novelnext Chapter 164 Killing Multiple Birds with One Stone
Chapter 164 Killing Multiple Birds with One Stone
Chapter 164 Killing Multiple Birds with One Stone (7k)
There was a silence in the Apple meeting room for about five seconds.
During those five seconds, Liu Chiping was observing Geng Zhi's reaction.
He had expected the young man to be excited, surprised, or at least have his eyelids twitch.
But that's not actually the case.
Geng Zhi's face remained completely expressionless, with even a faint smile playing on his lips.
What surprised Liu Chiping even more was that even the company secretary, Lü Siyu, didn't show any obvious change in her expression.
The composure of these two left An Wenjing and Chen Yanzhu on the Penguin side completely bewildered.
An and Chen exchanged a furtive glance, both harboring the same question: We're Tencent, the industry giant with 6 million QQ users! They've come to us to discuss acquisition, so why are these two completely unresponsive?
Liu Chiping remained calm. He vaguely guessed that it was because he hadn't made an offer yet, so he leaned forward slightly and slowly said, "Regarding the price, we are willing to offer 3500 million US dollars."
He made a point of emphasizing that the unit was [US dollars], then slowly leaned back in his chair, interlaced his fingers on his abdomen, and waited for the straightforward response.
In his experience, a college student in his early twenties would be excited at the mention of "$3500 million," right? He'd either be stunned for a moment, or his eyes would light up, or at least his breathing would quicken.
But Geng Zhi didn't. He simply smiled calmly, the curve of his lips just right.
At this moment, a crack finally appeared on Liu Chiping's composed face. Her fingertips paused slightly, and for the first time, she wondered: Is this kid really calm, or is he just pretending?
Before the negotiations, Liu Chiping secretly rejoiced when she noticed that Tang Yan, the co-founder of Momo, was not present.
He thought that being straightforward and young, with little negotiation experience, would make him easier to manipulate.
But now it seems he underestimated this young man; his composure is even better than that of many people who have been in the business world for over a decade.
An Wenjing, who was sitting next to her, couldn't sit still any longer and reminded him with a smile: "President Geng, your valuation after the Series A round was only 3000 million US dollars. We gave you an extra 500 million US dollars premium. When the transaction is completed, it will be converted into RMB, which is equivalent to 2.5 million RMB."
Geng Zhi slowly picked up his teacup, took a small sip, and put it down. Only then did he look up, his gaze sweeping over Liu Chiping and An Wenjing: "President Liu, Manager An, thank you for Tencent's recognition. But $3500 million isn't even a fraction of Momo's Series B valuation!"
Liu Chiping's face remained expressionless, but her pupils contracted slightly, and her knuckles tightened involuntarily—not even a fraction of the amount?
Wouldn't Momo's Series B valuation then reach $1.4 million or $1.5 million?
It's not entirely impossible.
Momo's user growth rate, market share, and brand influence do indeed provide a basis for challenging this valuation. However, the probability of this happening is extremely low, requiring exceptionally strong capital operations and strategic narrative.
But Liu Chiping quickly dismissed the idea, guessing that Geng Zhi was most likely cheating.
Unlike Liu Chiping, who remained calm on the surface, An Wenjing and Chen Yanzhu beside him were clearly frozen, their eyes filled with disbelief.
An Wenjing, being a seasoned veteran, only paused for a couple of seconds before quickly adjusting her expression and smiling as she confirmed for her boss, "President Geng, has your Series B financing been finalized?"
"Still under discussion." The straightforward answer was crisp and decisive.
Hearing this, An Wenjing breathed a slight sigh of relief and began to advise him from her own experience: "President Geng, even if the venture capitalists do give you 1500 million US dollars in the end, so what? If you asked them to spend only one-tenth, only 1.5 million US dollars, to buy Momo, would they buy it?"
Before Geng Zhi could answer, she answered her own question: "Definitely not! They simply wouldn't, because Momo isn't worth that much in their hands."
