Entertainment mogul: Starting his business with the internet

Chapter 530 WeChat Global
Inside the reception room, the air was filled with the rich aroma of freshly ground coffee and the tranquil atmosphere unique to old books.

As the host, Bill Gates broke the silence first: "Mr. Song, I know an old Chinese saying, 'No one visits a temple without a reason.' Please speak frankly if you have something to say."

Upon hearing this, Song Ci paused briefly, making a final sorting of her complex thoughts in her mind.

“Mr. Gates,” he began slowly, his voice steady, “after the Prism scandal, no software giant with global ambitions can avoid a core issue: data security.”

Bill Gates' smile faded slightly, he nodded, and unconsciously tapped his fingertips lightly on the sofa armrest.

Microsoft, as the undisputed king of the world's PC systems, was the first to be hit in this turmoil.

The fact that multiple countries, including some traditional allies, have announced strict scrutiny of the Windows system has deeply troubled him and piqued his interest in what Song Ci is about to say.

Song Ci continued, speaking slowly but clearly, "Faced with this common challenge, my purpose in coming here is to hope that Microsoft and Tenda Technology can reach a strategic cooperation agreement."

"Oh?" Bill Gates leaned back in his chair, gesturing as if he wanted to hear more. "Mr. Song, how would you like to cooperate?"

The study was quiet for a moment. Song Ci paused, met Gates's probing gaze, and then, in an extremely solemn tone, made a proposal that could change the global internet landscape.

"I would like to ask Microsoft to become the compliant custodian of WeChat's U.S. data."

"Oh?" Bill Gates uttered the syllable again, but with a completely different meaning, carrying a hint of undisguised surprise.

He straightened up slightly, and a glint of light flashed in his blue eyes behind his glasses.

He truly hadn't expected that this young tech giant would have such a resolute determination and courage to make such a difficult decision.

WeChat's massive data includes users' social graphs, behavioral habits, etc.

For any technology company, this is an invaluable treasure, the core fuel that drives algorithm evolution and provides insights into the future.

Song Ci took in the other person's subtle reactions and felt a wave of helplessness wash over her.

Why would he want to hand over such invaluable data resources to others? But in the future global internet, the localization of data storage is an irreversible trend.

Rather than passively waiting for the US to forcibly demand things under the pretext of security, it is better to take the initiative and fight for the most favorable conditions for ourselves.

He could even imagine that Microsoft, as the custodian, would inevitably "borrow" the power of this data in some form within the framework of the agreement to help its big data technology and Azure cloud development.

But for Tenda, this is the price that must be paid to preserve WeChat's right to exist in the Western world; it is the wisdom of "choosing the lesser of two evils".

By entrusting data to Microsoft, one essentially transfers some of the regulatory responsibility and geopolitical risk to this US-based tech giant.

Using American giants to counterbalance pressure from the US government is a risky move, but also a brilliant one.

Bill Gates seemed to understand something and immediately grasped the profound meaning behind Song Ci's move as "taking precautions."

Once Microsoft takes over data hosting, any politicians who use data security as an excuse to attack WeChat in the future will have to get past Microsoft first.

Microsoft's massive lobbying power, top-notch legal team, and its status as a symbol of American technology will all become WeChat's invisible moat.

He quickly weighed the options in his mind: Microsoft's core is Windows, Office, and the Azure cloud that is gaining momentum, which does not directly conflict with Tenda's current business matrix centered on social networking, instant messaging, and payment.

Conversely, if WeChat builds its massive data center on Azure, it would undoubtedly be a shot in the arm for Microsoft's cloud computing business.

As for the potential competition between the two sides in the cloud computing field in the future... that's a matter for the future.

Currently, Amazon AWS still holds the top spot, while Tenda Cloud's main market is in Asia, and it can still maintain a relatively independent relationship with Microsoft's North American home base.

There is far more room for cooperation than for immediate conflict.

Seeing that Bill Gates was interested but had not yet expressed his opinion, Song Ci increased his leverage, leaning forward and speaking in a sincere and persuasive tone:

"Mr. Gates, data security is a common issue for the whole world. On this point, Microsoft and Tenda Technology are in the same boat."

Today, you protect my data in the United States; tomorrow, I will safeguard your data in China.

