Single chapter: mih, PCCW and Penguin

Here are two simple sentences to prevent repeated questions in the chapter:

(1) When MIH invested in Penguin, why did only Lu Fei’s equity decrease?

Because this is not equity financing, but an equity transfer. It is a company's shareholders transferring their shareholders' equity to others for a fee in accordance with the law, and setting a price to obtain the price difference.

Such as Lu Fei's repurchase from Li Zekai and MIH's equity acquisition from Lu Fei. See Chapter 91 for details.

This is also the basic method of the angel round and the first round. First, transfer, and after the second and third rounds, financing will begin to dilute the equity.

Some people always ask why Feigou.com was not diluted in the first round. The root cause is here.

For example, you can refer to Lu Huateng’s 40% equity in the first round of financing, which was exchanged for US$2.2 million.

(2) Why didn’t mih take the initiative to find Li Zekai?

First of all, in 2001, there was little information and the Internet was not as developed as it is now. In reality, I didn’t know that Li Zekai was going to sell 20% of his shares at the beginning. It was Ma and Zeng who took the initiative to help them contact Idg and Yingke.

In addition, mih does not have a strong capital background. Apart from a little money, even if it privately acquires shares, major shareholders can use many methods to clear out small shareholders.

mih will not and dare not take the initiative to contact.

And Li Zekai is busy resolving a debt of 100 billion Hong Kong dollars. In the setting of the novel, because Xu Jinheng exposed him and Lu Fei, they are surrounded by news, and they cannot take care of both.

It can be said that the penguin’s millions of dollars are not on his mind at all, and he is surrounded by people from Hong Kong. How can he understand the information from the mainland?

This is the information gap in the middle. Lu Fei will be killed by mih and PCCW will be blocked.