Chapter 398: Tudou.com Reform Plan, Red-Blue CP, Yan Family Wins

As the outside world reeled from the change of ownership of Tudou.com, Yan Li had already begun convening a senior management meeting.

He wasted no time; during the meeting, he purged Wang Wei’s faction, removing several close aides and senior executives from the core decision-making circle or marginalizing them.

From a corporate management standpoint, Yan Li had just taken power, and such a sweeping purge carried significant risk.

But after careful consideration, Yan Li decided to act.

Wang Wei’s departure as founder would inevitably trigger massive internal turmoil at Tudou.com; seizing this opportunity, he might as well amplify the chaos and sweep the entire nest clean.

No destruction, no creation—take full control of Tudou.com in one stroke.

Otherwise, keeping these people around meant not only sabotage, but even passive resistance and low morale—hidden dangers that would drain resources and leave toxic residue for years.

After clearing out Wang Wei’s people, Yan Li began promoting his own allies and neutral senior executives.

He had an intelligence system and had already begun laying groundwork; he knew every faction, personnel composition, and capability within Tudou.com’s senior ranks.

Some were promoted for merit but lacked ability—use them cautiously; some were indecisive—either pressure or appease them to secure their obedience; some were highly capable—give them heavy responsibility and win their loyalty; others were mediocre but loyal—rely on them as trusted confidants.

For Yan Li, seizing power from Wang Wei was easy; the real test was holding Tudou.com firmly and guiding it to thrive.

After the senior meeting, Yan Li gave Tudou.com’s staff time to accept the reality, then invited shareholders like Xiong Zong and Xu Zong to dinner.

This power grab succeeded thanks to the shareholders’ support—he had to show his gratitude.

Moreover, compared to Yi’an and Weibo, which held absolute equity stakes, Yan Li’s own stake in Tudou.com was modest—even less than Wang Wei’s—so he needed the support of these board allies in many areas.

Yan Li even invited Wang Wei himself; he disliked the man, but having won, he must display the grace of a victor.

Reducing tensions with Wang Wei, the largest shareholder, would aid his control of Tudou.com.

Moreover, Wang Wei had already been ousted from Tudou.com; given their relationship, after the company went public, he would likely cash out and leave.

Yan Li would keep him steady—perhaps he could buy some shares later; even if Wang Wei refused to sell, at least he wouldn’t bring some enemy into Tudou.com to fight him.

Merchants prioritize profit; there are no eternal enemies, nor eternal friends.

Previously, the two had been bitter adversaries, but from this moment on, Yan Li began to think of becoming “friends” with Wang Wei.

But unfortunately, Wang Wei certainly didn’t have Yan Li’s broad-mindedness—he didn’t even respond.

Yan Li wasn’t surprised; take it slow.

Time was the best psychological remedy; Yan Li, now in control of three billion-dollar companies, held undeniable stature in the business world.

Yan Li believed that no matter how much Wang Wei hated him, he would choose to “bury the hatchet” rather than fight Yan Li to the death—unless he planned to abandon all business entirely.

“Xiong Zong, thank you.”

“Xu Zong, thank you for your support.”

“...”

At the banquet, Yan Li raised his glass to each guest in turn; after dinner, they moved to a second venue, and Yan Li took the opportunity to discuss specific ideas for Tudou.com with the shareholders.

They had already discussed this before—otherwise, the shareholders wouldn’t have firmly backed him.

But Yan Li still held back some details; he hadn’t been entirely clear, and some shareholders remained uncertain. Now that he had fully taken power, he needed their support—and there was no point hiding what needed to be said.

“At present, Tudou.com’s top priority remains going public—time waits for no one. The U.S. stock market currently looks favorably upon China’s online video industry; we must seize this opportunity.”

“But after going public and securing capital, I plan major reforms for Tudou.com.”

“To be frank, I’m deeply dissatisfied with Tudou.com’s positioning and certain conditions—they differ greatly from my own ideas and goals. I need Tudou.com to change.”

“...”

Yan Li’s words were already restrained; when persuading some shareholders earlier, his language had been far more intense—he’d nearly called Wang Wei an incompetent fool.

This wasn’t an unfair accusation against Wang Wei.

As previously mentioned, Tudou.com had fallen from absolute industry leader, to a two-horse race with Youku, to now quietly falling behind; as Tudou.com’s head, Wang Wei bore undeniable responsibility.

First, he neglected technology and bandwidth; Youku’s features, video quality, and user experience utterly crushed Tudou.com’s—this was fatal.

