Chapter 197 Dialogue (Part 2)
movements surprising Zeng Ke. Usually lazy, her son had suddenly become so industrious.This brought her a slight comfort amidst her depression.In the evening after dinner, Su Licheng and Zeng Ke did s...Volume 6 Chapter 197: Conversation (Part 2)
The world was changing rapidly.
The much-discussed "West-to-East Gas Pipeline" project had officially commenced commercial operations. High-quality natural gas from the west ignited in Shanghai, propelling the Yangtze River Delta region into a new era of clean energy. The Baihe Metering and Delivery Point in Shanghai was the terminal station for the West-to-East Gas Pipeline Project and would be responsible for supplying the entire city with natural gas.
The issuance and replacement of China's second-generation ID cards were being rolled out across the nation, with pilot programs underway in various cities. The first batch of pilot projects took place in Jiading District and Chongming County in Shanghai, and the official roll-out began in other regions later that year. Many people found the new generation of card-like IDs, resembling IC cards, to be novel, as the first-generation ID cards, similar to laminated plastic cards, were gradually becoming obsolete, much like cassette tapes and black wooden pencils with erasers.
The red line area for the 2010 Shanghai World Expo had been determined. Spanning from Nanpu Bridge in the east to Pudong Road in the south, and bordering the Huangpu River in the northwest, this zone covered approximately 5.53 square kilometers, every inch of which would exude an allure that mesmerized politicians and economists alike.
The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) held its 60th session in Shanghai, with the theme "Strengthening Regional Cooperation to Meet Challenges in a Globalizing World." In essence, the discussion revolved around how the 62 member and associate member countries of UNESCAP, along with relevant international organizations and non-governmental organizations, could ensure their interests in this rapidly changing era.
In May, new traffic safety regulations were implemented. Most pedestrians and drivers remained unaware of these changes; according to incomplete statistics, Shanghai handled 2500 cases of traffic violations on the very first day, including nearly 600 cases that were penalized immediately.
Also in May, Wu Chuangji, who was in charge of China's Ministry of Information Industry (MIIT), could no longer uphold his promise from two years prior to foreign shareholders and overseas capital markets regarding non-directional charges. As a result, Shanghai officially began issuing numbers for small-scale wireless phones (PHS), thus breaking through the MIIT's policy restrictions that prohibited PHS services in Beijing, Tianjin, Shanghai, and Guangzhou. This move disrupted the "duopoly" market dominance and heralded an era of non-directional charges. Six years later, with its transitional mission completed, PHS would be phased out by the wave of 3G technology, just like paging devices, marking a significant change in the times.
"The world is changing rapidly and will become increasingly transparent," Mark Zuckerberg said as the Seventh Shanghai International Film Festival was slowly unfolding along the Huangpu River.
Fireworks shot into the sky, exploding into deep blue or dark purple sparks that reflected on the mirror-like surface of the river. The fireworks in the sky and water, together with the dazzling night view of Oriental Shanghai by the shore, seemed to create a mirrored world through the ripples in the water.
Mark Zuckerberg was staying at the Furama Global East Asia Hotel near Xujiahui upon his arrival in Shanghai.
Su Cen originally planned to bring dozens of high-ranking officials from Facebook China to Huancheng Reservoir in Sichuan Province or have a meeting in Hunan, but he happened to coincide with the arrival of Mark Zuckerberg, the highest executive at Facebook. Thus, it was decided to hold this year's Facebook annual conference on this occasion.
The annual conference was set at the Fortune Global East Asia Hotel, where 150 company employees attended; most of them saw Zuckerberg for the first time or in such close proximity. Two days before his arrival, everyone from top management down to regular staff were brimming with a mixture of excitement and nervousness. During the conference, he gave an inspiring speech about his and Su Cen's high school initiative that led to the creation of Facebook, which elicited rounds of awe and envy.
Most people when joining Facebook thought it was already quite youthful; how could there be such a young employee They then saw him entering the CEO’s office without being stopped by the receptionist and assumed he was either Qiao Shuxin's nephew or another close relative. Seeing Qiao Shuxin, who usually exudes authority, coming out of his office to have serious discussions with Su Cen, it became clear that this wasn't just a familiar acquaintance or family member dropping by.
