Chapter 823: The Game Business

Among all of China’s IT companies, Baidu currently holds the undisputed top position.

While Alibaba and Tencent will eventually grow to become symbols of China, known as the BAT, they were still in their early stages now.

Baidu, however, had already seized control of China’s search engine market and was expanding its revenue model based on that success.

“Did you mention the gaming industry?”

At the mention of games, Li Yanhong glanced at Ma Huateng from Tencent who was next to him.

Li Yanhong was likely aware that while Tencent focused on its messaging service, the majority of its revenue came from games.

So, asking about entering the gaming industry in front of Ma Huateng must have made Li Yanhong feel awkward.

“Yes, the gaming business. I’ve invested in many gaming companies. I need a company to service those games in China.”

“I heard that Tencent has a near-monopoly on bringing Korean games into the country.”

“That was true until now. But not anymore. As of today, Tencent will be unable to import any games from Korea.”

Before Li Yanhong could respond, Ma Huateng raised his voice.

“Boss Kim, why are you doing this?”

I glared at the fuming Ma Huateng.

“Why am I doing this? Are you really asking me that? Do you think I’d continue doing business with someone who betrayed me? I’m a businessman, not a saint.”

“Didn’t I tell you it was a misunderstanding? I didn’t turn my back on you, Boss Kim. I just had to put out the urgent fire first and…”

Ma Huateng continued to make one excuse after another.

“Do I look like a fool to you? Do you really think I wouldn’t know you’ve cozied up to the Shanghai faction and secured a position as a representative at the National People’s Congress? You must have taken me for a joke.”

“H-how did you…”

“The fact that I’ve set foot in China again means all the forces that were pressuring me have retreated. You’re slow on information and have no sense. You’re the worst partner to do business with so I won’t be working with you any longer. Even if I have to pay the penalties, I’ll terminate all contracts for games currently in service.”

The color drained from Ma Huateng’s face in an instant.

Ma Huateng was an entrepreneur who also had a keen interest in politics.

In my past life, he even became a representative at the National People’s Congress.

The National People’s Congress was nominally the highest organ of state power in China.

That’s why he quickly switched sides when Jiang Zemin extended his hand.

“You’d better be prepared. I’ll interfere with every business Tencent is involved in. No matter how much it costs, I’ll back a competitor with the same business model.”

As I declared this in a calm voice, Ma Huateng snapped out of it and retorted.

“What gives you the right? You can’t just unilaterally terminate contracts that are already in place!”

“That’s why I’m offering to pay the penalty. What’s the problem with terminating a contract if I pay the penalty? There’s no legal issue whatsoever. Feel free to sue. I’m confident I’ll win. I’m confident I’ll win even if the Chinese courts make a ruling that favors Chinese companies.”

“Do you think I’ll just sit back and watch?”

Ma Huateng, trying to maintain his pride until the end, spoke in a harsh tone.

Looking at him, I curled my lips into a smile.

“You’ll struggle, of course. No, you have to. Try everything you can. That’s the only way it’ll be fun to crush you. It’ll be interesting from now on. You’ll find out just how ruthless I can be. I’ll soon liquidate my shares in Tencent and hand them over. You should get going now. Don’t you have other people to talk to?”

Now that things had come to this, I had no regrets about handing over my shares in Tencent.

Tencent wasn’t a company with great technology like Baidu or Alibaba; it was a company that grew solely on the back of a messenger with high market penetration in China.

Of course, later on, it would turn its eyes to the world, acquiring game companies globally like a dinosaur, but for now, it was just a small dinosaur relevant only within China.

“What are you doing? Go on now. This is what I called you here to tell you.”

Even though I had ordered him to leave, Ma Huateng stood there as if he were nailed to the spot.

I sent a look to Manager Ma who was standing nearby.

Manager Ma raised his hand and called the security guards who were on standby nearby. The security guards approached Ma Huateng and said.

“Please leave.”

“I was also invited here! Who are you to order me around?!”

“Please leave.”

No matter what Ma Huateng said, the security guards kept repeating that he should leave.

He must have been quite upset because he even raised his voice, despite knowing it would attract attention.

“Let go! Let go of me!”

“Chairman Ma Huateng, wouldn’t it be better to leave quietly? Many of the business leaders driving China’s economy are gathered here today. It wouldn’t look good to be thrown out of a place like this.”

“······.”

Ma Huateng didn’t respond but glared at me as if he wanted to kill me.

I looked over at Bo Xilai, who was watching this side with an intrigued look.

When our eyes met, I nodded at him, and he chuckled.

He had caught my signal to kick Ma Huateng out, and I saw him whisper something to the secretary next to him.

Moments later, several Public Security officers guarding the party venue entered.

Bo Xilai’s secretary approached Ma Huateng along with the Public Security officers.

“Chairman Ma Huateng, please leave.”

“What? Who are you now!”

“It’s an order from the Party Secretary.”

“······From the Party Secretary?”

“Yes. He says if you cause any more disturbance, it won’t end with just being thrown out.”

At the stern warning, Ma Huateng finally gave up and straightened his disheveled clothes.

Before leaving, he shot me a fierce glare, then turned and left the party venue.

“Now the uninvited guest is gone.”

I smiled again at Baidu’s Li Yanhong.

“······It seems you had a falling out with Chairman Ma Huateng.”

“You could say that. Did Chairman Li Yanhong not experience any pressure from the Chinese government?”

