Return to 88: Starting from Marrying My Sister-in-law

From 1998 to 2000, the internet craze swept the globe, especially stimulated by the myth of high valuations of NASDAQ internet stocks in North America.

This is a bizarre and fantastical era.

The air was thick with fervor, as if as long as entrepreneurs could come up with an eye-catching gimmick, find a seemingly disruptive entry point, and weave a "good story" about the infinite possibilities of the future, they would have no trouble attracting venture capitalists waving their checks.

Hot money poured in like a flood bursting its banks, giving rise to countless internet dreams, some grand and some absurd, while also brewing the most dazzling and dangerous bubble in human commercial history.

Therefore, when Lu Yang uttered the words "Internet" and showed an unusual level of interest, both Xiao Jun, who had acted as a go-between, and Mu Qizhong, who was holding a fishing rod and seemed relaxed but was actually listening intently, showed knowing expressions of "I knew it."

Mu Qizhong's rough fingers caressed the smooth shaft of the fishing rod, his eyes gleaming with intense interest.

Not long ago, due to a spur-of-the-moment bet, the three of them invested in three of the most popular Chinese portal websites in the domestic internet industry: NetEase, Sohu, and Sina.

Although there were some minor setbacks in the process, he and Xiao Jun ultimately received less than 10% of the shares, and they paid a certain premium.

However, the speed and magnitude of the returns from this investment allowed them to truly experience the benefits of the internet wave, and even feel a thrilling excitement.

How long has it been? Less than three months at most!

Although the real money invested back then has not yet been cashed out and secured, its paper value has already almost doubled!
The valuations of those three portal websites skyrocketed, accompanied by rounds of new financing and overwhelming media hype.

Even Mu Qizhong, a seasoned veteran in the business world, had to admit that the speed at which he "earned money while lying down" far exceeded any of his previous successful physical investments.

This magic made him truly value this emerging, even somewhat illusory, industry.

"The internet...tsk tsk, it's a damn money-devouring beast, and also a gold-medal." Mu Qizhong clicked his tongue and muttered to himself, his gaze fixed on the distant horizon where the sea and sky met, as if he were planning his next prey.

A gentle sea breeze blows, and the engine hums softly.

About an hour later, a small black dot appeared on the horizon, quickly enlarging as a much smaller, somewhat rudimentary yacht broke through the waves and approached Lu Yang's luxurious cruise ship. After the ship smoothly approached, a slightly thin young man wearing a life jacket, looking somewhat nervous and barely perceptible disheveled, struggled to climb from the rocking boat onto the spacious and stable deck.

"President Lu, President Mou!" Xiao Jun stood up first and went to greet them. He patted the young man on the shoulder familiarly and then introduced him to Lu Yang and Mou Qizhong: "This is the young man I just mentioned to you, Xiao Ma! His father is a director of Yantian Port and is considered a junior in the industry. He is quick-witted and has the potential to get things done."

After introducing them, Xiao Jun turned to the young man and straightened his expression: "Xiao Ma, this is the God of Wealth I told you about, President Lu. This is President Mou. Hurry up and greet President Lu and President Mou."

In formal business settings, especially when facing Lu Yang, Xiao Jun naturally toned down the intimate way he addressed him as "brother-in-law."

The young man quickly bowed respectfully, his voice slightly tense: "Hello, Mr. Lu! Hello, Mr. Mou! My name is Ma Huateng! You two can just call me Xiao Ma!"

His gaze swept quickly across Lu Yang's face, filled with awe and inquiry.

Lu Yang's gaze had already fallen on Ma Huateng's face. That slightly shy yet scholarly young face instantly overlapped with a legend deep in his memory.

It really was him! One of the two Mas who will dominate the Chinese internet landscape in the future, the uncrowned king who built a vast digital empire with social software, and the founder of Tencent!
“So it’s Xiao Ma.” Lu Yang’s lips curled into a faint, all-knowing smile. He casually raised his chin, his tone calm and even, yet carrying an invisible sense of control. “Get Xiao Ma a fishing rod. Sit down, let’s fish and talk about your ‘great career’.”

He was certain in his heart: Who else could it be but this person?
Lu Yang had been waiting for this moment ever since he strategically shifted some of his industrial focus to Shenzhen.

Given his advantageous position, how could he possibly let go of the opportunity to intercept a future internet giant?

In particular, in his clear memory, the first major investor in Tencent was PCCW Digital, founded by "Little Superman," with whom he had a long-standing feud!

