YM778.TV Chapter 1149 - Paypal is also mine
Citibank’s Director is discussing with the Directors from JPMorgan and the other two banks about this. They are interested in investing in Amazon but are not willing to be treated like fools!
But Ralph told them this. Is eBay stronger than Amazon? Their share price is over 100 USD per share, and what’s wrong with selling you Amazon’s shares at 80 USD per share? Is it expensive?
Didn’t you all say you all can see the potential in Amazon? We have no intentions to sell Amazon’s shares to you all in the first place, and my Boss is now offering you all an opportunity to invest. If you all are not interested, it’s fine. My Boss can invest himself. Do you think my Boss cannot afford to invest a few hundred million?
“That Mr. Fu is the head of a top Hong Kong prominent family. The Fu Family’s asset is worth over 1 billion USD. I heard the Fu Family had supported Feng during the Asian Financial Crisis. That’s why Feng is giving them a discount.”
“Which side are you on? Are you telling me that American Express is willing to accept this pricing?”
“I did not say this. Based on what Ralph said, the share price difference should not be so big. They are not a listed company, and how can they double the share prices within weeks? I think we can negotiate on the share price. Since Ralph refuses to lower the price, we can speak to Feng directly.”
“How are we going to negotiate? Didn’t you all see Feng’s attitude? Although we don’t know how much he has in his bank, it will not be less than a billion USD. Even if he doesn’t do anything, he will not finish spending his money in his lifetime! Furthermore, Feng’s companies are all making high profits for him.”
“No. Feng’s pricing is targeting us. If he doesn’t want to sell the shares to us, he can reject us directly. I am guessing that he wants something from us and is waiting for us to approach him.”
“Wants something from us? What does he want? If he needs loans, it is not a problem. We had worked with Feng before, and we can approve his loan immediately. But does Feng need a loan? He has more cash than those casino owners!”
“I don’t know, but I decided to speak with him than guessing here.”
One of the Directors left, and the rest followed. All of them had thought of joining forces against Amazon and stop their support for Amazon’s online transactions.
But doing this will push Amazon into the arms of other banks. Although they are four of the top ten banks in the US, many other banks in the US. Feng is also close to HSBC, and if all other banks supported Feng, these four banks would be in an awkward position.
Amazon signed the investment contract with Fu Rongqi when Ralph sent Feng Yu’s message to those representatives. The share prices offered to Fu Rongqi is a discounted price, and he is pleased with it.
Feng Yu had let Fu Rongqi invest because he wants someone from the Fu Family to be a Director on the Board of Directors. The Fu Family is experienced in the retail business, and with them helping Amazon, Amazon’s development will be faster.
Amazon’s scale had already exceeded eBay, but not by a lot. More importantly, eBay had started to venture out of the US.
Although eBay’s biggest shareholder is Kirilenko, Feng Yu is happy for him. Still, Feng Yu does not want to lose to Kirilenko. Jeff Bezos also don’t want to lose to that eBay’s female CEO, Meg Whitman.
Amazon had not expanded overseas because of the shortage of funds. Amazon has experience in setting up eCommerce websites. Still, Amazon’s model is B2C, and they need a distribution center and a logistics base.
At the end of the day, Amazon had not expanded overseas because they don’t have money.
Now, with Fu Rongqi’s investment of 800 million USD, Amazon’s expansion plans in South America can start immediately. Their expansion might even be faster than eBay.
Amazon still doesn’t have sufficient funds to expand to Europe. Still, Manager Feng said there will be a second direct investment soon. The company will have sufficient funds to carry out all expansion plans.
The four banks did not expect Amazon completed the investment from Fu Rongqi when they are still considering. Amazon immediately announced they will be starting the second round of direct investment.
The banks’ representatives panicked. They knew if they still don’t agree to Feng Yu’s offer, they will lose the opportunity to invest in Amazon forever.
People will invest if a company lacks funds. But when the company doesn’t lack funds, they will not accept investment.
So, the representatives came to Feng Yu’s office again to negotiate with him. They want to know what other conditions Feng Yu want.
“I had started a company with a friend and had developed payment software. It is a third-party payment platform, and we need support from the banks...”
Feng Yu told the representatives about mobile and online payment platforms.
Citibank’s representative frowned. He is familiar with third party payment software because Citibank had signed an agreement with another payment platform. A large enterprise had started using this payment platform.
The usage rate for payment platforms is very low now, and most users prefer to use online banking.
Now, Feng is going to start a payment platform and wants to work with them. Is he going to snatch the customers of that third-party payment platform, Paypal?
That means Amazon is going against eBay now.
The banks’ representatives felt Amazon and eBay should maintain a good relationship as their banks own many of eBay’s shares. If either Amazon or eBay loses money, they will suffer losses. The best scenario for the banks is both companies do well.
“Mr. Feng, the mobile payment platform you are talking about is not unique. I know eBay is using a payment software called Paypal, and it is doing well.” Citibank’s representative said.
Seems like Feng is also not outstanding. He did not even do any market research. This mobile payment platform might seem to be a good idea, but with a competitor like Paypal, how far can it develop?
The other three banks’ representatives nodded and had a smug look on their faces. But they quickly stop as they are here to seek cooperation from Feng Yu, not here to mock him. Feng Yu has a bad temper, and they don’t want to offend Feng Yu over such a small matter.
Just when they thought Feng Yu will be surprised about Paypal, Feng Yu replied calmly. “Paypal? That is also my company!”
Translator’s notes:
Meg Whitman