Chapter 366: The princess’ dilemma.
Money was a good thing in the movie industry.
It happened that the princess had money.
She was really rich.
Not mentioning anything else, just the new 10 million VIP subscribers in the past year gave Shanhai Streaming a cash flow of 1.8 billion Yuan.
Their income from advertisements also increased over a hundred fold compared to three or five years ago.
And because of the money burning characteristic of internet companies such as Shanhai Streaming, the shareholders always had to invest a lot. Since they had already invested that much, if they didn’t continue to spend money, all their effort would be in vain!
What was more pleasing was Shanhai Streaming was more and more favored by investors.
It was rumored that in October, five fund companies and business angels had contacted Zheng Rongrong for negotiation.
A domestic company valued the company at 70 billion USD and wanted 5% of the shares.
The highest offer was from Orange Corp, one of the seven largest fund companies in the US, and they had given the valuation of 60 billion USD. They wanted to get 10% of the shares and promised Shanhai Streaming they would help them at NASDAQ if they went public.
It caused a sensation in the Chinese business circle when this news came out.
They had never imagined that the value of Shanhai Streaming would rise so crazily.
After all, Shanhai Streaming was valued at 40 billion USD in October last year.
In just one year, they increased their valuation by 50%, which was as much as 20 billion USD, quite terrifying.
Facing such a sudden rise in valuation, some were ready to make a move while others didn’t agree with it.
Those who disagree were the many experts in the financial world.
They felt that Shanhai Streaming had indeed made great progress over the last year but this kind of progress had no substantial support and was basically achieved by spending money.
Over the next two years, if Shanhai couldn’t keep releasing great movies, bands or various other contents, it wouldn’t be surprising for their valuation to be cut in half.
After all in the eyes of the Chinese, steadiness was the best development.
Success out of nowhere always brought many troubles with it.
Those ready to make a move were obviously those who had stakeholders in Shanhai Streaming.
Shanhai Streaming shareholders structures were very clear.
Zheng Rongrong held 33%, Zheng Qian held 12%, Shanhai Group held 30% and a group of wealthy people in Nanwan owned the remaining 25%.
Shanhai Group was the number one private group in China so they naturally wouldn’t abruptly sell their shares of Shanhai Streaming. They also never liked to cash out their investment but hoped to hold some valuable company stocks for a long time to serve their company.
Moreover, the Chairman Zheng Qian was Zheng Rongrong’s father so it was impossible for him to strike at his daughter.
The group of wealthy people of Nanwan invested in at the beginning of Shanhai Streaming but the company had been losing money the previous years so they diluted their shares.
Not their 25% shares were getting more and more valuable but not many of them were willing to sell.
After all, Shanhai Streaming had not yet been listed!
After Shining Technology went public, their market value had soared by 300%!
With the current position Shanhai Steaming, even if it wasn’t a threefold increase but just a twofold of 120 billion USD, they would still be happy.
Then they could sell the stocks.
So who wanted to make a move?
It was the members of the Zheng family.
When Zheng Qian started his business, his younger sister Zheng Bi and younger brother Zheng Li worked hard along with him and made great contributions.
So they now hold both important positions at Shanhai Group with Zheng Bi holding 2% shares and Zheng Li holding 1.5% shares.
Calculating on the basis that Shanhai Group was valued at 400 billion USD, Zheng Bi was worth 8 billion USD while Zheng Li was worth 4 billion USD.
These two had influence on Shanhai Group but not much influence on Zheng Qian himself.
They had their nephews they respectively supported.
Zheng Bi supported Zheng Xingjian, the eldest son and the second child of Zheng Qian.
Zheng Li supported Zheng Xingwei, the youngest son.
Whether it was his three sons or other two daughters, they were all coveting Zheng Qian’s 12% Shanhai Streaming shares.
Zheng Qian said before that if Zheng Rongrong didn’t get involved in Shanhai Group, then he would give the 12% shares to Zheng Rongrong but she wouldn’t receive any of his Shanhai Group’s shares.
Everyone agreed at that time.
After all, Zheng Rongrong created Shanhai Streaming and the value from it was all due to her credit and then Zheng Qian invested 12% worth of shares to support her in her entrepreneurship so it was whatever if he gave it to her.
In this way, Zheng Qian’s personal wealth of approximately 50 billion USD in Shanhai Group would have nothing to do with Zheng Rongrong and be divided to the remaining 5 siblings.
They were naturally happy that one of their biggest competitors left.
It was different now.
Zheng Rongrong suddenly brought Shanhai Streaming to a market valuation of 60 billion USD and the 12% shares in Zheng Qian’s hands was worth 7.2 billion dollars, which was equivalent to one-ninth of his wealth!
50 billion divided in five was 10 billion USD per sibling, which was more than the 7.2 billion USD.
But Zheng Rongrong already owned 33% of Shanhai Streaming’s shares and adding those 12%, her assets would reach 36 billion USD!
Why would he give her 7.2 billion USD when she already had 28.8 billion USD?
This was what Zheng Rongrong’s younger siblings thought.
So recently, they all expressed their opinion to Zheng Qian.
They hoped that Zheng Qian would liquidate Shanhai Streaming at the high valuation of 60 billion USD before evenly distributing it to each child.
Six children, with each one receiving 1.2 billion dollars.
As the agreement before that all money would be given to Zheng Rongrong, everyone tacitly didn’t mention it.
Zheng Qian may have been decisive in his business but he couldn’t do anything about it when his wives, siblings and children all started clamoring about it.
The left and right all have meat, how could he choose?
Even Zheng Rongrong’s mother was asking for more benefits for her son.
Fortunately, Zheng Qian wasn’t a fool.
He called Zheng Rongrong to ask her opinion on it.
To ask what she wanted.
If Zheng Rongrong insisted on the tacit agreement everyone had before, Zheng Qian would transfer the 12% to her.
The princess knew in her mind that if her father really had this thought, then wouldn’t come asking for her at all and would just transfer the shares in his hand.
Now that he called, he actually wanted Zheng Rongrong to take a step back.
Zheng Rongrong wasn’t someone that couldn’t concede otherwise she wouldn’t have left Shanhai Group back then and left the important post to her siblings
The question was how much should she back down?