Reborn since 1993

Chapter 338 Making a Nest
Seeing so many reporters below the building, Gu Xiguang initially thought that they were media invited by Dongling Hi-Tech and Tianya.com.

But after looking carefully, Gu Xiguang found something wrong. Many security personnel were busy persuading reporters and media to leave, but those reporters seemed to be injected with chicken blood. Not only did they not leave, but they gathered in larger numbers.

"We want to interview Mr. Li!"

"Excuse me, what is the relationship between Dongling Hi-Tech and Zhixing Foundation?"

“Is Yahoo invested by Tanglin Hi-Tech?”

Many reporters gathered downstairs shouted that they wanted to interview Li Dongling. In the past few days, official media such as Youth Daily, Economic Daily, and Industrial and Commercial Daily have reported that Li Dongling was in Yanjing. Reporters and media are all aware that Li Dongling is now in Yanjing.

What is the Internet? Not many of these reporters and media can understand it, but that doesn’t stop them from eating melons, and big melons at that!
Yahoo, which is valued at $1 million, is actually invested by a mainland company. Although it is a small shareholder, even if it only holds % of the shares, it is still a shareholder!
In recent years, the news we have heard in China is that some foreign giant company has invested in or acquired a time-honored domestic brand. But now we hear that a mainland company has invested in an American company thousands of miles away. Doesn’t this sound counterintuitive?
Not to mention, domestic media are still digging for news between Zhixing Foundation and Yahoo. They are curious about how much money Zhixing Foundation invested in Yahoo, how many Yahoo shares it has, whether it is making a profit or a loss on this share, and how much return it has received. They are definitely trying to get news from Li Dongling.

Seeing that the group of reporters was gathering more and more and was unwilling to leave, and Gu Xiguang and his team's convoy was almost there, the supervisor in charge of the building's security was so anxious that sweat was pouring down his forehead, and he quickly ran back to call someone.

"Today, our company does have some important matters to deal with, so it is not convenient for an interview. I hope you can forgive me!"

"Some other day, please pick a time some other day, and we will tell you everything we know. Please forgive me today!"

Li Dongling and Guo Jingyun, who were originally upstairs preparing to receive Gu Xiguang and his party, came downstairs. Guo Jingyun spoke to the group of media reporters.

"Boss Li, give me a heads up, we'll be leaving soon!"

"Yes, Mr. Li, please say a few words!"

“Did you invest in Yahoo?”

A reporter shouted to Li Dongling, and the other reporters also spoke up. They had come here excitedly today and did not want to go back empty-handed.

Guo Jingyun looked at Li Dongling with a headache. To be honest, although he was the head of Tianya.com, he was not really clear about the affairs of Zhixing Foundation and Yahoo.

There is absolutely no movement in the Internet in China right now. If it weren't for Li Dongling, who regularly subscribed to news, magazines and other reports from Silicon Valley overseas, allowing Guo Jingyun to know the latest developments in the American Internet industry, he might be completely in the dark right now.

“Aventurine Hi-Tech did not invest in Yahoo!”

Li Dongling glanced at the group of media reporters in front of him and spoke first. After these words came out, many reporters looked disappointed and felt that they would not be able to get the big melon.

“However, Zhixing Foundation did participate in the angel round investment in Yahoo and currently holds 7.5% of Yahoo’s equity!”

Li Dongling said that although Zhixing Foundation and Dongling Hi-Tech were both established by him, and there were intricate ties between the two companies, they were operated completely independently, and the investment was indeed made by the Zhixing Foundation.

"boom!"

The reporter, who had looked disappointed just now, seemed to be furious after a few seconds.

"The Yahoo shares held by Zhixing Foundation are worth more than 35 million US dollars?"

"How much money did the Zhixing Foundation spend on investing in Yahoo?" The reporter from Computer News couldn't help but ask Li Dongling.

Li Dongling smiled and slowly said a number, "Three hundred thousand dollars!"

"Three hundred thousand made thirty-five million dollars?"

"How long has Yahoo been established? How come it has earned 200 times the return in one year?"

"Is the Internet really so profitable?!" The media reporters who came here today originally came for the big melon, but when the melon really appeared, it still made them dizzy.

The myth of getting rich overnight through the Internet appeared in front of the domestic media for the first time. The impact was unimaginable.

When Computer News reprinted American media reports, people in China did not feel much about it. But when someone in China got a 200-fold return by investing in Internet companies, they felt that their outlook on life was impacted.

Li Dongling did not talk about the current Internet model. The current Internet does not rely on performance or revenue, but on blowing. The bigger the balloon is and the more fancy things are done, the greater the valuation and market value will be. The first generation of the Internet industry played the game of passing the parcel!
There is no point in talking about all this now. Li Dongling said this today because there is nothing to hide about this matter. Even if he didn't say it, it would be dug out by the media. On the other hand, Li Dongling's saying it now can be regarded as a warm-up for the launch of Tianya.com.

