Reborn since 1993

Chapter 1328 Encirclement and Suppression
Li Dongling had no intention of giving Tang Jun a warning, as Tang Jun was at the peak of his career and enjoying immense success.

The higher Tang Jun's profile is now, the better the effect will be when Dongling High-Tech and Feiyan Technology make the tough decision to eliminate him next year!

Therefore, Li Dashanren had no dissatisfaction with Tang Jun, who was riding high and showing a bit of pride. After all, which fierce general or meritorious official wasn't a little arrogant, especially the overseas lords far from headquarters?

"President Tang and Himalaya Music have not let headquarters down!"

Li Dongling spoke to Tang Jun, telling him that Dongling High-Tech headquarters was very satisfied with his performance.

"pity!"

"Sony Records did not accept the cooperation from Himalaya Music."

Tang Jun couldn't help but feel a little regretful. If he could also acquire Sony Music, then Himalaya Music could truly be considered the "uncrowned king" of the record industry.

Back then, Tang Jun was the number one figure in the internet music industry. The heads of the five major record labels all had to defer to him, not to mention independent record companies, singers, composers, and producers. Everyone who met him had to call him Godfather!

"Sony's unwillingness to cooperate with Himalaya Music would be a loss for Sony Records!"

Li Dashan doesn't have any regrets. One's position determines one's perspective. Unless the head of Sony Music no longer wants his current position, he wouldn't choose to cooperate with Himalaya Music.

Ultimately, no matter how much it claims to be independent, Sony Music is still an industry under the umbrella of Nippon Sony.

Currently, Feiyan MP3 players are rapidly seizing market share from Sony Walkmans, making them true rivals.

If Sony Music "defects" to Himalaya Music, where will Sony Electronics be placed?
So even though Sony Music knew that partnering with Himalaya Music was one of the few options available, it simply couldn't choose that path.

"Himalaya Music needs to be prepared to fail to secure Sony Music's copyright library, or even become a competitor!"

Li Dongling instructed Tang Jun, and upon hearing Li Dongling's words, Tang Jun's expression changed. "Mr. Li, do you think Sony Music will cooperate with other music websites?"

“Perhaps Sony Music will set up its own platform, or perhaps… it will collaborate with other platforms, who knows!” Li Dongling paused for a moment before speaking.

Sony is also known for its internal strife. The once-famous Sony lenses were even rivals to Sony mobile phones, and Sony refused to use them in its phones.

Sony's reputation for excellence is well-deserved, but unfortunately, various departments within Sony tend to hoard their best products, preferring to supply them to competitors rather than use them in their own products.

This is probably a consistent pattern between Japan and the US. Just like the Japanese army and navy, both sides are more eager to strangle each other than their opponents. Even if they are defeated in the end, as long as their arch-enemy does not gain any advantage, they are still considered to have won.

It's hard to say whether Sony Music will cooperate with Sony Electronics in the future, given that it's positioned between Sony Music and Sony Electronics.

In fact, Li Dashan felt that if Apple entered the MP3 market and launched the iTunes Music Store, Sony Music would be more likely to cooperate with iTunes than with Sony Electronics.

However, these are all Sony Music's own business. But once Himalaya Music becomes mainstream, if Sony doesn't cooperate with Himalaya Music, it will definitely be the company itself that will be affected in the future.

It's quite possible that Himalaya Music and Sony Music will become like Tencent and NetEase in their previous forms.

"For Himalaya Music, there are two most important things right now!"

The first thing to do is acquire more music copyrights. The second thing is to launch a crackdown on pirate music websites like Napster, and make sure all of these websites are shut down.

Himalaya Music can initially cover the legal and public relations fees, and then seek compensation after Napster goes bankrupt!

Li Dashanren directly stated that if previously Himalaya Music needed to use Napster to attack record companies, then...

Now that we've secured the music rights, there's no need to put on an act anymore. The most important thing is to take down websites like Napster.

As long as they don't die, the chaotic state of the record industry will not disappear. Only when Napster goes bankrupt will illegal music on the internet be cleaned up and websites and links shut down.

Without explicitly making those music links completely unsearchable for users, the goal is to increase the difficulty of searching, making them feel that instead of spending a lot of time searching for pirated music resources, it would be more convenient to spend ten dollars on a music membership on Himalaya Music and listen to all kinds of music.

Once this step is achieved, that's enough. Then, Himalaya's paid music and music memberships can be implemented!

Cutting off someone's livelihood is like killing their parents. Himalaya Music and Napster are now mortal enemies. How can they make money if they don't eliminate the other party?
Therefore, even if record companies are unwilling to spend money on public relations and lawsuits, Himalaya Music has to take matters into its own hands.

Just after hanging up the phone with Tang Jun, Li Dongling's phone rang again. It was Lu Wenhua from the Zhixing Foundation calling.

"Brother Li, Pacific Rim Ventures has invested $25 million in Google, acquiring a 32% stake in the company."

Google's two founders are very opinionated and unwilling to easily relinquish control of the company.

As for Zhang Dongchuan, following your instructions, Mr. Li, he hasn't interfered too much in Google's affairs!

