nashuaworldcup Chapter 325 Tencent's Bet
Chapter 325 Tencent's Bet
As the car drove out of the park, Lu Ran glanced back at the TuTu Technology building.
Many lights were still on in the building, shining like stars in the night.
He turned back, leaned back in his seat, and closed his eyes.
The words Chen Mo had just said were still replaying in my mind.
Sakura Games has contacted Tencent's investment department.
This happened faster than he had expected.
But he remained calm.
Because he knew that Tencent was not a monolithic entity.
There are those who support Sakura Games and those who oppose it.
Chen Mo was the one who stood on the opposing side.
Moreover, he still had one card left to play.
The data for League of Legends is increasing every day, and user feedback is also growing.
As long as this game can maintain its current momentum, Tencent's investment department will have to think twice before collaborating with Sakura Games.
After all, capital is the most pragmatic thing. Capital will gravitate towards whoever can bring greater returns.
Lu Ran opened her eyes, took out her phone, and sent a message to Zhou Mingzhe:
[Brother Zhou, let's have a meeting tomorrow morning. There's some new information from Tencent.]
Zhou Mingzhe replied instantly: 【What's going on?】
Lu Ran replied: [Sakura Games bypassed Chen Mo and contacted Tencent's investment department directly. The two sides are discussing cooperation.]
Zhou Mingzhe sent an ellipsis followed by the message: "[Understood. I'll arrange it tomorrow morning.]"
Lu Ran put his phone in his pocket, leaned back in his seat, and looked at the city night view rushing past the car window.
This game is getting bigger and bigger.
...
The next morning, as soon as Lu Ran arrived at his office, Chen Mo called.
"Mr. Lu, is it a convenient time to talk?"
Lu Ran closed the office door: "It's convenient. Please tell me."
"I inquired again last night, and the negotiations between Sakura Games and the investment department are more in-depth than I thought." Chen Mo's voice carried a hint of fatigue, clearly indicating he hadn't slept much last night. "They've already had two rounds of talks. The first round was initial contact, where they got to know each other's needs. The second round was last week, when Sakura Games sent a team over with a complete cooperation plan."
Lu Ran sat in his wheelchair with his right leg resting on a footstool, and put down his coffee cup.
What are the core elements of the cooperation plan?
"It's similar to the one they showed me before. Sakura Games holds less than 10% of the shares, and the profits are split 30/70, with Tencent taking 70% and Sakura Games taking 30%. Technology sharing is limited to products that have already been launched and does not involve core R&D. Another clause was added—Sakura Games will open up their channel resources in the Japanese market to help Tencent's games enter the Japanese market."
Lu Ran listened without saying a word.
This offer was even more favorable than the one Sakura Games had shown Chen Mo before.
The offer to "help Tencent's games enter the Japanese market" was a huge temptation for Tencent.
While Tencent's gaming business is strong in China, it has not performed well in overseas markets.
The Japanese market, in particular, has high cultural barriers and different user habits. Tencent has tried several times, but the results have not been ideal.
If Tencent can enter the Japanese market through Sakura Games' channels, it would be a significant breakthrough.
"Mr. Chen," Lu Ran began, "how likely do you think the investment department is to agree?"
Chen Mo paused for a few seconds, then said, "To be honest, the investment department is at least 70% likely to agree. Sakura Games' offer is too good to pass up. Moreover, their perspective is different from ours. We focus on the product, the users, and the long-term ecosystem. They focus on returns, valuation, and financial data. From a financial standpoint, this investment is worthwhile."
Lu Ran leaned back in his chair and gently swung his right leg.
There's a 70% chance they'd agree.
This number was higher than he had expected.
"But there are still some uncertainties," Chen Mo continued. "There are actually several voices within Tencent, and not all of them are like me, resisting foreign investment. Some people believe that cooperating with mature foreign game companies like Sakura Games will help Tencent expand its overseas market and also help stabilize its domestic market. But others hold the opposite view, feeling that cooperating with foreign companies is like bringing wolves into the house; it may be beneficial in the short term, but it will be a hidden danger in the long term."
"The two sides are locked in a stalemate?" Lu Ran asked.
"Yes," Chen Mo said. "On the business side, several colleagues and I were clearly opposed. We believed that the problems in the Chinese game market should be solved by the Chinese company itself, without the need to introduce external capital. But the investment department thought we were too conservative, saying that in today's globalized economy, there is no way out by working in isolation."
Chen Mo paused for a moment, then continued, "The two sides argued several times, and neither could convince the other. In the end, the higher-ups said that neither side should rush to a conclusion, but should observe the situation first."
"Let's see first?" Lu Ran repeated.
"Yes. We won't sign a formal agreement with Sakura Games for now, but we won't refuse contact with them either. We'll maintain communication and continue negotiations. We'll decide whether to proceed or not when the time is right."
After listening, Lu Ran understood.
Tencent is hedging its bets.
Not putting all your eggs in one basket is a common strategy used by large companies.
On the one hand, we maintain cooperation with Tutu Technology to promote the development of League of Legends.
On the other hand, we are maintaining contact with Sakura Games to prepare for possible opportunities.
When the time comes, we'll allocate more resources to whichever side has the better momentum.
"Mr. Lu," Chen Mo's voice came through the receiver, "I'm telling you this so you know that the situation at Tencent is more complicated than you think. It's not up to me, nor is it up to the investment department; it's a power struggle between the two sides. All I can do is continue to push forward the cooperation with Tutu Technology on the business level and provide support for League of Legends to the best of my ability. But I really can't get involved in the investment department's affairs."
Lu Ran held his phone and remained silent for a moment.
"Mr. Chen, I understand," he said. "It's already quite an achievement that you've reached this level."
"There's one more thing," Chen Mo said, "I'd like to clarify my position with you."
"Please speak."
"I choose to believe in TUTU, and I believe in League of Legends."
Chen Mo's tone was very serious, not like he was just being polite.
"I've worked in the gaming industry for many years and have seen too many products. Some products are very popular when they are launched, but disappear after three months. Some products have great data, but they can't retain users. League of Legends is different. I had already reviewed it before its launch, and from a product perspective, it is currently the most complete, mature, and promising competitive game on the domestic market."
He paused, then continued, "Moreover, I choose to trust you. From the launch of TUTU until now, you've taken every step very steadily. You're not the kind of entrepreneur who gets ahead by luck or riding the wave; you're someone with real ideas and the ability to execute. I feel at ease working with you."
Lu Ran was somewhat moved after hearing this.
He never expected Chen Mo to say such a thing.
When Chen Mo approached him to discuss cooperation, he felt that Chen Mo saw the potential of "League of Legends" and wanted to get a share of the profits. It was a business collaboration, a win-win situation, nothing more to say.
But now he realized that Chen Mo not only saw the potential of League of Legends, but also wanted a piece of the pie.
He genuinely believed the game would succeed, and he also genuinely believed that Tutu Technology would succeed.
Moreover, Chen Mo has a stance on this issue.
He is not the kind of person who would change his stance at any time for the sake of personal gain.
He opposes Sakura Games entering the Chinese market, not because he has a partnership with Tutu Technology, but because he believes the Chinese market should not be dominated by foreign capital.
This concept is not commonly seen in the business world.
For the first time, Lu Ran felt that Chen Mo was indeed a suitable ally for long-term cooperation.
...