Entertainment mogul: Starting his business with the internet

Chapter 308 My Wife

On the last day of August, the entire city of Beiping was shrouded in a violent storm.

Inside a conference room in the Technology Building, a crucial financing negotiation concerning the fate of Tengda Group has been going on for six hours.

The air was thick with tension and a sense of oppression, and everyone in the meeting room wore expressions of focus and exhaustion.

Looking at the representatives of internationally renowned investment institutions such as Google, BlackRock, Goldman Sachs, SoftBank, and Temasek sitting opposite him, Song Ci deeply felt how difficult these guys were to deal with.

Since the financing negotiations began at 9 a.m., he had been talking until his throat was dry and his voice was almost hoarse, but the other party remained unmoved.

Song Ci tapped her long fingers lightly on the conference table, glanced at the group's financial report displayed on the electronic screen, and then turned her gaze to the representatives of the investment institutions.

"Ladies and gentlemen, the pre-investment valuation of $550 billion is not a figment of imagination, but a reasonable valuation based on Tenda's current revenue, profit, number of users and product market share."

I have already answered all your previous questions. If you still have any questions, please feel free to ask now, and I will answer them to the best of my knowledge. However, a valuation of 550 billion is my bottom line, and that is non-negotiable.

Mark Wilson, president of Goldman Sachs Asia, his gold-rimmed glasses gleaming coldly, his tone carrying a hint of skepticism and scrutiny:

"Mr. Song, it is undeniable that your company's financial report is indeed impressive, but the profits contributed by the game business account for 70% of the group's total profits."

As far as I know, your country's regulation of online games is becoming increasingly strict. Under the current circumstances, how do you ensure the continued stability of profits from your game business?

Song Ci chuckled lightly. He enjoyed the questions and doubts from these foreigners. Tenda's valuation of 550 billion US dollars had gradually increased as he refuted these investors until they were speechless.

"Mr. Wilson, if I may be frank, you clearly have only a superficial understanding of the relevant policies. Every industry goes through a process of development from initial disorder to orderly standardization; this is an essential path for an industry to mature and grow."

Only by establishing a standardized market order can large, powerful companies like Tengda sweep away unqualified small workshops from the market and bring the Matthew effect of the internet industry to the fore.

More importantly, our TD gaming platform, as the world's largest digital gaming platform, only has a small portion of its games available in the domestic market.

Looking globally, there are even broader markets waiting for us to explore. I predict that the gaming business will experience rapid growth over the next ten years and will not encounter any so-called bottlenecks.

At this moment, Emily, a female representative from Google's strategic investment department, suddenly interjected: "Mr. Song, can WeChat really beat Facebook in the instant messaging field?"

Song Ci, with his elegant demeanor and unhurried manner, took a sip of tea to soothe his dry throat before speaking eloquently:

"Ms. Emily, I don't think I need to elaborate on the value of WeChat, as I have already explained it in detail before."

The data speaks for itself. If Facebook had any means, someone wouldn't have been so incompetent as to slander and defame Tenda at your country's hearing.

Emily nodded slightly, seemingly agreeing with Song Ci's answer, but then quickly changed the subject:
"Mr. Larry Page is very optimistic about your company's prospects, and Google is also very sincere about this investment, but your proposed valuation of $550 billion is too exaggerated."

As you can see, Google's market capitalization is currently around $1400 billion, and its revenue for the first half of the year was $108 billion, while your company's revenue for the first half of the year was only a quarter of Google's.

Compared to Google, a valuation of $350 billion to $400 billion for Tenda would be more reasonable.

“Ms. Emily, looking only at revenue and not profit is a generalization. Moreover, Google’s main business is search, while Tenda is the market leader in multiple fields such as games, social media, 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 touch of emotion: "Mr. Song, you are truly eloquent. Representatives from more than a dozen organizations couldn't out-argue you."

"Because you all know in your hearts that Tenda is worth this price, that's why you're patiently sitting here listening to me build a wonderful blueprint."

In this heated negotiation, both sides went back and forth, neither willing to give an inch. On Song Ci's side, not only was he arguing his case logically, 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, they tried their best to persuade a group of investment institutions to accept the valuation of 550 billion US dollars, since the interests of the shareholders were aligned on this crucial issue.

Just as the negotiations reached another impasse, Masayoshi Son of SoftBank Group suddenly spoke up, speaking fluent Chinese: "Mr. Son, I have invested in more than 500 companies."

