Chapter 1046 Let Go

ps. There was a mistake in the previous chapter. The National Football Team’s New Year opponent is not Thailand but Vietnam. This has been corrected.

text:

In fact, it is not terrible if a company's stock plummets, because it may be a technical adjustment and it is entirely possible for it to rise back.

Perennial negative revenue is not that scary, because at this scale, revenue and expenditure are in the hundreds of millions. The larger the expenditure, the more projects are being undertaken, and the benefits from the completion of the projects in the future will also be very considerable. .

Of course, it’s not normal for Bilibili to focus on one project after another.

But no matter what, a sharp drop in stocks and negative revenue are normal things for an Internet company. Not to mention Bilibili, the same is true for Douyu Huya iQiyi next door.

The environment is like this, there is nothing to be nervous about.

But if something goes wrong with the cash, the consequences can be quite serious.

If a company has one billion in cash, it can still operate for five consecutive years even if it loses two hundred million a year.

But if a company is making money every year but its cash flow is cut off, it may not be able to survive even one quarter.

Station B is now in an embarrassing situation where its cash flow is cut off.

The stock market is bearish and investment cannot be attracted.

The projects I developed either failed or failed to make any money, and were frequently searched for because they were so poorly done.

Coupled with the reduction of creative incentives for UP owners, it was criticized by many parties.

This series of phenomena are being revealed to the outside world, that is, the current internal management of Station B is in chaos, there is insufficient funds, and it is unable to make ends meet.

To sum up, it is almost a yellow stall.

Under such circumstances, how can any investor be willing to inject cash into Station B?

Therefore, Station B’s cash flow has been stretched since the end of last year.

But at least I had a period of prosperity before, and I still had some money in my account, so I have been able to hold on until now.

Originally, Cheng Rui thought that in one year, he could at least attract investment, plug the hole in cash flow, and allow the company to continue operating.

Now it seems that the situation is worse than imagined.

When key Internet companies face this kind of dilemma, they are not like brick-and-mortar companies that can sell off fixed assets to tide over the difficulties.

Just like when Yifa was deeply in debt crisis, it directly sold buildings and plazas, and it didn't take long to raise enough money.

The tens of millions of users and hundreds of millions of clicks at Station B may sound impressive, but they are all false. They cannot be monetized at critical moments and are of no use in solving problems.

Now, Station B seems to be at the end of its rope.

Cheng Rui scratched his thinning hair dejectedly and fell down on the chair.

He needs to calm down and think about other ways out.

Just then the phone rang.

Cheng Rui picked it up and saw an unexpected name.

"Luo Quan, it's been a long time since I've spoken to you."

Cheng Rui thought Luo Quan was calling him to wish him New Year's greetings, so he cheered up and made his voice cheerful.

Luo Quan laughed heartily: "It's been a long time. I don't even remember the last time I talked to you, Mr. Cheng. It must have been a year or two, right?"

"Yes, time really flew by, and things changed in a blink of an eye." Cheng Rui's eyes were deep and his tone was full of emotion.

I remember back then, it was he who personally called Luo Quan to extend the invitation and attracted the first celebrity to officially join Station B.

At that time, the number of users at Station B was skyrocketing, and it was a scene where everything was competing and full of vitality.

Luo Quan, on the other hand, is just a fledgling singer who is only slightly famous in Japan.

Unexpectedly, less than five years have passed, Station B has already fallen from the peak into the abyss, and Luo Quan has become the most popular top streamer in the world.

How could Cheng Rui not be moved by this huge change in circumstances?

Just when he was about to say Happy New Year to Luo Quan, the words on the other side made him confused.

"I heard that things are not going well at Station B recently. Maybe I can help."

"You...are serious about what you said!" Cheng Rui sat upright suddenly, and then fell into annoyance and ecstasy.

He found so many investors, how could he forget about this rich woman with the highest purity and strong financial resources in China?

Among the celebrities in the world, it can be said that no one knows and likes Bilibili better than her, Nobody!