Seeing Geng Zhi remain silent, she assumed her words had prompted him to think deeply, so she continued to explain earnestly: "Mr. Geng, you are still young and may not understand the tricks of the trade in the capital world. Capital is profit-driven. They give high valuations in order to drive up the price so that they can exit with a valuation of tens or hundreds of times in the future and make a fortune."
She paused, looked directly into Geng Zhi's eyes, and continued lecturing him: "Estimated value and actual cash that can be sold are two completely different things."
"Valuation is just a pie in the sky, something future-oriented, inflated, and it might even go to zero; but the $3500 million we're offering is real cash that you can get right now and put in your own pocket. That's the most tangible thing."
Lu Siyu, standing next to him, really wanted to ask, "Tch, then why is Tencent willing to buy it for $3500 million?"
But given her position as company secretary, she held back.
An Wenjing was ready to strike while the iron was hot and continued, "The only company that can truly be willing to spend such a high premium to buy Momo is Tencent, and it can only be Tencent."
"Moreover, Mr. Geng, you may not realize that the resource and brand advantages that Tencent can bring to Momo are far greater than money. The social relationship chain of QQ's 6 million users and the GG resources of Tencent Ads are something that no other investor can provide."
Liu Chiping then slowly spoke, throwing out the final bait: "After we acquire Momo, we will allow Momo to operate independently. The entire team will still be under your management, Mr. Geng, and you can directly join Tencent Group."
An Wenjing seized the opportunity to immediately chime in, "Our CEO Liu also said that with CEO Geng's talent, he might soon be promoted to vice president, the vice president of the entire Tencent Group!"
After she finished speaking, she looked at Liu Chiping for confirmation.
Liu Chiping nodded slightly in agreement.
Having explained things to this extent, An Wenjing felt the time was right, and confidently asked Geng Zhi, "Mr. Geng, what do you think?"
The meeting room fell silent as all three of them stared at Geng Zhi.
Geng Zhi listened quietly to her finish speaking, picked up his phone which was face down on the table, pretended to glance at the time, and then said, "President Liu, President An, I'm just an ordinary person, and I don't actually object to selling Momo."
These words made Liu Chiping sit up slightly.
Geng Zhi continued unhurriedly, "But everyone is busy, and I don't like to waste my energy on back-and-forth negotiations. If you offer a low price and I offer a high price, and in the end we each compromise and settle for a middle value, that's a complete waste of time and makes no sense."
Geng Zhi paused for a moment before speaking: "Those who know me well know that I am as straightforward as my name suggests."
Upon hearing this, Lü Siyu paused slightly as she took notes.
Fortunately, she managed her facial expressions well and didn't show anything on her face.
Geng Zhi continued, "Whether negotiating with investors or with various partner companies, I always adhere to a fixed price model. What I say goes. If it works out, great; if not, we part ways."
Liu Chiping was taken aback.
He has seen all kinds of entrepreneurs: excited, nervous, pretending to be calm, and haggling.
But this is the first time I've seen someone as straightforward as Geng Zhi, who directly overturned the negotiating table and demanded a fixed price.
This is completely different from the negotiation model he had envisioned!
He had already planned to start at $3500 million and gradually increase the price, first to $4000 million, then $5000 million.
10 million, at most 60 million, and then use Tencent's resources to put pressure on them and secure the deal with Momo.
But being straightforward was a good thing; it completely blocked all his tricks, not even giving him a chance to raise the price.
Liu Chiping was a little annoyed, but there was nothing she could do. She could only suppress her emotions and ask, "President Geng, what is your expected price for Momo?"
"Let's go with our Series B valuation, $2.5 million." Geng Zhi, mimicking Liu Chiping, deliberately emphasized the unit of currency.
boom--!
The conference room fell silent again, lasting for a full seven or eight seconds.
An Wenjing suddenly realized that all the earnest words she had just said were in vain.
She glanced at her boss speechlessly, her eyes saying, "Is this guy crazy?"
Liu Chiping sat there expressionless; the condescending aura she had just displayed was completely gone.