This legendary figure, renowned throughout the world of investment, traced an arc in the air with his withered fingers:
“Actually, SoftBank could accept a valuation of $550 billion, but we invest to make money, and you need to leave room for imagination for the capital market.”

A Temasek representative quickly chimed in, "Yes, with such a terrifying valuation, how much room for growth will there be when Tenda goes public?"

Moreover, Mr. Song's proposed financing plan involves very stringent A/B share requirements, which effectively cuts off any possibility of us interfering in Tengda Group's affairs.

Song Ci understood what Masayoshi Son meant: he wanted Son to guarantee the shareholders' investment returns, given that he couldn't interfere with Tenda's operations.

Weighing the pros and cons in his mind, he knew that dragging things out was not a solution, so he came up with a big move: "Gentlemen, are you interested in making a bet with me?"

Feeling Song Ci's burning confidence, Masayoshi Son leaned forward slightly, quite interested in what Song Ci was saying. He himself was a very gambling person, so he often spent a lot of money on some new companies.

"Please explain clearly, Lord Song, how shall we wager?"

Song Ci sat upright with a serious expression and slowly revealed his final plan: "Tengda Group will raise 15% of its investment at a valuation of 550 billion US dollars. As the actual controlling shareholder of Tengda Group, I promise that the company's valuation will not be less than 2500 billion US dollars in four years."

If this condition is not met, the valuation of this financing will be recalculated at $400 billion, and the corrected equity stake will be 20.625%, which will be compensated by myself and the management team.

Upon hearing this, Masayoshi Son considered it for a moment, a shrewd and experienced glint in his eyes, and then clapped his hands in praise: "Mr. Son speaks his mind quickly. SoftBank Group will accept this betting agreement."

When Song Ci heard that Masayoshi Son had taken the lead in accepting the bet, he breathed a sigh of relief. The tacit understanding among the row of investors opposite him had finally cracked and was no longer a monolithic entity.

Temasek representatives carefully calculated that the company's valuation jumped from 550 billion to 2500 billion in four years, with an annual return on investment of about 50%, which is an extremely terrifying increase.

Without further hesitation, Temasek said, "Temasek is willing to accept the bet proposed by Mr. Song."

Two investors have already agreed to the performance-based agreement, and the representatives of the other investment institutions are gradually softening their stance.

At this point, Song Ci turned his attention to representatives of several North American investment institutions, such as Google and Goldman Sachs. Compared to SoftBank and Temasek, these were the shareholders he needed most.

"Ms. Emily, what do you think of my proposal?"

Being singled out by Song Ci put Emily under immense pressure. Unlike other financial institutions that make purely financial investments, 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 to ask for instructions."

"Please."

Emily hurriedly left the conference room and returned shortly afterward, looking relaxed. As soon as she sat down, she said, "Mr. Song, Mr. Larry Page has agreed to your betting proposal and is willing to lead the investment."

"The great mission is accomplished!" Even Song Ci, who was usually calm and composed, was overjoyed at this moment. Google's involvement meant that the financing negotiations had been won.

Goldman Sachs President Wilson and the BlackRock representative exchanged a glance, seemingly exchanging a silent message, before quickly following suit. "Goldman Sachs is willing to accept!" "BlackRock has no problem either."

With the general direction set, discussions on details such as investment share, funding arrival time, and equity exchange proceeded extremely quickly. Within half an hour, several major investment institutions reached an agreement with Tengda Group.

Following assessment and negotiation by both parties, this round of financing, based on a pre-investment valuation of US$550 billion, will raise 15% of the total equity, amounting to US$82.5 billion.

Google led the investment with a 5% stake, while Goldman Sachs, BlackRock, SoftBank, Temasek, and China Development Bank each invested 2%.

Following the financing, Tengda Group's equity structure changed as follows:
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 Stock Option Pool: 8.075%.

After signing the letter of intent for financing, Wilson smiled and said, "Mr. Song, tomorrow a joint audit team from six institutions will be stationed at your company to review your financial statements."

Song Ci nodded slightly: "As you would expect. I will have the group's chief financial officer fully cooperate to complete the review as soon as possible."

After several organizations signed the letter of intent, applause rang out in the conference room.

Song Ci was in high spirits, all traces of fatigue gone from his face: "To celebrate this successful cooperation, I have prepared a small feast at the Beiping Hotel. I would like to invite you all to join me this evening."

Around 4 PM, at the Huairou Film and Television Base, the crew of the TV series "Building a Great Cause" was present.

Jiang Yuanyuan stood outside the photography studio, glancing down at the time on her phone every now and then, waiting anxiously.