Only after piecing together hints and clues did they become astonished to the point where their jaws dropped open.
The entrepreneurial history told by Mark Zuckerberg about those unrealistic, even whimsical ideas born under foreign skies had now left that American high school and come to China as reality. They had become kings of the world's most advanced social empire. Just like they had proclaimed in a room filled with American sneakers and high-school pine-scented air, they aimed to change the world.
That year, Mark Zuckerberg was still a son from a family destined for Harvard dental school, while Su Cen was a high school student without a clear future. The changes depicted in novels and films were actually happening in reality right before their eyes.
Zuckerberg concluded the conference with the statement, "If you miss out on a nation of 1.2 billion people, how can you claim to conquer the world" This elicited thunderous applause from everyone present at Facebook.
Many were moved by his speech and might have gained new perspectives about their young CEO or insights into life changes. Some commented that this American executive had imperial tendencies with strong conquest instincts and aggressiveness, while others objectively noted he was an idealist, but often it's such people who succeed in the world.
After the conference, everyone was taken directly to the Huangpu River, where Facebook chartered the luxurious cruise ship Shanghai Splendor, which had hosted state guests before, for a night tour and buffet party along the river.
Liu Changhui specifically informed Su Cen that Shanghai Mayor Wang Quan wanted to meet Zuckerberg, so they likely would be dealing with government-related matters in the coming days.
Throughout his entire trip, Zuckerberg kept it highly confidential. Due to social issues Facebook faced in America, many countries internationally were discussing how to deal with its situation - either restricting access or banning it entirely within their borders. The situation of Facebook China was not optimistic among high-level discussions domestically; various ministries like the Ministry of Science and Technology, the Ministry of Industry and Information Technology, and the General Administration of Press and Publication had voices advocating for action. At present, what Facebook China needed most was to maintain a low profile - if news of frequent contact with American counterparts came out now, it would be even more fuel on the fire.
Su Cen couldn't guarantee that information about Zuckerberg's arrival in China wouldn't be picked up by perceptive media. However, at least he made sure to keep the itinerary discreet and low-key; even if there were minor reports, they wouldn’t cause any commotion. Hence, the final party was moved to the Huangpu River.
The night was dark and windy, with the city's lights seeming to penetrate through the clouds.
On the deck below, Su Can, Tang Wu, Zack, Kate (the CFO of Renren Inc.), Qiao Shuxin, Mu Guotao, and others—these key figures of Renren Inc.—were leaning against the railing.
"We desperately need money. Refusing a lower valuation back then was a mistake. If we had accepted it, more investors would have been willing to buy our stocks, and Facebook could have raised much-needed funds," Zack said as he took a sip of his drink; the liquid in his glass shimmered under the city's night lights and fireworks.
The Renren Inc. executives present exchanged glances; they knew what Zack was referring to—the refusal of a lower valuation was big news earlier this year, causing them some concern at the time.
At the beginning of 2004 in Sunnyvale, Yahoo's executive team watched as social networking flourished, yet their own position remained unassured. Over the past year, they had approached Mark Zuckerberg multiple times. Ultimately, Yahoo’s executives decided to acquire Facebook, with CEO Terry Semel initiating contact with Zack and expressing a willingness to buy the company for $2 billion. This acquisition proposal immediately sparked intense debate among American Facebook's board members.
Board member Jim, representing Accel Partners, argued that this was an opportunity for significant profit. In venture capital terms, it was their "exit" moment. They had invested $63 million last year and could potentially see a return five times greater within just ten months.
During those board meetings held during the period of conflict, two factions formed, mainly between older employees and younger ones. At that time, TheFacebook's key players Eduardo Saverin and Chris Hughes wanted to sell the company, while Dustin supported Zack’s position. There was a clear division among shareholders and employees.
However, in the five-person boardroom, since Su Can had granted joint CEO rights to Zack along with Dustin, he effectively controlled three seats on the board. Yet, having two of those votes cast for himself gave him an iron-fisted control that somewhat diminished his credibility.
Jim and Donald each held a seat; Jim was resolute in wanting to sell the company. Zack aimed to reconcile these differences, but the final decision rested with Donald, who, despite being older and inclined towards selling, ultimately sided with respecting the founders' wishes by voting for Mark Zuckerberg’s position, thus leading to Yahoo's acquisition bid failing.