It's a win-win situation: you can seize immeasurable wealth in the future and subtly annoy that arrogant young man. Why not do it?
In order not to disrupt the original trajectory of fate and to ensure that the penguin's development path would not deviate from the path to success due to his premature intervention, Lu Yang chose the safest approach: to wait patiently for the flowers to bloom.

He waited patiently until the penguin was fully formed and, guided by fate, reached the critical juncture where it most needed capital injection and was most easily manipulated by capital, before intervening in in this seemingly unintentional, almost "chance" manner.

He was confident that, without altering the future trends, he could precisely replace the rival who displeased him and firmly embed this rising star of the internet into his own wealth empire.

This is the composure and confidence of those who are reborn and look down upon their fate.

Ma Huateng sat down as instructed, took the fishing rod handed to him by the staff, his movements were a little clumsy, and he tried to calm down the nervousness of facing a top big shot for the first time, and was about to start introducing his project.

Mu Qizhong, standing nearby, spoke first, his expression a businessman's curiosity and scrutiny. He asked with a smile, "Little Ma, I heard from Xiao Xiao that you're also involved in the internet industry? What, are you planning to create a portal website and compete with NetEase and Sina for business?"

He was clearly still basking in the excitement of the previous wave of successful portal website investments.

Ma Huateng quickly shook his head, his eyes filled with confidence in his project: "President Mou, we are not considering making a portal website for the time being; we are making instant messaging software."

He paused, trying to find a point of reference, "Have you ever heard of a foreign software called ICQ?"

"ICQ?" Mu Qizhong frowned and shook his head blankly.

"Never heard of it, what is that?" He was almost bluntly honest. "I'm not even very good at typing, and I rarely even open portal websites."

For an industrialist like him, accustomed to traditional business models, the concept of instant messaging software was indeed too advanced and unfamiliar.

The expectant light in Ma Huateng's eyes dimmed instantly, and a hint of disappointment was hard to hide.

He was about to explain the function of ICQ and the imitation and innovation of OICQ when Lu Yang's deep voice cut in at the opportune moment, asking a seemingly insignificant question:

"Xiao Ma, in what specific month was your company established?"

"Huh?" Ma Huateng was stunned for a moment, then subconsciously answered honestly, "We started preparing in May of this year, and officially registered the company in July. At the same time, we uploaded our first instant messaging software, OICQ, to the internet."

“July…” Lu Yang repeated softly, his eyes behind his sunglasses flickering almost imperceptibly. It was four to six months earlier than he remembered!

The butterfly effect... this feeling is becoming more and more obvious.

He has recently heard about several internet startups that don't match his memories from his previous life, clearly stimulated by his and Mou's high-profile investment in portal websites.

The influx of these three hot money funds was like throwing three giant stones into an already turbulent pond of the domestic internet industry, creating ripples that made the entire industry's enthusiasm even more turbulent than before.

"Alright, buddy!" Seeing that the groundwork had been laid, Xiao Jun, ever impatient, cut straight to the point. He patted Ma Huateng on the shoulder and said, half-jokingly and half-seriously, "Stop with the fluff and get to the point! What valuation did you give your Tencent company? How much money are you planning to raise? Is this considered an angel round? You'd better give up a good portion of your equity!"

His last investment in Sina nearly emptied his coffers, and this time he brought Pony Ma along hoping to ride the wave and get a share of the pie, so naturally he hopes to raise a larger amount of funding.

Ma Huateng straightened his back, took a deep breath, and as if gathering immense courage, uttered the number that seemed almost unbelievable to others: "I...I value the company at $500 million and plan to sell 40% of the equity to raise $200 million."

He knew that this figure was an exorbitant demand for a company that had been established for less than six months, whose product had just been launched, and whose user base was still very weak. However, he was well aware of how quickly the internet industry could burn through money. Server bandwidth, user promotion, technical maintenance... $200 million might really only be enough to sustain the company for a few months.

"Pfft!" Mu Qizhong let out a sneer without any politeness, as if he had heard an absurd joke.

He glanced at Ma Huateng and said, "Young man, you've got quite the nerve! A tiny, run-down company that's only been open for a few months, barely out of its teens, and you dare to ask for a valuation of $500 million? And $200 million for 40% equity? Do you think our money grows on trees or is printed on toilet paper?"

His tone was undisguised in its sarcasm and disdain.

Ma Huateng's face flushed red instantly, then quickly faded to an embarrassing pale white.

A profound sense of disappointment and humiliation welled up within him. He could almost foresee that this hopeful journey to seek help would end in failure. His lips moved as if he wanted to make an excuse, but in the end, he dejectedly lowered his head, prepared to get up and leave, unwilling to stay here and endure further humiliation.

