305: Chapter 305 Finalizing Investment Intent

In the blink of an eye, three days passed.

At ten o'clock on Friday morning, in the meeting room of Fanyu Company, Zhou Zhengyang and the Manager, Manager, sat on one side, while Chen Fan and Fang Hongsheng sat on the other.

The day after Zhou Zhengyang left last time, he called to say he would visit again on Friday to negotiate further regarding Chen Fan's proposed valuation of 10 billion and Tencent's offer.

Naturally, Chen Fan would not refuse. Thus, early this morning, the two parties sat in the meeting room, with documents and water cups placed on their respective tables. The atmosphere was not exactly tense, but it was by no means relaxed.

Leaning back in his chair, Chen Fan spoke first, "Mr. Zhou, let me introduce you first. This is our company's vice president, Fang Hongsheng."

Fang Hongsheng quickly sat up straight and nodded to the opposite side, "Hello, Mr. Zhou."

Zhou Zhengyang also nodded in return, his tone polite, "Hello, Mr. Fang."

The two shook hands and exchanged brief pleasantries.

Zhou Zhengyang got straight to the point, looking up at Chen Fan, "Mr. Chen, regarding the valuation and percentage we discussed last time, I reported back to the higher-ups after I returned."

Chen Fan did not interrupt, waiting for him to continue.

Zhou Zhengyang closed the documents and leaned back in his chair, "Regarding the 10 billion valuation, we discussed it internally, and it's still too high. The maximum we can accept is a 9 billion valuation."

Hearing this, Chen Fan showed no expression on his face, only glancing sideways at Fang Hongsheng. Fang Hongsheng instantly understood Chen Fan's meaning—this was for him to speak up and make things clear.

Fang Hongsheng composed his expression, sat up straight, and looked directly at Zhou Zhengyang, speaking in a measured tone, "Mr. Zhou, a 9 billion valuation is too low. As you surely know, our company has only been established for just over a year, and we have already achieved a monthly revenue of over 200 million, approaching 300 million. Moreover, the four games we have produced are at the top of their class in terms of both reputation and popularity."

He paused and continued, "These games are continuously providing the company with massive monthly revenue. We will continue to develop new games in the future, and we believe our revenue will increase even further. So, Mr. Zhou, looking at it from this perspective, the valuation given by you and your company is indeed a bit low."

Only after a few seconds did Zhou Zhengyang speak, "I am indeed aware of everything Mr. Fang has mentioned. When Tencent calculated the valuation internally, we also took Fanyu's growth curve and user data into account." He leaned forward slightly, "A 9 billion valuation is not an arbitrary price reduction; it is a reasonable price we have given based on the current market environment and the valuation levels of similar companies."

"Mr. Zhou," Chen Fan spoke up, "I'll be blunt. The bottom line I can accept is 10 billion. If that doesn't work, then there is no need to discuss further."

Zhou Zhengyang glanced at Chen Fan and remained silent for a few seconds, as if confirming that the other party was not bluffing. Then he nodded, "Mr. Chen, the price of 10 billion exceeds my authority. I need to ask for instructions again."

"Sure." Chen Fan leaned back in his chair, took a sip from his water cup, his expression calm, with no intention of rushing him.

Zhou Zhengyang picked up his phone, stood up, and walked out of the meeting room. When the door closed, Fang Hongsheng glanced at Chen Fan and lowered his voice, "Mr. Chen, what if they really don't agree?"

Chen Fan put down his water cup and said in a relaxed tone, "It doesn't matter if they don't agree, but I believe they will."

Fang Hongsheng said no more, sitting quietly to the side and waiting. The meeting room was quiet for about four or five minutes before Zhou Zhengyang pushed the door open and walked in, his expression a bit more serious than when he had left. He walked to his seat and sat down, not rushing to speak, but first casting a glance at Chen Fan before finally speaking:

"Mr. Chen, I just asked our leaders for instructions, and they agreed to the 10 billion valuation." He paused, as if weighing his words, "However, they want a 20% stake."

Hearing this, Zhou Zhengyang spoke with a serious expression, "Mr. Chen, 10% is too low; it must be at least 20%." As he spoke, he leaned forward slightly, "A 10% stake does not have enough strategic significance for us."

Chen Fan shook his head, "20% is too much. Fanyu is not short of money right now. The prerequisite for me relinquishing shares is that Tencent's entry must not affect the company's decision-making and pace. A 20% equity stake means Tencent would already hold significant weight on the board."

"Then 18%." Zhou Zhengyang did not back down either, calmly offering a number. "18% is the lower limit we can accept."

Chen Fan thought for a moment, "15%."

"16%." Zhou Zhengyang immediately followed with another number.

"15%." Chen Fan repeated, his tone even more decisive than before. "With a 10 billion valuation, a 15% stake is 1.5 billion. This volume is not large for Tencent, but for my side, it is already a reasonable divestment ratio. If it exceeds 15%, what I need to consider is not whether the money is enough, but whether the company's decision-making power remains in my hands."

Zhou Zhengyang looked at him, fell silent for a few seconds, and then turned to glance at Manager. Manager nodded slightly, as if indicating that this number was acceptable.

Zhou Zhengyang turned back, leaning into the sofa, with a slightly helpless smile on his lips, "Mr. Chen's negotiation style has indeed left a deep impression on me."

He paused, "Alright, then let's go with what you said: a 10 billion valuation, a 15% stake, and Tencent will invest 1.5 billion."

Chen Fan looked at him with some curiosity, "1.5 billion. Can Tencent produce that much money all at once?"

Hearing this, Zhou Zhengyang leaned back in the sofa and laughed, "Mr. Chen might not be very familiar with Tencent's financial strength. Tencent currently has abundant cash on its books and can absolutely produce 1.5 billion. However—" He paused, "usually, such a large sum of money is not invested entirely in cash. Our typical method of operation is: part cash, and part exchanged for Tencent shares."

Hearing this, Chen Fan's eyes instantly lit up.

Tencent shares. According to Tencent's current market value, that was no small sum.

He quickly ran the numbers in his head. Tencent's current stock price fluctuated between 150 and 170 Hong Kong dollars, with a total market value exceeding 400 billion HKD.

If the other party proposed using Tencent stock as part of the consideration, it meant he would not only get cash but also become one of Tencent's shareholders.

If the portion exchanged for shares was 500 million, the stake Chen Fan could obtain would be roughly 0.15%; if it was 1 billion, it would be about 0.3%.

Although it didn't look like much, once Tencent's market value rose to several trillion in over a decade, these shares would be worth billions.

This condition was far more attractive than he had anticipated.

Thinking of this, he looked at Zhou Zhengyang and asked, "I wonder how this 1.5 billion will be paid? How will the ratio of cash to shares be split?"

"It's not certain yet. At present, we have only confirmed a preliminary investment intent. The specific funding plan still needs to be finalized by the leadership, and of course, it must satisfy you, Mr. Chen."

Chen Fan nodded, "Alright, then I will wait for Mr. Zhou's proposal. As for the payment method, I hope cash accounts for at least half, and the remaining portion can be exchanged for Tencent stock."

Zhou Zhengyang made a note in his notebook, "I will report this back truthfully."

He closed his notebook, stood up, and extended his hand, "Then let's leave it at that for today. I will push forward with the agreement and funding plan as soon as I return, and give Mr. Chen an answer next week."

Chen Fan stood up and shook hands with him, "Alright, I will wait for Mr. Zhou's news."