"If you can help, I'd definitely like to thank you!"

After being ecstatic, Cheng Rui regained his composure: "However, this help is definitely not free. Detailed discussions are needed on equity and voice, and all major shareholders must be summoned..."

In business, Cheng Rui would not naively think that Luo Quan would help him like a child in a poor mountainous area, so he immediately started discussing the division of interests.

But Luo Quan interrupted him before he could finish his words: "In fact, I don't just invest simply, in addition to shares, I also want a say, and more than 50% of the say.

I know that Mr. Cheng, you have 40% of the say in station B, so I will only talk to you alone. "

"This is impossible, Luo Quan." Cheng Rui refused without thinking, "Station B is my hard work and my lifelong dream. I can't transfer it to others."

"Is the current Station B really what you dreamed of?" Luo Quan asked.

“Don’t forget that it’s those old users who use their love to generate electricity, giving Station B the opportunity to grow and develop.

But after Station B was launched, it abandoned the users who supported it. Ask yourself, can Station B still have any shadow of what it was five years ago? "

Luo Quan's question made Cheng Rui fall into silence.

Indeed, after Station B started to develop, it almost had the words “de-two-dimensionalization” written on its face.

It is precisely for this reason that all old users gnash their teeth when mentioning Cheng Rui.

This is how popular the Mongolian top order is, because he expresses the sentiments of many old users.

In fact, Cheng Rui knew it, but he just didn't want to face it.

"But no matter what, at least I made Bilibili bigger." Cheng Rui continued to defend, "And this is the pain that a website for everyone must go through. Those things in small circles can only be seen when there are few people paying attention. can exist.

Now that there are so many official accounts, can those two-dimensional things still exist? "

"Why can't it exist?" Luo Quan wanted to laugh, "The second dimension is not illegal.

Actually, I don’t like sensationalism, so I’ll ask something realistic next.

It’s true that you said you made Station B bigger, but can Station B still be called big now?

Last year, the market value was more than 60 billion, but now it has dropped to 18 billion. If changes are not made, this momentum will definitely not be stopped.

Moreover, rumors about Bilibili’s cash flow rupture have never stopped. You know best whether this is true.

To put it bluntly, Station B is now only one step away from bankruptcy. "

Luo Quan's voice was not loud, but every word pierced Cheng Rui's heart like a needle.

He wanted to refute, but couldn't find any reason, because everything Luo Quan said was true.

But even so, Cheng Rui is not willing to give up: "Station B is my hard work. Even if it dies, I will be with it."

“You want to die with Bilibili, but the users of Bilibili may not think so. They definitely hope that Bilibili can continue to operate.

But if you continue to do things like this as a management team, then Station B will get cold sooner or later.

I would like to ask, apart from me, have any other investors called you? "

"Of course, the market is quite optimistic about Bilibili. After all, we have irreplaceable value in the long video field, and no one can compete with us."

Cheng Rui talked nonsense with a confident expression.

Although Bilibili is indeed the leader in long-form videos in China, Byte has already set its sights on this piece of fat.

Xigua Video is specifically designed to compete with Station B. When Station B cut off the income of up-owners, Xigua Video poached many people.

So if Station B really fails, Xigua Video will definitely step on its corpse and ascend to the throne immediately.

Luo Quan also did his homework before this call. He made the call only after he knew that the cash flow of station B was no longer sufficient.

It is impossible for Cheng Rui to be willing to let go and compromise until he is at the end of his rope.

"Mr. Cheng, it's okay to deceive a three-year-old with these words. Do you think I would make this call to you without definite information?"

Luo Quan chuckled and directly exposed Cheng Rui's lie: "Actually, don't worry too much. My investment in Station B does not mean that I will kick you out of the management. I will not take away all the equity and voting rights in your hands. All it takes is 40 percent of the vote.”

"Is this enough?" Cheng Rui was stunned, "Li Li and Xu Yi have twenty-five dollars in total. If there is a meeting to discuss issues, your voting rights may not be useful.

