In Hong Kong, we build a global business empire

In contrast to Lin Haoran's comfort, the Forbes Group has been having a tough time this past week.

They originally thought that, with their influence in the United States and even globally, setting up a media company in a small place like Hong Kong would be a piece of cake.

But who would have thought that not only did they fail to achieve their goal, but they also ended up losing more than they gained, getting themselves into a lot of trouble.

They endured a difficult week, with one high-level meeting after another.

The most ironic thing is that on New Year's Day, Malcolm Forbes thought his luck had turned around because the first print run of 300,000 copies of the magazine sold out immediately, so he immediately printed an additional million copies!
The reprinting was done very quickly; several printing factories were operating 24 hours a day, and it was all done in one day.

I thought that the additional million copies would also sell out quickly.

But who knew that just as the reprint was finished, Citigroup suddenly launched an attack on Forbes, followed by Buffett's statement, and many other financial companies closely related to Citigroup also issued public statements.

Finally, even Forbes' competitors, such as Fortune and BusinessWeek, added fuel to the fire, causing Forbes' reputation and influence, which had been built up over decades, to collapse!

The newly printed million copies of the magazine immediately became worthless waste paper, and only tens of thousands of copies were sold after a week.

Mountains of magazines filled warehouses, distribution centers, and even rented temporary storage facilities.

The smell of printing ink had not yet dissipated, and these publications, once considered "guaranteed sales," had now become cold, hard entities suffering huge losses.

The biggest problem wasn't that the magazine wasn't selling. The more fatal issue was that long-term advertisers were choosing to terminate their contracts with Forbes and even pursuing breach of contract claims, demanding compensation for the advertising losses caused by damage to the Forbes brand reputation.

The added financial pressure has put a noose around the neck of the Forbes Group.

In the past, these advertising contracts were Forbes' most important source of cash flow.

General Motors, IBM, JPMorgan Chase, Procter & Gamble, Kodak, Johnson & Johnson, 3M...

These global giants spend hundreds of millions of dollars on advertising in Forbes every year.

They are not only a guarantee of income, but also a symbol of Forbes' industry status and social influence.

Now, the symbol has turned into a backlash.

The first to take action were several financial companies with deep business ties to Citibank. Almost immediately after Citibank's statement, they issued notices to suspend cooperation and initiate contract reviews.

Following suit, other industry giants, sensing the danger, also followed suit.

Lawyer's letters and termination agreements were flying into Forbes Group's legal department like snowflakes.

What terrified Malcolm Forbes even more was that several of the largest advertising agencies jointly sent a strongly worded letter demanding not only the immediate termination of the ongoing advertising campaign but also the refund of the prepayments.

Furthermore, it invoked the "brand reputation linkage clause" in the contract, demanding that Forbes Group compensate for the potential negative impact on the image of its partner brands caused by its "false and defamatory reporting".

The initial estimate of the claim amount is an astronomical figure.

"They're kicking us when we're down! Taking advantage of our misfortune!" Malcolm roared at yet another emergency board meeting, but his voice no longer carried its former confidence, only a desperate, blustering tone.

The emergency board meeting had been going on for three hours. Amidst the swirling smoke, the ashen faces looked particularly haggard under the stark white lights.

"Procter & Gamble has withdrawn all advertising contracts for the next three years, resulting in a direct loss of over 50 million US dollars for them alone!" The CFO's voice trembled. "Apple's Steve Jobs has also officially announced the termination of all cooperation with us, and this is just the beginning."

“Our stock price has plummeted by more than 70% in the past seven days,” another director added with a wry smile. “The number of hedge funds shorting us has tripled, and Wall Street is now treating us like a joke.”

Malcolm Forbes rested his hands on the conference table, his hands visibly trembling.

This is the biggest crisis he has faced since taking the helm of Forbes.

It could even be said to be the biggest crisis in Forbes history.

He couldn't understand how a meticulously planned report aimed at suppressing that rising star in the East could turn into a strangulation of the entire Forbes Group.

He regretted it; he regretted it.

Why did you have to provoke that devil from the East?

The word suddenly popped into Malcolm Forbes's chaotic mind, sending a chill down his spine.

Yes, that Easterner named Lin Haoran is simply a devil!
He not only predicted the market crash and amassed an astonishing fortune, but more frighteningly, he possessed an unimaginable and unfathomable network of connections and the power to retaliate.