Just then, Lu Yang, who had been silently observing, put down his fishing rod.

The metal fishing rod landed on the deck with a soft "click," which clearly drew everyone's attention.

He spoke, his voice not loud, but it was like a stabilizing force, instantly turning the tide of the entire situation:
"I accept the $500 million valuation."

The deck fell silent instantly; even the sound of the sea breeze seemed to have stopped.

Mu Qizhong stared wide-eyed in astonishment, and Xiao Jun also looked at Lu Yang with surprise.

Ma Huateng suddenly raised his head and looked at Lu Yang in disbelief.

Lu Yang's tone was as calm as if he were discussing today's weather: "I can give you 220 million US dollars, but you only need 40% of the equity."

He not only accepted the valuation, but also voluntarily added 20!
The overwhelming surprise momentarily clouded Ma Huateng's mind, but his remaining rationality and instincts as the founder immediately sounded a sharp alarm!
He blurted out almost without thinking, his voice trembling with excitement and urgency: "No! Mr. Lu, this... this 40% equity stake cannot be given entirely to one company! Absolutely not!"

He forced himself to calm down and explained rapidly, his eyes filled with determination: "Before I came here, my team and I had already discussed it. $220 million is far from enough to support Tencent to take the IPO. We will inevitably need to conduct Series A, Series B, and even more rounds of financing. If we give up 40% of the equity to a single investor in the first round, then in the subsequent rounds of financing... our founding team's control will be greatly diluted, and we may even completely lose control of the company in the near future!"

He shook his head as he spoke, "The risk... is too great!"

"Pfft."

Upon hearing this, Mu Qizhong's face showed a mixture of "I knew it" and "the young man is ignorant of his own limitations," as if he thought Ma Huateng's rejection of Lu Yang's "generosity" was utterly foolish.

"Dude, isn't it too early to talk about going public now? Is this something you should be thinking about right now?"

Xiao Jun also shook his head repeatedly, somewhat disappointed by his younger brother's exorbitant demands and lack of self-control.

Lu Yang showed no anger at being rejected.

He tilted his head slightly, his sunglasses seemingly pointing towards Ma Huateng, and a meaningful smile curved his lips: "What if... I add another $10 for you? $230 million, in exchange for 40% of your shares."

Ma Huateng gritted his teeth and shook his head with difficulty but determination: "President Lu, really... this is not a matter of money, it is a matter of control over the company's future life and death!"

Faced with Ma Huateng's unwavering stance, Lu Yang not only wasn't angry, but seemed to have seen something interesting. He leaned forward slightly, casually resting his hands on his knees, and presented a solution that left everyone present speechless:

"300 million US dollars."

"Huh?" Ma Huateng thought he had misheard.

Lu Yang repeated clearly, each word striking a chord in Ma Huateng's heart: "300 million US dollars, I will invest in your Tencent company, the equity ratio will remain unchanged, still 40%."

He paused, then delivered the most crucial and tempting blow: "However, we can sign an 'Equity Entrustment Agreement.' For the next ten years, regardless of how your personal shareholding changes, the voting rights of my 40% stake will be fully entrusted to you, Ma Huateng, to exercise on my behalf. In other words, of this $300 million, I only want the dividend rights and the returns from its appreciation; the company's management rights and major decision-making power… for the next ten years, it will remain firmly in the hands of your founding team, especially you, Ma Huateng."

Lu Yang's voice was like a devil's whisper, filled with a seductive allure that seemed to see into the future: "Ten years is enough time for you to build Tencent into a great company. So, Pony Ma, do you dare to bet with me on this future?"

Ten years! Proxy voting rights!

This means that Lu Yang bought 40% of the future revenue rights of Tencent for a sky-high price of 300 million US dollars, but generously and unreservedly handed over the steering wheel that would determine the fate of the company to his founder, Ma Huateng, who was only in his twenties!
What kind of trust is this? Or rather... what kind of terrifying self-confidence is this!?
The enormous impact left Ma Huateng's mind blank, and it felt as if all the blood had rushed to his head.

Looking at Lu Yang's face, blurred behind his sunglasses, he felt as if he were seeing an olive branch extended by a god who could control the future. All his concerns and risk calculations seemed so pale and powerless in the face of Lu Yang's "gift of trust" and 300 million US dollars in real money.

A tremendous opportunity lay before him. His entrepreneurial spirit and boundless yearning for the future overwhelmed everything else. Ma Huateng's face flushed crimson with excitement. He abruptly stood up, almost stiffening his neck, and with all his might, shouted out two words with unwavering resolve:
"Deal!" (End of Chapter)