What's wrong with me being a rich man?

Chapter 695 Betting (4k)

Under Liu Chiping's leadership, MusVid developed a complex architecture.

To be precise, since he took over, the already complex architecture has become even more complex, with different systems in different global markets on one hand, and data that is not shared between them on the other.

This continued the protection that Yu Xing, Silicon Carbon, and Lü Haiying had given to MUS, and indeed it did not attract much attention. However, at the same time, Liu Chiping, the president from Tencent, also received a lot of criticism from both inside and outside the company.

MusVid initially targeted the US teen market and achieved great success, even attracting acquisition interest from Facebook. However, its transformation into a full-fledged content platform, slower growth, the dazzling success of Snapchat, and Vine's decline before its closure have all cooled its appeal in the capital market.

In today's overseas youth market, Snapchat is undoubtedly No.1, with 150 million daily active users. In May of this year, it just completed a $18 billion funding round, valuing the company at over $20 billion, making it one of the world's most valuable unlisted technology companies.

This eye-catching development has prompted major overseas giants to take action. Facebook's Instagram has already begun internal testing of Stories, a feature similar to Snapchat's disappearing messages, which will inevitably bring tremendous competitive pressure.

Snapchat's 1.5 million daily active users are indeed impressive, but Facebook's daily active users exceed 12 billion. The clash between these two different scales is worth paying attention to.

It is precisely because Facebook is learning from Snapchat that MusVid, whose growth rate is slowing down, has similar discussions. If overseas giants are learning from them, shouldn't we follow suit?
The discussion extended into the conference room of Silicon Carbon Data Company, where a heated debate ensued regarding overseas competition.

Although Mus operates independently in name, its technical support comes from Silicon Carbon Data. Liu Chiping is the president of the former, but he inevitably felt pressure after learning about the opinions of Lü Haiying and others.

Upon hearing "General Manager Lü" from Liu Chiping, Yu Xing roughly guessed the situation. After thinking it over, he greeted Liu Chiping and asked him to sit down and discuss the matter together when Liu Chiping returned to Lingang.

He knew that MusVid's growth had slowed down, but there was one thing he thought Liu Chiping had done well: Facebook's attitude towards him was very calm.

It's okay if Mus is slower. Snapchat's rapid expansion has immediately drawn the attention of Facebook, which is similar to the situation faced by giants in the domestic internet market back then.

Liu Chiping quickly set a return date, arriving in Shanghai by flight on July 23.

With a week to go before his return, Yu Xing took the opportunity to try out Snapchat. He felt that the attributes of each user were quite different, and it was more focused on private domains. As for the disappearing message function, it could be considered a supplement to the Mus app, rather than changing its main focus.

On July 17, a piece of news from the European Union was finally reported by many financial media outlets.

It is reported that Guoshanfeng, a globally renowned short-selling firm that has been under investigation since last year, has recently reached a settlement with the European Union, which will not launch any further investigations into Guoshanfeng and Yu Xing.

As for the settlement amount, no specific figure was obtained, but it is known that it was a huge sum of money.

Many European and American media outlets speculate that the "King of Short Sellers" may have been spared criminal prosecution and reached a settlement involving hundreds of millions of dollars in compensation.

As soon as the relevant reports came out, Yu Xing quickly received interview requests from domestic media, but he declined them all. Apart from the Carbon Silicon Technology Day held in Shanghai last time, he actually did not actively appear in the media for a while, and did not attend related industry conferences and other occasions.

Domestic reports and speculation followed the settlement, but just two days later, the SEC also released its settlement report. The US side readily revealed the noteworthy details, mentioning that Shanfeng and Yu Xing paid a settlement of $500 million.

$500 million?
Many domestic reports used a phrase that amused Yu Xing: "only $500 million."

With reports of a settlement rampant and the media unable to contact the parties involved, Xiong Xiaoge of IDG, true to his gossipy nature, inquired about the settlement with the EU during a phone call concerning the Peak Hedge Fund.

"The EU investigation was mainly driven by Germany's BaFin. They had a pretty good negotiation this time, and they made quite a few demands, such as requiring us to commit to information disclosure and not to disrupt the European financial market," Yu Xing said casually, naturally not mentioning Mertz's assistance in the matter, thus satisfying the other party's curiosity. "They also paid a settlement of 3000 million euros."

