Chapter 99

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Song Chen did not expect Sun Zhengyi to ask such a question. Without hesitating for too long, he replied frankly, "I have no money, and I lack the ability to manage such a large company! Moreover, if I accept my father's help, at least half of Chenxing Internet Cafe and my business empire will no longer be mine! Of course, I won't deny that there are personal emotions involved, Mr. Sun can consider it as a 'rebellious act of adolescence'!"

Cai Zhixin was taken aback. After translating these words to Sun Zhengyi, Sun Zhengyi first laughed, then noticed the word "empire," but he nodded without showing any emotion, "I must admit, Mr. Song is very ambitious and has extraordinary strategic vision! If I invest $100 million for a 49% stake in Chenxing Company, what do you think of this proposal?"

Cai Chongxin's expression changed, and he stared intently at Song Chen, fearing that he would react too strongly and reveal his intentions to Sun Zhengyi—this was a blatant bait, Sun Zhengyi was not testing the value of Alibaba but probing Song Chen's fleeting business plan.

Sure enough, Song Chen was not at all concerned about the massive $100 million investment. Instead, he shook his head decisively, "No!"

With a cunning smile, Sun Zhengyi said seriously, "Why? Your search engine department has only been developed for over a month, with no products or technology patents; your QQ department, although growing rapidly, is like ICQ, unable to find a profitable direction; and Alibaba has only been online for over a month. I believe $100 million is a great deal for you, and your net worth will rank you among China's top tycoons."

Noticing Cai Chongxin's frequent warnings, Song Chen realized he had fallen for Sun Zhengyi's probe. He laughed and said teasingly, "Mr. Sun, I plan to make the three business departments independent, and Chenxing Computer Systems will be renamed Chenxing Holdings! This is the legacy I intend to leave for my descendants, and I do not accept external investments!"

Sun Zhengyi almost understood Song Chen's vague plan. He nodded and said, "Alright! I think your company can now establish Chenxing Holdings. I hope to invest in QQ, Alibaba, and the search engine! $100 million! 30% equity in each of the three independent subsidiaries!"

This was a highly tempting offer! Not only Song Chen, but even Cai Chongxin was very tempted.

Seeing Song Chen biting his lower lip, his young face struggling, Sun Zhengyi was even more convinced that Song Chen must have a clear direction for the profitability of the three business departments! If not, he would have accepted the terms like other internet companies. He gently persuaded, "Additionally, I will leverage the SoftBank Group's platform to help your company rapidly expand in the international market! Since you were waiting for me, you should trust the strength of the SoftBank Group!"

Taking a deep breath, Song Chen politely declined, "I have no doubt about the strength of the SoftBank Group! The terms are very attractive, but I must regretfully inform you, Mr. Sun, that the company does not need so much capital at the moment!"

Sun Zhengyi was taken aback. Seeing Song Chen reject his offer again, he said unhappily, "Mr. Song, do you know why I am offering such favorable terms? It's because I believe your strategic vision will bring me substantial returns!"

Even Cai Chongxin, who was very tempted, tried to persuade, "Yes, General Manager, we can consider Mr. Sun's proposal!"

To the surprise of both Sun Zhengyi and Cai Chongxin, Song Chen nodded confidently and said boldly, "It is precisely because of this confidence that I am rejecting Mr. Sun's offer! I believe the QQ company and the search engine company are not worth such a price! Moreover, I believe the future market value of Alibaba will far exceed Yahoo!"

Sun Zhengyi stared intently at Song Chen, who returned his gaze with equal confidence.

This was a pair of determined eyes, yet they also held a certain mystery!

Compared to the cunning and capital-rich Sun Zhengyi, the young and inexperienced Song Chen could hardly withstand the sharp gaze. Moreover, the three business departments of Chenxing Company, while promising, were still in their early stages, with a thin foundation. After a moment's hesitation, Song Chen said sincerely, "Mr. Sun, Alibaba, QQ, and Baidu are crucial core technologies in the internet. In the future, they will support each other, forming a key part of Chenxing's internet industry layout! You think $100 million is a great deal for me, but I see it as a great deal for you!"

