Reborn since 1993

Chapter 1327: He who knows the current affairs is a hero
Pacific Rim Ventures is not well-known in Silicon Valley, but it is special to Napster.

It was an angel investor in Napster and also led the investment in the first and second rounds of funding. Napster's valuation of $36 billion was inseparable from the vigorous promotion by Pacific Rim Ventures.

In fact, Napster's early equipment, finances, legal affairs, and logistics were all handled with the help of Pacific Rim Ventures.

Napster's ability to withstand pressure from record giants like Warner and various lawsuits was also aided by Pacific Rim Ventures.

In short, the role of Pacific Rim Ventures was to encourage and support Napster, allowing Napster to stand tall and not be afraid to take advantage of the major record labels.

Therefore, even though Pacific Rim Ventures is not as powerful as Sequoia Capital, KPCB, or the major investment banks on Wall Street, it has always been the one standing with Napster.

In Fanning and Parker's subconscious, if Napster ever holds a bell-ringing ceremony on Nasdaq, Zhang Dongchuan, representing Pacific Rim Ventures, will definitely stand with them.

But now, Pacific Rim Ventures has simply run away!
This was akin to an ally breaking through and fleeing during a decisive battle, effectively selling out Napster!
The fact that Pacific Rim ran away at this time shows that they were not optimistic about Napster's future and obviously did not believe that it could successfully go public, otherwise they would not have run away at this time.

Fan Ning, the angry head of Napster, called Zhang Dongchuan, the American-American general manager of Pacific Rim Ventures.

"Why did Pacific Rim Ventures betray Napster?" Fanning angrily questioned Zhang Dongchuan.

Zhang Dongchuan, who had just arrived at Susan Wojcicki's garage, received a call from Fan Ning.

Zhang Dongchuan handed over his business card, indicating to the two young men in front of him that he needed to take a phone call first.

"Business is business!"

Back in the car, Zhang Dongchuan smiled and nodded to the two young men in the garage. He then rolled up the windows of the extended Cadillac to block out the noise.

Zhang Dongchuan's voice was not angry, nor did it show any dissatisfaction with Fan Ning's attitude. It was just that this indifference, this attitude of treating him like a stranger, made Fan Ning even angrier.

"Previously, Pacific Rim Ventures was optimistic about Napster, but now the Pacific Rim Ventures board believes that this investment needs to be re-evaluated."

A venture capital firm needs to "temporarily" withdraw and choose the right time to let go.

The partnership between Pacific Rim Ventures and Napster has ended!

Zhang Dongchuan calmly addressed the two angry founders of Napster.

"As a friend, I need to remind you, Fanning, that the Pacific Rim has received some information."

Warner Music and other music groups are joining forces with the RIAA (Records of the American Association of Composers and Authors), the American Society of Composers and Authors, the Radio Music Association, the Recording Academy, and the Recording Artists Association to prepare a joint lawsuit against Napster.

Fanning, you'll have to deal with this lawsuit. Good luck!

Zhang Dongchuan said to Fan Ning, "To be honest, I really admire Fan Ning and Fan Ning. These two people really have utopian ideas about the Internet, wanting Internet users to share songs, videos, and so on with each other."

But for record companies and Hollywood film studios, this was incredibly bad luck; they were practically crippled.

But this time, facing the combined attack from the entire record label, no one knows whether Napster can survive.

In any case, Pacific Rim Ventures had already jumped ship. Just before Himalaya Music and Warner Music reached a cooperation agreement, they made a last-minute maneuver, selling their 40% stake in Napster to several foundations and venture capital firms, cashing out $14.4 billion in one go!
Those venture capital firms and foundations aren't stupid; they weren't completely fooled by the Pacific Rim Fund.

They had received some rumors, but they were driven by a gambler's mentality and wanted to take a chance.

What if Napster goes public successfully and reaches a settlement with the record label? Given the current internet frenzy, it's not impossible for Napster's market value to double!
However, Pacific Rim Ventures was unwilling to gamble and, upon receiving a request from its parent company, the Zhixing Foundation, immediately sold off all of its Napster shares at a fire sale.

"Fanning, you and Parker are both my friends. If there are opportunities in the future, Pacific Rim Ventures would still be willing to cooperate with you!"

But in her anger, Fan Ning responded to Zhang Dongchuan's words by slamming down the phone.

Hearing the sound of the phone being slammed onto the table, Zhang Dongchuan couldn't help but shake his head and utter a single comment about Fan Ning: "Too young, too nive!"

Zhang Dongchuan felt that Fan Ning was still too young, only focused on his anger, and completely unaware of the risks Napster was facing.

It's not just Napster; both Fanning and Parker are in dire straits. If they lose the case, the huge compensation could ruin their lives.