When Xiong Xiaoge heard the number, he still grimaced and bled.

But then he thought about it again, and realized that the Peak Hedge Fund had made a lot of money from Brexit.

“Personally, I have 500 million euros, which is the limit for individuals in the EU. The rest is beyond the limit,” Yu Xing added. “There are also some class-action lawsuits from investors, which won’t be resolved anytime soon and will have to go through the process.”

The EU and the US reached a settlement, and official legal proceedings, Japan's investigation, and investors who suffered losses due to the decline in stock prices after shorting the peak have joined together to file a class-action lawsuit.

Yu Xing believes this result is already quite good, as it avoids the negative impact of transferring the case to a criminal investigation.

At this moment, Xiong Xiaoge asked, "President Yu, what about Guoshanfeng?"

“It’s just there,” Yu Xing laughed. “If the opportunity arises, its information disclosure will be mainly conducted by funds. We will still short sell listed companies that commit fraud, but the money we make comes from compliant wealth in the sunlight.”

Xiong Xiaoge said subconsciously, "What a pity."

Yu Xing countered, "What's a pity?"

Xiong Xiaoge said with an "uh": "Well... I mean, that's what I mean."

Yu Xing remained silent.

The EU's settlement amount has not been released, but information will be revealed sooner or later.

Yu Xing didn't expect that it would soon play an additional role.

After Proton Group submitted its acquisition proposal to Silicon Carbon, it received feedback, with Boss Semodal directly calling to discuss the matter.

Syed Mokhtar and Yu Xing communicated through simultaneous interpreters. At one moment, he praised the achievements of silicon carbide, at another, he boasted about the long history and great value of the Lotus brand, and at yet another, he talked about the potential of the Proton Group in Malaysia.

Ultimately, he expressed his dissatisfaction with the price quoted for silicon carbide.

After submitting its first acquisition proposal for a 49.9% stake in Proton Group to Guo Kongcheng, Silicon Carbon submitted another acquisition proposal for Proton plus Lotus, with the main value being a bid centered around BYD Song plus Silicon Carbon's electrification technology.

The total price is $11 billion. After deducting the value of the technology, the actual cash is $3.02 million, and there will be no burden of past financial liabilities.

Saimoda felt the offer was too low and implied it was an attempt to take advantage of someone's misfortune.

In addition, he also disagreed with the technological value of the BYD Song.

“Proton has too many problems right now. Our research commissioned by IDC revealed various supply chain and 4S store issues.” Yu Xing mentioned the supply chain and added, “You can come to Huaxia to investigate BYD’s technology. The Song is also competitive in our market. We can discuss this further.” He didn’t give a definitive answer, after all, it was priced based on technology, and it was relatively neglected technology.

Saimoda then launched into a series of statements, finally saying, "Mr. Yu, you're such a well-known short seller, don't be so concerned about this acquisition. Proton is indeed facing problems right now, so please don't take it so seriously. We'll thank you."

Upon hearing this, Yu Xing sighed: "Mr. Saimoda, just like the pressure you are under, I am also under a lot of pressure. Not all the money made by short sellers goes into my pocket. This time, the EU and the US have taken a lot of it together. We also have to deal with those class-action lawsuits instigated by law firms. It's not that I want to complain, it's just that short sellers don't have that much money on hand."

Semoda then asked, "What about the mountain peak hedge fund? Didn't you make money on Brexit?"

The big short sellers have such a big reputation that their movements can be easily found with a little research.

“That’s the clients’ money. We just earn management fees,” Yu Xing said. “The fund is about managing the clients’ money. I even have to take out a loan for my own company if I need money. I can’t just use the fund’s money whenever I want.”

Saimoda was not familiar with the financial sector; he relied on the combination of power and money to survive and prosper.

As he listened to President Yu's fluent answers, his doubts subsided only slightly.

However, when Saimoda called a second time, he made a request unrelated to the acquisition: "Mr. Yu, I have a friend who admires your abilities in the financial markets and hopes to invest his money in the Peak Hedge Fund."

Yu Xing smiled and said, "Mr. Saimoda, I'm not in charge of hedge fund matters, but I can have the person in charge go to Malaysia to contact you, oh, I mean, to contact your friend."

Saimoda understood what he meant, and after a moment of silence, he said seriously, "He is indeed my friend, a very important friend."