“There were some, but not strong restrictions. Of course, I was aware of the news. I heard that the companies you invested in, Boss Kim, were under intense scrutiny. But we didn’t experience anything like that.”

As I looked at him with surprise, Li Yanhong smiled confidently and said.

“Well, even if there had been strong pressure, our case is different. Our main business is the search engine and the rest is supplementary. Unless they blocked the site entirely, there would have been no way to restrict us. And they couldn’t really do that. If they blocked our site, China’s internet would be paralyzed.”

Baidu was a company that held more than 50% of China’s search engine market.

Shutting down such a company would be something the Chinese government would be reluctant to do.

Thanks to that, they might have been able to avoid the brunt of the Chinese government’s actions this time.

“I heard that one of the co-founders, Yong, left the company recently.”

“Yes, that’s correct. I acquired all the shares he held.”

It was common for co-founders to part ways when they didn’t see eye to eye.

In my past life, Yong resigned, and Li Yanhong began to fully manage Baidu by himself.

“If the temple is unpleasant, the monk leaves. So, what do you think of my proposal?”

“The gaming business is indeed attractive. But we’re currently preparing for our NASDAQ listing. We originally planned to go public last year but it was postponed for various reasons. So taking on a new business venture now would be difficult.”

“I’ve been briefed on that. Don’t worry about that issue. Dream High will put all its efforts into the preparations.”

“Really? Thank you. It’s reassuring to have Dream High’s support.”

“Not at all. It’s something we wanted as well.”

While I planned to delay Alibaba’s listing as much as possible, it was right to expedite Baidu’s as soon as possible.

It was already expected to be valued at one billion dollars.

In my memory, its market capitalization soared to four billion dollars on the first day of listing.

“Don’t worry about the listing, let’s talk more about the gaming business.”

I steered the conversation back to the gaming industry.

“The gaming market might not seem appealing to Chairman Li Yanhong yet. But as the number of internet users in China continues to grow and the infrastructure is laid out, games will show faster growth than any other field. Just look at the growth rate of the gaming industry in Korea.”

The growth rate of Korea’s gaming industry was astonishingly fast and broad.

The background to this growth was greatly contributed to by the high-speed internet deployment project and the new entertainment space called PC bangs.

“If Korea could grow like that, what do you think will happen in China with its hundreds of millions of people? Tencent has already shown that potential. Tencent naturally funneled users of their messenger, QQ, into their games.”

Tencent’s game publishing was a success.

Even considering the low internet penetration rate in China, its growth was phenomenal.

“Of course, behind that are the online games brought over from Korea. China’s game development capabilities are still lacking. So they need to bring games from Korea to service them. I can provide any game you want.”

China’s game development capabilities were still in their infancy.

Later on, they would reach a level similar to Korea’s, but that’s a story for the distant future.

Ultimately, a stable business required Korean online games.

And I know of one Korean game that achieved legendary success in China.

“It will take quite some time to acquire the Chinese service rights for Korean games from Tencent. But there are many Korean games that haven’t been serviced in China yet. And I know of a game that can succeed in China. How about it? Will you join hands with me and enter the gaming business?”

Li Yanhong seemed to be lost in thought for a moment, remaining silent.

I tilted my wine glass, calmly waiting for his answer.

“I did intend to enter the market eventually. I know games can be a good source of income. But is there really a game that guarantees success in China? You don’t know until you’ve tried.”

“Yes, there is one. We’re already preparing to launch the service simultaneously in China. If we can just find a partner to handle the Chinese service, we can launch it simultaneously in Korea and China.”

At my firm statement, Li Yanhong asked back in surprise.

“Are you really that sure of its success?”

“I guarantee it. If you’re uneasy, let’s proceed with the business by investing the same amount in a joint venture.”

“What game is it?”

“It’s a game called Dungeon and Fighter, being developed by Neoron.”

Li Yanhong tilted his head, seeming to have never heard of it.

But I already know that once it’s released, it will become a sensation and remain popular for a long time.

“The development is already finished. I’m the majority shareholder of that company. I usually don’t interfere in management at all, but for this one, I specifically instructed them to prepare for a simultaneous launch in Korea and China as the majority shareholder. Thanks to that, simultaneous service in Korea and China is possible.”

“That’s appealing. But it also means there’s a high level of risk.”

I nodded at Li Yanhong’s words.

A simultaneous launch in Korea and China had never happened before.

Most Korean games entering China were first serviced in Korea, then exported to Taiwan.

And depending on the results in Taiwan, they would decide whether to service it in China or not.

“I guarantee this game will further accelerate Baidu’s monopoly.”

“Alright. I’ll personally lead the working-level team to Korea. I’ll see the game for myself and decide.”

“You won’t regret it.”

Just then, Jack Ma, who had been listening quietly, chimed in from the side.

“Chairman Li Yanhong, Boss Kim’s advice never leads to losses. I can vouch for that.”

“Ah, Chairman Jack Ma. It’s a pleasure to finally meet you properly.”

The two began to converse, exchanging greetings, and I took the opportunity to look around again.

The chairmen of the companies I had invested in were hesitating, wondering whether to come over or not.

“Well then, please continue your conversation. I’ll be back after speaking with some other people.”

Jack Ma and Li Yanhong, two geniuses, started chatting away, regardless of whether I left or not.

I smiled faintly at the sight of them and started to move.

“Haha, I’ve been wanting to meet you.”

“The honor is mine, Boss Kim.”

That day, I met with all the companies I had invested in.

And depending on the choices they made, I gave them what they deserved.