Chapter 367: Insincere Angel Investment

After dinner, He Zhongqiu rushed to the military base to perform his duties as a martial arts coach.

The next day, on the evening of the 12th, the preseason game between the Knicks and the Lakers began.

Lin Xue also used the slogan of congratulating Zhongqiu and the derby battle with Yao Min in the promotion, which attracted a lot of attention.

The event was broadcast live on CCTV-5, and the commentators were Zhang Heli, Yu Jia, and Xu Jicheng.

The three of them found He Zhongqiu before the game and chatted with him for a while.

Yu Jia said: "Although CCTV paid a high price to purchase the broadcasting rights of six games this time, the advertising alone sold more than 200 million yuan, which is a huge profit."

"Is it so easy to make money?" He Zhongqiu was a little surprised.

Yu Jia nodded and said, "Starting this year, CCTV-2 is also planning to broadcast NBA games live on the Internet, hosted by Teacher Xu and Su Qun."

Xu Jicheng nodded and continued, "Not only CCTV, but also three Internet companies such as Lang have set up their own online sports live broadcast studios since last year and purchased the online live broadcast rights of the six pre-season games in China last year. This year is the same.

I heard that they plan to purchase the network broadcasting rights for the NBA regular season starting this season, and they should be in touch with the NBA soon.”

"I've heard about it too. Now that the Internet is becoming more and more developed, there are more and more netizens in China," said Zhang Heli.

"Come to me, I'll introduce them and maybe the price can be cheaper." He Zhongqiu said casually.

As the four of them were chatting, Lin Xue led a group of people over and introduced them, "Zhongqiu, this is Mr. Wang from Moulang, Mr. Ma from Penguin, Mr. Ding from Wangyi..."

Talk about Cao Cao, Cao Cao is here.

He Zhongqiu muttered in his heart and began to greet them.

Each CEO brought two or three subordinates with him, who were their assistants and the general manager of the company’s sports department.

"Wolverine, this time we..."

The purpose of the three CEOs' visit was to contact the NBA through him to discuss the purchase of online broadcasting rights.

He did not refuse. Now is the era of the Internet, and making friends with these major domestic Internet companies will also be beneficial to his development.

He called Loswadaly and asked him to come over.

Loshua Daley came over soon and was very happy to learn that three online broadcasters wanted to buy the regular season.

He Zhongqiu said casually: "Luo Sihua, this is their first time to do NBA live broadcast in China. This is also a test. I don’t know what the effect will be. If they lose money, in the future…"

"Don't worry, Wolverine, I promise to give you the best price, and the NBA will work with them to develop this market." Loswadaley said hurriedly.

"That's good, but don't kill them with one knife." He Zhongqiu said.

"Absolutely not. What we want is long-term development and win-win for everyone," Daley said with a smile.

"Wolverine, thank you very much. I hope we have the opportunity to cooperate in the future." Mr. Wang from a certain company said politely with a smile.

"it is good."

"Mr. He, it's the same at Wangyi." Mr. Ding said expectantly.

"it is good."

"Hey, King He, we at Penguin really want to cooperate with you. This is a spokesperson contract. I hope you are satisfied."

Compared with Molang and Wangyi, Mr. Ma directly offered an endorsement contract.

This made both Mr. Wang and Mr. Ding embarrassed. Old Ma, you bastard, why not just get something for nothing? Why did you come up with a contract? Who are you trying to embarrass?

It’s not that they don’t want to cooperate with He Zhongqiu, but He Zhongqiu’s value is too high. He no longer has any domestic endorsement advertisements before, and now almost all of his endorsements are from big international brands and companies.

The annual endorsement fee is at least 1500 to 2000 million US dollars. They are now only developing in China, and the endorsement fee is too expensive and they simply cannot afford it.

For example, Penguin Electronics was listed in Hong Kong in June 04 with 6 billion shares and a market value of only HK$16.8 billion. It once fell below the issue price and its share price dropped to HK$72.

Last year's market value rose to HK$487 billion, an increase of nearly seven times in two years, but the annual revenue in 7 was only RMB 06 billion. If more than RMB 26 million a year is spent to hire He Zhongqiu as the spokesperson, it is not cost-effective at all.

The revenue capabilities of their two companies are not as good as Penguin, so they can't afford to hire them.

He Zhongqiu took the contract and handed it to Lin Xue without even looking at it. He smiled and said, "Boss Ma, this kind of contract is exclusive. I'll take yours and I promise I won't take any other company's contracts."

