Chapter 282 Acquisition of Mutong Technology!

In mid-September, Zheng Wentong met with two founders of Mutong Technology, Xu Zhenhua and Yuan Jing.

Xu Zhenhua and Yuan Jing are both employees of Penguin and joined Penguin very early. The two also participated in the development of the Penguin mobile game "Honor of Kings". So when the two left Penguin, they created Mutong Technology and launched the mobile game "Endless Showdown".

Penguin sued Mutong Technology in March this year. Penguin determined that Mutong Technology infringed on the intellectual property rights of "Honor of Kings", demanded that Mutong Technology be removed from the shelves and compensate Penguin for economic losses.

Penguin and Xu Zhenhua have already fought a lawsuit against a competition agreement. Xu Zhenhua has lost the case and compensated Penguin 19.4 million. Many players think it was a game lawsuit, but it is not.

After Xu Zhenhua left Penguin, he received generous resignation compensation from Penguin. However, Xu Zhenhua founded a game company and launched a mobile game similar to "Honor of Kings", which violated Penguin's competition agreement. Xu Zhenhua either withdrew from Penguin's resignation compensation or lost money, so he lost the lawsuit.

WeChat Information Technology has been in contact with Mutong Technology several times. Xu Zhenhua did not consider WeChat Information Technology's merger and acquisition plan. However, in order to promote "Endless Showdown" in the Southeast Asian market this year, Mutong Technology has invested 200 million yuan in advertising fees alone, almost bankrupting the company.

In addition, the company's founder and co-CEO Yuan Jing is open to mergers and acquisitions, so their attitude towards mergers and acquisitions is now relaxed.

Zheng Wentong said to Xu Zhenhua, "Although I don't play much, the endless showdown can suppress penguins in the Southeast Asian market, which is very amazing."

Xu Zhenhua smiled, "Actually, the three games "PUBG:mobile", "MLBB" and "Honor of Kings" have very close market share in the Southeast Asian market. We mainly launch heroes of local culture, so they are more popular."

"Big companies are arrogant, so it is normal for them to make slow decisions. The updates and iterations of local markets are busy, and small companies are more flexible. You two can decide to launch the hero, so I think the studio model is more suitable for developing mobile games."

Yuan Jing deeply agreed, "I used to work at Penguin and was responsible for the operation of a single game. One approval process takes two or three days, which delays work efficiency."

"Mr. Zheng doesn't play games normally, how did you think of the world-wide mobile game "PUBG"?" Xu Zhenhua was curious. Zheng Wentong created the Blue Star Game, which Microsoft acquired for $5.4 billion, which made Xu Zhenhua and Yuan Jing envious.

"I had my own computer very early. At that time, my father was afraid that I would go to the Internet cafe, so he bought a computer at home. There were no games at that time, mainly playing "War3" and "CS". Later, he watched the variety show "The Law of the Jungle", so he got the idea of ​​a chicken-eating game." Zheng Wentong explained.

"Blue Star Game's PCG global finals this year are very large. We hope to launch our own e-sports market in the Southeast Asian market next year. TikTok can better help us promote games, and "MLBB" can also help TikTok develop more users." Yuan Jing said.

"The reason why Mr. Xu and Mr. Yuan named the company Mutong Technology is because of the wooden barrel theory. What do you think is the shortest board of Mutong Technology at present?" Zheng Wentong asked.

Xu Zhenhua obviously has sufficient thoughts on this, "Motong Technology currently lacks funds, and we also want to launch the national server version of "Endless Showdown" and want to compete with Penguin in front in China, but it cannot pass the review in China. The reason is that Penguin claims that we have infringed on their intellectual property rights."

"I received the news that in addition to Penguin, Riot Games Company will also file a lawsuit against Mutong Technology, believing that "Endless Showdown" infringed the League of Legends mobile game version. If Penguin and Riot sued Mutong Technology together, it would be good news for the company." Zheng Wentong said.

Yuan Jing was a little confused, "Why is it good news for us when the two companies sued at the same time?"

"Penguin and Riot Company cannot sue Mutong Technology in the mainland. Your company's game has not yet entered the mainland. This involves a matter of case jurisdiction."

"In order to remove the endless showdown in the global market, Penguin will definitely initiate lawsuits in the United States. Riot Company and Penguin Company authorize each other's companies to use their heroes, but Penguin and Riot Company cannot explain that those heroes belong to Riot Company and those belong to Penguin, so the intellectual property claims by Penguin and Riot Company are not established." Zheng Wentong explained.

In the most common explanation, Zhang San and Li Si sued Wang Wu together, saying that Wang Wu owed them two thousand yuan. As a result, Zhang San couldn't tell how much he borrowed or how much Li Si borrowed, so it would be difficult for the judge to determine that the debt really existed.

Xu Zhenhua now understood, "Although Penguin is the major shareholder of Riot Company, Penguin and Riot Company authorize each other heroes, it will undoubtedly be very time-consuming and laborious if Penguin and Riot Company clarify the ownership of intellectual property between their games, and Riot Company may not necessarily cooperate, so our company has a high probability of winning."

This is true. Penguin and Riot began suing Mutong Technology in 2017, but the verdict was issued only 21 years ago. Mutong Technology was found to be infringed.

Xu Zhenhua originally wanted to develop Mutong Technology independently, but Penguin's step-by-step pressing made him feel a sense of crisis.

Xu Zhenhua also observed several acquisitions of the slope system. Except for Light Chasing Animation, other acquisition companies can retain their independent operating status. Zheng Wentong will not interfere with the company's operations, which makes him less resistant to the acquisition of WeChat Xinke.

Zheng Wentong also proposed an endless showdown promotion plan for Mutong Technology, first focusing on the Southeast Asian market, then the European market, then the North American market, and finally the mainland market, which is consistent with TikTok's overseas promotion plan.

Mutong Technology also disclosed their game flow to Zheng Wentong in the Southeast Asian market. The mobile payment function in the Southeast Asian market is not perfect, and many game users still use point cards or mobile recharge cards to recharge. Endless duels still have a lot of potential to be tapped in the East Slow Asian market.

In mid-September, WeChat Information Technology announced that it would acquire Mutong Technology for US$600 million, and Mutong Technology became a wholly-owned subsidiary of WeChat Information Technology.

WeChat Credit Technology completed the acquisition with US$200 million in cash and US$400 million in WeChat Credit Technology. Mutong Technology kept its original management unchanged and continued to operate independently.

TikTok and Motong Technology have begun planning the e-sports event of "Endless Showdown" in Southeast Asia. Zheng Wentong is preparing to run the e-sports event of "Endless Showdown" to be selected for the Southeast Asian Games.
Chapter completed!