Regarding this question, Lu Sifang pondered for a moment and then gave his own answer.
"The reason why we at Dongsheng Investment selected Mihayo is because we are very optimistic about your company's huge potential in the field of mobile games. When many game companies only focus on making skin-exchanging games to drain players' wallets,
,
Mihayo did not choose to join the trend, but instead focused on developing his own IP and creating a mature work to win the favor of players. At this point, Mihayo's persistence allowed us to see unusual possibilities."
Lu Sifang paused for a moment, organized his words and continued.
"The current domestic game environment is criticized. The high-ranking game companies such as Tenda and Zhuchang dominate the entire game industry with a near-monopoly, like an evil dragon entrenched in the game field."
"They have the two powerful tools of traffic and capital and are invincible. They set the industry rules as they please in the gaming field. In order to survive, many gaming companies have no other choice but to bow their heads and join in the trend."
"Mihayo, who focuses on technology research and development and IP creation, is exploring a new direction, a direction to fight against the evil dragon."
Cai Haoyu smiled sincerely when he heard this, and said with a little emotion: "We at Mihayo are just a small and famous workshop. We don't have the lofty ambitions that Mr. Lu said. We are just doing our best. If we can't change
The world, don’t let the world change you.”
Lu Sifang smiled slightly and said confidently: "What we at Dongsheng Investment want to do is to provide guns and ammunition to companies that have the ability to change the world, just like the investments we made before."
"Originally, this is also a commercial secret, but after having a good conversation with Mr. Cai, I don't mind disclosing some information to Mr. Cai. Our Dongsheng Investment has completed two investments before this."
"One is to support a new e-commerce company that can change the pattern of e-commerce, and the other is to support a game company that is committed to creating a game as popular around the world as League of Legends."
"In our view, Mihayo is a brave man who has the potential to break the dominance of one big company in the field of mobile games."
The skill of drawing a big pie is obviously not Zhou Dongsheng's exclusive skill. For Lu Sifang, who has senior investment experience, dealing with entrepreneurial teams is a common occurrence.
If you want to fool an entrepreneurial team into successfully investing, the skill of drawing a big pie is also necessary. After all, if you want to make everyone a community of interests, the easiest way is to set up a target with the same hatred and hatred.
And in the field of domestic games, who is more hated than Tenda? Lu Sifang is just doing what he likes.
"When Mr. Lu said this, it seemed that Dongsheng Investment was like a charity, and the investments it made were high-risk investments that were likely to go to waste. This seemed to go against the nature of capital to pursue profits."
Cai Haoyu was slightly surprised when he heard this and asked a question. Although there are mountains separated from each other, in Cai Haoyu's view, the e-commerce field is the same as the gaming field, with unshakable mountains standing in it.
“Investing is just like starting a business. It’s all about going for the tiger in the mountain, knowing that there are tigers in the mountains. High risk means high returns. Although hunting tigers involves the risk of losing one’s life and losing all the money, once successful, it will be a famous reward.
.”
Lu Sifang explained with ease, Cai Haoyu nodded in agreement, and finally raised the key question.
"What Mr. Lu said makes sense, so what is the valuation of our Mihayo in Mr. Lu's eyes? I am still very interested in this point. After all, you are the first capital company to favor Mihayo."
Cai Haoyu himself is not very resistant to financing. After all, focusing on technology research and development and IP creation is very expensive in itself.
Especially the "Honkai Impact 3" that is being created. Because of the abundant cash flow brought by the revenue from "Honkai Impact 2", Cai Haoyu also has the ambition to create a mature masterpiece!
To achieve this goal, the more funds, the better.
"Based on Mihayo's revenue last year, we can give a valuation of 10 times pe, and are willing to exchange 100 million in cash for 20% of the shares." Lu Sifang gave a reasonable price.
However, when the business has reached this stage, it is naturally a process of asking for high prices and paying back the money. Cai Haoyu said very directly when he heard this.
"If we look at last year's revenue, this valuation is still within a reasonable range, but our company's internal estimate of this year's revenue is easily over 100 million."
"According to Mr. Lu's valuation of 10 times PE, 100 million in cash can only get 10% of the shares at most."
It has to be said that game companies really make money. A mature game is like a company's cash cow, which can provide a steady stream of cash flow.
The success of the "Honkai Impact" series IP has indeed given Mihayo ample confidence to reject the covetousness of capital.
"Then if we put out 400 million in cash, will Mr. Cai be willing to sell 40% of the shares?" Zhou Dongsheng said with a smile.
"This is our boss of Dongsheng Investment, Zhou Dongsheng." As soon as Lu Sifang saw his boss speaking, he cleverly introduced Zhou Dongsheng, and then stepped aside.
After all, the boss who can really make the final decision is Zhou Dongsheng, but in my heart, I was secretly smacking my lips at Zhou Dongsheng's words of 400 million.
Why is the boss so optimistic about this game company? However, Lu Sifang has gradually adapted to the boss's usual style.
Although it looks like the behavior of a prodigal gambler, Lu Sifang believes that the boss has his own considerations. After all, Zhou Dongsheng has demonstrated his convincing strength before.
"Oh? Are you pretending to be a pig to eat the tiger? I didn't expect Mr. Zhou to have such a hobby." Cai Haoyu made a harmless joke.
Then he said: "However, I cannot comply with Mr. Zhou's proposal. Although I am very excited about this fund, this company does not belong to me alone."
"If 40% of the shares are sold, Dongsheng Investment will be Mihayo's largest shareholder, which means that we risk losing control of the company, which I cannot accept."
Any entrepreneur has a particularly strong desire to control his or her career, and is even less likely to give up control.
Zhou Dongsheng was not surprised by this, he was just looking for someone to talk to. Even though he had such a sum of money, it was unrealistic to invest it all in Mihayo.
After surviving the storm in the stock market, there will not be so much quick money to make, and Zhou Dongsheng also needs a certain amount of cash reserves to face emergencies.
What's more, Zhou Dongsheng himself takes a relatively light view of the control of a company. After all, his definition of investment is people, not companies.
"Just kidding, our investment philosophy at Dongsheng Investment has always been to respect the independence of the startup team and never seek control of the company, because in my opinion, only talent is the most valuable asset of a startup company. Only talent is the most valuable asset of a startup company.
Talent cannot be copied or replaced.”
"Only Mihayo, who is at the helm of Mr. Cai, is qualified to challenge the evil dragon. Mihayo is just a sword, but Mr. Cai is the brave man holding the sword."
Zhou Dongsheng said in a relaxed tone, this is like buying an aircraft carrier without a corresponding helm team.