$2.5 million is several times higher than his psychological limit!
Is this straightforwardness genuine arrogance, or is he simply unwilling to sell and deliberately making things up to ask for such a high price?
After a moment's hesitation, Liu Chiping secretly gave An Wenjing a wink.
At the same time, Geng Zhi picked up his phone again and quietly pressed the [hang up] button, ending his call with Tang Yan, which had lasted for more than ten minutes.
An Wenjing understood Liu Chiping's meaning, and smiled as she spoke again, her tone softening: "President Geng, this is the first time our two families have met, and President Liu personally came, which is enough to prove that Penguin has come with the utmost sincerity. But—President Geng, the price you asked for is too outrageous."
Just as Geng Zhi was about to answer, Tang Yan, who had received Geng Zhi's signal, pushed open the door and walked in.
Lu Siyu quickly stood up with a smile and introduced them to each other: "This is Tang Yan, co-founder and CEO of Momo, and former deputy editor-in-chief of NetEase."
"Mr. Tang, these three are Ms. Liu Chiping, President of Tencent, Ms. Chen Yanzhu, Assistant to the President, and Ms. An Wenjing, Investment Manager."
Tang Yan strode over and shook hands with the three men in turn, smiling politely: "President Liu, it's an honor to meet you. Manager An, Assistant Chen, it's a pleasure to meet you."
After a brief exchange of pleasantries, Geng Zhi briefly explained the purpose of Liu Chiping and the other two's visit to Tang Yan, and finally asked with a smile, "President Tang, the executives from Tencent just said that Momo's price of 2.5 million US dollars is too high. Do you think it is?"
"Not overvalued, of course not overvalued!" Tang Yan said earnestly. "We're about to head north to discuss our Series B funding with several investors! Momo's future is limitless, limitless."
"President Liu, President An, you see, President Tang also said that 2.5 million US dollars is not high," Geng Zhi said with a smile.
You're a family, both sellers, so of course he'd say it's not high!
Liu Chiping, An Wenjing, and Chen Yanzhu were completely baffled by Geng Zhi's childish and unsolvable actions.
Seeing that she couldn't get anything out of Geng Zhi's side, Liu Chiping turned her attention to Tang Yan: "President Tang, have you finalized your Series B investors?"
Tang Yan, who had been remotely listening for over ten minutes, answered without hesitation: "President Liu, the Series B investors have been basically finalized. The biggest point of contention now is how to allocate the funding amount. Several investors are vying to contribute more capital and take more shares, which puts us in a bit of an awkward position."
Liu Chiping, An Wenjing, and Chen Yanzhu exchanged glances, and most of their previous doubts had dissipated.
Tang Yan came in later and didn't participate in the previous conversation. His answers were so natural that it seems that Momo's valuation of 2.5 million is probably true.
But he still didn't understand why Momo was worth $2.5 million. This valuation didn't fit any valuation model at all!
Liu Chiping tentatively asked, "President Tang, who are the investors in the Series B round?"
Tang Yan hesitated for a moment before speaking: "Sequoia will definitely be voted for, and the rest—"
He said half of his sentence, then looked at Geng Zhi with a questioning look in his eyes.
Seeing this, Geng Zhi quickly smiled and showed his sincerity: "Sequoia Capital and another international VC will invest, and there will also be a strategic investor. If Tencent is unwilling to spend $2.5 million to buy it, we would very much welcome Tencent to make a strategic investment in Momo's Series B round first, and continue to consider it while investing."
"Yes," Tang Yan quickly nodded in agreement. "If a giant like Tencent invests in us, we will have even more confidence in the future."
Liu Chiping had been waiting for them to say that. He pretended to ponder for a few seconds before speaking, "That's a good idea. Tencent can participate in the first round."
Upon hearing this, Geng Zhi's face immediately broke into a bright smile: "Ah! That would be perfect!"
"Mr. Geng, we'd really like to know, what's the rationale behind Momo's valuation of $2.5 million?" Liu Chiping asked curiously. "This valuation is quite contrary to Huang Shiping's views. Why did these investment firms agree to it?"
