303: Chapter 303: Valuation at least 10 billion

1.6 billion for a 20% stake. Based on this offer, Fanyu's valuation was set at 8 billion.

Chen Fan currently owned 100% of Fanyu's shares. Vice President Fang Hongsheng would receive a 1% stock option after working for a full year, but he would need to purchase this 1% option at the originally agreed-upon price to convert it into actual shares.

According to the original agreement, the purchase price for the 1% option was only 5 million—which was calculated based on a valuation of 500 million.

When Fang Hongsheng received the option, the company was still small. 5 million was a huge sum for him, but he felt it was worth it at the time because he had confidence in Chen Fan and the future of the company.

But now, Tencent was offering 1.6 billion for 20%, valuing the company at 8 billion. Based on this price, Fang Hongsheng's 1% stake was worth 80 million. From 5 million to 80 million, that was a full 16-fold increase.

To be honest, even if Fang Hongsheng couldn't come up with 5 million in cash right now to exercise his option, as long as he knew Tencent valued the company at 8 billion, he would take out loans or sell his house to scrape together that 5 million.

Chen Fan wouldn't go back on his word either; as long as Fang Hongsheng completed his year of service, the promised options would naturally be given to him.

Even after excluding that 1%, Chen Fan still owned 99% of the shares, so even if he sold 20%, he would remain the largest shareholder.

And after selling those 20% of the shares, he would be able to get 1.6 billion.

1.6 billion—not 16 million, not 160 million, but 1.6 billion. If this money were deposited in a bank, just based on current fixed deposit interest rates, he could lie back and earn 50 to 60 million a year without doing anything.

He could buy any car he wanted, any house he wanted, or even buy an entire building.

He could go anywhere he wanted and do anything he wanted.

Honestly, he was a bit tempted.

However, Chen Fan felt that a valuation of 8 billion was a bit low. In his heart, a valuation of 10 billion was the most appropriate.

Although Fanyu wasn't a large company and only had about two hundred employees, its monthly revenue was over 200 million, and Chen Fan was confident in maintaining that level of revenue.

Thinking of this, Chen Fan looked at Zhou Zhengyang and said, "According to what you said, Mr. Zhou, the valuation of our company should be 8 billion."

Zhou Zhengyang nodded. "That's correct."

"I think this valuation is a bit low." Chen Fan's tone wasn't heavy, but he spoke very directly.

Zhou Zhengyang didn't look surprised, as if he had already anticipated that he would say this. He picked up his coffee and took a sip. "Then what amount does Mr. Chen think is appropriate?"

"At least ten billion."

Zhou Zhengyang's hand holding the coffee paused slightly. He set the cup down, his gaze lingered on Chen Fan's face for two seconds, and then he smiled and leaned back into the sofa. "Ten billion, 20% of the shares would be two billion. Mr. Chen, this price is significantly higher than the upper limit we set internally."

Chen Fan didn't avoid his gaze. "Mr. Zhou, when I quote ten billion, it's not just a random number. Fanyu's current monthly revenue is stably over 200 million, and our annualized revenue is close to three billion. The net profit margin in the gaming industry is over 30%, so the annual profit is estimated to be around one billion. Therefore, a valuation of ten billion is not high at all."

He paused, his tone becoming more firm. "Furthermore, we are not in urgent need of investment right now. The cash flow in Fanyu's accounts is sufficient to support operations and expansion for the next year. Even without Tencent's money, the company can continue to move forward at its own pace. The reason I am willing to sit down and talk is that Tencent's channels and ecosystem are truly valuable, not because we lack money."

Upon hearing this, Zhou Zhengyang pondered for a moment, then looked up and said, "If we go by ten billion, how much equity is Mr. Chen willing to give up?"

Chen Fan thought for a moment and held up one finger. "10%."

After hearing Chen Fan's offer, Zhou Zhengyang was silent for a few seconds, then nodded slightly. "This valuation is indeed beyond our expectations. I need to go back to headquarters and report to my superiors."

Chen Fan didn't look surprised, as if he had already expected the other party to say this. He picked up his teacup, took a sip, and spoke in a steady tone. "Understandable. Ten billion is not a small amount, and it's normal for you to need time to report back, Mr. Zhou."

Zhou Zhengyang stood up. "Then let's end the discussion here for today. I will push this forward as soon as I return, and I will contact you the moment there is a result."

Chen Fan stood up and shook his hand. "Alright, I look forward to your news, Mr. Zhou."

Zhou Zhengyang added, "However, let me state my personal stance first: I am personally willing to push for this cooperation. I am optimistic about Mr. Chen's company and team. After I return, I will do my best to convince my superiors."

Chen Fan smiled. "Thank you for your appreciation, Mr. Zhou."

After seeing Zhou Zhengyang and Zhao Peng off, Chen Fan returned to his office and sat down in his boss chair.

He leaned back, closed his eyes, and let out a long breath.

At this moment, Qiao Linlin walked up behind him silently, placed her hands on his temples, and began to massage them gently.

Her pressure was just right; her thumbs slowly rubbed along his brow bone, then slid behind his ears to his neck, kneading with just the right amount of force. Chen Fan didn't open his eyes, letting her massage him as his shoulders relaxed bit by bit.

Immediately after, Qiao Linlin leaned down slightly, pulling him into her embrace, letting his head rest against her soft bosom.

"Boss, does that feel good?"

She didn't ask about the investment. Although she was very curious about it, as an assistant and even more so as Chen Fan's woman, she knew very well when to ask and when not to ask.

She was already very satisfied with her current life. The monthly salary Chen Fan gave her was 20,000, a figure that could be considered very generous in Xian in 2011.

More importantly, Chen Fan had also bought her a car worth 500,000, and from time to time, he would buy her gifts worth tens of thousands or over a hundred thousand. In the past, these were things she wouldn't even dare to imagine.

She wasn't stupid; she knew her place, and she was clear about why she was able to live such a good life.

Therefore, she never talked too much, never asked what she shouldn't, and never mentioned what she shouldn't.

Feeling the softness and comfort from behind his head, Chen Fan kept his eyes closed and remained silent for a while, as if thinking about something.

Then, he suddenly opened his eyes.

He reached out, grabbed Qiao Linlin's wrist, and pulled her gently from behind into his lap. Qiao Linlin wasn't prepared and let out a soft "Ah," falling into his lap, instinctively grabbing his shoulders for support.

"Boss..." She called out softly while sitting in Chen Fan's lap.

Chen Fan wrapped one arm around her waist, while his other hand continued to move. "I'll give you a gift in a few days."

Upon hearing this, Qiao Linlin's eyes lit up.

The last time Chen Fan said "I'll give you a gift," the final item she received was a 500,000 car.

When she went back to school to pick up her diploma last month, she drove her own car, and her former female classmates and roommates were all full of envy, or even jealousy.

This time he was giving a gift again, could it be... a house?