Chapter 253 Lu Ran's Conditions
Chapter 253 Lu Ran's Conditions
Zhou Mingzhe jotted these down in his notebook, then asked, "What if their terms are particularly harsh? For example, like Tencent's, demanding 50% of overseas revenue and 30% of shares?"
Lu Ran laughed: "Then let them get lost."
Zhou Mingzhe was taken aback: "So direct?"
"Otherwise what?" Lu Ran stood up and walked to the window. "Brother Zhou, remember one thing—we're different from Tencent. We're barefoot and have nothing to lose. If we miss out, we miss out. It's no big deal."
"And—" He turned to look at Zhou Mingzhe, a meaningful smile on his face, "Do you really think EA wants to cooperate with us that much? They went around looking for a team, and when they couldn't get Tencent, NetEase, or Perfect World, they finally remembered our small company. In their eyes, we're the one who's 'easy to manipulate'."
"Since they think we're easy to manipulate, let them try. Let's see who's really in control in the end."
Lu Ran didn't actually have a good impression of foreign capital. If the conditions offered by foreign capital were acceptable, he wouldn't mind. But if foreign capital made exorbitant demands and wanted to use their TuTu Technology as a stepping stone or an easy target, then they had chosen the wrong party.
Zhou Mingzhe couldn't help but swallow as he listened to Lu Ran's words.
He suddenly felt that Lu Ran was indeed starting to resemble a person in a superior position.
This guy from abroad is probably going to get into trouble.
...
Two days later, in the coffee shop of a high-end hotel in Shanghai.
Lu Ran appeared at the door on time, followed by Zhou Mingzhe and Xiao Chen from the legal department.
Morrison was already waiting by the window. When they came in, he stood up and gave them a professional smile.
"Mr. Lu, it's an honor to meet you." He extended his hand, speaking surprisingly fluent Chinese. "I'm David Morrison, Head of EA's Asia Pacific Business."
Lu Ran politely shook his hand, smiling innocently, "Mr. Morrison, it's an honor to meet you. I heard you've been traveling all over China and finally remembered our little company?"
Morrison's smile faltered for a moment, then returned to normal: "Mr. Lu, you're joking. Please have a seat."
The four people sat down, and the waiter brought them coffee.
After a few pleasantries, Morrison got down to business: "Mr. Lu, we at EA are very interested in your company's products. In particular, 'Seven Heroes' has left a deep impression on us in terms of gameplay innovation and art style. We hope to cooperate with your company to jointly develop overseas markets."
Lu Ran nodded, his expression turning serious: "Mr. Morrison, I appreciate your sincerity. Then I'd like to ask, what exactly is the form of cooperation you're referring to?"
Morrison took a document out of his briefcase and pushed it in front of Lu Ran.
"This is our draft cooperation framework," he said. "Simply put, EA will acquire the exclusive overseas publishing rights for 'Seven Heroes' and be responsible for the game's localization, operation, and promotion in markets such as Europe, America, Japan, and South Korea. In return, we will share the overseas revenue with your company proportionally."
Lu Ran took the document, but without opening it, asked directly, "What's the ratio?"
Morrison paused for a moment, then said, "We suggest a 50/50 split."
Lu Ran nodded, then asked, "What about the distribution rights? Exclusive? For how long?"
"Three years," Morrison said. "Within three years, your company may not license 'Seven Heroes' to any other overseas publisher."
Lu Ran continued, "So what does EA need to contribute? Besides promotional resources, is there anything else?"
Morrison smiled and said, "We will invest no less than five million US dollars in marketing and promotion for overseas markets. In addition, we will provide technical support to help your company optimize the overseas version of the game."
After listening, Lu Ran closed the file and placed it on the table.
"Mr. Morrison," he began, his tone still calm, "I understand your terms. But I have a few questions I'd like to ask you first."
"Please speak."
"First, is the 50/50 revenue split before or after tax? Before or after deducting marketing and promotion costs?"
Morrison paused for a moment, then said, "This... is negotiable."
"Secondly, the three-year exclusive license means we cannot cooperate with any other overseas companies during these three years. What if EA's promotional efforts don't meet expectations?
Morrison's expression began to look somewhat unnatural: "Well... we can add a performance-based clause. If the promotional results don't meet the targets, your company can choose to terminate the cooperation early."
Lu Ran nodded: "Then the third, and most important point—does EA just want the publishing rights, or does it want a deeper level of cooperation? Such as equity investment, participation in operations, or sharing user data?"
Morrison paused for a few seconds, then slowly said, "Mr. Lu, you are more professional than I expected."
Lu Ran smiled: "Mr. Morrison, you are more honest than I imagined."
The two stared at each other for a few seconds, the atmosphere tense.
Then Morrison smiled, this time with a more genuine smile: "Alright, Mr. Lu, since you're being so direct, I'll be direct too. EA is indeed interested in your company, and not just in 'Seven Heroes'. We hope to establish a long-term strategic partnership with your company, not just in distribution, but also in technology exchange, talent training, and even capital cooperation."
"Of course—" he paused, "provided that this collaboration is successful."
Morrison figured that Lu Ran's detailed questions and thoughtful approach meant he must have long admired EA. He was certain that the conditions he offered would be appealing to such a small game company.
This is an excellent opportunity to expand overseas.
This is also a good opportunity for EA to expand into China, acquiring first-hand customer resources with relatively little investment.
Although Tutu Technology is not large in scale, it has a considerable number of users. If they can obtain user information, it will be better for their future expansion.
After listening to Morrison's words, Lu Ran nodded and took a sip of his coffee.
"Mr. Morrison, I appreciate your sincerity." He put down his glass. "But to be honest, the conditions you offered weren't sincere enough."
Morrison raised an eyebrow: "How so?"
"A 50/50 split seems fair, but do you know how much revenue 'Seven Heroes' generates in China?" Lu Ran said. "It generates 30 million yuan in monthly revenue. Even with a discount in the overseas market, it's still several hundred million yuan a year. If you take half, it's like taking tens of millions of yuan from our pockets every year."
"And what you paid was five million dollars in marketing and promotion costs, plus some technical support. No matter how you look at it, we're the ones who lost out."
Morrison's expression began to turn somewhat grim.
Lu Ran continued, "Moreover, a three-year exclusive license is tantamount to entrusting our lives to you. What if you fail to promote it successfully, or replace us halfway through? The market will be long gone in three years."
"So, Mr. Morrison, if you really want to cooperate, we need to change the way we do things."
Morrison took a deep breath, suppressing his displeasure: "Mr. Lu, how would you like to play this game?"
Lu Ran took a document from Zhou Mingzhe and pushed it in front of Morrison.
"This is the cooperation framework I've drafted," he said. "Take a look."
Morrison opened the document and read through it line by line.
The more he looked, the more his brows furrowed.
[Suggested Cooperation Framework]
Article 1: EA obtains the overseas non-exclusive distribution rights for "Seven Heroes" for a term of one year, renewable.
Article 2: Revenue sharing will be implemented on a tiered basis—EA will receive 30% in the first year, 25% in the second year, and 20% in the third year. If EA's annual promotional investment exceeds ten million US dollars, the revenue sharing ratio may be appropriately increased.
Article 3: EA shall provide complete technical support, including but not limited to localization, server optimization, user data analysis, etc., and the related costs shall be borne by EA.
Article 4: EA shall not request equity investment, participation in operations, or sharing of user data in any form. Your company retains full control over the overseas version of "Seven Heroes".
Article 5: If EA's promotional results fail to meet the target for three consecutive months (based on user growth data), your company has the right to unilaterally terminate the cooperation.
……
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