Reborn multinational giant

Fang Zhe and other Huizhong staff stayed in Seattle for four days. In addition to discussing with V agency about Huizhong’s agent for Steam China, Fang Zhe also took the time to visit Baokai Company and talk to the senior officials of Baokai Company. Talked about the arrangement of the Chinese version of "Plants vs. Zombies" in mainland China and its adaptation into a page game and a mobile game.

Nowadays, "Plants vs. Zombies", a stand-alone computer game, has become popular in Europe and the United States. The progress of the Chinese translation of the cooperation between Huizhong and Baokai has also been completed. The estimated time is about mid-August. The stand-alone computer version of "Zombie" will log in to the Chinese mainland market. At that time, Huizhong will be responsible for the operation and promotion of this game in China.

The Chinese version of "Plants vs. Zombies" is actually not a pure stand-alone game. At least some of the content in it needs to be purchased for a fee. This is also the revision decision that Huizhong negotiated with Baokai.

It is obviously impossible to expect most players in mainland China to pay for this game. Therefore, after negotiation between the two parties, they decided to release a free version in mainland China and realize profit by adding paid content such as paid items to the game!

Unfortunately, even if Huizhong talks about the agency rights of Steam China, it will be difficult to complete the relevant work deployment of the independent operation of Steam China in a short period of time. According to the estimates of the negotiations between the staff of both parties, this time, at least half a year later, will be obtained next year. In February, Steam China will officially meet with players in mainland China.

Otherwise, taking advantage of the domestic trend of "Plants vs. Zombies", Fang Zhe still thinks about relying on it to make a free advertisement for Steam China in advance!

On August 2nd, Fang Zhe and Huizhong's staff flew back to Yanjing from Seattle. At the same time, Huizhong sent a negotiation team and docking team to Seattle, USA to start the independent operation of steam in China with V agency. Preparation for negotiation and matchmaking.

This time, when we won the steam agent rights in China, Huizhong paid an agency fee of 10 million U.S. dollars. The contract period is 5 years. Within 5 years, Huizhong will be responsible for the operation of Steam China.

For the revenue generated by Steam China in mainland China, 70% will go to Huizhong. On the surface, 70% of the revenue is a lot, but considering the games released on Steam, 70% of the revenue has been owned by the developer. The steam platform Fang only took 30% of it.

In this 30%, Huizhong scores 7:3 with V agency. The profit is only 20% of the total game revenue. Regardless of the cost of Huizhong operating steam in China, the net profit may only be less than 10% of the total game revenue!

Even so, Fang Zhe and Huizhong still have great expectations for the prospects of Steam China. It does not matter if the game revenue is less. As long as the player community can be built and can accumulate tens of millions of users, then, in the future, whether it is Huizhong publishes its own terminal game masterpieces in the country or relies on massive players to enter game live broadcasts, e-sports competitions and other fields. Huizhong will have unparalleled advantages!

Nowadays, neither Huizhong nor V agency has publicly announced that Huizhong will be acting as an agent for Steam China. This is also discussed in advance by Fang Zhe and G Fat. Steam officially enters China and will inevitably end up in China. The industry has a great impact. Before that, both parties still need to keep the news, make more and adequate preparations, and wait for the right time to announce the news.

One of Huizhong’s preparations for this was to buy shares in YY. On August 7th, just a few days after Fang Zhe returned to China, Fu Xinming, the manager of Zhongying Domestic Capital, called Fang Zhe and informed Fang Zhe and YY. The senior leaders of the happy gathering era have already contacted, but the other party said they have no financing plan for the time being.

In April of this year, YY just received $23 million in financing from CGV, a foreign venture capital investment, but at that time, Huizhong’s overseas business was in crisis, and Fang Zhe had no time to think about it, so he missed it. Invested in YY at that time.

However, according to Fu Xinming’s survey feedback later, even if Zhongying and Huizhong had the energy to invest in YY at the time, it was difficult to obtain investment opportunities. Because the lead investor CGY that invested in YY last time was an independent investment, they did not I hope that other venture capital and capital will participate in the investment. Unless Zhongying Capital and Huizhong become the lead investors, CGY is no less than a few million dollars in selling a share.

Although Huanju Times has no financing intentions for the time being, Fang Zhe does not plan to give up investing in YY. Today, YY has accumulated more than 30 million registered users in China, especially after YY launched YY voice in the middle of last year. The number has increased exponentially, and the highest number of simultaneous online users of YY Voice has exceeded 1 million!

In the field of PC software, YY has already had a certain threat and influence on Tencent’s QQ. This is one of the reasons why Fang Zhe hopes to invest in YY. Now, Fang Zhe has neglected to deal with Xinxing in order to involve Tencent’s energy in China. The mobile Internet generated enough attention, it can be described as painstaking.

In addition, after the official entry of Steam into China, the number of YY voice users currently serving most game players will inevitably increase significantly. These users are all real Steam users, and Fang Zhe has regarded these users as his own. What's in the bag, how can it be allowed? Other companies have taken advantage of the operation of steam China by Huizhong. You can take advantage of it. You have to have a relationship with Fang Zhe or Huizhong.

Therefore, Fang Zhe, in order to be able to buy shares in YY or obtain shares of YY, he had to go through the back door, and this relationship and the back door are already very familiar with Fang Zhe. Recently, Mr. Lei, who is busy preparing to start Xiaomi!

As early as 2007, Mr. Lei, an angel investor, invested 1 million US dollars in angel investment for YY, which was just founded not long ago, and obtained nearly 20% of YY's shares.

In the past two years, the valuation of YY has been increasing exponentially. Mr. Lei’s initial investment has also doubled more than ten times. In his previous life, Mr. Lei did not sell any shares in YY until YY was listed in 2012. He also spent money to increase his holdings of a small portion of tradable shares, surpassing YY founder Li Xueling and becoming the largest individual shareholder of YY.

By 2018, before Fang Zhe's rebirth, the market value of YY was more than 6 billion U.S. dollars, and Mr. Lei, who held more than 20% of YY's shares, was worth more than one billion U.S. dollars alone!

Many ordinary people think that Lei always made a fortune after he founded Xiaomi. In fact, Mr. Lei was one of the first to realize financial freedom in the Internet industry.

After Mr. Lei sold Joyo for more than US$70 million in 2004, his personal wealth has reached tens of millions of US dollars, not to mention his shares in Jinshan. After he left Jinshan, he invested like Startups like YY, UC, and Vancl, whose valuations have since doubled hundreds of times.

Therefore, even if he did not start Xiaomi, Mr. Lei is a real top rich man!