After that, Li Dongling used the reporters and media in front of him to tell another piece of news to the mainland, Hong Kong, Japan, Singapore, etc., "The Zhixing Foundation is also the general agent of the Yahoo brand in Asia, and has the brand agency and operation rights of Yahoo in the entire Asian region!"

"The Zhixing Foundation will promote the Yahoo brand throughout Asia!"

This is a matter of cutting grass and catching rabbits. If Yahoo can go public next year, Yahoo's brand value will definitely soar. Li Dongling is also telling Asian companies and investors interested in the Internet in advance who owns the Yahoo Asia brand!

The general agency rights of the Yahoo brand in Asia are in the hands of Dongling Hi-Tech, which is equivalent to the general contractor. Companies in places like Hong Kong, Japan, Singapore, Siam, etc., if they want to obtain the local operating rights of the Yahoo brand, they have to buy it from the Zhixing Foundation, and they become subcontractors.

The bait has been cast using the Yahoo brand, and it depends on how many big fish can be caught. If Softbank can be caught, then the Yahoo brand in the hands of the Zhixing Foundation can be sold at a sky-high price!
However, all of this will probably have to wait until Yahoo goes public, when the Yahoo brand will become more and more valuable. Anyway, the Zhixing Foundation does not need to rush. The previous agreement signed with Yahoo was to obtain Yahoo's brand general agency rights in Asia for US$500,000. The Zhixing Foundation can afford to wait.

The media outlets that got the big news knew that they would not have the chance to interview Li Dongling today, so they dispersed in a hurry and ran back to their respective newspapers, ready to break the big news about the Zhixing Foundation and Yahoo. It didn’t matter what Yahoo did or what the Internet was. What was important was that the Zhixing Foundation used $300,000 and got a 200-fold return, which was enough to attract people’s attention!

"Director Gu!"

After the media and reporters left, Li Dongling welcomed Gu Xiguang and leaders from the ministries and commissions such as Development and Reform, Industry and Commerce, Industrial Machinery, Yanjing Investment Promotion, and Finance who were inspecting the office building of Dongling Hi-Tech in Zhongguancun.

The leaders of the Economic and Trade Commission who had just spoken to Gu Xiguang had seen the scene at the entrance of the building, and couldn't help but ask with Li Dongling's curiosity, "Zhixing Foundation, did you really make $635 million by investing in Yahoo?"

As soon as these words came out, leaders and supervisors from other units who came to inspect couldn't help but prick up their ears. To them, exchanging $300,000 for more than $30 million was really too amazing. How many domestic companies rely on subsidies to sell products overseas at a loss, and only earn a few million dollars a year by boosting sales.

The Zhixing Foundation invested in Yahoo at the beginning of the year, and in less than a year, it has received a 200-fold return. This is really amazing. Money is an attractive thing, and it is hard not to be tempted. Even for domestic units, if the Internet can really make a lot of money, then can they also support some companies, invest in or even establish Internet companies?
“It’s true that Zhixing Foundation invested in Yahoo, but if they want to cash out, they have to wait until Yahoo goes public and the stock lock-up period is over before they can cash out. This will take one or two years or even longer, and any accidents could happen in the meantime!”

“There is no business in the world that is guaranteed to make a profit, and the Internet is no exception. Now, there are countless Internet companies emerging in Silicon Valley, but only Netscape can actually go public!
For many Internet companies, the cycle from establishment to bankruptcy is no more than six months, and the number of companies that can actually survive and go public is less than one in a hundred. Now, investing in Internet companies is called venture capital in Silicon Valley. For venture capital companies, it is also a gamble and requires luck. It is more likely that they will just invest money but lose it all! "

"You may even get scammed and your money may be taken away by a fraudulent company!"

Li Dongling's words made many people present feel disappointed about the rising hopes of the Silicon Valley Internet.

“Will the Internet appear in the country?”

While riding in the elevator, Gu Xiguang's old leader continued to ask Li Dongling questions, obviously very interested in the Internet.

"meeting!"

Li Dongling did not hesitate, but still said, "But it takes time. The Internet in America was built in the past few years. The Internet infrastructure has been initially improved. Computer users have entered ordinary American households. There are enough Internet users, so it started!"

The development of the Internet in China was not much slower than that in Silicon Valley. As soon as Netscape went public, a famous advertising sign of Yinghaiwei appeared in Zhongguancun.

Li Dongling does not want the domestic Internet to be led into a ditch because of the "accidental" success of the Zhixing Foundation. The Zhixing Foundation dares to invest in Silicon Valley because of his existence and does not have to worry about failure.

If other domestic companies also follow the Zhixing Foundation and take the risk to invest in Silicon Valley, they will definitely be left with nothing. If you don’t believe it, just ask those institutions around the world that were fooled by Wall Street in the past to invest in Silicon Valley Internet companies. Did they have anything left in the end?

It is indeed necessary to develop the domestic Internet, but we must be careful about the degree and timing. If we invest in a large number of Internet companies when the Internet infrastructure, cables and broadband are not yet laid, and there are not enough computer users, then what is the difference between it and castles in the air, and in the end there will be nothing but a mess!
(End of this chapter)