"King He is a wise man." Mr. Ma said happily.

Lin Xue quickly flipped through the contract and said, "Boss, the first form of cooperation is a three-year endorsement of 3.5 million RMB, across all platforms."

"..."

Mr. Wang and Mr. Ding’s eyes widened instantly. Is Mr. Ma crazy? He is spending a quarter of the annual revenue to hire a spokesperson. 3.5 million! Did Penguin have a profit of 3.5 million last year?
Lin Xue continued, "The second way of cooperation is that Penguin's market value has reached 500 billion Hong Kong dollars. The company is willing to take out 5000 million shares, about 3% of the shares, at a price of about 15 billion Hong Kong dollars, to hire you as a lifetime spokesperson."

"what?"

Mr. Wang and Mr. Ding’s eyes almost popped out.

3% of the shares, that's a huge investment, shares are more valuable than cash.

"Mr. Ma is very generous and courageous!" He Zhongqiu couldn't help but praise.

"For you, King He, this is just a small contract. It's an honor for us Penguin to give you face and sign it." Mr. Ma said politely.

He would rather use shares to bind He Zhongqiu, which would not only eliminate the possibility of He Zhongqiu cooperating with Langwangyi, but also make it possible to use He Zhongqiu's influence to develop overseas.

In his opinion, He Zhongqiu becoming a small shareholder of Penguin is a strong collaboration that is most beneficial to everyone.

"Mr. Ma, you have invested such a huge amount of money, which is not necessary in China at all. Do you hope to develop overseas?" He Zhongqiu asked.

"King He Tian's vision is indeed unique."

President Ma couldn't help but praise him, and said with some anticipation: "Indeed, our company wants to launch an overseas version of QQ, so we need a spokesperson with great influence. He Tianwang is the most suitable."

"Then I hope we can have a happy cooperation."

He Zhongqiu felt that Mr. Ma was indeed a man with a long-term vision, and said, "We will decide which method to choose after we study it."

"Okay." Mr. Ma nodded.

Mr. Wang and Mr. Ding looked at each other and shook their heads helplessly.

Neither of the two companies have overseas plans yet, but Penguin is indeed ahead.

He Zhongqiu remembered the Facebook that Bai Bingbing mentioned, and said to Mr. Ma:
"Last year, a campus social networking platform emerged in the United States. I heard that it was going to be promoted to the entire community in 07. It is now very popular in universities, and tens of millions of people have registered.

Mr. Ma, you can take a look and see if you can develop a Chinese version in China. There is no such platform in China right now, and QQ does not have those functions. "

"Facebook? Okay, thank you, Mr. He, for the reminder." Mr. Ma kept it in mind.

His QQ was set up by copying an instant messaging software from abroad. This reminder was very timely. He had no resistance to copying foreign software.

Not long after, the first preseason game between the Knicks and the Lakers started, and the Knicks won.

Yao Ming's three-point shooting is indeed a little lacking, but it's not impossible to shoot. However, he is not yet at the level where he can shoot casually over He Zhongqiu's head, so he can only shoot with difficulty, but his accuracy is not enough.

But everyone can see that once Yao Ming's three-point shot is mastered, it will be very threatening.

"Damn it, Yao Ming, it's ok for you to shoot a three-pointer, but you also fade away."

Although He Zhongqiu prevented Yao Ming from making 15 of 5 shots today and blocked 3 of Yao Ming's shots, Yao Ming still made 5 shots over his head, including one three-pointer.

For many balls, it was not because he defended Yao Ming, but because Yao Ming failed to make the shot. His technique was still a little lacking.

Under the illegal hand defense rules, as long as Yao Ming is above the free throw line, it is really difficult for him to defend Yao Ming.

"Just wait, what's a fadeaway? If we really meet in the finals, I'll be waiting for you to make a fadeaway three-pointer."

Dayao left after saying this.

"Turn around and fade away for a three-pointer?" He Zhongqiu had a headache. After the game, outside the locker room, Phil Jackson was talking to General Manager Kupchak.

He said: "Mitch, I hope you can try to strengthen our No. 1 and No. 4 positions. The most important is the No. 1 position. We need someone who can defend Nash. He needs to have defense and speed, and he also needs to be able to shoot three-pointers."