After the question was posed, An Wenjing and Chen Yanzhu stared at Geng Zhi, waiting for his answer.
Finally, the straightforward Liu Chiping was drawn into her own rhythm, breathed a sigh of relief, and explained with a smile: "Actually, Manager Ren Cai'an has already given us all the answers."
An Wenjing: "???"
Liu Chiping was also taken aback for a moment, her brows furrowing slightly: "President Geng, I would like to hear the details."
"It's very simple. We have established trust with Sequoia Capital, and it's perfectly reasonable for Sequoia to continue leading the Series B round. Mr. Shen Nanpeng's investment logic is exactly what Manager An Rencai said—to inflate Momo's valuation so that it can be easily exited at a high price in the future."
An Wenjing: "————"
Her expression froze on her face.
I taught him some nonsense, and he used it to prove his own valuation theory!
Her lips parted slightly, then closed again.
Geng Zhi continued to explain: "The second investor's investment logic is the same as what Manager An said – they value Momo's future development and believe that Momo may bring them extremely high returns in the future."
An Wenjing: "————"
"As for the third company, since Tencent has decided to invest in us, I will no longer hide it."
Geng Zhi continued, "The third company is Benli Baba Pi Ma Jack Ma General Committee Zhaoyunfeng Fund Investment Pi, which can be considered a strategic investment. Actually, we talked to Mr. Ma during the Series A round, but the timing wasn't right, and he missed the opportunity."
Liu Chiping and the others had already guessed that Yunfeng Capital would invest in Momo, so they weren't particularly surprised.
"I can understand the investment logic of Alibaba. But I still don't understand why the second investor valued Momo at 2.5 million US dollars?" Liu Chiping continued to press.
Tang Yan took the initiative to continue the conversation: "The first reason is naturally the enormous potential of the LBS field and Momo's current growth trend and leading position. I'm sure President Liu had already figured this out before he came, right?"
Liu Chiping nodded.
"The second reason is that we are secretly planning to create a pirated version of Momo, and are preparing to launch it in multiple target countries," Tang Yan continued to explain.
Liu Chiping had guessed this reason when he saw the information on the whiteboard, but he was still puzzled. So he stared at Tang Yan and pressed him, "President Tang, the losses in Haizhai are not as simple as you think. We at Tencent have also done extensive research. Localization, cultural differences, laws and regulations—each one is a potential pitfall. Are you really prepared?"
Faced with the questions, Tang Yan was speechless for a moment.
He was aware of these pitfalls, but he didn't know how to respond at this moment.
If you say you weren't prepared or didn't do any research, that definitely won't work. But if you say you've prepared and have a solution, you'll immediately be exposed if Liu Chiping asks you any questions.
Just as Tang Yan's brain was racing to figure out how to smooth things over, Geng Zhi spoke up: "President Liu, Haizhai is indeed not as simple as we think, but it's not as difficult as you think either."
"Oh?" Liu Chiping became interested. "President Geng, why don't you analyze it? Perhaps we could also discuss it with Lanlan and your Pi Gao Core?"
He was straightforward and didn't mince words.
He stood up, walked to the whiteboard, picked up a pen, flipped the whiteboard over, and drew a rough sketch of a world map on it.
For the next ten minutes or so, he switched to professional mode.
Geng Zhi meticulously analyzed the losses in Southeast Asia, Japan, South Korea, and Europe and America, presenting his arguments logically and clearly.
He can readily draw upon every aspect of the market, including cultural characteristics, population structure, smartphone penetration rate, competitive landscape, and localization challenges.
He simply glossed over the specific promotional strategies and which markets were suitable for Momo, citing "trade secrets."
As someone with experience and understanding of overseas markets, I can tell that Geng Zhi is indeed a professional, far more professional than the five people in front of me.
Liu Chiping and the other two became increasingly serious, their expressions showing growing surprise.