Lu Wenhua reported to Li Dongling that Rim Pacific Ventures had acquired a 32% stake in Google. If they had been more assertive, Rim Pacific Ventures could have acquired even more shares, but Li Dongling was not fixated on controlling Google.

Google's rise to global internet giant in its past life was accidental, not inevitable. Moreover, Google's success was inseparable from the manipulation and support of Wall Street institutions, just like Yahoo is today.

Without the hype from Wall Street institutions, Yahoo's market value would never have reached its current level, and the same goes for Google.

If Pacific Rim Ventures (PRF) were to acquire a controlling stake in Google and take away too much of its equity, it's hard to say whether Wall Street institutions would still be willing to support Google as the leader in the internet industry.

With 32% of Google's equity already held, and with future financing rounds and IPOs, attracting more investment institutions, the Google equity held by Pacific Rim Ventures will inevitably be diluted.

These are basic operations. Once Google truly becomes an internet giant, both Google's founders and Wall Street institutions will definitely try to dilute Google's shares across the Pacific Rim.

Even if it is diluted in the future, by the time Google goes public, Pacific Rim's stake in Google is estimated to be around 20%.

In the future, when Google reaches its peak and its market value reaches one trillion dollars, even if this equity is diluted further, it is estimated to be more than 12%, and conservatively estimated, this investment is worth more than one hundred billion dollars!
If you add in the dividends over the years, then this investment from Pacific Rim Ventures is truly a lifelong source of income, and it's the kind of investment that will go down in the history of internet investment.

"well done!"

Li Dongling praised Zhang Dongchuan, saying that cashing out Napster and investing in Google alone had brought astonishing returns to the Zhixing Foundation.

"Give Zhang Dongchuan and the team at Pacific Rim Ventures the bonuses they deserve, and give them a long vacation. There are still things that need to be done by them!"

Li Dongling said that Dongling Hi-Tech's main focus this year is to cash out, to cash out all the shares of the internet companies it holds, and to secure its profits.

However, when cashing out, they will also make investments. If there is an opportunity, they will definitely make a move, like with Google.

However, once these investments are secured, they will not be cashed out easily, but will be put into action only after ten years or even longer.

"And one more thing!"

Lu Wenhua said on the phone, "Yahoo has sent word that they seem to be interested in Himalaya Music!"

"oh?!"

Li Dongling couldn't help but chuckle. "Yahoo's appetite is really quite large."

Yahoo is now incredibly wealthy and powerful; it seems like it wants a bite out of anything it sets its sights on. It's not like Yahoo; it's more like a gluttonous beast.

Yahoo approached the Zhixing Foundation instead of Feiyan Technology directly, clearly wanting to allow for a de-escalation of the situation and avoiding a direct confrontation with Feiyan Technology.

After all, Feiyan Technology and Zhixing Foundation together hold 13% of Yahoo's shares, making them one of Yahoo's major shareholders.

Yahoo's management clearly doesn't want to fall out with the Zhixing Foundation and Feiyan Technology over this matter. If it causes Yahoo's stock price to fluctuate and ruins the plans of Wall Street institutions, then those Wall Street people could really skin Yahoo's management alive.

"Since Yahoo wants to talk, then we'll talk to them. Himalaya Music can't be sold to Yahoo, but Feiyan Technology is still willing to give a portion of Himalaya Music's equity to its 'brother' company."

Since Yahoo has come forward to promote Himalaya Music, Mr. Li can't very well refuse Yahoo's good intentions.

If Yahoo were to invest in Himalaya Music, Himalaya Music's valuation would be significantly increased.

"Have Yang Zhiyuan come to Pingyang to discuss this matter. Also, it's time to make some moves regarding the Yahoo shares held by the Zhixing Foundation and Feiyan Technology!"

Li Dongling's voice wasn't loud, but it made Lü Wenhua's expression tighten. He knew that Yahoo's shareholding structure was likely about to undergo a major change.

It's time to start cashing out Yahoo's shares gradually; it's impossible to wait until Yahoo's market value reaches its peak before doing so.

A 13% stake in Yahoo is worth tens or hundreds of billions of dollars. Such a large stake cannot be sold off so easily. If it were suddenly dumped, Yahoo's stock price would collapse.

Therefore, preparations must begin in advance. Ideally, Yahoo's management and major shareholders should take over, or at least let them know that Feiyan Technology and Zhixing Foundation are exiting the business!

……

Amidst constant turmoil in the record industry, Himalaya Music reached cooperation agreements with giants such as Warner Music, Universal Music, and EMI.

Napster initially tried to deny the allegations, hiring a public relations firm to spread rumors that Himalaya Music would not affect them and that they didn't need to worry about copyright lawsuits, and that their path to going public would not be interrupted.

But no sooner had Napster finished his trash talk than Himalaya Music, together with record giants and record associations, formed a lawsuit against Napster, with dozens of companies and associations joining forces.

Moreover, the lawsuit was filed simultaneously in multiple states in America, marking the birth of the largest lawsuit in the history of the record industry!
(End of this chapter)