Entertainment mogul: Starting his business with the internet

Chapter 324 In full swing
The last day of February 2011 was a landmark day for Tenda Technology Group, which stands at the forefront of the internet industry.

On this day, the number of users of its core products, WeChat, finally exceeded 6 million worldwide, marking a huge success for the group's multinational strategy.

The following day, WeChat and WeChat updated their versions globally, launching two groundbreaking features: Official Accounts and Subscription Accounts.

The official WeChat account is primarily aimed at enterprises, organizations, and institutions, focusing on customer service and business functions.

Subscription accounts focus on media outlets, individuals, or content creators, emphasizing information dissemination and fan engagement.

On March 2nd, a sunny morning, at the Alibaba Group headquarters in Hangzhou, senior executives of the group gathered for an important meeting.

Ma Jieke sat at the head of the conference table, fiddling with his phone, curiously studying the two new WeChat features launched yesterday: official accounts and subscription accounts.

Have you all noticed the WeChat version update?

Group CEO Lu Zhaoxi was the first to respond: "Mr. Ma, as soon as WeChat was updated, I had my staff study it in depth."

Ma Jie sat up a little straighter, his interest piqued: "Tell me, what is the significance of Tengda developing these two products?"

"Tengda's strategy is extremely terrifying!" Lu Zhaoxi said solemnly, holding the heavy analysis report in his hand.

Upon hearing this, the senior executives present exchanged glances and focused their attention on listening attentively to Lu Zhaoxi's speech.

"The significance of Tenda's two products is absolutely nuclear-level! First, they complete the WeChat ecosystem loop, attracting content producers through subscription accounts and enriching the WeChat content ecosystem;
By connecting enterprise services through WeChat official accounts, social scenarios are extended to business scenarios, forming a closed loop of "social-content-service"!

Secondly, the emergence of WeChat official accounts has reduced the cost and traffic concerns for companies developing independent apps, helping traditional industries to quickly go online.

Subscription accounts provide a low-barrier-to-entry platform for self-media entrepreneurship, fostering a content economy and driving social commercialization and digital transformation.

The two viewpoints sparked a lively discussion among the attendees, and even Ma Jieke's expression changed from relaxed to serious and thoughtful.

Lu Zhaoxi frowned and continued, "Users can access information and services without leaving WeChat, which will increase the time spent on WeChat."

Meanwhile, Tenda, through its unparalleled big data technology, can accurately push content to users, significantly strengthening WeChat's position as a "super portal" and enhancing user stickiness and platform value.

In terms of business profit model, enterprises need to pay for authentication to use service accounts, while subscription accounts share traffic with advertising revenue. WeChat can realize the monetization of data and traffic.

Simultaneously, the accumulated user behavior data feeds back into the targeted advertising system, creating a virtuous cycle.

After listening to Lu Zhaoxi's analysis and report, Ma Jieke pondered for a moment, his face full of admiration: "The profoundness of the layout of Song poetry is beyond the reach of ordinary people."

CFO Tsai Chung-hsin also remarked: "I had long heard that Song Ci regarded WeChat as the number one core product of Tenda Group, but only today have I truly realized the enormous influence of WeChat."

This app now boasts hundreds of millions of users worldwide, practically dominating the mobile IM market; its dominance is undeniable!

"President Peng, what impact will these two products have on Alibaba?" Ma Jieke collected his thoughts and got back to the main topic.

"The specific impact is currently unknown, and a large amount of data is needed for further analysis and comparison, since Tenda does not operate e-commerce."

But one thing is certain: Tenda's control over traffic will reach a new level in the future.

Jack Ma's eyebrows furrowed into a deep frown as he inwardly groaned. Alibaba was already at a disadvantage in terms of internet traffic, and it would become increasingly dependent on others in the future.

He sighed helplessly and instructed, "Have the marketing department study this as soon as possible."

"Mr. Ma!" Lu Zhaoxi suddenly called out loudly. His urgent words immediately attracted the attention of Ma Jieke and everyone else. Then he said slowly and deliberately, "There is a big matter that is urgent."

"what's up?"

Lu Zhaoxi picked up another document from the conference table: "After the New Year, Tengda Group launched a QR code payment function on WeChat. Users can conduct transactions and transfer funds by scanning WeChat QR codes!"
Furthermore, in order to promote its WeChat Pay service, Tenda is actively connecting with major supermarkets and shopping malls nationwide, not only installing transaction scanning equipment free of charge but also providing subsidies to merchants using WeChat Pay.

"Tengda is promoting mobile payment!" Alarm bells rang in Ma Jieke's mind, his eyes sharpening instantly. He immediately pressed, "How many days has WeChat Pay's QR code been online?"

Lu Zhaoxi glanced discreetly at Peng Lei sitting opposite him and answered truthfully, "It went online on Valentine's Day! It's been more than two weeks!"

