Chapter 1859: Give You a Surprise

Of course, Tan Kaixuan wouldn't doubt Zhao Fusheng's words, but he still hadn't expected that Zhao Fusheng would ask him to secretly accumulate shares of Alibaba.

Could it be that he had some other idea?

Don't overthink it.

Zhao Fusheng slowly spoke: "I just think that Alibaba's shares are suitable for long-term holding and have room for appreciation."

That's true.

Tan Kaixuan nodded: "I know that."

After a few more words, they hung up the phone.

Tan Kaixuan didn't know that after putting down the phone, a faint, elusive smile appeared on Zhao Fusheng's lips.

Alibaba's shares were indeed suitable for long-term holding, but not now.

Or rather, as far as Tan Kaixuan was concerned, he had no idea that Alibaba would delist from the Hong Kong Stock Exchange a few years later and then list in New York.

This secret was known only to Zhao Fusheng himself.

In the original history, Alibaba's equity structure was complex: SoftBank held 36%, Yahoo held 24%, Ma Xiaoyun and his team held 24%, Ma Xiaoyun himself held only 7%, and the rest was held by other investors.

Unlike Taobao, Alibaba's pre-IPO valuation reached $120 billion, and after listing, multiplied by a P/E ratio of six, it would be $720 billion. Which company in China was that big?

But the problem was that Alibaba's equity structure was strange. The company that controlled the entire group was incorporated in the Cayman Islands, a tax haven. Ma Xiaoyun, who owned only 7% of Alibaba, chose to list Alibaba to use the capital market to regain stronger strategic decision-making power from foreign institutions.

As for the method, it was the partnership system and dual-class share structure proposed by Ma Xiaoyun.

The partnership system meant that 28 partners formed Alibaba's core team. After listing, more than half of the directors would be nominated by these people to the shareholders' meeting.

Voting rights were still decided by the shareholders' meeting, but the shareholders' meeting could veto. If the first seven nominees were rejected by the shareholders' meeting, then another seven would be nominated. If the shareholders' meeting still disagreed, then another seven would be nominated. In other words, Alibaba had the right to nominate and could nominate indefinitely until the shareholders' meeting approved.

The dual-class share structure was much simpler: same shares, different voting rights.

Alibaba's original shareholders, though they bought at the same price, had different voting rights. Ma Xiaoyun's team had one share equal to ten votes. So if Ma's entrepreneurial team held 24% of the shares, with each share multiplied by ten, then all major, secondary, tertiary, and minor shareholders would have no say.

There were many examples of tech companies using dual-class shares, but there had never been such an example at the Stock Exchange of Hong Kong.

But the problem was that according to regulations, to list in Hong Kong, a company must be listed as a limited liability company, assuming limited liability. The partnership system, legally, involved unlimited joint liability and was structurally difficult to form a company. So it was very hard to list under the partnership system; even in the United States, there was no precedent for listing under a partnership system.

Therefore, four years later, Taobao chose to delist from the Hong Kong Stock Exchange.

Then in 2014, Alibaba Group officially listed in the United States. After ups and downs, its market value remained around $500 billion.

This future was known to no one except Zhao Fusheng.

And Zhao Fusheng, in yesterday's meeting, had told Ma Xiaoyun about the partnership system and dual-class share structure, which was why Ma Xiaoyun was so happy.

Because he knew very well that by adopting this method, his and his team's control over the company would be unbreakable.

As for Zhao Fusheng?

Zhao Fusheng had made his stance clear: his investment in Alibaba was just a business. At the appropriate time, he would gradually reduce his holdings.

Zhao Fusheng was looking forward to seeing the expression on Ono Masao's face when he learned the news.

So, this is the result of your talk with Ma Xiaoyun?

Zhao Fusheng naturally wouldn't hide from Dong Chenxi; he told her the content of his conversation with Ma Xiaoyun.

Dong Chenxi was shocked: "By doing this, we completely lose control over Alibaba..."

Control?

Zhao Fusheng laughed, looking at Dong Chenxi: "Do you think we can control this company?"

Why not? Dong Chenxi said somewhat defiantly.

Hearing her words, Zhao Fusheng suddenly realized that he had always forgotten that besides himself, people like Dong Chenxi might harbor hostility toward founders like Ma Xiaoyun and his team.

Including JD.com, including Facebook.