Citigroup, Buffett, Morgan Stanley...

Each of these names carries immense weight, yet they all stood behind him.

This is something that an ordinary wealthy person could not have done, especially since the other party was not even American.

“We…we underestimated Lin Haoran,” Malcolm finally spoke, his voice hoarse and dry. “We underestimated his influence on Wall Street and in Washington even more.”

Citibank's actions are not a simple commercial retaliation; this is a declaration of war. There are political motives behind it; it's a precise strike against us!

He attempted to frame the disaster as "political persecution" in order to garner sympathy from within the community.

But what's the use?
Over the past week, they have watched helplessly as Forbes' influence continues to decline and its partners dwindle.

They made many efforts, but the rescue operation made no progress.

Those "friends" who used to chat and laugh together at the club and raise their glasses at charity dinners are now either not answering the phone, speaking evasively, or simply saying "we can't help you."

Even the middleman in Washington who initially conveyed the hints has completely disappeared since the last call, as if he never existed.

The cold and cruel reality is staring us in the face: when the Forbes Group, this behemoth, ran aground and sank, few were willing to risk being dragged down with it to lend a helping hand. Instead, more people were busy distancing themselves from it, and even taking the opportunity to move valuables off the ship.

After all, everyone knows that Forbes wields considerable power if Citibank doesn't intervene.

But when Citibank stepped forward, and even stood by that Chinese businessman, anyone would have made the same choice.

Should we choose to offend Citibank or Forbes?
In the United States, even three-year-olds know how to make choices!

The conference room door was suddenly pushed open, and this time it was Malcolm's eldest son, Steve Forbes, who entered.

He was holding a freshly printed document: "I just received official notification from the Department of Justice that they will be investigating us for 'alleged market manipulation'."

Furthermore, the China Securities Regulatory Commission (CSRC) also sent an inquiry letter, requesting us to provide all news reports about the listed company over the past three years.

Deathly silence.

The Department of Justice's involvement carries criminal risks.

Once the charges are proven, not only will they face hefty fines, but those responsible may even face imprisonment.

The CSRC's investigation directly threatens Forbes' foundation and credibility as a financial media outlet.

Of course, everyone present knew that Forbes' credibility had almost completely collapsed.

But if the China Securities Regulatory Commission gets involved, Forbes' credibility will truly collapse completely.

"There's another piece of news: shareholders are launching a class-action lawsuit, and seven law firms have publicly solicited affected investors. The initial estimate of the damages sought exceeds one hundred million US dollars." After everyone had digested the previous information, Steve Forbes said with a wry smile again.

The general counsel rubbed his forehead, his voice barely audible: "We've received far too many lawsuits this week, and now with these shareholders added to the mix, if the class action lawsuit is filed, the amount of damages could snowball and reach a number we can't afford."

The air in the conference room had gone from heavy to almost frozen despair.

Judicial investigation, CSRC inquiry, and class-action lawsuit – these three swords, each capable of crippling a large enterprise, now hang together over the Forbes Group.

This is no longer just a business crisis, but a survival crisis, a catastrophic disaster that could completely destroy this century-old media brand.

"Bang!" Malcolm's hot-tempered Uncle Johnson could no longer hold back.

He slammed his fist on the heavy mahogany conference table, making teacups jump around: "Enough, Malcolm! Look at the mess you've made! One report, just because of your bullshit report, has dragged the entire family into hell! What do you have to say now?!"

Malcolm Forbes was speechless.

His face was deathly pale, and fine beads of cold sweat appeared on his forehead. His hands gripped the edge of the table tightly, his knuckles turning white from the force, as if he would collapse to the ground if he let go.

The intervention of the Department of Justice shattered his last shred of hope.

This cannot be resolved through commercial negotiations; it is a legal and criminal abyss.

He had already experienced firsthand the power of Citibank.

In comparison, all the connections Forbes had built up before were utterly worthless and completely useless!
Looking at his father's swaying figure, Steve felt a complex mix of emotions: helplessness, sorrow, but mostly a sense of responsibility to step up and clean up the mess.

He took a deep breath, forcing himself to calm down, and spoke on behalf of his father: "Gentlemen, there's no point in blaming now. We must act immediately and develop a comprehensive crisis response plan, otherwise the name Forbes may truly become history."

