Returning to his senior year of high school, he went all in and made billions by buying at the botto

"Does having the company controlled by the company mean it won't be subject to overseas regulation?"

With the independent directors' questions settled, the meeting room fell silent again.

This issue also reflects the concerns of many shareholders.

Despite its enormous influence in the Hong Kong, New York, and European capital markets, the actual controller behind it remains Chen Mo.

Separating the overseas version from Douyin Group and handing it over to Chuangsheng for control will not change Chen Mo's nationality, nor will it cause regulatory authorities in various countries to suddenly lower their guard.

Of course.

Chen Mo did not evade the question.

"Any mature regulatory agency will thoroughly investigate who controls an international company and who the ultimate beneficiary is."

"Chuangsheng Holdings will not grant overseas Douyin (TikTok) the qualification of exemption from review."

"The significance of this architecture is to make the boundaries of censorship clear."

Chen Mo gestured to the staff to turn to the next page.

On the screen, Douyin Group, Chuangsheng Capital, and the overseas version of Douyin are separated by three lines of different colors.

"First, all domestic user data, domestic content review, and domestic GG business will remain with Douyin Group and will not be transferred to overseas companies."

"Second, overseas companies establish independent data nodes according to countries and regions, and accept local laws and third-party audits."

"Third, Creation is responsible for capital, governance, compliance and international relations, and does not directly intervene in daily content review."

"In the future, if a country conducts an investigation into an overseas company, it will only need to verify the local company, regional data center, and international headquarters."

"There's no need to drag Douyin Group, Toutiao, and hundreds of millions of domestic users into the investigation just because of one overseas business."

A representative from an overseas fund asked, "Why must it be Creation that establishes this system, when Starry Sky can do the same?"

"The roots of the stars are in China."

Lin Wan answered for Chen Mo.

"StarCraft owns businesses in mining, chemicals, real estate, semiconductors, and the internet, and employs a large number of people in mainland China."

"It is suitable for integrating domestic industries, but not for bearing the political and data risks of dozens of countries in the long term."

"From day one, Creation has used a global capital structure."

"It has a cross-border legal team, international bank credit lines, European family liaisons, and risk advisors in various regions."

"Following the Paris attacks, Chuangsheng also rebuilt its overseas security and government emergency communication network."

She looked at the representatives of several organizations at the table.

"These are the resources that overseas companies really need."

Chen Mo took over the conversation.

"Chuang Sheng will establish a wholly-owned subsidiary in Singapore to apply for the necessary investment management and operation qualifications in the country."

"The 20% stake held by Chuangsheng was subscribed by its Singapore subsidiary using its own funds."

"We will not use customer funds, nor will we allow any fund investors to passively bear the risks of related-party transactions."

"The source of funds, transaction price, and ultimate beneficiaries have all been disclosed to Douyin's independent directors and external auditing firm."

Upon hearing this, the doubts on the faces of the institutional shareholders lessened slightly.

Genesis II manages $20 billion.

If Chen Mo directly uses the money from his fund clients to subscribe to companies he controls, even if the transaction is completed, it will leave behind a huge conflict of interest.

Using Chuangsheng's own funds is a completely different matter.

"What about the remaining forty percent?"

The independent directors continued to press for answers.

"And who gets it is also determined by creation?"

"Chuangsheng is responsible for contacting and screening candidates, and the final list will be jointly confirmed by the overseas company's board of directors and Douyin's independent directors."

Chen Mo said.

"European and American family funds and Singapore's Long-Term Capital Management will be among the first to be contacted."

"We will also be looking for partners in the telecommunications, media, and cultural industries in Southeast Asia."

"A single institution's shareholding shall, in principle, not exceed five percent."

"Capital from the same country shall not exceed 15 percent in total."

"No investor is allowed to request users' original data, nor is a shareholder from any country allowed to veto global business decisions on their own."

Chen Mo looked at the world map on the screen.

"When Douyin enters a foreign country, it faces more than just users."

"There are also regulatory bodies, operators, copyright organizations, media groups, Google Ads, and local culture."

"Creation will bring in capital that is truly willing to cooperate in the long term."

"After they invest in TKTOK, the platform's development in the local area will also benefit them."

"What we need is this overseas entry ticket."

Many people in the conference room had already understood Chen Mo's full intention.

With European banks, Asian long-term funds, local telecommunications groups, and international media capital all becoming shareholders, any decision made regarding overseas companies will simultaneously trigger an even more complex network of interests.

The platform will be able to gain more time for communication, more room for compliance, and more business allies than it does now.

The penguin representative paused for a moment, then asked another question.

"Douyin Group holds 40% of the international company, while Chuangsheng only holds 20%."

"Chuangsheng maintains control through Class B shares and the board of directors."

"President Chen has also gained control of Douyin Group through Xingchen."

"This means that no matter how you break up the overseas company, it will ultimately remain under your control."

"right."

Chen Mo answered quite frankly.

"After Douyin Group completes the merger, Xingchen is expected to hold approximately 44% of the group's economic interests."

"Douyin Group holds 40% of the overseas company, which means that Xingchen indirectly owns about 17.6% of the economic interests in the overseas company."

"Including the 20% directly subscribed by Creation, the Starry Sky and Creation system together cover approximately 37.6% of the economic rights."

"Genesis is responsible for long-term strategy through its Class B shares and board of directors."

"Douyin Group has special protection rights over the sale of its core algorithm, the transfer of its brand, and the disposal of major assets."