Kupchak said with a headache: "I have been looking for it since last season, but there are no excellent point guards in the free market, and we don't have the chips to trade."

Phil Jackson said: "I also know that the team has no bargaining chips. The trade of Yao Min cost a lot. The two first-round picks have overdrawn the team's future.

But because of this, we must build the roster at all costs now, otherwise there is no point in trading Yao Min. If we don’t strengthen the No. 1 position, even if we can make it to the finals, we can’t beat the Knicks. "

Kupchak nodded and said, "Okay, I will explore all possibilities, even if it means giving up a future draft pick."

Phil Jackson said: "To be honest, I only think this trade is worth it if Yao can show his three-point shooting.

If he doesn’t have a three-point shot, I don’t think he and Kobe can beat the Knicks with the Wolverines.”

Kupchak was also happy. He didn't expect Yao Min could practice three-point shooting. He hadn't considered this possibility before the trade.

As long as Yao Min practices three-point shooting well, he can completely pin the Wolverines far away from the penalty area and prevent them from returning to the penalty area in time.

However, the defense of the Knicks' main power forward David Lee is average. How could the Knicks possibly stop Kobe's breakthrough?

David Lee is indeed the weakest position in the Knicks' current lineup. The problem is on the defensive end. There are no problems with either offense or rebounding.

Although the offense is only in the penalty area, He Zhongqiu's mid-range shooting ability can fully free up some offensive space for him in the penalty area, and there is no problem in the cooperation between the two on the offensive end.

However, the presence of Mourning can make up for David Lee's defensive deficiencies to a certain extent.

Mourning can play for 20 minutes temporarily. He got 9 points, 5 rebounds and 3 blocks today. His performance on the defensive end is even better than Mutombo's in the past, especially in blocking shots.

In addition, rookie Millsap also demonstrated his defensive and blocking abilities. In 18 minutes, he contributed 7 points, 6 rebounds, 1 steal and 1 block.

Together with Mourning, they can support the inside line of the bench lineup very well, but their combination is a little lacking in height.

After the game, Lin Xue found He Zhongqiu and said, "Boss, I asked a lawyer to look at the Penguin contract and there is no problem.

However, the first cooperation method seems to be more cost-effective. The current market value of 3% of the shares is only HK$15 billion, but what you get is your lifetime endorsement contract, and the price is only 4.28 times that of the first method. "

At this point, he changed the subject and said, "But the shares are equivalent to a 12-year contract, which is worth considering.

Moreover, the company's market value has increased sevenfold in the two years since its listing, and its growth potential is very good. Holding shares in hand will increase their value more than cash."

"Okay, Lao Lin, I'll reply to you tomorrow." He Zhongqiu nodded.

After he returned to Qiuxue Garden, he discussed it with Yang Xue and decided to still take the shares.

After all, he is not short of cash now. Even if he took 3.5 million yuan in cash, he still has to look for investment projects. It is a waste of time. It would be better for him to take shares directly.

Moreover, he had always envied Jordan's lifetime shoe contract, which was a gold mine, so he preferred to take shares.

But he doesn't want to endorse Penguin's games, only instant messaging software and personal social software to be developed in the future.

The next day, He Zhongqiu informed Lin Xue, who immediately contacted Mr. Ma, and the two sides negotiated and finally finalized the contract.

He Zhongqiu acquired 3500 million shares of Penguin, about 2.08% of the shares, worth 10 billion yuan, about 1.25 million US dollars.

Penguin obtained the lifetime right to use his personal image worldwide, including portrait rights and name rights, but it cannot be used in games.

There are no other restrictions on He Zhongqiu, such as He Zhongqiu does not have to compensate Penguin Company if negative news appears.

This is also the power of big stars. You begged me to sign, not me begging you to sign.

Only small stars will agree to some restrictive clauses on spokespersons when signing endorsement contracts.

On the contrary, there are some restrictive terms for Penguin, such as not being able to use He Zhongqiu's personal image for negative publicity.

A media conference was held in the evening, the contract was officially signed, and He Zhongqiu officially became a small shareholder of Penguin Company.

At the press conference, the happy Mr. Ma also made a passing reference to its two major listed competitors, Wangyi and Lang.

As soon as the news was announced, that evening, Wangyi and Moulang, which were listed on the US stock market, opened 8 and 9 percentage points lower respectively, and their market capitalizations plummeted by nearly %.

"Mr. Ma really has no bottom line." Mr. Ding said angrily after learning about the stock price plummet.