Together, we can demonstrate to users worldwide that tech giants have the capability to transcend geographical boundaries and establish a more credible and secure benchmark for data governance.

Bill Gates was deeply moved by these words.

Microsoft is a giant ship that has come all the way from the early days of the Internet, witnessing and experiencing too many geopolitical frictions and clashes of business cultures.

Deep down, he always believed that business should return to its essence.

He is extremely unwilling to see purely commercial activities tainted by excessive political factors, as long as companies adhere to laws and regulations.

He fully understood the conception of Song Dynasty poetry:

This is a typical exchange of interests, creating a strategic balance under the premise of "mutual vulnerability" in the field of data security.

We are intertwined, safeguarding each other's data security.

Song Ci picked up his cup and saucer at the opportune moment, taking a light sip of his slightly cool coffee. The fruity aroma and rich flavor accompanying the bitterness made his mind even clearer and sharper.

Setting down his cup, and seeing that the other person was still deep in thought, he softly asked, "Mr. Gates, what do you think?"

Bill Gates finally looked up, a genuine expression of admiration on his face:
"By relinquishing direct control over some data, we can secure a longer and more stable space for WeChat's survival and development in the North American market..."

"What remarkable foresight! Mr. Song, this is indeed a brilliant move that seizes the opportunity, befitting your reputation as a leading figure among the younger generation of global business leaders."

"Mr. Gates is too kind," Song Ci said with a modest smile, but a tension was running through her mind, knowing there was more to come.

Sure enough, Bill Gates stood up and slowly walked to the huge floor-to-ceiling window.

Looking up at the waterbirds skimming across the lake and the outline of the Microsoft campus further away, it was as if he were gazing at the technological empire he had built with his own hands.

The silence lasted for almost a minute before he turned around and looked intently at Song Ci:

"Mr. Song, would you be interested in deepening our partnership? For example, a share swap?"
Although Tenda Technology is not listed, the market valuation is roughly on the same level as Microsoft's current market value of about 3000 billion US dollars.

How about we do a 1% equity swap? This would allow us to truly become partners in each other's businesses.

"Mr. Gates is also so optimistic about the future of Tenda Technology?" Song Ci's heart stirred, but he remained calm on the surface.

“Of course!” Bill Gates answered decisively, his eyes filled with admiration for the young man before him. “I am not only optimistic about the unlimited potential of China’s economy, but also about the amazing explosive power that Tenda Technology has shown in the mobile internet era.”

I have a much higher opinion of Mr. Song as a person. Investing, in essence, is investing in people.

Song Ci's mind raced, instantly weighing the pros and cons.

Equity swaps represent the highest level of inter-company alignment, far more robust than a simple cooperation agreement.

This aligns perfectly with his core desire for a long-term, stable alliance. "Great proposal, Mr. Gates."

Song Ci smiled and said, "I agree in principle. However, I have one additional condition that I hope you will consider."

Bill Gates sat down again, more relaxed, and said in a light tone, "Go on."

The Song Dynasty poem eloquently reveals the well-thought-out plan: "To ensure the independent operation of WeChat's overseas business and to deal with possible geopolitical scrutiny."

I plan to completely spin off WeChat's overseas business and form an independent company called 'WeChat Global'.

The company will be managed by an independent board of directors, with Tenda Technology as the parent company, retaining the intellectual property rights to the core algorithms and ultimate controlling stake.

I would like to extend a sincere invitation to you to serve as a director of WeChat Global.

He has given this matter considerable thought. Bill Gates possesses not only wealth globally, but also a near-saintly public image and moral credibility.

His appointment as a director is tantamount to providing a top-tier global endorsement of WeChat Global's independence, data compliance, and business ethics, the value of which is immeasurable.

However, upon hearing this, Bill Gates hesitated for a moment, frowned slightly, and leaned back imperceptibly.

“Song, to be honest,” he said, his tone becoming serious, “I’ve been consciously withdrawing from Microsoft’s day-to-day operations since the beginning of this year.”

Next year, I plan to formally step down as chairman and devote most of my energy to philanthropy.

WeChat is great, but the areas it operates in are indeed prone to getting entangled in complex geopolitical factors. Personally, I hope to stay away from these troubles.