"External capital shares in economic growth and oversees data and compliance."

Chen Mo looked around at everyone present.

"No single party can take away TKTOK."

"Similarly, there won't be a situation where a few financial investors force a company to abandon a country in order to exit in the short term."

An executive from a Series A funding round gently tapped the table.

"In other words, the business was split up, but Mr. Chen's control was not."

"That's one way to understand it."

Will overseas regulators continue to view TikTok as a Chinese company as a result?

"Some people might think that way."

Chen Mo said.

"Therefore, we also need to establish local data, local teams, independent audits, and a truly effective international board of directors."

"We can't just tell a story based on equity structure."

"But compared to the current situation where all data, algorithms, personnel, and decisions are concentrated domestically, the new architecture at least gives regulatory authorities in various countries a verifiable boundary."

This response added credibility to the proposal.

If Chen Mo claims that switching to a Cayman Islands company would allow him to bypass European and American regulations, the professional investors present would immediately reject it.

What he is offering now is a realistic solution that can reduce risks and buy time, but cannot eliminate political problems.

The independent directors looked at the other non-related shareholders.

"Is there anyone still opposed to Chuangsheng being the controlling shareholder?"

The meeting room fell silent for a moment.

The head of the institution that first invested in Douyin spoke first.

"We were willing to invest money because of Mr. Chen's judgment on mobile content and recommendation algorithms."

"The subsequent valuation of $40 billion, 300 million monthly active users in China, and 20 million daily active users in Southeast Asia proved that we were right."

"If overseas business absolutely requires an independent platform, I would rather continue to let Mr. Chen control it than hand it over to a group of fund managers who are only planning to exit in three years."

The penguin representative nodded slowly.

"Penguins are open to creative control."

"The premise is that related-party transactions are independently valued, and Douyin's 40% stake cannot be arbitrarily diluted by subsequent financing."

"Preemptive rights and minimum shareholding protection can be set."

Lin Wan said.

"Any dilution below 35 percent requires the separate consent of Douyin Group."

Two overseas growth funds have also expressed their support.

They understand Chuangsheng's current position in the international capital market better than domestic institutions.

11:10 a.m.

Related shareholders abstained from voting.

Douyin's independent directors and non-related shareholders unanimously approved the framework for the spin-off of overseas business.

Genesis Capital has been identified as the proposed controlling shareholder and sole financing coordinator for TKTOK.

Lin Wan, representing Xingchen Technology, signed a related shareholder avoidance statement.

Chen Mo signed his name on three documents: the capital contribution, the board of directors' arrangements, and the investor selection principles.

The direction of overseas business has been officially determined.

However, the meeting did not end immediately.

Zhang Ming instructed staff to reopen the ByteDance merger plan.

"Since TKTOK needs to be valued independently, the order of ByteDance's merger with Douyin should also be adjusted."

Chen Liping looked up at him.

"Are you planning to complete the merger first?"

"right."

Zhang Ming separately listed the three assets: Toutiao, the algorithm team, and the GG system.

"The most valuable capability of the overseas version is not just its 50 million users."

"A significant portion of the recommendation algorithms, GG system, anti-fraud measures, and large-scale engineering capabilities still remain with ByteDance."

"If we first dismantle the overseas company and then have a ByteDance company that has not yet completed the merger license its technology to it, overseas investors will definitely lower the valuation."

"They worry about whether the authorization can be sustained, and they also doubt whether international companies have the ability to develop independently."

One of the ByteDance shareholders immediately understood.

"First, merge ByteDance into Douyin, so that the algorithm, GG, and engineering systems all belong to the same group."

"Then, the New Douyin Group will invest in overseas companies and sign long-term overseas authorization agreements."

"International companies have more complete asset boundaries and higher valuations."

That's exactly what I mean.

Zhang Ming said.

ByteDance shareholders are about to become shareholders of Douyin Group through a share swap.

Douyin Group will also hold 40% of the shares in the overseas company.

The higher the valuation of an overseas company, the higher the value of the equity they indirectly hold through Douyin.

When the Southeast Asian crisis occurred, ByteDance shareholders were concerned that the risks would continue to escalate, so they agreed to postpone the merger.

Now that the path to the split is clear, the crisis has actually provided an opportunity to revitalize the valuation of the international business.

"I agree to change the order."

Chen Mo did not object.

"ByteDance will merge with Douyin first."

"After the merger and acquisition are completed, the new Douyin Group will inject its overseas business, team and contracts into the overseas company."

"The underlying algorithm is owned by Douyin Group, while overseas companies have obtained long-term, exclusive and auditable overseas usage rights."

Lin Wan cautioned, "The situation in Southeast Asia remains a significant risk."

"Whether the original valuation needs to be adjusted also needs to be reconfirmed by all parties."

A representative of ByteDance's early shareholders stated, "As long as the risks are fully disclosed, we are willing to use the median valuation previously confirmed by our joint audit."

"Douyin's $60.8 billion."

"ByteDance's independent business is worth $6.2 billion."

"After the merger, Star Economy will hold approximately 44.1% of the shares, while ByteDance's original shareholders will hold approximately 35% in total."

"The added value generated from the overseas spin-off will be shared by all shareholders after the merger."

The proposal received unanimous support from ByteDance's shareholders.

The other shareholders of Douyin had no reason to refuse.

Short-term fluctuations in Southeast Asia will not change China's 300 million monthly active users, algorithm system, and complete commercialization capabilities.