Being one of the top three financial magazines in the United States has always been a source of pride and a symbol of their pride.

Furthermore, the social response they received when their rich list project was planned and gradually released several years ago gave them a glimpse of the opportunity for Forbes to become the number one financial magazine in the United States and even the world.

If successful, then no matter how powerful a company is in the world, it will have to be polite, or even respectful, when facing Forbes.

Because Forbes' list and reports can directly affect their stock price, reputation, and even financing costs.

This was their ambitious and attainable blueprint for the future.

But now, all of this has become a mirage, even a curse that drags them into the abyss.

The power they tried to leverage with their pens has now been completely devoured by even stronger capital and power.

The glory of the past is fading and crumbling at a visible rate, and the talisman has become a death warrant.

Johnson said impatiently, "Action? How can we take action? We've been discussing this for a week, meeting every day, and what's the result? What useful decisions have you come up with? We can only watch helplessly as Forbes heads deeper and deeper into the abyss!"

These words caused the high-ranking officials present to lower their heads.

It's a disgrace that so many high-ranking officials couldn't come up with a single decision to retaliate. It's utterly disgraceful.

But what can they do?
Over the past week, they have sent out distress signals to many major powers, including even Citibank's competitors.

But the result?

No company would choose to offend Citibank just to be included in Forbes.

They tried contacting Morgan Stanley, Goldman Sachs, and even some established European financial groups, hinting that they could sell a portion of their equity or offer extremely favorable cooperation terms.

However, the responses were either formulaic "we need time to study" or euphemistic but firm "it is not the right time now." Some even went so far as to say, "Given the complex legal and public opinion environment your company is currently facing, it is inconvenient for us to intervene."

Even those forces that usually criticize Citibank's media influence have chosen to remain silent.

While the Forbes prize is tempting, going head-to-head with Citibank for it carries potential legal risks and political uncertainties.
Savvy capitalists have calculated this perfectly.

“We…we really have no more cards to play.” The CFO’s voice was filled with exhaustion and resignation. “Our cash flow can only last for three to four weeks at most, and if you include the compensation and legal fees, it may be even shorter.”

The bank has explicitly rejected new loan applications and is pursuing outstanding debts; advertising revenue has dried up; magazines are piling up and causing losses; lawsuits and claims are pouring in…

We were like a wrecked boat leaking from all sides, unable to find a single plank to plug the holes.

These words only fueled the despair of the high-ranking officials present.

As members of the Forbes Group's senior management, they were once incredibly ambitious and high-spirited.

Walking outside, you can even sit on equal footing with those top conglomerates and chat and laugh freely.

Their Forbes magazine was once considered the "uncrowned king" that could influence market sentiment and define business leaders.

Even billionaires have to show them respect, because no one wants to be "disappeared" or "misinterpreted" in Forbes' lists or reports.

But now?

They were like a group of people stranded on a deserted island, watching helplessly as the lifeboats passed by, yet no one was willing to stop.

The "friends" who used to call each other brothers are now shut out of the door by cold telephone lines and high-sounding reasons.

Those corporate giants they once commented on or even criticized are now watching coldly, or even kicking someone when they're down.

The immense sense of loss and the loneliness and fear of being abandoned by the whole world devoured everyone's heart.

Steve Forbes clenched his fists so tightly that his nails almost dug into his palms, causing a sharp pain, but this pain was nothing compared to the feeling in his heart.

From birth, he has been proud to be a member of the Forbes family, and barring any unforeseen circumstances, he will become the heir to this media empire.

But now, he understands his family's predicament better than anyone else, and feels a deep-seated sense of powerlessness and humiliation more than anyone else.

He once thought that the name Forbes represented wisdom, influence, and even a certain privilege, a passport to the elite circles of the United States and even the world.

But now it seems that, under the crushing force of real financial giants and political power, everything that this name represents is as fragile as a castle on the beach, collapsing with a single wave.

"So, we only have one path left."

Steve's voice rang out again in the deathly silent conference room, this time with a resolute determination that cut off all escape routes, and with a slight, almost imperceptible tremor.

All eyes were on him, waiting for him to speak.

In the past, he would have been proud of it.

But now, he feels as if countless ants are crawling all over his body, making him extremely uncomfortable.

