Entertainment mogul: Starting his business with the internet

Chapter 371: Try to figure out your intentions
On the top floor of the Tengda Technology Building, Song Ci leaned lazily against his executive chair, his fingertips lightly tapping the armrest, listening to a work report from Tang Jun, the president of WeChat.

"Chairman Song, the computing power of smartphones on the market is currently limited. By focusing on optimizing the performance of the codec and the transmission strategy, we have achieved low-power, high-frame-rate video calls. This technology is at the forefront of the world."

Tang Jun sat upright and gave a very detailed report on the upcoming video call function of WeChat. After all, the chairman was proficient in technology and could not speak carelessly.

Song Ci asked with concern, "Has the network adaptability been optimized?"

Tang Jun, beaming with pride and speaking with great excitement, said, "Chairman Song, in response to the issues of 3G network fluctuations and traffic sensitivity, WeChat pioneered dynamic bitrate control technology."

It can dynamically adjust the video bitrate based on real-time network bandwidth, automatically downgrading to 144P resolution in weak network environments, while maintaining continuous video playback even with a 20% packet loss rate through redundancy technology.

"Very good!" Song Ci smiled with satisfaction and nodded affirmatively.

"By circumventing Google's WebRTC transmission protocol patent, WeChat and Wechat's path to dominating the global mobile instant messaging market is now unobstructed, and no other company's IM software can rival us!"

"It's all thanks to your visionary leadership and tireless support for technological innovation!" Tang Jun said with heartfelt praise.

After WeChat launches its video call function, it will complete the construction of its closed-loop ecosystem, linking with functions such as official accounts and mini programs to form an integrated ecosystem of "communication-content-service".

With no rivals left in the global mobile IM field, Tenda Group is poised to become a multinational social media giant.

"We must continue to push forward with testing and ensure that there are no oversights."

"Don't worry, I have sent people to all over the world to conduct various functional tests under the different network transmission speeds in different countries."

"It's good to do more tests so that problems can be found and remedied in time."

"Chairman Song, when would you like this feature to be launched?"

Song Ci pondered for a moment: "Let's set the launch date for Christmas. Westerners value this holiday, so let's consider it a Christmas gift for our Western customers."

Tang Jun chuckled knowingly, "I think they'll like this new WeChat feature. After all..."

Just then, the phone on the desk vibrated slightly. Song Ci looked down and saw that it was Henri Pinault calling. "Wait a minute, I need to take this call."

Upon seeing this, Tang Jun quickly stood up, preparing to leave.

Song Ci waved to Tang Jun, indicating that he didn't need to leave, and answered the phone in French: "Henry, my friend, why are you contacting me at this hour? It's the middle of the night in Paris, isn't it?"

"Song, Gucci has run into some trouble in China. I need you to suppress the negative news about Gucci online!"

Henri Pinault stated his purpose directly, his voice revealing a hint of anxiety: Gucci is one of Kering Group's core brands, and absolutely no mistakes can be made.

Song Ci understood the trouble Gucci was referring to: "You mean the Gucci flagship store employee abuse incident that caused such a stir a few days ago?"

“That’s right!” Henry Pinault said with a hint of helplessness. “In Europe, we never encourage overtime. You Chinese are really too hardworking. Management is desperately squeezing the grassroots employees for the sake of performance.”

Song Ci sneered inwardly. If it weren't for the tacit approval of the European headquarters and the pressure to meet performance targets, would the management of Gucci China be working themselves to the bone? Now that something has gone wrong, they're shirking responsibility.

However, since Henri Pinault was his ally in Europe, he spared him some face and didn't say anything: "I can help you suppress the negative news about Gucci, but the compensation for the employees must not be reduced by a single penny!"

“There is absolutely no problem with that. I have already instructed the president of Gucci China to improve the working conditions for employees and make up for all overtime pay.”

Song Ci nodded slightly: "It would be best if you could do it this way! For any high-end luxury brand, brand image is of paramount importance. Give me a day or two, and I'll handle it."

“That’s great, thank you, Song!” Henry Pinault breathed a sigh of relief, then changed the subject and returned the favor, “The acquisition of EMI Records went very smoothly, and we expect to have the company under our control by next spring.”

Song Ci's smile deepened: "Very good, it's a pleasure to work together!"

"Happy cooperation!"

After ending the call, Song Ci dialed the internal line of the landline on the table.

"Chairman!"

"Liu Yan, come up here. I have something to tell you."

Song Ci continued discussing WeChat and its global expansion with Tang Jun when a crisp knock came at the door.

"Come in."

Weibo CEO Liu Yan strode into the office in her high heels. "Chairman Song!"

"Sit down and talk."

After Liu Yanchong nodded to Tang Jun, he sat down next to him.