In the center of the set, Liu Shishi, dressed in an elegant outfit from the Republican era, was fully immersed in her role, acting opposite Liu Ye.

As soon as the last line was spoken, the director's voice came through the walkie-talkie: "Cut."

Upon hearing the director's order, Jiang Yuanyuan knew that her mistress's scenes for the day were all finished. She rushed onto the set, went straight to Liu Shishi, and whispered in her ear:
"Shishi, President Song wants you to accompany him to a cocktail party at the Beiping Hotel tonight. He has already sent your formal attire over."

Liu Shishi was still relaxing after finishing filming when she heard her assistant's words and was taken aback: "What cocktail party?"

"Time is of the essence, Shishi, go to the dressing room to change your makeup first, I'll talk to you slowly on the way."

"Okay!" Liu Shishi nodded, and without asking any more questions, she greeted Liu Ye and hurriedly ran towards the dressing room under his surprised gaze.

The top female executive moved with lightning speed, jogging as she asked her assistant, "What exactly is going on? Tell me clearly."

Jiang Yuanyuan followed closely behind her mistress, panting, "It's already been revealed on Weibo that Tengda Group raised $82.5 billion today. President Song is hosting an investor appreciation dinner, and he invites you, Shishi, to attend."

Even though Liu Shishi doesn't usually care much about money, she gasped when she heard the figure: "How much? 82.5 billion, in US dollars!"

The assistant was equally bewildered: "Yes! Approximately 600 billion RMB."

The woman was secretly delighted that her husband had asked her to accompany him to such an important party, but she still playfully complained:

"You stinky Yi, you only notified me of such an important party at this hour, without giving me enough time to get ready. Are you deliberately trying to embarrass me in front of his investors?!"

"Mr. Song has already prepared the evening gown. It's with Xiaoxia; she's waiting for you in the dressing room."

Before the last rays of the setting sun had completely faded, and while Liu Shishi was busy putting on makeup, the news of Tengda Group completing a huge financing round had already dominated the headlines of major media outlets.

The situation on Weibo exploded, with countless netizens leaving comments on Song Ci's and Tengda Group's official accounts.

"My God, $82.5 billion! Tenda is defying the heavens!"

"Damn, it's already valued at $550 billion before it's even listed. Tenda is really outrageous. Once it goes public, its market value will be hundreds of billions of dollars."

"Tengda must be the world's most valuable unlisted internet company. Song Ci is really amazing."

"Mr. Song, would you mind taking a few more concubines?"

The news of Tengda's financing not only caused a huge stir in China, but also spread rapidly across the ocean, making the whole world aware of China's Tengda Group.

As night falls and the lights illuminate the magnificent Golden Banquet Hall of the Beiping Hotel, it becomes a dazzling spectacle.

Liu Shishi wore a light blue off-shoulder evening gown, exuding elegance. Her neat short hair, unlike her gentle and graceful look with long hair, made her appear more charming and lively, like a bright pearl, radiant and dazzling.

At this moment, Ms. Liu was holding her husband's arm, feeling slightly nervous, as it was her first time attending such a high-profile banquet.

Looking around, the entire hall was filled with either senior executives from Tenda or representatives from world-renowned investment institutions. It was a world of difference from the celebration banquets and brand parties she had attended before; they were not even in the same league.

Song Ci, dressed in a bespoke suit, looked aloof and handsome, with a dazzling gemstone brooch on his chest. Standing next to Shi Shi, the handsome man and beautiful woman were undoubtedly the focus of the entire event.

"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 party, everyone was busy chatting and toasting each other, making connections, and Song Ci 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, speaking fluent English, and wore a polite smile.

However, she felt a bit embarrassed. Her English wasn't very good, and she couldn't understand what her husband, the president of Goldman Sachs, a world-class investment bank, was saying.

Seeing the Goldman Sachs president ramble on and on, clink glasses with her husband, and leave, Liu Shishi quickly whispered, "Yiyi, what was he saying just now?"

"He complimented your good temperament, and after learning that you are a celebrity, he said he would introduce you to a brand endorsement. He is friends with the president of Bulgari Asia."

Upon hearing that someone wanted to introduce her to a spokesperson, Liu Shishi immediately felt a sense of goodwill towards the foreigner from before, but then she became dejected: "Honey, I can't even speak English well, am I embarrassing you?"

Upon hearing this, Song Ci quickly comforted her, "How could that be? Don't overthink it. English isn't difficult. If you want to learn, find a teacher, or I can tutor you."

(End of this chapter)