Many young people, upon entering society, are a bit overconfident, and there's nothing inherently wrong with that. As a certain big shot once said, God forgives young people for making mistakes. Don't misunderstand, I'm not trying to send young people to meet God.
He Zhengcheng's words didn't move Chao Yang much, at least not on the surface.
They flew to New York, rested for a day, found a lawyer, and on Wednesday, they met with Daisy Green, the Goldman Sachs representative in charge of eBay's IPO project.
"Why were your documents modified?" asked Clapham Duller, the lawyer He Zhengcheng and his team hired.
"The situation changed a bit, so we made some adjustments!" Daisy Green replied.
"Why weren't we notified in advance?" Clapham Duller pressed.
"Anyway, you want to buy eBay shares, and I can give you more. There's no need for you to dwell on other matters," Daisy Green said dismissively.
"Sorry, we need to review this contract!" Clapham Duller stated.
"You want shares, and we're offering you more; it's that simple! If you don't sign, and these shares are snatched up by others, don't blame me for not warning you in advance!" Daisy Green insisted.
"This…" Clapham Duller hesitated.
"Is there a problem with this contract?" He Zhengcheng asked.
"We've found two differences. One is that they can purchase up to $20 million worth of eBay shares depending on the situation. The other is that the voting rights for these shares will belong to them for six months after purchase," Clapham Duller explained.
"Is there a price limit?" He Zhengcheng inquired.
"Yes, if eBay's share price exceeds $18 per share, or if the total shares exceed 40 million, the transaction will be abandoned. That point hasn't changed," Clapham Duller confirmed.
Chao Yang remained silent, as this decision rested solely on him.
"We can purchase all $20 million worth of eBay shares, but the voting rights cannot be given. We need to re-examine the contract," He Zhengcheng decided after a moment of thought. eBay was important, but not just for making money. Losing voting rights meant losing influence over the company, so what was the point? Investing in any internet company now would be profitable.
"Such a good opportunity like eBay might not come again!" Daisy Green warned.
"Is eBay better than Amazon? There are many startups like this in Silicon Valley. I just want to enter Silicon Valley as quickly as possible, but that doesn't mean eBay is essential. Wall Street isn't just Goldman Sachs; I have many options," He Zhengcheng said, showing no weakness.
After a few pleasantries, everyone departed amicably. The other party did not utter any threatening words about not meeting again. In fact, even if they had a falling out, many people would still maintain a facade of peace.
Clapham Duller went to study the contract, while He Zhengcheng and Chao Yang investigated recent news about eBay, referencing the stock prices of Yahoo and Amazon. Only then did they realize the situation was relatively simple. It was still about Long-Term Capital Management. Reportedly, Bear Stearns had withdrawn from the bailout plan, and other investment banks were still hesitating. The good news was that the Federal Reserve had approved an emergency loan; otherwise, Long-Term Capital Management might have gone bankrupt.
"This should be a struggle for interests. Investment banks want more, and the Federal Reserve doesn't want to give it, so they're at an impasse!" He Zhengcheng mused.
"Isn't it that Long-Term Capital Management's risk has expanded, potentially threatening the Wall Street economy?" Chao Yang questioned.
"So NASDAQ and S&P are both falling?" He Zhengcheng asked.
"I see!" Chao Yang replied.
"It seems it's time to make a splash again, though I wonder if they'll give us the opportunity," He Zhengcheng said, looking at the information before him, a mischievous thought resurfacing.
"What are you going to do?" Chao Yang was puzzled.
"Let Shanhai Capital make a splash again," He Zhengcheng declared.
"???"
"We'll say that Long-Term Capital Management's crisis has actually passed, and they've weathered the most dangerous moment. The rest is about how to divide the profits, so…" He Zhengcheng began.
"…Will anyone believe that?" Chao Yang finally reacted after a long pause.
"How would I know? Aren't financial capitalists all like this? Who cares about the truth; just give everyone a seemingly correct reason, and that's enough," He Zhengcheng said. Isn't that how conspiracy theories emerge? When Goldman Sachs orchestrated Hypro's IPO, how many fools were duped? Those people probably didn't even know what America's FDA certification was. Yet they believed Hypro had incredibly broad market prospects, and the result… That same evening, He Zhengcheng and Chao Yang contacted Daisy Green again.
"How about it? Interested in cooperating?" He Zhengcheng asked.
"Why should I cooperate with you?" Daisy Green replied. She initially thought they were rookies but realized they had their strengths.
"The Yahoo report exposing Long-Term Capital Management's excessive leverage and potential bankruptcy was issued by us. Who is more suitable than us?" He Zhengcheng stated.
"That article was yours…" Daisy Green trailed off.
"Just look at the byline at the end of the article, and you'll know, won't you?" He Zhengcheng said.
Such things are hard to fake and would easily be exposed, so Daisy Green wasn't afraid of He Zhengcheng and his team fabricating such a crude lie.
"eBay's rising issue price isn't good news for you, is it?" Daisy Green said pointedly.
"So, leave us a seat on the board of directors!" He Zhengcheng proposed.
"That's impossible," Daisy Green said without hesitation.
"Nothing is impossible, or perhaps we can arrange a meeting first so we can understand each other better," He Zhengcheng suggested. Ask for the moon, settle for the stars. If he didn't join eBay's board at the beginning of its listing, once they went public, their soaring market value would make these people overconfident, and then there would be even less opportunity. If there was a possibility, he didn't mind sacrificing some economic interests. He Zhengcheng, who didn't understand investment banking or finance, made his judgments based on foresight and instinct.
"…" Daisy Green did not refuse this request. With the market downturn, eBay's initial public offering price was originally between $14-16, but now it was close to $14. Their income was tied to the issue price, approximately 5% of the financing amount. Issuing 3.5 million shares, the difference between $14 and $16 was about $350,000, which seemed a bit small. However, it didn't matter; eBay wasn't the only company needing to go public recently. All costs needed to be tacitly shared by everyone.
"Are you worried about affecting the interests of those big shots above?" He Zhengcheng asked.
Long-Term Capital Management was a juicy piece of meat, so many people wanted to devour it, but this had nothing to do with the small fry below.
"I'll go contact Meg Whitman now; the rest is none of my business!" Daisy Green said decisively.
"No, we can at most guarantee the article's publication on Yahoo. As for traditional media like the Wall Street Journal, we have no influence!" He Zhengcheng clarified.
"…" Daisy Green wanted to say that she didn't have that ability either.
"You have many colleagues; perhaps others have this need!" He Zhengcheng hinted.
"I understand!" Daisy Green turned and left, fearing that staying longer would make her sell her soul.
"Your mouth…" Chao Yang said, looking at the departing Daisy Green with some shock.
"…" He Zhengcheng gave a charming smile, mimicking Brother Xiaoming. It was just creating momentum and leveraging the situation; nothing to be surprised about!