The 127th is a strong pill, which is also a poison

After the Spring and Autumn Festival, Tencent's share price hovered at HK$4 for a long time.

At HK$4, Tencent's market capitalization is HK$6.72 billion, and at HK$10, Tencent's market capitalization is HK$16.8 billion.

In other words, Ma Huateng's persistence evaporated 10 billion Hong Kong dollars.

That's HK$10 billion!

Tencent's major shareholder, MIH, no matter how rich he is, will not be able to ignore the evaporation of tens of billions of Hong Kong dollars. Recalling the previous stock price that broke six, seven, eight, and nine, and compared with the bleakness in front of them, MIH's shareholders couldn't help but want to beat Ma Huateng.

In the operation of the company, unless it is absolute control in the real sense, the so-called voting rights and controlling rights are just false names. is also the emperor, the founding ancestor Zhu Yuanzhang and the deceased Chongzhen Zhu Youzhen, which are absolutely completely different concepts. If the future is bright, shareholders are happy to share in the dividends, and there is nothing but little interference in the company's strategic direction; If the outlook is gloomy, not only will shareholders be dissatisfied, but management will also lose confidence in their loyalty. No matter how high your voting rights and equity ratio are, the shareholders and the management reach an agreement, and you will be emptied in an instant; Even if the absolute control is to a family business or a personal business, the management can vote with their feet and choose to break up.

A controlling stake is just a bunch of numbers.

It's very useful, it's useful a lot of the time, but it's not a panacea.

No one will work hard and dedicate selflessly to you because of your high equity ratio.

If Pony Ma wants to convince shareholders to support him, and if he wants to persuade Tencent's management to follow the path of his ruling, he must prove his ability to stakeholders. Otherwise, today's Zeng Liqing, tomorrow's Ma Huateng, is very likely to be expelled from Tencent by the management and shareholders. In fact, Tencent's founding team has now begun to question Ma's ability to feel that he lacks a down-to-earth spirit.

If QQ Tang has a good operating performance, there is no need to demand that it become popular, and the sales revenue can be one-half or one-third of the dividends of Chunteng Games, and Ma Huateng can declare victory, proving to shareholders and management that Tencent can operate online games on its own. However, "QQ Tang" was played badly, and the highest number of people online at the same time hovered below 10,000 for a long time.

In January 2005, the monthly sales of "Dance Forest Meng Master" operated by Chunteng Games were 51.64 million yuan, and the highest number of simultaneous online users was as high as 970,000. In just half a year of fermentation, "Dancing Forest Meng Master" took advantage of QQ traffic monetization to brush the highest number of simultaneous online users to 970,000, and it is very likely to become the first work in China to exceed one million simultaneous online works. Due to the characteristics of casual music and dance games, the krypton gold level of "Dance Forest Meng Master" players is far inferior to that of "Spring and Autumn of the Ten Kingdoms", and in terms of the size and quality of the player group, "Dance Forest Meng Master" has surpassed "Spring and Autumn of Ten Kingdoms". According to a survey by Zhiyu Technology, the cooperation promotion activities with "Dancing Forest Cute Master" have promoted at least 150,000 MP3 players.

If there is no "Dance Forest Meng Master", the "QQ Hall" project will be defeated if it fails.

Even without the good news of Chunteng Games, Tencent can slowly move forward with an annual revenue of 1.14 billion yuan and a profit of 446 million yuan in 2004. "QQ Tang" has failed and "QQ Fantasy Country", "QQ Fantasy Country" can continue to try to operate as an agent if it fails, and Tencent can always grow up from failure after failure.

It's a pity that Tencent already has Chunteng Games and already has "Dancing Forest Meng Master".

Chunteng Games and "Dancing Forest Meng Master" are a powerful pill, exaggerating the number of people online at the same time and constantly refreshing monthly sales, driving the rapid growth of Tencent's stock price; Chunteng Games and "Dancing Forest Masters" are poison again, depriving Tencent of the power to slowly develop online games with excessive expectations. Everyone understands that independent operation is the best strategy, but since Chunteng Games is boosted by seedlings, who is willing to wait for Ma Huateng to slowly develop Tencent's online games step by step?

The market economy does not worship self-reliance.

All this, after the failure of "QQ Tang", the pressure encountered by Ma Huateng was unprecedentedly strong.

In order to relieve the pressure, Ma Huateng forced the R&D team to desperately speed up the progress, and began the internal testing of "QQ Fantasy Country" at the end of January 2005. Looking at this trend, even if it does not reach the height of "Spring and Autumn of the Ten Kingdoms", it can become a qualified work for Ma Huateng to prove his ability to shareholders and management.

During Ma Huateng's gambling book into "QQ Fantasy Country", the third game of Spring and Autumn Network, "World of Warcraft", began public beta operation. On February 28, 2005, Spring and Autumn Network launched the limited public beta of "World of Warcraft", and after solving several bugs, it was officially open beta on March 21.

"World of Warcraft" is a work of Blizzard, and the Spring and Autumn Network cannot carry out functional innovation, nor can it carry out technical transformation. What Spring and Autumn Network can do is only to ensure the basic operating environment such as servers, and do its best to eliminate the troubles of plug-ins and private servers. However, this is enough, from March 21 to March 27, "World of Warcraft" quickly refreshed to 700,000 online at the same time, creating a record that neither "Spring and Autumn of the Ten Kingdoms" nor "The Road to Survival" could do.

Looking back at the results of the first quarter of 2005, the revenue of "Spring and Autumn of the Ten Kingdoms" was 632.82 million yuan, and the revenue of "The Road to Survival" was 145.82 million yuan. The price of "World of Warcraft" point cards is 0.5 yuan per hour, and the highest 700,000 online at the same time is officially operational, if it can be converted to 200,000 average online, the monthly sales can be as high as 72 million yuan. This means that Spring and Autumn Network has more than $100 million in revenue every quarter, and "Road to Survival" and "World of Warcraft" are both new growth points with great potential.