Ma Jieke's expression changed drastically; his already serious face became even more frosty as he glared angrily at Alipay President Peng Lei:

"Tengda launched WeChat Pay to compete with Alipay in the third-party payment market, and your department didn't even know about it?"

Although Peng Lei is a woman, her ability to become a senior executive at Alibaba Group and take charge of Alipay, Alibaba's core business, demonstrates that her skills, knowledge, and courage are in no way inferior to those of the men present.

Faced with the chairman's anger, he remained calm and unhurried: "President Ma, President Lu, our department was aware of Tengda's actions ten days ago and we also held a meeting to study and discuss them."

However, given the group's current resources, I'm afraid I cannot help them launch similar features as Tenda in the short term.

Lu Zhaoxi, the founder of Alipay, was extremely dissatisfied with Peng Lei's answer and flew into a rage: "What do you mean by 'existing conditions'? Isn't the group's support for Alipay enough? Is it a lack of technical personnel or a lack of funding?"

Ma Jieke was an enlightened and pragmatic leader. He waved his hand, signaling Lu Zhaoxi to calm down first: "Peng Lei, speak up if you have any difficulties. With a formidable enemy at hand, the entire group must unite as one."

"Mr. Ma, we can overcome the technical problems. The biggest obstacle for us right now is the operating license!" Peng Lei succinctly pointed out the biggest pain point facing Alipay.

"Last July, the People's Bank of China issued the first batch of nine third-party payment licenses for the pilot program of internet finance. Tenda successfully obtained one, which is why it now has the confidence to promote QR code payment on a large scale."

The fact that Alipay, the leading third-party payment platform in China, has not obtained a license should serve as a wake-up call.

In July of this year, the People's Bank of China will issue the second batch of payment licenses. Compared with last year, under the framework and constraints of the group, I think Alipay has not undergone any substantial changes.

In fact, our market share has decreased slightly due to the rise of Tenda EasyPay.

As the president of Alipay, I am pessimistic about Alipay obtaining a second batch of payment licenses if changes cannot be made in the short term.

Peng Lei paused slightly, her tone becoming extremely heavy, revealing a clear understanding of Alipay's current situation:
"Some opportunities, once missed, are gone forever. The relevant departments cannot continue to allow unlicensed operations to continue indefinitely!"
The second batch of licenses issued by the People's Bank of China in July this year is crucial for Alipay; without them, we face the prospect of ceasing operations.

Ma Jieke's eyes were deep; he knew Peng Lei was not exaggerating. The excessively high proportion of foreign capital among Alibaba's shareholders was the key reason why Alipay couldn't obtain a license. Separating Alipay from Alibaba was now imperative.

Ma Jieke took a deep breath, his expression grave, and instructed Peng Lei, "I understand the core of the problem. This isn't your fault. I'll leave the technical aspects entirely to you, and I'll handle the license issue personally." Peng Lei nodded gently, "I'll trouble you with the payment license, Chairman."

Ma Jie raised his hand and rubbed his temples. The matter of splitting up Alipay was extremely tricky, but time was of the essence, and it could not be delayed any longer.

It seems the only solution is to go to Japan again to discuss the matter with Masayoshi Son and find a solution.

At the same time, thousands of miles away at the headquarters of Tengda Group in Beiping, Song Ci was also holding a meeting with the company's senior executives.

"WeChat Official Accounts and Subscription Accounts are the core carriers of the Group's 'Connecting Everything' strategy. The former connects business services, while the latter activates the content ecosystem, together upgrading WeChat from a social tool into an operating system covering all aspects of life..."

On the stage, the richest man, full of energy and speaking in a loud voice, talked at length to the executives below the stage, discussing the future application scenarios of WeChat.

"Next, the group will implement a strategy of bringing offline services online, such as actively connecting with the government and launching a government affairs account to provide convenient services to the public."

This allows hospitals to implement registration and payment through their official WeChat accounts, reducing patient waiting times and promoting the development of a "contactless society."

More than an hour later, the meeting ended, and Song Ci returned to his office.

"The meeting is over, boss!" Someone inside was already waiting and greeted Song Ci with a smile as he returned.

"I'm getting parched from talking." Song Ci first took a few gulps of tea to relieve the dryness in her mouth before turning her gaze to the guest on the sofa. "I'm sorry to have kept you waiting, Haozi. How did your trip to America go?"

The visitor was Lin Hao, who had recently been asked by Song Ci to make a trip to the other side of the ocean.

"I stayed with the Americans for almost a month, and I did my job well; the matter was finally resolved."

Upon hearing this, Song Ci quickly sat down opposite his good friend, very excited: "You must be exhausted! Tell me about your trip to America."

