"Mr. Cai, our cooperation is ultimately a win-win situation. We're willing to contribute shares to deepen this partnership, not because we're begging you!"
"But your premium is way too much! The market capitalization is 55 billion, and you want us to buy shares at a valuation of 65 billion? Isn't that going too far?"
Old Cai was furious. He had thought the company had great potential, and its PC game was almost catching up with the popularity of League of Legends. It just lacked a strong foundation and needed time.
Even if this were a purely financial investment, it would be a worthwhile investment.
But we can't treat them like suckers, can we?
"There's no way around it. If the valuation doesn't increase, no shareholder will be willing to sell. Everyone's not stupid. Believe it or not, if the shareholders are willing, even a 70 billion dollar company like Tencent would be willing."
That's obvious, they're a game company, what about them?
Moreover, this doesn't involve selling the entire game directly to them; it only involves giving them a 9% share, and the payment has to be in cash!
And that's where things got stuck.
Liu Wei appeared calm and composed, but in reality, she was extremely nervous.
If this directly leads to the failure of the cooperation, then they will be in even bigger trouble!
However, she's not the only one in a hurry now; the other party is also anxious, as getting the shares as soon as possible is equally important.
Because the game's development is almost complete, they are actively helping with the coordination. In other words, they've already started working on it even before the contract has been signed.
Also, Lao Cai and his team know Tencent's character. Their clone game might be coming out soon, and this first move is a matter of life and death. They can't wait!
"We definitely can't accept this price. So, let's get to 60 billion. We'll sign the contract as soon as possible and then start promoting it in advance."
"Hehe, Mr. Cai, I can't make that decision either. You know I'm just an employee, and this sudden drop of 5 billion..."
"...Could you arrange a meeting with Mr. Ye for me? I want to talk to him personally!"
Old Cai knew that Liu Wei couldn't make the decision, so he directly planned to talk to someone who could.
He knew Ye Feng, but had never met him. After all, they were two different industries and had no overlap whatsoever.
After considering it for a moment, Liu Wei felt that Ye Feng should be the one to negotiate, as this would be faster.
After they parted ways, Liu Wei called Ye Feng. Ye Feng thought about it and agreed, since he was going to contribute five percent of the shares, and those people had entrusted him with this matter.
He had originally planned to slack off and have Liu Wei handle it for him, but it turns out he still had to come himself.
"Mr. Ye, it's an honor to meet you!"
Upon meeting, Old Cai, with his graying temples, shook hands with him with a smile.
"I've long admired you; you're my idol."
Anyone can say nice things, it doesn't cost any money anyway.
At the rosewood tea table, the two fumbled with their purple clay teapots and teacups, chatting about trivial matters.
They chatted for a full half hour. Ye Feng wasn't in a hurry. He waited for the other party to make a move and chatted with him idly.
There was no other way; Old Cai knew this young man was no ordinary person, so he had to speak first.
Put down the teacup.
"Mr. Ye, let's be frank about quantitative analysis. A valuation of 65 billion is too unfavorable for us. We need to give an explanation to the shareholders for every penny we invest. This premium cannot support the corresponding equity return."
Ye Feng was prepared and leaned forward slightly.
"Mr. Cai, if you think it's not worth it, we are also unwilling to make a move now, because the mobile game is about to be launched, and the company's valuation will quickly rise to a new level. If it weren't for the promising capital synergy with Zhifubao, we would not have been willing at all."
Ye Feng paused here, picked up his teacup, took a sip, and continued.
"You know better than I do about Tencent's copying abilities. Their similar game might already be in testing. That's why we agreed, otherwise..."
Ye Feng's words were very clear: if it weren't for this, and also to encourage Zhifubao to put in the effort to promote and help, they would never have released shares.
"But a valuation of 65 billion is still too high. For a 9% stake, our capital costs are too high. We need to either lower the valuation or achieve an extremely high equity stake."
"Mr. Cai, what do you think is a suitable amount?"
Ye Feng countered with a question.
"Didn't you also hold back a significant portion of the valuation you gave to Zhifubao back then? The value of equity is never static; it grows with the company. You might think the premium is high now, but once the market capitalization increases, you'll only feel you didn't get enough equity!"
Old Cai laughed; this young man dared to bring up what happened back then.
After a moment of hesitation, he slowly opened his mouth.
"Of the 62 billion, we need 12% of Fugen. Only this ratio can match our capital investment and risk-taking."
Ye Feng frowned.
"President Cai, don't even think about 12%. The current 9% was the result of a long discussion. After all, nobody wants their interests to be harmed, and everyone is very optimistic about mobile games."
Ye Feng made it clear that everyone felt the valuation would rise, and soon, so why offer shares now? Wouldn't it be better to wait?
"If it's only nine percent, then the valuation we can offer is only sixty billion."
The other party just said it's a choice between two options.
They've gotten used to being arrogant and think they're part of a big company.
However, Ye Feng didn't want to get into a fight with them. "I'm not begging you. I can just give my shares to Tencent and sell them for more!"
We're still playing the "either/or" game with him. He doesn't care about the company anymore; he's only here today to sell shares, nothing more!
"Mr. Cai, it seems we won't be able to finish our discussion today."
As he slowly uttered those words, Lao Cai was taken aback. He truly hadn't expected the other party to be so tough!
Seeing through the other party's thoughts, Ye Feng smiled and explained.
"Mr. Cai, I'm just a director in the company right now. I'm not responsible for the company's specific management. As for the shares... it doesn't really matter who I give them to. So, I'll give them to whoever offers the highest price, that's all."
"Didn't you found the company?"
"Yes, but I think managing a company is too tiring, and I don't want to do that. I don't lack money now, so it doesn't matter to me."
Old Cai didn't know what to say. Goodness, he's so young and he's already seen through the ways of the world?
This left him with a bellyful of words but unsure where to put them.
He also wanted to talk to the other party about the benefits that cooperating with Zhifubao would bring to the company, and how powerful Zhifubao was.
To my surprise, the other party simply said, "I'll give it to whoever offers the most!"
Furthermore, this young man's attitude towards the company is truly indifferent; he doesn't seem to care at all whether the company might be taken over by someone else.
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