The 700,000 players of World of Warcraft were online at the same time, clearing the last hurdle for the Spring and Autumn Network to go public in the United States.

In order to cooperate with the listing of the NASDAQ, Spring and Autumn Network readjusted its equity distribution a long time ago.

Wei Dongsheng first diluted his equity in the form of additional issuance, splitting his 62.7% equity to Dongsheng Holdings, Spring and Autumn Group, Spring and Autumn Search, Zhiyu Group, Zhiyu Technology, Zhuwei Technology and other companies cross-holding. In this way, Spring and Autumn Network Technology Co., Ltd. has a total of 526315780 shares, Wei Dongsheng accounts for 6.27%, and Huo Yongshan accounts for 1.33%. Jing Minqiang originally had 10 million shares, which should have been diluted to 1.9% after the additional issuance, but Jing Minqiang had a big effect on the Spring and Autumn Network, and Wei Dongsheng transferred part of his equity to him in the form of compensation.

After the dilution of the additional issuance, Huo Yongshan's equity ratio was reduced from 13.3% to 1.33%, becoming a minority shareholder with little influence.

Spring and Autumn Network went public in the United States, and the equity will be further diluted. According to rough estimates, Spring and Autumn Network will issue an additional 10% equity, considering that employee options need to be maintained at 5%, and the total issuance of financing is about 61919503 shares. In this way, Wei Dongsheng's stake was further diluted to 5.61%, and Huo Yongshan's stake was also reduced to 1.19%.

Huo Yongshan's equity and voting rights have been reduced together, while Wei Dongsheng's equity has only been greatly reduced.

After the listing of Spring and Autumn Network, it will adopt the AB share model used by technology companies, that is, the shares will be divided into two series, A and B, with Series A ordinary shares having 1 vote and Series B ordinary shares having N voting rights. Based on the dual factors of his own interests and preventing Jing Minqiang from going it alone, Wei Dongsheng set N at 10, that is, one share of Series B ordinary stock has 10 voting rights.

Huo Yongshan's 1.19% stake belongs to A shares, while Wei Dongsheng's 6.27% stake belongs to B shares.

Considering that it was necessary to take advantage of Jing Minqiang and the Gong family behind him, Wei Dongsheng increased Jing Minqiang's equity ratio to 6% by way of transfer, and transferred 0.6% of the equity of Jing Minqiang's wife Gong Qiuqiu, so that the husband and wife jointly owned 6.6% of the equity. At the same time, Wei Dongsheng transferred 1% of the equity of Wei's father and Wei mother, and the total equity of Wei Dongsheng's family was 8.27%, which was higher than the 6.6% equity of Jing Minqiang and his wife. The equity of Wei's father and Wei mother, Jing Minqiang, and Gong Qiuqiu also belong to B shares.

If listed as planned, Spring and Autumn Network's Class B shares will total 14.87%.

Wei Dongsheng and Wei's father and Wei's mother have 8.27% of the shares, and the voting rights are only 35%; Jing Minqiang and Gong Qiuqiu have a 6.6% stake and about 28% of the voting rights. On the surface, Wei Dongsheng and Jing Minqiang do not have absolute control, and only when the two reach an agreement can they control the discourse of the Spring and Autumn Network.

Such a pattern is exactly what Wei Dongsheng wants to reveal to the outside world.

As mentioned earlier, under the state capitalist system, the list of China's rich people is often not an honor but a reminder. Wei Dongsheng reduced his controlling stake in the bright side, and turned to indirectly control the Spring and Autumn Network through companies such as Spring and Autumn Group, Spring and Autumn Search, Zhiyu Technology, and Zhuwei Technology, on the one hand, Jing Minqiang and Gong Qiuqiu served as a buffer to resist the Huaguo Rich List, and on the other hand, the interest groups that took advantage of the Spring and Autumn Search, Zhiyu Technology, and Zhuwei Technology to slowly unite in turn curb the greed of the Gong family.

In April, Spring and Autumn Group was busy with the listing of Spring and Autumn Network in the United States.

Wei Dongsheng no longer wanted to waste time socializing, so he had to sit down and negotiate with the underwriter Goldman Sachs with Gong Qiuqiu, prepare for global roadshows, and attend investor meetings, and was too busy to care about other things. Considering the financing income after the successful listing, Wei Dongsheng could only hold back his depression and work hard with the executives of Spring and Autumn Network.

During Wei Dongsheng's busy period, Tencent fell deeper and deeper into the quagmire.

Tencent's results for the first quarter of 2005 came out, and the revenue of mobile and telecom value-added services fell to 134.3 million, down 20.4% from the fourth quarter of 2004; Excluding Chunteng Games' dividend income, Tencent's total quarterly revenue was 280 million yuan, down 10.8% from the fourth quarter of 2004. Other Internet companies are stronger than the first quarter, but when they come to Tencent, they are not winning every year.

When such results are announced, Tencent's share price will definitely be bearish by more shareholders.

In stark contrast to Tencent's miserable and miserable Tencent, "Dancing Forest Master" exceeded one million simultaneous online records in March 2005 as scheduled, and the total revenue in the first quarter was as high as 161.26 million yuan. The revenue of "Dancing Forest Cute Master" in the first quarter exceeded the revenue of the whole year of 2004, and this growth rate made everyone amazed. Even, the QQ game hall that Tencent once abandoned, was also achieved by Chunteng Games with a quarterly revenue of 20 million yuan.

The eyes of Tencent's founding team, shareholders, and management are red with envy.

This emotion, in turn, forced Ma Huateng to give up his persistence.