Sun Zhengyi was moved and fell silent for a moment before saying, "Although I don't know where your confidence comes from... I will invest $25 million in QQ and the search engine company, each for 20% equity! I will also invest $50 million in Alibaba, also for 20%!"

Cai Chongxin finally understood why Sun Zhengyi was called a "madman." He couldn't help but admire. Song Chen, after a moment's silence, stood up and extended his hand to Sun Zhengyi, saying, "In five years, the board of directors of Chenxing Holdings will consist of two types of people: the persistent madmen and the short-sighted fools!"

Sun Zhengyi shook Song Chen's hand and asked, "So, will the madmen win, or the fools?"

"In the internet world, only the persistent madmen will persevere to the end! Only they will laugh last!" This referred to Jack Ma and Sun Zhengyi, both called madmen, with Jack Ma even described as "no madness, no magic." Song Chen was just expressing his feelings. "The subsidiaries will establish boards, with a focus on business development. To avoid unnecessary disputes, I think the board should not be too large, just Mr. Sun, myself, and the CEOs of the subsidiaries! In the future, if other venture capitalists invest, each will have one vote, based on their actual shareholding! Moreover, the $100 million must be paid in full at once!"

"Agreed!" Sun Zhengyi thought for a moment and nodded. "However, I will leave someone to supervise the use of the $100 million in your company!"

"That is reasonable! Finally..." Song Chen paused, "The contract must state that if SoftBank Group sells its shares in Chenxing Holdings, I and Chenxing Holdings have the right to repurchase at market price! Regarding the profit plan, I hope Mr. Sun keeps it confidential!"

"This is to my advantage!" Sun Zhengyi agreed without objection. He also added a condition, "The three companies must have a NASDAQ listing plan within three years." This was Sun Zhengyi's exit strategy, giving him enough time to cash out if Song Chen's promises were empty.

Three years? The company must go public within two years before the dot-com bubble! Song Chen had no objections, and Cai Chongxin and Sun Zhengyi's legal team began drafting the contract.

Meanwhile, reporters who had heard the news had already gathered at the entrance of Chenxing Company but were dissuaded by the receptionist.

On February 20, 1998, the news that Sun Zhengyi invested a total of $100 million in the three subsidiaries of Chenxing Company was like a thunderclap, shocking the world. This was Sun Zhengyi's second major bet in the internet industry after Yahoo, and it set a record for the largest investment in China's internet industry. The last time Sun Zhengyi invested in Yahoo, he made a huge profit. Would this time be the same?

Song Chen became one of China's top tycoons in just three months, becoming a topic of nationwide discussion. People were amazed by the internet's astonishing wealth-creation speed, and countless college students saw Song Chen as the new "Bill Gates," becoming their new entrepreneurial idol and flocking to the internet industry.

When asked by reporters why he favored the three business departments of Chenxing Company, Sun Zhengyi said meaningfully to the reporters, "Chenxing Company has a very promising future, but this is the only time in my VC career that I have invested $100 million in a pair of imaginative eyes, without considering the company's development prospects or innovative technology! Time will tell whether I am a 'madman' or a 'fool'!"

Global newspapers extensively covered the story behind Sun Zhengyi's investment in Chenxing Company. Local newspapers in Dongou used large bold headlines to write a thought-provoking topic: "Silent Youth of Yesterday, Entrepreneurial Elite of Today!"

Faced with the gentle and non-sarcastic content, Song Hua crumpled the newspaper and threw it in the trash. Still angry, he swept all the office supplies on his desk to the ground. The mess on the floor made his friend and partner, Shi Dongsheng, sigh deeply.

Song Chen, in just three months, had defeated the Da Song Group, which his father had painstakingly built over more than a decade. What was disheartening was that his son's success could not be shared with Song Hua as a father, and there was nothing more frustrating than this.

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