"Perhaps we should try to make peace with Mr. Lin Haoran, the richest Chinese from the Far East. We can't go on like this, otherwise, the glory of Forbes will be completely extinguished."

"Only if that person doesn't hold us accountable will this Forbes disaster stop."

"Sue for peace? Impossible. How could we possibly beg for mercy from a Chinese person?" As soon as these words were spoken, many high-ranking officials present immediately objected.

They had considered this idea, but when they thought about how the other party was just a Chinese person, and not even an American Chinese person, begging for mercy and admitting defeat to such a competitor would mean that Forbes would be nailed to the pillar of historical shame and forever ridiculed by the Western media and business community.
"A Chinese person? Are you still living in the past?" Steve could no longer hold back and suddenly raised his voice, which echoed in the conference room, filled with anger and despair on the verge of collapse.

"Look at what we've become! Look who's driven us to this point! Is it 'a Chinese person'? It's Citibank! It's Warren Buffett!"
It's those Wall Street vultures who snatch the opportunity and those rivals who kick you when you're down!

That 'Chinese man' only needs to sit on Victoria Peak in Hong Kong, without even showing his face, to mobilize such terrifying power to crush us!
Tell me, is this something that only 'a Chinese person' could do?

He was panting heavily as he looked around at the disgruntled but speechless high-ranking officials and continued in a stern voice: "Put away your ridiculous arrogance and racial prejudice! This is not the nineteenth century!"
The energy, skill, and overall control that Lin Haoran has demonstrated have far exceeded our comprehension!
He is not just a rich man, he is a chess player who is at a higher level and whom we cannot afford to offend!

Our foolish provocation might seem to him like an ant trying to trip an elephant, and he doesn't even need to lift his foot; other forces will naturally crush us for him!

The conference room was completely silent, except for the lingering echo of Steve's excitement.

His words were like a hammer blow, shattering the last vestiges of the pitiful sense of superiority based on skin color in some people's hearts.

Steve's voice lowered, becoming hoarse with an almost painful tone: "I know this is hard to accept, it's humiliating."

But, folks, look out the window, look at our current situation. We're not discussing whether to defend our dignity; we're discussing whether the Forbes brand, the name to which our fathers and grandfathers poured their lives, will ever see the sun rise again.

He took a deep breath and forced himself to analyze in a calmer, more rational tone: "Mr. Lin Haoran's displayed power is beyond our comprehension."

This is not just about wealth, but also about an unfathomable network of connections and a profound understanding of the rules of the game, which may even involve higher-level strategic maneuvering.

Citibank's attitude has said it all. Our previous actions have been interpreted as a foolish provocation that crossed certain lines that shouldn't have been crossed.

He paused, his gaze sweeping over the faces that were filled with anger, confusion, or pain: "If we continue to fight, we will face more than just commercial losses."

The Department of Justice's investigation, the SEC's inquiry, and the avalanche of lawsuits from shareholders and advertisers are enough to cripple us within months.

By then, we will have lost even the right to negotiate, and will be forced to passively accept bankruptcy liquidation, watching helplessly as Forbes is divided up, sold off cheaply, and ultimately disappears into the annals of history.

"But if we set aside our pride now and show the utmost sincerity in seeking peace, perhaps we can still achieve a relatively dignified outcome."

By preserving Forbes' core brand and main business, it can gain a breathing space and even have the potential to return to its peak in the future.

I know this sounds like a pipe dream, but it's the only possible path we have right now.

A deeper silence fell over the meeting room.

Steve's words were like a blunt knife, slowly cutting away the last remaining illusions.

No one objected vehemently anymore, because everyone knew that he was speaking the harsh truth.

Given the absolute disparity in strength and the all-round encirclement, any so-called "counterattack" or "perseverance" would only hasten annihilation.

At that moment, a female director in the conference room stood up. Her name was Elizabeth Forbes, and she was Malcolm Forbes' sister.

As a family business, apart from a small number of professional managers, Forbes' top management is almost entirely controlled by the Forbes family.

She looked at her brother with a complicated expression, her voice carrying a weary sense of relief: "Steve's analysis is correct. We have no other options. Malcolm, this matter started because of you, and it is up to you to try to end it."

I propose that you personally contact Lin Haoran or the Oriental Media Group to probe our terms for peace, and try to end this completely meaningless business war at the lowest possible cost! (End of Chapter)