Mistaking My Sister-In-Law for My Wife After Getting Drunk! - Chapter 223
Chapter 223: Chapter 223 Acquisition Negotiations
Shengda Literature Company, conference room.
On both sides of the conference table sat several middle-aged men, each dressed in a suit and leather shoes.
On one side were Shengda Literature’s President Qiu Wenyu and several shareholders, on the other, the General Manager of Penguin Investment, Han Jun, and senior executives.
Han Jun was optimistic about Shengda Literature and wanted to acquire it. Today, he personally led the team to negotiate.
Han Jun was not just the General Manager of Penguin Investment but also the Vice President of Penguin Group and the right-hand man of President Ma.
Logically, for a negotiation worth just billions, he didn’t need to be personally involved.
But he was very optimistic about Shengda Literature, which was critical to whether Penguin Films and Penguin Videos could overtake competitors by cutting corners. Moreover, it was crucial for Penguin Group’s layout in the entertainment sector.
So, he came.
It not only showed his emphasis on Shengda Literature but also his determination to acquire it at all costs.
“Mr. Qiu, name your price,”
Seeing that various account audits had no issues, Han Jun spoke first.
“Mr. Han, why don’t you make an offer first?” Qiu Wenyu, wearing a pair of black-framed glasses, exuded an air of scholarly elegance.
To be honest, when Penguin Investment contacted him to acquire Shengda Literature, he immediately refused.
After all, Shengda Literature was something he built from scratch, his life’s work.
Moreover, Shengda Literature’s operations were excellent; there was no need for financing.
Since Penguin Investment wanted a full acquisition, he was naturally reluctant.
But his reluctance didn’t mean the other shareholders felt the same.
After his refusal, Penguin Investment reached out to the other shareholders.
Those shareholders were very interested in Penguin Investment’s acquisition and ganged up on him, which led to today’s negotiation.
In the initial stages of Shengda Literature, to develop faster and grab a larger market share, the company went through several rounds of financing.
With the financial support, Shengda Literature became the industry leader in online literature.
However, this led to gradually decreasing shares in Qiu Wenyu’s hands.
Now, he only held 25% of Shengda Literature’s shares.
Within Shengda Literature, he was only the third-largest shareholder.
The other two major shareholders, upon learning that Penguin Investment wanted to acquire the company, began to entertain the idea of cashing out, leaving him in a passive position.
“50 billion,” Han Jun quoted a price.
“Mr. Han, you came in person; I thought you really wanted to acquire our Shengda Literature, but looking at the price you’ve offered, it doesn’t seem that way,” Qiu Wenyu replied with a direct laugh.
What a joke!
The current market value of Shengda Literature was over sixty billion.
Han Jun offering only fifty billion for the acquisition was simply a daydream.
He had no intention of agreeing to the acquisition in the first place, and after hearing the price Han Jun had named, it was even less likely.
Not to mention his disapproval; the shareholders keen on cashing out would not agree either.
As expected, the other shareholders were also outraged.
“Mr. Han, the price you’ve quoted lacks sincerity.”
“Mr. Han, we both know the market value of Shengda Literature; with this price, it’s impossible for us to agree.”
“Mr. Han, if this is your approach, I see no need to continue the discussion.”
“Mr. Han, you don’t think we’re easy to bully, do you?”
The shareholders wanted to take profit and exit but also wanted to leave with as much money as possible.
With the low price Han Jun had offered, it was natural that they would not agree.
“Ladies and gentlemen, the price I’ve quoted naturally has its reasons; perhaps you’d like to hear them first,” Han Jun said with a faint smile.
“Fine, go ahead.”
“I really want to see what reason you could possibly have.”
“Your reason had better justify the price you’re asking for, otherwise we truly have nothing to discuss.”
The shareholders’ agitated emotions began to subside a little.
Since Han Jun mentioned he had reasons, they decided to listen to his reasons first.
“Firstly, let’s address the issue of market value you mentioned. You should be aware that market value can be inflated.”
“Secondly, the risk resistance of online literature companies is very low. According to our research, within the past five years, thirty online literature companies have gone under, two of which were once ranked in the top five of the industry.”
“Given just these two points, I feel the fifty billion buyout price I’ve offered is already very fair.”
Han Jun took a sip of coffee, smiled faintly, and laid out his reasons unhurriedly.
“Mr. Han, our Shengda Literature doesn’t have the inflated market value issue you speak of.”
“Regarding the second point you mentioned, since you’ve done your research, you should be well aware that our Shengda Literature is the number one online literature company.”
“Seventy-five percent of the top authors gather at our company. We are not comparable to other companies.”
“With these authors, our company can produce a continuous stream of high-quality web novels. The readership is very stable and has been steadily increasing every year.”
“Our dominant position in the online literature industry is unshakable, not to mention the prospect of closing down.”
Qiu Wenyu rebuked each of Han Jun’s reasons one by one.
Especially when addressing the second point, his words carried an air of pride.
Shengda Literature was the undisputed hegemon of the online literature industry.
The man behind this hegemony was none other than Qiu Wenyu himself, and he had every reason to be proud.
Although the industry’s ceiling might be a bit low,
to become the industry leader with a company worth only a bit over sixty billion,
demonstrated his capabilities.
The strength of Shengda Literature was beyond doubt and could not be compared with those companies that had folded, or others that hadn’t but fell far short of Shengda Literature.
“Mr. Qiu is right, our Shengda Literature is different from other companies.”
“Our company is the industry leader; the big-name authors are essentially born within our ranks.”
“Any author dreaming of becoming a star will choose our Shengda Literature.”
“This is our advantage, an incomparable advantage, one that other web novel companies can barely dream of.”
“With this advantage, we are far ahead of other web novel companies.”
Shareholders aligned with Qiu Wenyu, one by one, expressed agreement with his statements.
The negotiation was intense, and Qiu Wenyu’s speech was indeed very convincing.
They had to admit, Qiu Wenyu truly deserved the credit for making Shengda Literature the titan of the online literature industry.
“You say that seventy-five percent of the outstanding web novel authors are signed to your company, and I’ll concede that point.”
“But you must understand that these web novel authors could sign with your site or another. ”
“If we’re willing to spend the money and offer them their ideal paycheck, I fear many of them would be willing to leave.”
“Do you still feel you have an advantage?”
Han Jun smiled faintly, feeling that Shengda Literature’s advantage wasn’t so great after all.
Upon hearing this, Qiu Wenyu and his associates’ expressions changed slightly.
This was something they were naturally aware of.
The decision of web novel authors regarding which site to write for was entirely up to them.
If someone were to offer the authors significantly more than what they received at Shengda Literature, it was certain they’d be tempted.
At the least, most web novel authors would leave.
Or they might write for Shengda Literature while also writing for other web novel sites.