It was like two restaurants: one filthy and chaotic, the other clean and hygienic. Regardless of which served better food, most customers would choose the latter.

Now that Yan Li had control and capital, his first move would be to upgrade Tudou.com’s infrastructure; he couldn’t promise to surpass Youku, but he wouldn’t let Tudou.com fall further behind.

Second, the conflict between UGC (user-generated content) and long-form licensed content.

Tudou.com’s original concept was UGC—the platform’s slogan was “[Everyone is a Director of Life],” aiming to build China’s video blog.

This strategy wasn’t wrong, but it was untimely.

The internet had only just become widespread; smartphones had just emerged; even the image era had barely taken off with Weibo’s rise. Non-professionals had virtually no capacity to produce video, let alone high-quality video.

Even the internet celebrities Tudou.com had promoted—like Lao Shi, Qiangzu Xiao Sha, Hou She Boys—were mostly movie parodies and comedic imitations.

Their quality was relatively low; at least, they couldn’t compete with TV dramas. Their numbers were few—just a handful of popular creators.

Moreover, due to their low influence, they generated little ad revenue, and Tudou.com often had to subsidize them.

Tudou.com was an online platform—it needed profit and to attract users. Relying on these low-quality, low-volume, poorly monetizing influencers meant only death.

So although Tudou.com claimed to be building China’s YouTube, its actual focus had already shifted toward long-form licensed content, using film and TV rights to attract users and generate revenue.

At this point, if Tudou.com had fully committed to long-form licensed content, it could have directly clashed with Youku.

But Wang Wei couldn’t bear to abandon UGC—he saw it as Tudou.com’s foundation and soul.

And UGC’s grassroots, trendy, pop-culture elements had attracted a large base of active, loyal users, further binding Tudou.com to the status quo.

Thus, Tudou.com was caught between two stools: dragged down by UGC’s bloodsucking demands, yet unable to concentrate resources to compete with Youku. Had it not been for Yi’an’s partiality, it would have been crushed long ago by Youku’s more decisive approach.

With Yan Li’s ascension, Tudou.com would undergo amputation to survive: prioritize long-form licensed content—the strategy better suited to the times—and wage war against Youku.

Of course, completely abandoning UGC would be a waste; as time progressed, it would become a new opportunity. Tudou.com had accumulated considerable advantages—it couldn’t let outsiders reap the benefits.

Yan Li planned to launch a new platform—perhaps Sweet Potato Network or Potato Network—scale it down, operate it at low cost, nurture the soil and talent, and then increase support when the market shifted.

This carried risk, but there was no better option; you can’t have both fish and bear’s paw—Yan Li could only focus on one side.

If Tudou.com’s UGC business survived and later flourished, that would be Tudou.com’s fortune; if it died halfway, then Tudou.com simply lacked the fate.

If Yan Li could smoothly and relatively gently implement these two reforms, Tudou.com could shed its burdens, concentrate resources, and fight Youku decisively.

These two reforms wouldn’t be easy—they required vast sums and carried considerable risk.

Especially disrupting UGC might trigger company-wide and platform-wide upheaval, causing users to leave, losing the platform’s cultural identity, inviting market skepticism, and triggering a cascade of negative reactions.

After laying out his plan, Yan Li’s shareholders fell silent. Soon, Xiong Zong of IDG spoke.

“There are risks, but also new opportunities.”

“With Yan Zong’s ascension and Tudou’s change of ownership, a new era has arrived. We must tell a new Tudou story. The moves are bold, but they restructure the mind and strengthen the heart—strategically focused. Even if there’s some turbulence, I believe Yan Zong can lead Tudou through the crisis.”

Upon hearing this, Xu Zong of Jintai Capital also spoke: “Correct. We supported Yan Zong’s ascension precisely because we hoped he’d lead Tudou back to its peak. Necessary costs and risks are unavoidable, but we trust Yan Zong’s ability.”

With these two leaders speaking, other shareholders softened their expressions and nodded in agreement.

Indeed, what they truly valued and backed was Yan Li, the business prodigy—they were betting he’d make them rich.

If Yan Li took power and merely followed Wang Wei’s old ways, changing nothing, then Tudou.com would remain as it was—better to let Wang Wei stay in charge.

Xiong Zong, synthesizing the shareholders’ opinions, raised his glass and clinked it with Yan Li’s.

“We don’t understand operations or management, but we know investing means investing in people. Since we chose Yan Zong, go ahead and act boldly—IDG will fully support you.”

