Growth-type Super Rich

"Go on."

"So what I'm saying is that we should take a different approach by giving up competing for traffic. Instead, we'll use funds to open up a new market for Panda TV in the short term, making sure the name gets out there no matter the cost. We want to establish the reputation of Panda TV as having people who are 'dumb and rich.'

Meanwhile, we can take advantage of the two companies battling over the existing market to improve the overall quality of Panda TV's streamers. Simply put, we use 1.6 billion to create a whole new Panda ecosystem."

Principal Wang originally thought Gu Bai would have a good idea, but after waiting for so long, all he got was this. He couldn't help but shake his head and sighed, "You really don't understand the live streaming industry. Sure, you could do what you said, open up a new market, improve streamer quality with 1.6 billion, but then what?

This is live streaming, where the audience is king. Who cares about the streamers? To be harsh, these days even dogs can be streamers!

By the time Douyu and Huya react, our grand plan could be dismantled at any moment."

Principal Wang's remark that even dogs could be streamers left PDD and the others feeling extremely awkward, but they couldn't refute it.

"Why are you in such a hurry? Let me finish."

"In 2018, it wasn't just the live streaming industry that took off; short videos did too. You've seen the rapid valuation of ByteDance, haven't you?

The thing about short videos compared to live streaming platforms is that they are more convenient. In this fast-food era, everything is about pace. A short video, just a few seconds long, can gain millions of followers. That's the advantage of short videos.

Coincidentally, Brother Zhun, Zhao Weiwei, and I have a company that is currently basically the largest MCN organization on Douyin. Almost half of Douyin's top internet celebrities are under our company, and we have the most complete internet celebrity incubation system in the country right now. To put it simply, as long as we don't calculate costs, we can create an internet celebrity with a million fans in just 10 days.

And when the quick creation of internet celebrities by short videos meets the fastest way to monetize, which is 'live streaming,' what kind of sparks do you think will fly?"

After hearing Gu Bai's words, Principal Wang was first stunned, then became wildly excited.

This is definitely a huge undeveloped market.

Seeing how excited Principal Wang was, Gu Bai calmly sipped his tea.

Because he knew that he was just benefiting from being reborn. Capital is the most sensitive. Not a year from now, just wait a few more months. Once the short video industry officially starts to expand, all kinds of capital will flood in, and the model of creating internet celebrities + streamers will be played till it's perfected.

At first, keep it restrained, recruit some top internet celebrities to stream on the major platforms. For example, Li Bawan was signed with Huya for a high price back then, but in the end, didn't make any money and owed Huya a huge compensation. A typical case of a brainless internet celebrity.

But as this model developed further, it got simpler.

Douyin and Kuaishou, the two major short video giants, watched their internet celebrities get taken by others to make money, got jealous, entered the field themselves, started live streaming, and officially began the era of internet celebrities + streamers 2.0.

Since then, all kinds of oddities have started live streaming, the live streaming industry peaked, and entered a 3.0 state: everyone live streams.

After being excited for a while, Principal Wang smiled at Gu Bai, "I think this model is very feasible, and we have an advantage that Douyu and Huya do not. You've already laid out your strategy on short video platforms, and even if they want to imitate this pattern, it'll probably take them a year or two. In that time, Panda can pull way ahead of them!"

"You seem to be ignoring ByteDance? Such a large market, and still on their home turf, you think you can eat the fat for long? Don't kid yourself, at most this model will work for six months before reverting to the normal live streaming platform mode."

A cold splash of reality doused Principal Wang's dream.

Before Principal Wang could respond, Gu Bai continued with the final part of his plan.

"So what we need is for Panda to grow abnormally in two months, to eat as much as possible; even if it collapses, it doesn't matter. Burn through 1.6 billion in two months!

Let the entire live streaming industry witness Panda's wild growth.

I believe, Principal, that you know the giants have watched long enough and plan to get involved, right?"

"Tencent?!"

According to Gu Bai's memory, in June 2018, Tencent invested 4 billion in Douyu during the E-round and continued to invest 3 billion in Huya later. It's this step that allowed Douyu and Huya to establish themselves as the two major giants in the domestic live streaming industry. The so-called battle of a hundred companies before was just child's play, unravelled by adults in one move. (The real Tencent investment timeline is March.)

The combined investment totaled 7 billion, but at this point, money wasn't important anymore.

Though the two companies had small disputes thereafter, they no longer had the 'you die or I die' stance because with Tencent's huge traffic backing them, Huya even rang the bell on Nasdaq a few months later, and Douyu followed closely.

It can be said that the biggest supporter of these two companies was Tencent.

Tencent literally got them listed.

But what if in this life, Panda got investment before those two platforms did? What would the situation be like? Gu Bai didn't know, but the thought was thrilling.

"Are you so sure Tencent will invest in Panda TV?"

Gu Bai shook his head.

"Not sure."

"Then why do something so crazy? Risk 1.6 billion for a chance?"

Gu Bai sneered, "What else? Do what you do, and slowly burn money with Douyu and Huya? Then when they get Tencent's investment and soar with Tencent's traffic, get listed.

Leaving Panda Entertainment struggling with barely functioning servers and a few small streamers showing off on the platform?

I'm telling you, I'm putting out 1.6 billion to gamble. Panda, following normal paths, can't possibly have any chance of surpassing Douyu and Huya, unless someone is willing to lay down hundreds of billions to reshuffle the whole game. But if I had 10 billion, even if it's like throwing it into the bottomless pit of AI, I wouldn't dump it all into the streaming market!

Anyway, I've told you my plan. Accept or reject it, it's up to you. I won't force you, but if we lose more than 5 billion and can't break through, I'll immediately pull out, just like the journalist said today, i'm putting up 5 billion as a friendship investment."

As Gu Bai's words fell, you could hear a pin drop in Box No. 1. All four streamers didn't dare breathe a word.

The demeanor of these two big shots was terrifying, and their discussion topics were out of their league. What do you mean 5 billion as a friendship investment?

Is this how rich people play?

The room was silent for a while before Principal Wang sighed and slowly said, "I need to think about it for a few days."

Gu Bai pulled out a cigarette, handed one to Principal Wang, and threw the rest of the pack towards PDD.

Lighting the cigarette, the space between his nose and lips was soon clouded with smoke.

"There's not much time, three days at most. Whatever decision you make is fine, but Panda can't wait."

Principal Wang nodded.

Their conversation ended there.

After a few minutes of quiet in the room, there was a knock on the door, and a demure female server came in, "Hello guests in Box No. 1, there is someone outside saying they were invited by you. I'm here to confirm, and if they are indeed your guest, I'll bring them over."

Gu Bai pretty much guessed who it was, but still asked the server, "What's the guest's last name?"

"He said his last name is Hu."

"Let him come over."