HLnovel Chapter 236 AOL Wants to Invest
Chapter 236 AOL Wants to Invest
The phone on his desk rang, and Lingyun answered it.
"Mr. Ling, I am Steve Case." Case's voice was steady, with a carefully crafted sense of approachability.
"Hello, Mr. Case." Ling Yun's voice was neither humble nor arrogant, without any unnecessary pleasantries.
"First of all, congratulations on Xingyu's rapid growth. Even with such a big move by Microsoft, your performance is still impressive." Case got straight to the point; he liked to be direct, but he was used to giving affirmations first.
"Thank you. This wouldn't have been possible without the support of our users and partners," Lingyun replied in a very official tone.
"I've seen some data. StarTalk has a very high penetration rate among gamers and young tech enthusiasts. Its user activity and average online time per user even surpass those of early ICQ, which is remarkable." Case paused, tapping his fingers lightly on the table. "I believe that after Microsoft acquires ICQ, it will use all its resources to squeeze StarTalk's market share. Pre-installation, bundling, marketing fees... they won't hold back."
"We've seen this possibility," Ling Yun said calmly, "and we're making preparations."
"You need to prepare more resources." Case leaned forward slightly. "The Star Language business may need a separate round of financing to support faster technology iteration and market expansion."
There was a two-second silence on the other end of the phone.
Case smiled. "AOL is very interested in participating in StarTalk's financing."
"Why?" Ling Yun asked directly. "AOL has its own AIM with a huge user base. What's the logic behind investing in a potential competitor?"
"We are not competitors, but potential allies, or rather, a flexible strategy in areas of shared interest," Case said cautiously. "AIM users are all our dial-up network users, but in the broader general internet market, we need to observe and participate. Microsoft is one of our main competitors, at multiple levels including browsers, portals, and access services. In the emerging and highly sticky battlefield of instant messaging, helping a competitor that gives Microsoft a headache is in AOL's strategic interest."
"So, this is a strategic investment, to contain Microsoft?" Lingyun asked doubtfully.
"That's one way to understand it, but we prefer to call it an 'investment in the future.' We are optimistic about instant messaging and appreciate the execution capabilities of the Star Technology team. This investment allows us to build closer connections, share industry insights, and even discuss areas such as technical standards and interoperability." Case threw out the two enticing words "technical standards" and "interoperability," which are things that any player looking to build a large platform cannot ignore.
"What percentage does AOL hope to acquire? What are the additional conditions?" Lingyun cut to the chase.
"The percentage is negotiable. We hope for a meaningful share, enough to secure an observer seat on the board, but without affecting your independent operations and control," Case said. "With the condition... we hope that AOL will be a preferred partner when StarTalk considers cross-platform interoperability in the future. In addition, where possible, we hope to explore the possibility of integrating certain AOL online content or services with StarTalk."
"Observer seats are open for discussion. Interoperability and service integration require specific technical solutions and commercial terms, which cannot be promised at this stage." Lingyun's answer neither closed the door nor made any easy promises. "Xingyu will remain open to financing and welcomes investors who bring strategic synergy and long-term value. However, the core principle is that we must maintain the independence of Xingyu's product development and prioritize support for our existing ecosystem."
“That’s natural.” Case understood Ling Yun’s bottom line—the control over the ecosystem could not be diluted, which was within his expectations. “We can arrange for a team to formally contact them regarding the specific valuation and terms. Barry Schuler,” he glanced at his subordinate on the sofa, “will be in charge of following up.”
A very soft, almost imperceptible laugh came from the other end of the phone. "Well then, let the specific teams handle that. Mr. Case, one last question: do you think the price Microsoft paid for ICQ was reasonable?"
Case hadn't expected him to ask that. He paused for a moment, then chose an honest answer: "From a purely financial perspective, it's on the high side. But from Microsoft's perspective, they probably think it's worth it to build a defense and prevent you from forming a monopoly at key entry points. The business world is like a battlefield; sometimes, the price depends on how nervous your competitors make you." He subtly hinted at the existence of price gouging, but didn't say it outright.
"Indeed." Ling Yun's voice was calm. "Perhaps it's not just us who are making Microsoft nervous. Sometimes, a little bit of just the right amount of 'market buzz' can make prices 'reasonable'."
This statement was quite meaningful, and Case suddenly realized that this young man might know more than he had imagined.
"Interesting insight." Case said calmly. "Well then, I look forward to further discussions within our team. Goodbye, Mr. Ling."
Goodbye, Mr. Case.
Case slowly put down the receiver and looked at Barry Schuler. "What do you think?"
"He was wary, but not averse to conflict. His bottom line was clear: he wanted money and strategic backing, but he would never relinquish control," Barry summarized. "He was a difficult but sensible negotiator."
"Notify the investment department to prepare a preliminary assessment and price range. Don't rush, but be thorough." Case leaned back in his chair. "Also, check the extent to which news of our bidding war for ICQ with Microsoft has been leaked. In particular, is it possible that Star Technology knew about it beforehand?"
Barry nodded and made a note of it.
In Silicon Valley, Ling Yun frowned slightly after hanging up the phone. It was no surprise that AOL wanted to get involved.
They wanted a piece to counterbalance Microsoft, while simultaneously planting a seed for themselves in the vast battlefield of instant messaging.
Lingyun needs their money, their channel endorsement, and to absorb their users after AOL's decline in the future, making good use of their resources to cope with the pressure from Microsoft.
This is a game where everyone gets what they want.
The key lies in who can more effectively leverage the strengths of the other party in cooperation.
It is clear that Lingyun has a clearer understanding of the future.
He pressed the intercom button: "Eric, raise the development priority of the Star Language Windows prototype to the highest level. Also, prepare a detailed funding plan framework; we need to start contacting potential investors."
"What are some areas that investors should pay special attention to?"
"We can also extend invitations to existing shareholders, AOL, and the Middle Eastern institutional investors who came last time, as well as European sovereign wealth funds," Ling Yun said. "But remember, firstly: control must be in our hands. Secondly, the valuation cannot be lower than the price Microsoft offered to ICQ per user."