Xu Zong clinked his glass in turn: “Jintai Capital agrees.”

“I’m the same.”

“...”

Yan Li’s face remained confident and serious: “Thank you all. I will spare no effort and not let down your expectations and trust—let us all share in the glory of victory. Cheers.”

“Cheers.”

Shanghai, China Resources Bund Nine Li

A luxury residential brand under China Resources, adjacent to the Bund Financial Center and Yu Garden—Shanghai’s premier commercial and leisure properties—with convenient transportation, advanced finance and education, and luxurious, comfortable interiors; average prices for units over 300 square meters exceeded 100,000 RMB per square meter.

Of course, actual transaction prices weren’t that extreme; Yan Li had ties with China Resources and received a friend’s discount.

Currently, this over-400-square-meter residence is occupied by Yang Rong and Wang Ou, who frequently visits Shanghai—it is Yan Li’s first base in Shanghai.

As soon as he entered, Yan Li sensed something was off; Yang Rong, sitting on the sofa, clearly looked displeased—yet that morning, she’d been fine.

Given Yang Rong’s temperament, she wouldn’t so openly give him the cold shoulder—only one person could make her lose composure like this...

Yan Li looked around: “Has Wang Ou come?”

No sooner had he spoken than Wang Ou stood up from behind the sofa, looking disappointed: “You could guess that?”

Upon hearing Yan Li had taken over Tudou.com, she knew he’d likely stay in Shanghai for a while, so she booked a flight and rushed over.

“It’s written all over her face.”

Yan Li pointed at Yang Rong. Wang Ou realized, pinched Yang Rong’s cheek: “Little Rongrong, don’t just hoard everything—we’re besties, you’ve got to share.”

“Share your damn self.”

Yang Rong couldn’t help cursing. Yan Li rarely came to Shanghai—he usually went to Beijing.

Finally, Yan Li was staying in Shanghai for a while—she’d been looking forward to some alone time with him—and now, after just one day, this flirtatious little vixen had sniffed her way over.

Wang Ou didn’t care; she grew even bolder: “This house has both our names on it—and mine comes first. It’s your home, but it’s also mine—why can’t I come?”

Originally, Yan Li had planned to buy each of them a separate apartment in Shanghai, to disperse the women in Beijing.

But Wang Ou thought it unnecessary—they never separated anyway—so why not buy one big place together and live in it jointly?

Under Wang Ou’s persuasion, Yang Rong, half-dazed, co-purchased this luxury apartment with her, living there herself and sharing it when Wang Ou visited.

They even discussed buying another luxury apartment in Beijing together, living together in both cities.

Yan Li’s idea of dispersing them was sound, but the key problem was his infrequent visits to Shanghai—so they bought homes in both cities, moving between them without missing either.

Previously, Yang Rong thought this arrangement was perfect—it saved her from loneliness. Now, she regretted it.

But regret was useless; even if they’d bought separate apartments, Wang Ou would still storm into Shanghai and knock on her door—would she really refuse to open it?

She was doomed for life—stuck with one dog of a man and one shameless rogue.

Yan Li was long accustomed to their dynamic; he sat down on the sofa, pulled Yang Rong onto his lap, then leaned back against Wang Ou’s legs.

It’s good they came; she couldn’t handle it alone anyway.

Exactly.

With Yu Yanli’s support, Wang Ou’s arrogance grew: “If you want to hoard everything, first see how big your appetite is.”

Yang Rong gave her a glare but said nothing—she truly couldn’t manage alone; even if Wang Ou didn’t come, she’d have to call for help eventually.

But Wang Ou arrived too soon—she’d at least wanted two days of peace alone with him.

I’m a bit hungry. Get me something to eat.

Yu Yanli chatted with the two for a while and felt hungry. Today’s back-to-back meetings had drained him, and he hadn’t eaten much at the evening banquet—he was starting to feel weak.

Wang Ou immediately asked Yu Yanli what he wanted to eat, then ordered Yang Rong to prepare it.

Yang Rong laughed bitterly: “Why don’t you do it yourself?”

“I can’t cook as well as you, and haven’t you seen I’m busy?”

As Wang Ou spoke, she obediently massaged Yu Yanli’s head. Yang Rong punched her, but still went to cook.

After Yang Rong left, Wang Ou lowered her voice: “Do you still remember that Zhang Meng we ran into last time?”

I remember him.

Yu Yanli looked at Wang Ou in surprise: “You fixed it already?”

It’s been less than two months—has Wang Ou’s cultivation deepened so fast?!

Uh…