He cherished his reputation and did not want his good name to be affected by possible geopolitical disputes in his later years.

Song Ci was prepared for this. He took a deep breath and began his persuasion, his words earnest and powerful, almost like a form of commercial "PUA":
“Mr. Gates, I fully understand your concerns and lofty aspirations. But please consider this from a different perspective: what we are doing is building new bridges connecting people and cultures in the digital world.”

But there are always forces, driven by short-sighted fear or hegemonic thinking, that want to destroy these bridges and return the world to a state of division.

WeChat connects two billion users worldwide. It is about how the next generation will communicate, and about world understanding and peace.

It needs not just a manager, but an architect who has a vision and can safeguard the connection itself.

In this world, there are very few people with such prestige, ability and credibility who can take on this role.

And you are the most perfect person I can think of. This isn't about getting into trouble, but about protecting a more open future.

His words were like a gentle spring breeze and a soothing rain, yet they carried immense weight.

Bill Gates remained silent, his fingers interlaced in front of him, engaged in a fierce internal struggle.

He appreciates the vision and foresight of Song Dynasty poetry, recognizes the potential of Tenda Technology, and is well aware of the value of data interconnection.

More importantly, he was the one who proposed the share swap, and it is difficult for him to refuse this "small" additional condition that the other party is now putting forward, both morally and logically.

Ultimately, he weighed all the pros and cons, especially considering the astonishing returns that 1% stake in Tenda might bring and the deeper significance of the technology alliance.

Finally, he slowly nodded, a helpless yet excited smile on his face.

“Alright, Song,” he chuckled. “You always find a reason to convince people. I accept this board position.”

"It's done!" A huge weight was lifted from Song Ci's heart, and his joy was almost overflowing, but he forcibly suppressed it.

By successfully aligning itself with Microsoft and Bill Gates, WeChat has gained a valuable strategic window of at least three to five years for its overseas expansion.

Time is on his side; the longer it goes on, the more leverage Tengda will accumulate.

With the general direction agreed upon, the atmosphere in the study instantly became relaxed and pleasant.

The tension from the previous negotiations vanished, replaced by a tacit understanding and anticipation of jointly creating a business.

Bill Gates, regaining his composure as a business tycoon, added details: "I will transfer this 1% stake in Microsoft from a family trust located overseas."

Mr. Song, I suggest you also use a similar method, receiving the funds through a trust fund, rather than placing them directly in your personal name. This is more secure in terms of taxation and privacy.

“I understand, thank you for reminding me.” Song Ci nodded, thinking to himself that Bill Gates was indeed well-versed in wealth management.

With its intricate network of overseas trust holdings, Microsoft can both mitigate risks and maintain its influence, which explains why it has always been able to firmly control the direction of Microsoft from behind the scenes.

"As for the 1% stake in Tengda Technology," Song Ci continued, already having a plan in mind, "I will arrange the transaction as soon as possible, directly transferring it to your family office, Waterfall Investment, how about that?"

He made up his mind that this 1% equity stake would be allocated from the group's option pool. The shares he personally held were all Class B shares with 20 times the voting rights, which were the foundation of his control and would never be relinquished.

Before Tenda went public, the equity in the option pool was essentially still under his control. This move could satisfy the transaction without affecting his absolute control.

“Very reasonable.” Bill Gates nodded in satisfaction. “Cascades Investment will handle the follow-up matters.”

The tense atmosphere of strategic maneuvering that had just filled the study had dissipated, replaced by a relaxed and harmonious feeling after reaching a consensus.

In an exquisite bone china cup, coffee from Yirgacheffe, Ethiopia, exudes a rich fruity aroma, intertwined with the sweet fragrance of small macarons and scones on the side.

Bill Gates leaned back comfortably in the soft sofa, his gaze casually sweeping across the deepening twilight outside the window.

As if suddenly recalling an interesting anecdote, a meaningful glint flashed in his eyes, and his tone was casual yet tinged with a certain probing:

"Song, speaking of which, there is a very interesting little island in the Caribbean Sea, with excellent privacy."

Some wealthy friends in Europe and America occasionally go there to relax. Perhaps I can take you there sometime; it's a completely different world from Seattle.

(Second update a little late, please vote with monthly tickets, Thanks(ω))
(End of this chapter)