10 The Sword of Damocles
xtremely confident. Her appearance, her figure, even those slightly slanted eyes, had a somewhat beguiling quality. If Su Can knew of her past at No. 1 High School and how popular she currently was wi...Chapter 10: The Sword of Damocles
When Gao Heng was almost smashing the 'door' to Facebook's headquarters in anger and left America連夜離開美國時，外圍大概最接近臉譜董事會的民眾們有很多欣慰到不願離去，在總部附近徘徊。有些人還抱著臉譜大廈下麵的一塊銘牌拍照留影，而此刻守在‘門’口的臉譜保安破天荒麵帶笑容，冇有任何乾預這樣行為的跡象.既然這是一個曆史性的時刻，那麼為什麼不讓關注這一切的民眾去紀念。
Su Cen and Zack watched from the upper floor of the building through the window at those people who lingered for a long time, treating the lawn below Facebook's headquarters as if it were a park.
After a while, Su Cen turned back to look at Zack’s profile and asked, "Was it you who persuaded Sequoia Capital beforehand Even Moritz, whom Gao Heng was closest to, had an excuse not to attend the board meeting in support of Gao. I know Moritz as someone who can lecture a thousand people in a risk investment conference without anyone daring to contradict him; what did you do"
Zack turned his head and looked at Su Cen, his eyelids blinking slightly. At this moment, Su Cen could see something beyond Zack's usual techie demeanor in his eyes. He avoided answering directly but patted Su Cen’s shoulder, saying, "No matter what, you're back. We've made it through the toughest times and can fight side by side again. Facebook needs you... " Zack was a bit sad, "Just that Dustin may never hear my explanation. But that's not important anymore. You can't guarantee there won't be misunderstandings or necessary lies in your long life. You're back, which is more important than anything else. Apart from the growth of Facebook, this is the happiest moment for me in a year... Welcome back."
Su Cen looked at him deeply and said, "You've become capable enough to be the CEO of an enterprise worth over a hundred billion dollars."
"Do you remember our war games in high school I wrote a program for a game against Julius Caesar, which made many people say that I have imperial tendencies. But what I remember is that we marked one by one on the map Facebook's development trends without you; none of this would exist." Then Zack’s eyes showed a hint of emotion, "This three-tier equity structure is unprecedentedly cool in my life. Did you notice Sequoia and Axel's gang's expressions They didn’t expect us to hold onto our power so tightly like this. If Facebook were a country, then this system would be its soul and rules, which will be followed perpetually."
"I had thought about the dual-class share structure," Su Cen smiled and said, "but it can't guarantee your absolute shares and control over the company forever either. That's why we adopted a three-tier share structure. But this carries significant risks too; even the dual-class share structure isn’t allowed in Hong Kong or our country’s stock exchange because it potentially harms public investors' interests. The NASDAQ market in America, although allowing such structures to exist, hasn't seen a three-tier one before. Most importantly, the external investors are willing to sign unequal voting agreements completely due to Facebook's rapid growth and inflated valuation. If one day the company performs poorly or faces crisis again, then the investors will sell their stocks; the absolute domain of the three-tier share structure won’t be invincible."
Zack’s eyes focused on the sky far beyond the window, his pale blue pupils contracting, sharper than the eagles soaring above California. "Then we’ll keep Facebook growing at this rate indefinitely. We will make it more valuable and profitable."
Su Cen smiled, looking straight ahead with deep eyes due to reflecting California's sunlight, pondering over, "Before this time, did you really consider excluding me from Facebook"
White snowflakes danced between the two, as if an unprecedented chasm had formed in the air, deeper than any space-time separation.
Zack was stunned and finally looked at Su Cen, saying darkly, "When the legislators were running around, I feared that Facebook might be shut down. In a week, I received seven letters from state legislatures; then, I did think about letting you temporarily leave to avoid this crisis."
Su Cen lifted his head and sighed, "Now you've succeeded with precise maneuvering through the crisis. Microsoft and Li Ka-shing's Cheung Kong Holdings are already in contact with Facebook. This isn't a secret anymore; there will be another round of high valuation peaks coming your way, ushering in a new era."
Zack held his hand mid-air and finally landed on Su Cen’s shoulder, the scorching sun penetrating through the glass window, casting a bright halo over both of them. "It's us who will welcome this age together."