What is this "betrayal"? Once Napster goes bankrupt, when Fanning wants to make a comeback and needs investors, wouldn't it be better for Pacific Rim Ventures to lend them a hand than to tear each other apart now? Moreover, Pacific Rim Ventures only sold off its shares; it didn't betray Napster. There's no betrayal to speak of; it's just that the two sides parted ways "amicably."

After getting out of the car, Zhang Dongchuan continued walking into the garage and said to the two people inside, "I'm so sorry to have kept you waiting!"

"If I'm not mistaken, for your company, the most important core technology at present is this algorithm for screening webpage quality, is that right?"

Zhang Dongchuan asked the two young men in the garage. He had come here on behalf of the Zhixing Foundation to invest in this emerging internet startup.

Pacific Rim Ventures, a venture capital firm headquartered in Bermuda, entrusts the Zhi Xing Foundation to invest in companies in the United States that are inconvenient to invest in directly, or companies that may pose risks in the future.

It's hard to say how much benefit wearing an extra vest can provide, but for the Zhixing Foundation, it at least adds an extra layer of insurance.

At that moment, outside the garage where Zhang Dongchuan was talking to two young men, there was a sign that indicated the company inside was called... Google.

"Yes!"

Larry Page and Sergey Brin acknowledged that Google's most important technology is this webpage filtering technology, which allows Google, despite being far less powerful than companies like Yahoo, MSN, ASK, and Soxin, to attract a group of users with highly relevant and high-quality posts.

Google is only just starting out. It was founded just last year and is currently holed up in Susan Wojcicki's garage.

To ease her mortgage burden, Susan Wojcicki rented out her room and garage to Google. She was not only a landlord but also helped Google with some affairs, almost acting as a "nanny".

This year, Susan Wojcicki also joined Google as a marketing manager, and later became the queen of YouTube.

This applies to any company. Those who join early are the key figures who rise to prominence. Once the company grows, even those who were once insignificant can transform into important figures.

Google is like this, and Dongling Hi-Tech is actually the same!
But Google today is far inferior to Dongling Hi-Tech. Zhang Dongchuan has a firm grip on such startups.

“You’ve probably heard of Napster; it was built with venture capital from the Pacific Rim.”

Of course, for some reason, Pacific Rim Ventures has withdrawn from Napster's board of directors and is now looking for new, promising internet companies.

We believe Google has potential, but it's far from enough right now. Pacific Rim Ventures can provide Google with everything it needs right now…

……

While Zhang Dongchuan was trying to persuade the Google duo, Himalaya Music, having acquired Warner Music's copyright library, raised the banner of the Music Modernization Act and advocated for the record industry, while also quickly reaching cooperation agreements with Universal, EMI, and Bertelsmann!

At one point, all four of the world's five major record labels, except for Sony Music, reached a cooperation agreement with Himalaya Music.

In addition to partnering with the four major record labels, Feiyan Technology issued $7.2 million worth of stock and bonds, stating that the funds would be used to build Himalaya Music's copyright library.

To put it simply, the money is used to acquire the copyrights of independent record labels and individual singers to fill the Himalaya music library.

In addition to Himalaya Music, Feiyan Technology's hardware division also announced that it acquired Harman International for $8.2 million, filling the last gap in its audio and headphone offerings!
Feiyan Technology has been quite active since the beginning of the year, making moves in all directions. However, both Wall Street institutions and investors feel that Feiyan Technology's series of large-scale acquisitions are "normal".

Currently, which Nasdaq internet concept stock company isn't making several big acquisitions? Yahoo has even issued shares and acquired companies so many times that its stock price and market value keep hitting new historical highs.

Compared to companies like Yahoo, Feiyan Technology's efforts are relatively small-scale.

But behind these acquisitions, rumors suddenly began circulating among Silicon Valley venture capitalists and Wall Street about Himalaya Music's valuation, clearly indicating that someone was creating hype.

Some Wall Street firms have even started to hype up Himalaya Music, a subsidiary of Feiyan Technology, which is valued at over $1.7 billion. Although it is not as valuable as Napster, it is already the second most valuable internet music website in the music industry!
……

"Mr. Li, all four major record labels have opened their copyright libraries to Himalaya Music. In addition to the copyrights acquired from independent record companies, the number of songs in Himalaya Music's copyright library has now exceeded 500,000!"

However, Sony Music has not yet accepted Himalaya Music's offer..."

In Pingyang, Li Dongling received a call from Tang Jun. Even through the phone, Li Dongling could almost see Tang Jun's triumphant expression.

　I'll make up for the two chapters I owe in a few days. I won't forget. Please forgive me.

　　
　
(End of this chapter)