Even Pi Tangyan, standing next to him, looked at Geng Zhi with great shock, secretly admiring him: It turns out that his boss really knows the Haizhai market!
It wasn't just theoretical knowledge; it was genuine understanding gained through hard work. Those numbers, those judgments, that insight into the defensive positions—it's impossible to achieve without months of in-depth research.
The atmosphere in the conference room subtly changed.
Regardless of whether being straightforward is just theoretical or not—at least from the perspective of numerical density and logical chain, it doesn't seem like something that's been fabricated.
Liu Chiping has acknowledged Geng Zhipi's lack of professionalism and believes that the Momo team is secretly developing a pirated version of Momo.
This is exactly the effect that Geng Zhi wanted to achieve.
He put down his pen, returned to his seat, picked up his teacup, and took a sip.
Liu Chiping was silent for a moment, then spoke, his tone much more serious than before: "President Geng, what are the detailed financing plans for Momo's Series B round?"
Geng Zhi put down his teacup and answered crisply, "We plan to raise $2500 million in exchange for a 10% stake. If things go as expected, Sequoia will lead the investment with at least $1000 million, and the remaining stake will be contested between Tencent and the other firms."
Liu Chiping frowned: "Only 10% of the shares? Divided among the four of us?"
"That's right." Geng Zhi nodded, his expression very sincere. "After all, the valuation in this round was indeed not low. According to reports, Momo ultimately failed to reach its expected goals. The more investors invested, the more they would lose. Investing less reduces the risk."
Liu Chiping: "————"
An Wenjing and Chen Yanzhu: "...
'
"Damn, less betting means less risk!" Liu Chiping was utterly speechless, unsure how to respond.
In all his years of experience interviewing entrepreneurs, this was the first time he had ever seen someone proactively consider the interests of investors during a fundraising process.
Is it because Gengzhi is too straightforward, or is it because Momo simply doesn't lack investors at the moment?
He quickly did the math in his head: if Sequoia Capital took $1000, Penguin, Yunfeng Capital, and the remaining company would most likely take $500, leaving them with only a 2% stake.
For Tencent, a 2% stake isn't even enough to get a seat on the board of directors.
However, what bothered Liu Chiping more than the issue of shareholding was that Tencent wanted to invest together with Alibaba, which made her feel uneasy.
After a moment's hesitation, Liu Chiping tentatively said, "President Geng, Tencent can provide Momo with a vast amount of traffic and channel resources, far superior to Yunfeng Capital. Do you think it's possible to give all of Yunfeng Capital's investment to Tencent?"
Geng Zhi and Tang Yan exchanged a glance, then deliberately lowered their heads, pretending to be deep in thought.
After a long while, he slowly raised his head, his tone ambiguous: "Nothing is set in stone yet, everything is still negotiable."
Liu Chiping was overjoyed, as this meant that the penguin had room to maneuver.
Half an hour later, downstairs in the science and technology park.
-
Liu Chiping, An Wenjing, and Chen Yanzhu came out of the Mingfan Technology office. The sun was shining brightly, and the leaves of the sycamore trees rustled in the breeze.
Although the acquisition of Momo failed during this trip to Shanghai, Liu Chiping still gained a lot.
The three of them chatted enthusiastically as they left the park.
"Martin, do you think Geng Zhi will eventually agree to let us replace Pi from Yunfeng Fund?" An Wenjing asked curiously.
"It's hard to say." Liu Chiping shook her head. "In terms of resource empowerment, we are definitely much stronger than Benli Baba, but it depends on whether Gengzhi will ultimately choose to sit on the fence. He doesn't dare to offend either us or Benli Baba."
"That's true." An Wenjing nodded. "After all, it's really tough for a small company to be sandwiched between two giants. It's not good to offend either side."
"Martin," Chen Yanzhu spoke up, "if Geng Zhi ultimately remains neutral, the final result for us will most likely be an investment of $500 million for a 2% stake in Pi. This deal doesn't mean much to us, does it?"