"We all realized that our previous company structure had significant problems; now we've created a better way. On top of the highest voting rights, you have supervisory power over me; this time it was just a timely arrangement, but next time if such situations arise again, you can also cast your veto vote. Facebook is like a country where absolute power leads to absolute corruption. I can't guarantee that one day won't lead Facebook down the wrong path because its future allure is too great for anyone to resist; thus, I need this Sword of Damocles always hanging over my head."
The Sword of Damocles hangs over him.
Su Cen looked at Zack, seeing in him the awkward boy who once wore tattered jeans and had yellow curly hair living in a dorm room, now aspiring to become an emperor like Julius Caesar with unparalleled magnificence. Most importantly, he understands Montesquieu’s famous maxim that power must be used to restrain power.
If Facebook were indeed growing into the world's third most populous "country," then it would certainly need a Sword of Damocles to check its power, just like any nation would.
Su Cen is that sword.
Standing atop the magnificent Facebook building with its transparent glass walls, he seemed to be touching California's clear blue sky and floating clouds. The flat landscape stretched out in front of him, where Highway 82 ran all the way to the horizon; there were young people driving for road trips, listening to music, singing songs, swaying in their cars, kissing beautiful girls, remembering the scent of soap on their bodies. They recklessly spent and commemorated their friendships and unerasable youth.
Zack and Facebook’s swordsmen had their hands in their pockets as they looked down at the bustling crowds below them, like watching over tomorrow's empire.
Very soon, IDD Investment Company hit back. Within a month of Facebook’s board stepping down, media reports revealed that IDD had sold all its shares of Facebook stock. On Wednesday, Microsoft announced it would invest $240 million to acquire 1.5 percent equity in the IDD fund, thus strengthening their marketing partnership by selling network ads on behalf of Facebook.
Many analysts thought this was significant; for years, Microsoft has been trying to increase its share of the online advertising market, hoping to break Google and Yahoo’s dominance. With Facebook's open software platform, it would be easier for Microsoft to sell more web-based advertisements. In Microsoft’s fiscal year ending June 2010, internet ad revenue grew by 19%, reaching around $1 billion; in the same period, Google earned over $5 billion from ads alone. Industry experts believed that Microsoft's investment in Facebook was a significant blow against Google.
The deal pushed Facebook's valuation to $16 billion.
Jianhua once asked why he chose to sell their shares when the stock price was soaring, as what they had paid for at $180 million was now worth Microsoft’s $240 million bid. Even after one year of trading hands, a profit of 500 million RMB would be astonishing. But everyone knew that Facebook still had room to grow in terms of valuation; it was akin to selling off shares before the stock price could rise further and miss out on greater profits.
High Heng shook his head, an expression of deep humiliation from America flashing across his eyes. "I’ve remained calm up until now, and that’s why I understand that it’s time for us to sell our stakes. Think back to the internet bubble in 1999; at one point stocks could reach a PE ratio of 550 times, how insane was that Overnight, stock prices would fall from $200 to just $1 – countless people lost everything they had overnight. Now look at Facebook. Doesn’t it have this crazy atmosphere too When its market capitalization reached $10 billion, I thought that was the peak, but now it’s even higher at $16 billion; we’re nearing a breaking point. There’s no way I’d be stupid enough to keep pouring money into their coffers.
High Heng crushed his cigarette out emphatically and said, “Right now, we have a more secure path forward. The $240 million we’ve recovered is just the amount needed for our current major investment. Since those above are beginning to notice my brother’s moves, we need to act quickly – the Microsoft deal gives us an opportunity to shift funds out of Facebook. It’s as if Heaven itself is aiding us. With our original 6 billion RMB investment plus this $240 million, we now have 8 billion RMB to work with; Old Jian, you need to maneuver these funds into shell companies.
“If we put everything in, there would be significant issues with our funding cycle, and a risk of the capital chain breaking...” Jianhua frowned worriedly.
“There won’t be any problem. These funds will return several times over within four months; why not go all out compared to the six-month period” High Heng’s eyes gleamed with lion-like ambition.
Jianhua nodded and said, “I have a close friend who borrowed billions from banks to invest in two stocks. I think it would be good for you to know about this matter.”
“Let him go ahead. He knows the rules. Give these people some dog bones; they can’t eat soup or share in the broth if we’re monopolizing everything for ourselves,” High Heng said, waving a tired hand.