Or are you saying that you have already settled with them in advance? "

"That's not true." Luo Quan shook his head, "I just bought a lot of stocks other than the major shareholders like you, and now the total is 10%."

"How is that possible!" Cheng Rui smiled, "Why didn't I know that someone was purchasing our stocks on a large scale? Are you trying to trick me?"

Luo Quan said with a smile: "I just have a lot of friends, and the market value of Bilibili has dropped to the bottom now. It really doesn't cost much for one person to buy a little bit."

At present, the ownership structure of Bilibili is relatively clear. The three giants Cheng Rui, Li Li, and Xu Yi account for 23% of the shares and 70% of the voting rights.

Then Penguin holds 11% of the shares, Alibaba holds 6% of the shares, and the total voting rights are 6%.

The remaining shares are basically retail investors, with a total voting power of 20%.

In the second half of this year, Bilibili's stock price has basically plummeted, and the entire market value is less than US$3 billion.

Although it has turned around a bit recently, it is still falling most of the time.

Major shareholders may be able to hold on, but retail investors are definitely eager to get rid of them all.

Luo Quan planned to acquire Station B in the first half of the year, but in order not to make Cheng Rui suspicious, he mobilized his relatives and friends to sell a little bit each, and then transfer it when the time came.

Of course, the main force in buying stocks is still Grandpa’s side.

After all, the companies under his name are dispersed enough and design in various industries.

As of now, she already holds nearly 35% of the shares of Station B and 14% of the voting rights.

Just talking about equity, her proportion even exceeds that of Cheng Rui.

But because the voting rights have been cut before the listing, even if she takes all the retail investors' stocks, the voting rights can only reach 20%.

Therefore, if you want to acquire Station B, the biggest obstacle is still Cheng Rui.

If he doesn't nod, this matter cannot be accomplished.

But if he didn't nod, his behavior of buying the billions of Bilibili shares would be like being taken advantage of.

"But in this case, wouldn't you be on the same boat as us?"

Cheng Rui suddenly figured out the problem: "If Station B dies, it won't do you any good."

"Don't you understand what I mean?" Luo Quan was a little helpless, "The reason why I called was to question your and other management's abilities.

I don’t think you have the ability to keep Bilibili operating healthily, and even after a while, there won’t even be a possibility of a grand burial.

As the largest shareholder, I want decision-making power that no one can interfere with.

Of course, I ask for these simply because I like Station B, not for profit.

If it were for profit, I wouldn't buy so much when the stock price plummeted in the second half of the year. "

"But..." Cheng Rui still wanted to say something, but the dissatisfaction in his heart prevented him from accepting Luo Quan's proposal.

"Mr. Cheng, the reality is right in front of us. Station B's cash flow has been cut off, and no one is willing to help.

Instead of watching it slowly die, I would rather let it come to life again in my hands.

And all you need to do is hand over most of your voting rights. Your equity will not be much less, and I guarantee that this time next year your dividends will only be greater than now! "

When it comes to painting pie, Luo Quan is professional.

She has done the same thing N times, so she seems familiar with it.

She had already explained the stakes to Cheng Rui. As for her position on station B, Cheng Rui could see clearly without having to tell her.

Among the major shareholders, she is the one who wants to be on the B side the most.

Others may have long forgotten their original intentions and only want to make money.

"I need to think about it again." Cheng Rui was very confused and wanted to let go but couldn't.

But he also knew that everything Luo Quan said was true.

If we continue to hold on like this, Station B will definitely die slowly.

“It’s a big deal, and it really needs to be considered.”

Luo Quan did not rush to urge Cheng Rui to make a decision, but said softly: "Actually, you didn't just give up the equity, you may also be able to usher in the life you love.

If given the chance, I will make Bilibili better. This is my promise to you, and I will make the same commitment to all users of Bilibili in the future. "

Cheng Rui didn't answer the call, just turned off the phone silently.

He now needs to be quiet and think about what he might gain after giving up Station B, and how to continue his life for the rest of his life.

This is not an easy decision, even if it is the right one.