"Yeah, Martin," An Wenjing chimed in, "I think Pony probably wouldn't agree to such a losing deal, right? $500, that's only 2%, it's just not worth it."
Liu Chiping shook his head, stopped walking, turned to look at the two of them, and explained seriously: "Momo's Series B financing is not a financial investment for us, but a strategic investment. We consider not only what this investment can bring us, but also what we cannot let our competitors gain."
"Taking 2% of $500 is indeed a bad deal. It would be better if Pony agreed. Even if he doesn't agree, it would still be extremely valuable to us."
Upon hearing this, Chen Yanzhu quickly asked, "Hmm? How should this be understood?"
Liu Chiping smiled slyly with a hint of experience: "We are the investors, and negotiations take time. During the negotiations with Momo, we can fully understand some of Momo's trade secrets, operating mechanisms, and real-time dynamics, which can provide reference for the QQ team."
He paused for a moment, then continued, "Furthermore, we can also take this opportunity to understand Baidu's strategic thinking on Momo."
.
"I see!" An Wenjing and Chen Yanzhu suddenly realized and nodded in agreement.
The two men already understood, and Liu Chiping then instructed Chen Yanzhu: "Xiao Chen, compile the information that Geng Zhi told us about Pihai Village today into a detailed summary, and our investment department will analyze it carefully first."
"Okay, sure." Chen Yanzhu nodded hurriedly.
"Martin, are you still doubting that Gengzhi's idea of [MoMo] going overseas is reliable?" An Wenjing asked suspiciously. "I think Gengzhi's explanation was quite professional, and I was convinced by him."
Liu Chiping shook her head: "I was also convinced by him. So we need to see if we have a chance to imitate Momo and create an overseas product, and take over the overseas market before they [MoMo]."
"If being straightforward can do it, so can we, and we'll do it even better than them."
An Wenjing was startled at first, then nodded.
This idea is very Penguin-esque.
In the CEO's office at Mingfan Technology.
Geng Zhi, Tang Yan, and Lü Siyu were also discussing the investment matters of Tencent.
"Boss, we're not really going to accept investment from Tencent, are we?" Lu Siyu asked first, puzzled. "And given their [opportunistic] nature, what if they keep copying us and end up making their own?"
Geng Zhi didn't answer, but turned to Tang Yan and asked, "President Tang, what do you think?"
Tang Yan laughed: "I think the boss doesn't want to take the money from Penguin at all; you just don't want to provoke him."
"Mr. Tang, but we've already agreed to let Tencent invest, haven't we?" Lu Siyu continued, still puzzled.
"The boss must have a way, right?" Tang Yan turned to look at Pu Gengzhi, his eyes filled with anticipation.
With a slight smile, Geng Zhi said, "We sincerely offered them the investment opportunity, but we let them give up the investment on their own initiative, and that was the end of it."
"Huh?" Lu Siyu understood, but not completely. "But how can we get Penguin to give up voluntarily? Judging from Liu Chiping and Ren Caipi's appearance, they might actually accept a valuation of 2.5 million US dollars."
"Whether he accepts the $2.5 million valuation or not, he'll act like he can accept it," Geng Zhi said with a smile, looking at his secretary.
"Ah! Old fox." Lu Siyu understood and nodded vigorously.
She then asked, "So how do you get the penguins to give up on their own?"
"There are too many methods. When raising funds, you can use control clauses, exclusive business clauses, information segregation clauses, and bidding war clauses —"
"Haha, the boss is brilliant!" Lu Siyu laughed immediately. "Now it's time to test the boss's wife's skills!"
By adopting a superficial cooperation approach while actually setting up barriers, Gengzhi avoids offending Tencent, saves Tencent face, and provides cover for the WeChat project.
Meanwhile, the departure of Tencent might make Yunfeng Capital more proactive.
This is a win-win situation.
Just as the three were still discussing, Lü Sifeng knocked on the door and came in.
"Junior Brother Geng, the boss just messaged me privately, asking if you're free today. He said he has something important he wants to discuss with you."