Once the backing was complete, all this money would likely be returned hundreds of billions in profit. In 2005, even Forbes’ top three wealthiest families like Huang Guangyu had no more than 15 billion RMB worth of assets; even with indirect control over capital, it wouldn’t compare...
The Gao family plans to rise through the First State-Owned Enterprise, New Energy Group. As a result, the Gao family will take the lead in advancing private capital within China.
A few days later.
In the headquarters of Anlixin Fund in Beijing, Zhan Hua rushed towards Gao Heng and reported urgently, "Du Wei was originally unharmed after the previous Changcheng case. But Wang Bo suddenly put her in prison to investigate tax evasion by Qing Shan Group that she led. The matter also involves the intervention of Henan Provincial Department and Provincial Economic Commission, who found Du Wei's branch companies in Henan Province. Previously reported news indicated that Zhou Zhaofeng, mayor of Hong City, was under investigation for disciplinary review. Mayor Du Tao of Qinghai Province has been implicated as well. It is possible to expose the refining shell company in Qinghai and implicate many people, even threatening Chairman Gao."
"What are you saying" Gao Heng glared at Zhan Hua. A few people around them immediately lowered their heads; Gao Heng's anger was extraordinary, with years of accumulated authority that could instill fear in the hearts of others.
If what Zhan Hua said were true, anyone could speculate that a large earthquake was slowly forming.
After half an hour, Gao Heng calmed down and entered the soundproof office with Zhan Hua. Everyone outside waited for them; this room went through regular monitoring, epidemic prevention cleaning, line maintenance, and many other unheard-of measures every so often.
Gao Heng immediately dialed his brother, Gao Canghai's personal phone after entering the room and asked, "Brother, did Mayor Du Tao in Qinghai say anything"
Gao Canghai paced back and forth on the other end of the line. "Du Wei, Zhou Zhaofeng, and Du Tao were secretly investigated. Wang Bo's provincial department found out about the close family relationship between Du Wei and Du Tao. Du Tao was under異地reviewed and reportedly did some meritorious deeds; what sort of merit did he do" There was a sound of something being smashed on the other end.
Gao Heng squinted his eyes and asked, "What should we do now."
"Don't worry, I'll immediately submit a self-reflection to the higher-ups to delay time. We have many people supporting us both in the periphery and at the center; they wouldn’t want anything bad to happen to me. As long as we can drag this out for some time, when several months later the shell companies' capital injection reform is completed, everyone will be working hard to make New Energy Group a success. As long as it’s not done, we are safe. Wang Bo reported my issues to senior leaders, but he won’t be able to do anything to me in the short term. Gao Heng, your task now is to stabilize everything and wait until after the seven listed shell companies under the Seven Families have completed their share reform. Then everything will settle down."
After hanging up, Gao Canghai picked up a self-reflection report that he wrote himself on his desk. It proactively admitted his mistakes to the Central Commission for Discipline Inspection, including unclear accounts at New Energy Group, confusing financial statements and tax evasion, collective embezzlement and misappropriation of tax funds, misuse of public funds, and acceptance of expensive gifts.
When Gao Canghai finished writing this self-reflection report, the first image that popped into his mind was Wang Bo's shadow, followed by an inexplicable appearance of a young face. When signing his name, the tip of his pen was broken.
Gao Canghai handed it to the Central Commission for Discipline Inspection, and soon after received preliminary approval from a deputy secretary general of the CCDI for good admission attitude but needed further detailed explanation on economic and financial issues involved in the case. He could confess while continuing work.
Meanwhile, all around Gao's interest groups were working hard to secure stock movements within New Energy Group’s seven listed shell companies. They aimed to ensure a final plan involving hundreds of billions of yuan and indirectly influencing trillions of financial direction would be successfully completed at the last moment.
The outline of huge waves and turbulent tides had already been drawn by people through the implicit information released from time to time about Gao Canghai. This was an opposition intertwined with power scheming and money, more destructive than bullets or guns.
In the Central Party School office, Vice President privately chatted with Acting Secretary Mu Qin, "After all, Gao Canghai has made many contributions; New Energy Group alone pays a hundred billion in taxes every year. He brought advanced examples such as introducing the world's most famous racing events to the country... The Zhoushan Refinery under his leadership was ranked 12th among China’s top 100 listed companies, and it ranks among Asia Pacific's ten largest refineries on Fortune magazine's list of the world's largest refining plants. In addition, his contributions in Ningxi are still considerable..."