Song Ci got straight to the point: "The Gucci employee abuse incident that's been circulating online recently was still trending on social media last night. This has been going on for several days now. Can you tell me in detail what exactly happened?"

"That's how it is, Chairman Song. It all started when several former employees of the Gucci flagship store in Pengcheng leaked the information..."

Later, some Gucci employees complained to the labor inspection department that Gucci had never paid overtime wages during their five years of service.

Following this, it was revealed that Gucci's employees in mainland China receive different treatment than those in Hong Kong, Macau, and Taiwan.

Song Ci frowned slightly, finding the situation increasingly strange: "The employees are legitimately protecting their rights, and the regulatory authorities will definitely handle it. Is the public opinion surrounding this matter normal?"

"Initially, the news spread normally online, but it became a bit abnormal later, with many marketing accounts stirring up trouble. The difference in employee treatment in different regions is not unique to Gucci; it's a common practice across companies nationwide."

Liu Yan left it at that, but Song Ci already understood that other brands were definitely stirring things up: "Henry Pinault has promised Gucci that it will provide adequate compensation. Have your people suppress the heat of this matter."

"There's some news I haven't had a chance to tell you yet: Gucci just signed a 1000 million yuan advertising contract with Weibo."

"They really know how to spend money!" Song Ci scoffed. "Have there been any important social or livelihood events recently? Weibo shouldn't just be spreading trivial matters; it should be used to monitor key public opinion issues!"

Liu Yan's expression hardened, and he became extremely serious: "There is something that my subordinates dare not decide on their own, and we are just about to ask you for instructions."

"what's up?"

"Several bloggers have exposed online that many companies across the country are refining gutter oil, disguising it as edible oil, and selling it on the market." Song Ci immediately retorted with dissatisfaction, "I just said that Weibo should focus on social and livelihood issues. Do you really need to report this kind of thing to me?"

Seeing the chairman's displeasure, Liu Yan felt a pang of fear: "Chairman Song, I..."

Song Ci waved her hand impatiently, interrupting, "Go back and settle this matter before you come back to me. Tang Jun, you can go and get busy too."

"Then Mr. Liu and I will head back to the office first!" Seeing that Liu Yan was about to say something, Tang Jun quickly nudged her high heels with his foot, signaling her to shut up and not provoke the chairman's anger.

After the two presidents left the office, Tang Jun sighed softly, "President Liu, you're so foolish!"

Liu Yan's mind hadn't quite caught up yet, and upon hearing this, he humbly sought advice from this trusted confidant of the big boss: "Please, Mr. Tang, don't hesitate to offer your guidance!"

"Mr. Liu, you've got the priorities backward! You're now overemphasizing Weibo's profitability while neglecting its role in monitoring major social and livelihood issues."

For something as serious as gutter oil, which concerns the food safety of ordinary people, you should have done a special report on it. Why would you need to ask Chairman Song for permission?
Don't forget that Tenda Weibo was able to defeat Tencent and Sina Weibo by relying on its in-depth reporting on the tainted milk powder incident, thus completely securing its victory in the Weibo battle.

The gutter oil issue is clearly another food safety incident, no less serious than the tainted milk powder scandal, affecting the entire country. You're wasting your time asking Chairman Song for his opinion on how to handle it; this will make him doubt your decision-making abilities.

"Thank you so much for your guidance, Mr. Tang!" At this moment, Liu Yan suddenly realized the truth and couldn't help but sigh in his heart. This WeChat president was indeed very good at understanding the boss's intentions. No wonder he was the most appreciated by the chairman.

"Mr. Tang, you really understand the chairman's thoughts!"

Walking side by side in the corridor, Tang Jun smiled meaningfully: "Actually, the chairman's thoughts aren't hard to guess!"

Liu Yan immediately became interested: "What brilliant ideas does President Tang have?"

"Mr. Liu, everyone has desires and pursuits in life. For someone like Mr. Song, who achieved fame at a young age and has already achieved great success, what do you think he cares about most?"

Liu Yan fell into deep thought: Beauty? Impossible.

The chairman's lifestyle was well-known among the company's senior management; he was a model husband, deeply devoted to Liu Shishi, and never had any ambiguous relationships with other women.

Money? Definitely not. He became Asia's richest man at 24, with a net worth of hundreds of billions; money is just a number to him.

"Only the name remains!"

“Yes!” Tang Jun nodded vigorously. “We can’t say much about Chairman Song’s personal life! As for his business, Chairman Song obviously wants to build Tengda Group into a world-class multinational corporation.”

Having achieved this goal, his ultimate aim would inevitably be to lead the times, leave a lasting mark on history, and benefit all under heaven.

Liu Yan said thoughtfully, "I understand now. So, Chairman Song doesn't care about taking on more ads on Weibo and earning an extra ten or twenty million in advertising fees."

