xiong Xiaoge was shocked by the miracle of "Ten Kingdoms Spring and Autumn" with monthly sales of 133 million, he did not think it could be popular for three years: "The online game market is changing rapidly. In 2001, there was "Legend of Warm Blood" and in 2002, "Miracle MU". There was "Spring and Autumn in the Ten Kingdoms" in 2003, and no one is sure that there will be no new challengers in 2004."

Wei Dongsheng disagrees: "The "Legend of Hot Blood" was put into public beta on September 28, 2001. Even if it encounters the severe challenge of flooding private servers, even if it encounters the impact of "Miracle MU" and "Ten Kingdoms", even if it encounters the devastating blow of copyright incidents. , Its sales are still on the rise. I don’t think "The Spring and Autumn of the Ten Kingdoms" is worse than the "Legend of Warmth". "The Legend of Warmth" can live for three years, and "Spring and Autumn of the Ten Kingdoms" will definitely live for three years."

Xiong Xiaoge did not directly criticize the quality of "The Spring and Autumn of the Ten Kingdoms", but talked about the growth rate in a gentle manner: "The sales of "Spring and Autumn of the Ten Kingdoms" were 107 million in November and 133 million in December, an increase of 3000 at first glance. The prospects are very, very brilliant. However, as far as I know, the month-on-month growth rate in December compared to November is more dependent on the delay in the daily growth rate in November. At the end of November, the daily sales were about 4.2 million Yuan; At the end of December, daily sales were about 4.3 million, which is a very different growth rate from before December."

Xiong Xiaoge deliberately belittled the value of Chunqiu Internet, summing up his tone and said: "The Ten Kingdoms Spring and Autumn Period has reached its limit."

Wei Dongsheng did not deny it.

After six months of skyrocketing, "The Spring and Autumn of the Ten Kingdoms" did touch the ceiling. Due to the delayed effect of the growth rate, a simple comparison of monthly sales figures may not be able to find the nuances at a glance, but if you refine it to the daily, you can clearly find that the growth rate is gradually flattening.

However, Wei Dongsheng does not think this is a game quality issue.

The premise of every online game user is an Internet user, and the total number of Internet users should be directly proportional to the number of online game users. The twelfth China Internet Development Statistics Report shows that as of July 21, 2003, the total number of Internet users in China was 68 million. Public opinion predicts that the upcoming 13th China Internet Development Statistics Report revealed that as of January 2004, the total number of Internet users in China was close to 80 million. Online game users can only be born from these 80 million netizens. The freemium model of "The Spring and Autumn of the Ten Kingdoms" has a certain limit on consumption. The current limit of "Ten Kingdoms" is the limit of the total number of online game players, the limit of the basic telecommunications, the limit of the total number of Internet users, and the limit of the times.

Wei Dong's life and mentality stated his views: "The slowdown in "The Spring and Autumn of the Ten Kingdoms" is the result of limited Internet development. This is the hardware foundation. We can only wait for the number of Internet users to increase from 68 million to 80 million. 80 million increased to 180 million. Of course, Chunqiu Network will not mechanically face the stagnation of growth. In fact, the Spring and Autumn Period team of Ten Kingdoms is already preparing to launch a new version of the "Shang Yang Reform" during the Spring Festival holiday. The version of the "Shang Yang Reform" is based on Qin Guo Shang Yang To change the old things, add a military merit nobility mechanism, moderately increase the intensity of confrontation between players step by step, and stabilize the bonding of players."

Xiong Xiaoge knew it well.

Xiong Xiaoge disagrees with the "Shang Yang Reform" mechanism of military merit and title, but he can understand Wei Dongsheng's self-confidence in his words and understand that he cannot use it to lower Chunqiu's quotations. Forcibly criticizing the military merit and title mechanism is useless and will only affect the feelings of both parties. Therefore, Xiong Xiaoge directly questioned the second question: "Chunqiu Network only operates one game "Ten Kingdoms Spring and Autumn", and the financial structure is too dangerous. And 830 million signed "Warcraft" "World" is also a very risky investment. The income of "Ten Kingdoms Spring and Autumn" is very likely to be lost in the "World of Warcraft" project. I am very curious why Spring and Autumn Network is not as much as Shanda Network, Ninth City, and Guangtong Communication. How many games do you operate?"

Wei Dongsheng smiled and rejected Xiong Xiaoge's suggestion: "The human resources of Chunqiu Network are limited, so why go for more and waste everyone's limited energy."

Xiong Xiaoge disagreed with Wei Dongsheng’s point of view, and continued: “You can’t say that. Online game operations are extremely risky. Relying on an online game is like putting all your eggs in one basket. A crisis is irreversible. NetEase, although focusing on the operation of the Westward Journey series, at the end of 2003, based on the Westward Journey series, ingeniously launched the "Fantasy Westward Journey". It is said that the market response is very good. Compared with the "Ten Kingdoms Spring and Autumn", a new version was launched.' "Shang Yang Reform", I am more optimistic about the diversified risk model of Netease's "Western Journey 2" to "Fantasy Westward Journey"."

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