Lin Hao nodded and slowly said, "After the New Year, I went to Wall Street and, through your introduction, met Paulson. With his help, I gradually sold your Facebook shares and bought Tesla stock as you requested."

After saying that, Lin Hao looked puzzled: "I only found out when I got to the United States that Facebook is preparing to go public next year. Isn't it a pity that you are selling your shares now?"

"With Tenda and Facebook engaging in fierce competition in the global social media field, my Facebook shares are a hot potato. Rather than keeping them and causing trouble, I'd better get rid of them as soon as possible."

As WeChat grew stronger, Zuckerberg used various means to cause trouble for me and WeChat. Tenda spent more than 30 million US dollars on public relations in North America alone.

Fortunately, the money wasn't wasted; the trouble was temporarily resolved, buying WeChat valuable time to develop.

At this point, Song Ci sneered: "The stronger WeChat becomes, the weaker Facebook becomes. It remains to be seen whether Facebook can maintain its current valuation after its IPO next year."

The market is volatile, so I decided to liquidate all my stocks and exchange them for US dollars, which is more practical.

Besides, those shares were originally acquired for just a domain name and a few hundred thousand US dollars; they've cashed out billions of US dollars—they've already made a killing.

"Well, you're thinking three steps ahead for every one you take. No wonder you're the richest man." Lin Hao gave a thumbs up, looking admiring.

"How's the other thing going?"

"I went to several places and helped you collect more than 50,000 Bitcoins. Later, seeing that there was no Bitcoin available on the market for the time being, I returned to China first, but entrusted a broker to continue acquiring them."

Those who collect Bitcoin are asking for different prices; some are only asking for one dollar, while others are asking for three or four dollars. Is there any potential for this thing to appreciate in value?

Lin Hao scratched his head, unable to understand why the richest man would value virtual currency so much, since it was essentially encrypted digital code.

"It's just what the times demand." Song Ci didn't explain much about the future, but to thank his good brother for his hard work, he changed the subject, "Fatty, Bitcoin will still have some value in a few years. Do you want me to give you some?"

Mr. Song's generosity made Lin Hao a little embarrassed: "Well, seeing that you're collecting these things, I also stockpiled a thousand of them myself."

Song Ci laughed and scolded, then advised, "You rascal! Hold on to it for a few years first, don't rush to sell it."

Lin Hao chuckled: "I'm not stupid. Since Bitcoin is something that the richest man values, it must have some value. I can still copy what he did."

Knock, knock, knock—a knock came at the door. "Come in."

Weibo's female CEO, Liu Yan, opened the office door with a document in her hand. Upon seeing a person sitting opposite the chairman, she quickly apologized: "Chairman Song, I'm sorry, I didn't know you had a guest. I'm sorry to bother you. I'll come back to report to you later."

Song Ci waved her hand: "It's alright, come in and talk."

Liu Yan entered the office, stood next to the chairman, and handed him the document: "Chairman Song, this is the Weibo Night program plan. Please take a look and review it."

Song Ci took the document and pointed to the empty seat next to Lin Hao: "Sit down and let's talk. This is my good brother, Lin Hao, the president of Shan Hai Capital. You should get to know him."

Liu Yan was taken aback, secretly alarmed. Shan Hai Capital was a major shareholder of the group. He greeted them politely, "Hello, President Lin, I am Liu Yan, the person in charge of the group's Weibo platform."

Lin Hao, with his easygoing personality, replied with a smile, "I've long heard that Chairman Song has a beautiful female CEO under him who manages Weibo very well. Oh, it's you! I've heard so much about you."

"You are ridiculous."

After exchanging a few pleasantries with Lin Hao, Liu Yan sat down to the side and said, "Chairman Song, please take a look at the seating arrangement of the guests and the winners of the various awards. If there is anything you are not satisfied with, we can make some changes."

Song Ci nodded slightly, quickly flipping through the materials and reviewing them one by one.

The pages turned quickly, and Song Ci was read ten lines at a glance. Soon, he reached the last few pages and couldn't help but frown slightly: "One of the most prestigious awards, Weibo King, was given to Cai Yongkang. I don't even know this person. Is he that popular?"

Seeing the chairman's displeasure, Liu Yan felt a little flustered and hurriedly explained, "Cai Yongkang is the host of the popular variety show 'Kangxi Lai Le'."

Moreover, she is a well-known writer. Although she may not be at the top of the list of richest writers, she is still in the top ten and enjoys considerable popularity.

"How much popularity can a variety show host have? Replace him with a top male celebrity. And Queen was replaced too. How come you guys just pick people randomly?"

Seeing the chairman's extreme dissatisfaction, Liu Yan quickly stood up and said, "We'll change it right away. I'll go back and think it over again, and I'll send you the new list for your review later."

(End of this chapter)