However, Facebook used this failed acquisition attempt to boost its valuation to around $4 billion.
If those world-shaking events had not occurred—if the new wave of revolutions hadn't been sparked by Facebook in various parts of the world—and if there were no tragic incidents such as fathers killing their daughters or public discourse on human wickedness, then this valuation would have only further enhanced Facebook's appeal and influence, gaining even more admiration from Silicon Valley. But偏偏那些事情都發生了。
It was rumored that some U.S. Congress members proposed legislation to shut down American Facebook until they addressed public concerns and mitigated potential harm.
In this public opinion climate, the previous high valuation of Facebook has become problematic. Facebook needs money, but investors willing to provide it will weigh the current situation and consider whether funding Facebook is worthwhile. The capitalists in Silicon Valley and Wall Street are fickle; they may compete for attention when a company is at its peak, but once a crisis hits, the ruthlessness and coldness of the capital circle become apparent.
Su Cen stirred his drink and asked, "What was it like to reject Yahoo's acquisition offer"
Zuckerberg frankly replied, "It was very conflicted. I'm not a saint; just by agreeing, $2 billion could have ended up in my account. You need to understand that if we hadn't started Facebook, I might never earn such real money in my lifetime. This is $2 billion."
He paused for a moment, as if recalling the scene vividly back then, "This is a huge sum of money; it could truly change the lives of those around me and many people who work for me. I can see their longing — students from Stanford University, Harvard students, engineers in Silicon Valley working at Facebook. They might have been waiting all their lives for this moment. They can live comfortably with their wives and children for the rest of their lives, go on vacation to Hawaii, or ski in Switzerland. All these happy moments are within my grasp; honestly speaking, I was under immense pressure back then, unable to sleep at night. Later on, I thought about it; compared to money, we have so many opportunities to change the world. I don't think accepting this amount of money would be fair for everyone."
"You are already becoming a true leader who can manage such a massive entity as Facebook," Su Cen nodded appreciatively. The tech-nerdy boy with freckles had grown up and was now starting to walk down his path towards kingship.
“But we still need money,” Zuckerberg said, “Facebook has to pay the salaries of 500 employees and maintain additional servers for new data centers. There are only two data centers in America for US Facebook; all information seen by users worldwide goes through them. Loading a Facebook page from afar takes forever, so expensive additional server clusters outside America are necessary to adapt to global growth. We also need to build commercial infrastructure foundations — we have an international headquarters in Dublin and sales offices in London, Paris, Stockholm, Sydney, with more to come. I still don't know how to solve the money problem.”
Only when you reach that position will you truly understand the immense challenges involved. Su Cen's Chinese version of Facebook could not help US Facebook at this moment; the funds consumed by US Facebook were too vast, while the profit from Chinese Facebook was merely impressive in the relatively thin soil of China’s internet. If he tried to provide financial support for US Facebook, it would exhaust him like a vacuuming star energy.
Thus, facing Zuckerberg's predicament, Su Cen could not offer any strategic advice regarding faraway US Facebook. He had grown up and developed in China; he studied at Nankai University and developed in Shanghai, rather than Stanford or Palo Alto. He was unfamiliar with the internal operations of US Facebook. While operating Chinese Facebook might still work under the support of a team like Qiao Shuxin's, talking about US Facebook would be akin to a blind man leading another.
He could only pat his shoulder and, facing the sea breeze from the Huangpu River, said, "There will always be a way..."
Zuckerberg nodded, “Yes, I understand. Coming to China is just for relaxation...”
Zuckerberg came to China merely as an escape; the consecutive departures of Facebook’s founding team and their current public opinion and governmental challenges made him feel stifled in that land.
“Have I told you This year, several congressmen and military officials are advocating for a hearing on US Facebook整頓並針對美國臉譜召開聽證會的提議，甚至還有關閉Facebook的聲音,” standing shoulder to shoulder with Su Cen, Zuckerberg said. His curly hair was ruffled by the wind as they stood on one of the most luxurious cruise ships on the Huangpu River, cutting through the waves.Can continued to pick up food and eat rice; the cafeteria was still bustling with people. The fact that he could sit beside Tang Wu instead of opposite her increased their sense of closeness. However,...