Thinking of this, Zhao Fusheng put away his smile and said seriously to Dong Chenxi: "You have to understand, we are an investment company, and I, above all, value profit. For me, as long as Alibaba's shares appreciate and make me money, do you think I care who manages the company?"

Dong Chenxi was stunned, but suddenly realized that all along, Zhao Fusheng had never intended to operate the companies in which he held shares.

So, you mean we should cooperate with Ma Xiaoyun?

Dong Chenxi pondered for a moment and asked Zhao Fusheng.

Zhao Fusheng shook his head: "No need to bother with that. He'll handle the rest himself. As for the shareholders' meeting, you can go."

“Me?”

Dong Chenxi was slightly surprised, but still asked in confusion, “What about you?”

“I, of course, met with James.”

Zhao Fusheng said with a smile.

Everyone thought that his main purpose in coming here was to meet with Ma Xiaoyun and jointly counter SoftBank, but now Zhao Fusheng said that he wasn't here to see Ma Xiaoyun at all, but to meet with James.

Dong Chenxi was completely dumbfounded. She shook her head helplessly and simply stopped paying attention to Zhao Fusheng. This guy always did things in an unpredictable way.

…

…

The next day, at the Victoria Grand Hotel.

Zhao Fusheng sat in a chair eating, facing James, who wore a smile.

“Dear Zhao, meeting with you is definitely no easy feat. Should I feel honored?” James said to Zhao Fusheng with a smile.

Zhao Fusheng smiled. “Mr. James, what do you think is the reason I'm meeting with you today?”

“I guess it has something to do with Alibaba, doesn't it?”

James looked at Zhao Fusheng and shrugged. “We Americans don't like beating around the bush. I hope dear Zhao can be as straightforward as I am.”

Clearly, James felt he was the one in control this time; otherwise, why would Zhao Fusheng take the initiative to meet him?

People are the same, whether American or Chinese—when in a position of advantage, they unconsciously adopt a condescending attitude.

Like James now, he felt Zhao Fusheng needed something from him, so he naturally appeared very composed.

After all, having a super-rich man sit before you and treat you to a meal is no easy thing.

“Straightforward?”

Zhao Fusheng laughed and shook his head. “Mr. James, I think you've misunderstood something.”

“Misunderstood?”

James raised an eyebrow and looked at Zhao Fusheng. “Dear Zhao, do you know that Mr. Masao Ono has asked to meet with me?”

“Is that so?”

Zhao Fusheng smiled. “I suppose he wants the Alibaba shares held by Sequoia Capital.”

“Yes, as the Chinese saying goes, it's a hen that lays golden eggs.” James nodded and said to Zhao Fusheng, “Am I right, dear Zhao?”

Clearly, he was showing off his Chinese in front of Zhao Fusheng.

Zhao Fusheng shrugged. “You could say that. After all, Alibaba is indeed that for investors.”

Then he looked at James. “But I think it might be a better choice for Sequoia Capital to continue holding Alibaba shares, don't you?”

“Huh?”

James was startled and looked at Zhao Fusheng with surprise, his expression full of astonishment. He hadn't expected Zhao Fusheng to say that.

“What? What do you think I should have said?”

Zhao Fusheng looked at James with a half-smile and asked.

To be honest, he didn't like dealing with these people, especially Americans like James. They always liked to be self-righteous, complicating simple matters.

This was probably a common flaw among all Americans: seemingly polite, but deep down always carrying that innate so-called arrogance, always thinking they were the smartest and everyone else was a fool.

Or more precisely, they liked to take advantage but often acted like self-righteous idiots.

“Dear Zhao, you always surprise me.”

James was silent for a long time, then finally looked at Zhao Fusheng and spoke slowly.

He meant it. In the eyes of Sequoia Capital's analysts, Zhao Fusheng never played by the rules; every choice and decision he made was often unexpected.

Today's situation was even more so.

Originally, James wasn't surprised to receive Zhao Fusheng's call. After all, SoftBank's moves couldn't even be hidden from Future Investment, let alone the more powerful Sequoia Capital.

Sequoia Capital had even conducted a detailed analysis, concluding that if Future Investment wanted to maintain its position as a major shareholder, the best option was to cooperate with Sequoia Capital, even to acquire their shares.

In fact, the think tank behind James had already prepared a plan: once Zhao Fusheng proposed cooperation, they would set harsh conditions and extract certain benefits.

But James never expected that Zhao Fusheng wasn't asking for cooperation at all.

What the hell did this guy want?