"Exactly! That's why Chairman Song was dissatisfied with you just now. You need to ask for permission for something like gutter oil? Doesn't that clearly disappoint him?"

"I'll go back and take care of things right away, and I'll make sure Chairman Song is satisfied."

Tang Jun suddenly smiled mysteriously: "President Liu, producing special reports is simply your job. Do you want to know how to get things done well and also please the boss?"

Liu Yan was taken aback, then noticed Tang Jun's ambiguous smile. He smiled and cupped his hands in greeting: "President Tang, stop beating around the bush. Just give me a clear path, and I'll consider it a favor I owe you."

Tang Jun chuckled: "Although the chairman has lofty ambitions and a grand vision, everyone has loves and hates. In the gutter oil industry chain, besides illegal production companies, aren't there catering companies that use gutter oil?"

"Of course there is!" Liu Yan was still confused. "What does this have to do with pleasing Chairman Song?"

"You're such a blockhead!" Tang Jun rolled his eyes and had no choice but to lay things out completely. "When Madam publicly announced her relationship with Chairman Song, the entire South Beauty family offended Madam."

Later, the matter seemed to fade away. Six months passed, and everyone gradually forgot about it. Do you think the chairman would forget it?

"I don't think so! I heard that South Beauty's IPO was blocked..." Liu Yan subconsciously shook his head, only scratching the surface and not going into details.

Tang Jun lowered his voice: "Chairman Song is low-key and patient. Just like when he dealt with Kuaibo, he either doesn't make a move at all, or when he does, it's decisive and sends people straight to jail."

When Madam Song made the announcement, if the chairman had retaliated immediately, it would have certainly damaged his reputation. That's why he didn't act rashly at the time, but I'm sure Chairman Song kept this matter in mind.

Having said all that, Liu Yan understood Tang Jun's meaning perfectly: official business had to be handled properly, and at the same time, personal matters could be resolved while also avenging the big boss. Only in this way could one win the leader's favor.

He couldn't help but give a thumbs up and exclaimed, "President Tang, your understanding of the chairman's thoughts is truly spot-on, it feels just like in ancient times..."

Liu Yan quickly shut her mouth, but Tang Jun was quick-witted and understood what she meant: "I was just trying to give you some advice, and you still call me a treacherous minister!"

"Sorry! I spoke without thinking." Liu Yan chuckled awkwardly. "I'll treat you to lunch to make amends."

Tang Jun and Liu Yan exchanged a glance, shook their heads in annoyance, but didn't take it to heart, and walked towards the elevator together.

At the end of the corridor, the sunlight streamed through the window, illuminating the gleaming golden logo of the Tengda Technology Building.

In November 2011, Weibo exposed several companies that recycled and processed gutter oil and sold it as edible oil, which severely damaged consumers' confidence in the food industry, put the catering industry in a crisis of credibility, and aroused the people across the country to pay close attention to food safety!

Relevant departments attached great importance to the matter and cracked down on many illegal gutter oil workshops across the country. They also promptly introduced relevant regulations to increase the punishment for gutter oil crimes.

The gutter oil scandal is not only a food safety crisis, but also, driven by Weibo, a turning point in China's food safety regulatory reform.

Just as the nation was paying close attention to the gutter oil scandal, Weibo revealed that the South Beauty franchise store in Jinling 1912 block was using recycled cooking oil, raising consumer concerns about the food safety of South Beauty.

When interviewed by reporters, Wang Xiaofei, general manager of South Beauty, stated that the store in question had already terminated its contract with South Beauty. He also repeatedly emphasized that South Beauty's food hygiene is absolutely guaranteed, and asked customers to rest assured.

The recycled oil scandal is still unresolved, and now media outlets on Weibo are revealing that South Beauty (俏江南) is not issuing invoices and has unclear profits. It seems like one problem after another is brewing.

This was a critical period for South Beauty's application for listing. Affected by negative news, South Beauty's attempt to go public completely failed.

According to the performance-based agreement signed between Zhang Lan, the founder of South Beauty, and CDH Investments during the financing round in 2008, if South Beauty failed to go public before 2012, Zhang Lan would have to buy back the shares held by CDH Investments at a high price.

With its IPO unlikely, South Beauty was required by agreement to pay 4 million yuan to repurchase its shares. At this time, South Beauty was insolvent and unable to afford the huge expense. CDH Investments, according to the agreement, packaged and sold its shares to a European investment company in exchange for an exit.

Zhang Lan's shareholding plummeted from 89.48% to 13.8%, completely stripping her of control over South Beauty. This chain reaction, triggered by food safety issues, and driven by certain individuals, made South Beauty the first risk warning case in the capital market.

(End of this chapter)