"Mr. Ma is going too far!" Mr. Wang was also very angry.

The next morning when the Hong Kong stock market opened, Penguin's shares jumped 8 percentage points, from 30 yuan to 32.4, and its market value soared by 40 billion.

This news not only encouraged Penguin, but also put huge pressure on Wangyi and Molang.

But at the same time, it also put a lot of pressure on Jingdong and Ali, because no one wanted to become the second Wangyi and Moulang, so the negotiations with Lin Xue were immediately intensified, and the conditions became better.

Ali Company adopted the cooperation method of Penguin, took out shares as bargaining chips, and offered He Zhongqiu a lifetime endorsement contract.

In 04, Ali received $10 billion in financing from Yahoo, and Yahoo obtained 40% of the operating interests and 35% of the voting rights.

Ali also used this huge amount of funds to open its own payment method, becoming the e-commerce platform with the best development prospects in China.

Ali has completed three rounds of financing, with a total financing of US$11.25 billion. Its current valuation is as high as US$25 billion, or about RMB 200 billion.

He Zhongqiu was given 5% of the shares, with a valuation of US$1.25 million, or about RMB 10 billion, which is similar to Penguin.

However, Jingdong’s development is not as good as Alibaba’s, and it has not even had a large round of financing. It is currently at the critical stage of its development and requires a large amount of cash and is in urgent need of financing.

The operating sales in 06 was only RMB 8000 million, so not only could they not give cash to He Zhongqiu, their market value was far less than Ali's, their shares were worthless, and it would not be enough to give the entire company to He Zhongqiu.

Even Jingdong, which has not yet received financing, is now in a stage of burning through money and can no longer sustain itself. It simply does not have the money to hire He Zhongqiu as its spokesperson, let alone a lifetime spokesperson. It cannot even afford a one-year endorsement contract.

After repeated consideration, Boss Liu made a prompt decision and made a firm decision to offer a financing + endorsement contract.

Specifically, He Zhongqiu invested US$1 million and obtained 30% of Jingdong's operating income and 20% of voting rights, and Jingdong obtained the lifelong right to use He Zhongqiu's personal image.

"Ha ha……"

When He Zhongqiu returned home in the evening, he laughed so hard that his stomach hurt when he saw Boss Liu's contract.

"Damn it, they have calculated everything. These businessmen are as cunning as monkeys." He cursed with a smile.

Yang Xue was also speechless and said: "Before Ali and Yahoo raised funds, they at least went through three rounds of small financing of US$1.25 million, and the valuation was also 10 yuan.

JD.com is currently valued at a maximum of RMB 1 million. They will give you % of the shares, but will take away your US$ million in cash and the lifelong right to use your personal image.

He really thought very hard about exchanging shares worth tens of millions of RMB for 1 million US dollars.

Not to mention the $1 million, the lifetime use rights of your personal image alone are worth the entire Beijing winter.

I just don’t understand, is Boss Liu looking for a lifelong spokesperson, or is he looking for a sucker?”

"Ha ha……"

He Zhongqiu laughed uncontrollably, but later said, "Sister Xue, you also said that Ali's valuation before the financing was 10 billion RMB, and Yahoo put in 10 billion US dollars, but only got 40% of the shares. Yahoo invested in Ali's future, which shows that Boss Liu is very optimistic about Jingdong's future."

Yang Xue did some calculations and said, "Even if we calculate based on the amount of money Yahoo has financed Ali, JD's contract is not reasonable."

"Sister Xue, please help me sort it out." He Zhongqiu himself was confused.

Yang Xue calculated: "Ali's valuation is 100 billion RMB. After paying 40% of the shares, it only received 10 billion US dollars, 80 billion RMB in financing, a : financing ratio, and Ali's development before financing was much stronger than Jingdong.

Now Jingdong is valued at RMB 2 million, and he wants financing of US$1 million or RMB 8 million, which is a financing ratio of :.

A round of financing is angel investment, which has the greatest risk. It is not done this way. In 99, Ali's A round of financing was only 500 million US dollars, but Mr. Liu asked for million US dollars. Does he think we don't understand financing at all and want to fool us? There is no sincerity!

If I really give him $100 million, I think he will regret it immediately, Sanjin, what do you think? "

He Zhongqiu nodded and said with a smile: "This Boss Liu is indeed not sincere enough."

(End of this chapter)