Upon hearing this, Yu Xing sensed the general direction: it was either his own safe money or the money being used by someone behind the scenes to make money.

After a moment's thought, he agreed and planned to send Li Songfei to Malaysia to make the arrangements.

The mountain peak hedge fund is indeed a useful tool. Guo Kongcheng used it as a gift and a stepping stone. Syed Mokhtar or his backers were attracted by its money-making ability. Guo Kongcheng bet on Mahathir because many of the Guo family's assets are in Malaysia, and on his side...

Since we have no connection with Malaysia, betting on only one direction might result in a loss. By betting on the other directions, we can hedge the risk.

The current acquisition plan is indeed conducive to a quick return on investment, but the development after that will depend on the current situation.

Silicon Carbon can leverage its supply chain and technology to maintain control after the acquisition. However, with Cymodar now coming to them, they are willing to increase their leverage in subsequent operations.

Li Song did not expect that after meeting with the Guo family, he would fly to Malaysia to meet with another party. However, he did receive an unexpectedly high level of attention and reception during his trip to Malaysia.

He had no say in the acquisition plan and was unclear about how silicon carbon was considered. He had just talked to people about Shanfeng's past short-selling record, Shanfeng's judgment that it had correctly predicted Brexit in this round, and its future funding strategy.

Li Song could sense the influence that his few words could have, thanks to his achievement of conquering the mountain peak.

However, just as he returned to Hong Kong from Malaysia, he received a call from Guo Kongcheng.

Guo Kongcheng asked Li Zong about his contact with Saimoda quite directly.

Lee Song has great respect for these established wealthy families; their assets aren't limited to Malaysia, and they have influence in various fields. However…

He knows perfectly well whose food he's eating right now.

Li Song answered without much hesitation: "Mr. Guo, I am only responsible for the work of the fund and the funds of the clients. Other things are not important to me."

Guo Kongcheng's voice clearly betrayed his displeasure: "Is this President Yu's intention? Can you represent President Yu?"

Li Song replied neither humbly nor arrogantly: "I cannot represent President Yu, but I can currently represent the Peak Fund."

Guo Kongcheng was silent for a moment on the phone, and after a short while he ended the call, which had a hint of accusation, without saying anything.

He considered Li Song's attitude and hesitated again and again before finally deciding not to call President Yu.

Well, he's a big short seller now, what more can you expect from a short seller?

Guo Kongcheng's emotions stopped at Li Song's level. Yu Xing naturally received Li Song's feedback, but since he did not receive any additional communication, he pretended not to know without any internal conflict. This time, silicon carbon was the business-level solution to the Proton Group's problems.

As for other things, Lingang and the Guo family don't need to be completely in agreement.

Yu Xing, who was in Lingang, waited for Liu Chiping's return and held a core meeting to discuss the current situation Mus is facing.

As the person in charge of leading MUS's overseas development, Liu Chiping naturally had to explain his judgment and the company's current situation.

“The competition in the overseas internet market is more peaceful than I expected. Thanks to our policies, Mus is now a pretty good client of Facebook, and our main traffic channels are basically on Facebook,” Liu Chiping said. “This time, Snapchat has attracted the attention of several platforms, including Facebook and Twitter. I actually have a feeling that this is a good opportunity for us to increase our investment.”

The impact of Twitter's shutdown of Vine raises questions about the extent of short video development compared to established platforms like Facebook and YouTube.

MusVid's recent slowdown in development is further evidence of this.

In addition, there has been a persistent rumor about MusVid from Facebook that its retention rate seems to be consistently poor, as it is simultaneously driving traffic from Facebook while repeatedly driving traffic after failing to retain users.

“Snapchat’s rise is a problem, but now that it’s being targeted by Facebook, can we buy traffic from Snapchat?” Yu Xing said suddenly after listening for a while. “Snapchat mainly targets teenagers, and Mus used to do the same thing. It focuses on private domains, while Mus focuses on public domains. Now it faces competition from Facebook. We have always regarded Facebook as a potential competitor, so this doesn’t seem so contradictory.”

Liu Chiping's eyes lit up, and he offered his experience: "Let Snapchat become 360 ​​to compete with Facebook, and let MUS become WeChat to accumulate strength."

He smiled and said, "I'm very familiar with this."

(End of this chapter)