Mother Mu has always been one of those who do not support postponing the investigation against Gao Canghai; whispers have reached her ears now. She listened silently and didn't speak much after they finished talking.
After a while, Mu Qin picked up her teacup, sipped some tea, placed it back on the table with a light clatter, saying, "I know many people want to protect that kid from Gao’s family. But privilege and personal gain cannot become currency in the political kingdom; otherwise, why insist on party nature
A principle. Strong military might can overthrow a regime and maintain a corrupt facade, but it cannot sustain vitality forever. Only by adhering to truth and correcting mistakes is the guarantee for a political party's eternal youth. Old Zheng, do you agree with me
The man with a weathered face turned pale as he nodded in agreement.
Despite resistance and利益集團的支援，仍然有堅持真實的聲音。
In Henan Province, Qinghai Province, Shandong Province... within the resource groups controlling every province where the seven listed companies under New Source Group are based, those who hold power and resources were nervously monitoring the slowly brewing storm from internal newspapers or rumors.
Many people lived in constant fear, while others wore expressions of joy as they awaited the day when the dam would burst and floodwaters would rush to a bottomless abyss.
In Beijing during autumn, within solemn rooms surrounded by withered paulownia trees and spreading banyan trees in quadrangle courtyards, many people were discussing the eye-catching events happening at New Source Group and waiting for a resolution that seemed imminent. The air was tense, stretching like taut strings over everyone's hearts.
Central Commission for Discipline Inspection (CCDI). In an internal meeting, proposals and counterarguments were exchanged in turns. Due to strong resistance, the decision to immediately control New Source Group chairman Gao Canghai was put on hold again; instead, a preliminary strategy of gradual measures, persuasion and confession as primary methods, with punishment as secondary, was adopted. It seemed this matter would be temporarily shelved for secret handling.
At that moment,
a major domestic financial media outlet, Pineapple Media, quickly released a report on its Financial Affairs section, revealing the numerous dark secrets of Xinghua Enterprises during their restructuring process via materials from Hunan Public Security Bureau and Economic Commission. This report used detailed narrative evidence and many officials' testimonies to expose how hidden interests groups had profited from manipulating stock prices behind the scenes. That night, the issue made Financial Affairs go viral due to high demand, prompting Pineapple Media to print additional copies overnight.
The next day, as a new media platform, Facebook's Chinese homepage reposted this report.
A single stone had stirred up thousands of waves; external disputes erupted immediately.
Gao Langtiao, in a phone call to Gao Canghai, was enraged and asked, "Brother, do you know what you're doing More importantly, how did this come to the attention of Wang Bo and that brat Su Zhan"
The entire faction led by the Gao family was trembling.
In their last meeting, Gao Heng's face was stiff as he murmured, "Wang Bo is taking action now, and so is Su Zhan. Brother..."
Deep in a grand mansion on a night, Gao Canghai's face was deeply buried in darkness; only starlight illuminated the smoke swirling around him.
Closely monitoring Gao Canghai's moves, Wang Bo suddenly mentioned to Su Zhan during a dinner in Chengdu, "Gao Canghai took five days off sick leave. Yesterday afternoon he visited New Source Group and met with all high-level officials there, planning to meet for tea at Fragrant Hills Club, even inviting Secretary Cao from CCDI. Do you have any idea what he's up to"
Under the current situation, Su Zhan had already moved into Chengdu Municipal Committee Compound as per Wang Bo's advice; it was indeed inappropriate for him to remain in Shanghai's Nan Da District.
"Is this still a delaying tactic..." muttered Su Zhan before realizing with sudden clarity. He smiled and said, "Gao Canghai is trying to escape. With actions from the Ministry of Public Security, Audit Commission, CCDI, Organization Department, etc., he can't afford to be so presumptuous anymore with his delaying tactics. Given this situation, by the time of National People's Congress, he won’t have enough time to deal with his issues properly. His real intent is probably to leave the country and once that happens, without concrete evidence, New Source Group’s sell-off restructuring plan will continue, allowing them to evade consequences. Once the seven companies finish their stock restructurings, all evidence will be erased."
Wang Bo nodded with a smile and got up from the table, dialing on his phone while walking towards the window: "I share your opinion." powerful than weapons by tenfold, so he reached out to pinch Su Can’s shoulder and said, "You have ideas; I like that."Li Han then said, "Our Room 602 hasn't appointed a dorm leader yet. Wang Dongjia...