Chapter 803 - 300: Threatening Yu, Mastered by Yang Chen_3

Chapter 803: Chapter 300: Threatening Yu, Mastered by Yang Chen_3

If Star Investment hadn’t stepped in to buy up stocks during the downturn, the decline would have continued, and there was no chance of stopping it.

Yang Chen sighed and said, "Yu is really a straightforward person! I asked him to release some bad news to help me with the buying, but he went all out with the negative news."

At this moment, a call from Yu came in.

Yang Chen answered the phone and praised with a smile, "President Yu, appreciate it! I asked you to release bad news, and you really went all out with it!"

Yu couldn’t help but laugh and cry, saying, "President Yang, it’s a misunderstanding! I was calling to tell you that those bad news reports weren’t released by me—it’s clear someone is targeting me."

Yang Chen: "Huh? I was wondering why you were so straightforward, releasing such intense news. Looks like someone is eyeing your company, wanting to depress the stock price and buy in. Has anyone talked to you about acquisition interest?"

Yu: "No! I even suspected it was you doing it."

Yang Chen: "That’s unlikely. We’ve already discussed it, with you releasing the bad news; why would I go through the trouble? You just wait, someone will definitely contact you. When they do, let me know."

Yu: "Alright! I understand the situation. Let’s stay in touch."

Given the current situation, Eastern Education Group is definitely going to delist. Yang Chen just thought of a business growth opportunity to try out, which is why he dared to spend money buying the stock.

Now suddenly someone is releasing dense negative news to suppress Eastern Education Group’s stock price—it’s definitely intended to buy at a low price.

Who would buy stock that is about to be delisted?

No one would!

That indicates the person deliberately releasing bad news certainly has their own intentions.

Either they thought of Eastern Education Group’s upcoming main business like Yang Chen, or they want to use Eastern Education Group as a shell to list their own company.

No matter which of these situations it is, Yang Chen is very interested in finding out who this person is.

After Eastern Education Group’s stock plummeted for three consecutive days, Yu finally received a call from a stranger.

The person was Tong Hu, founder and majority shareholder of Wanyou Education Group, holding a stake as high as 60%.

Wanyou Education Group is similar in nature to Eastern Education Group, but their main business is different.

Eastern Education Group’s primary business is extracurricular training for mainstream courses like Eagle Language, which faced calamity after the national "double reduction" policy.

But Wanyou Education Group’s main business is skills training, such as driving school, computer, auto repair, electronic product repair, chef, barber, and training in disciplines including Eagle Language.

However, training in mainstream courses like Eagle Language accounts for less than 10% of the company’s total business, so the national "double reduction" policy didn’t greatly affect them.

And taking advantage of this wave of "double reduction" policy, Wanyou Education Group instead rapidly developed against the trend.

Tong Hu called Yu to convey two matters.

First, the negative news online was released by people he hired.

Second, Wanyou Education Group wants to use Eastern Education Group as a shell to list.

To put it bluntly, Tong Hu deliberately released so much true-and-false negative news; firstly, to depress Eastern Education Group’s stock price for a low-cost acquisition; secondly, to coerce Yu into submission—if he doesn’t sell the company, it will have to delist.

However, Tong Hu is unaware that Yang Chen was already eyeing Eastern Education Group, making Tong Hu’s actions purely suicidal.

Yu, being an old hand, didn’t rush to anger upon hearing this from Tong Hu but spoke some ambiguous words to keep Tong Hu steady, then quickly called Yang Chen to discuss a counterplan.

Yu explained the situation to Yang Chen in detail, asking for his thoughts.

Yang Chen isn’t very familiar with Wanyou Education Group, only knowing they run driving schools.

Before understanding this company, Yang Chen couldn’t specify what actions to take.

"President Yu, give me some time, wait for my call," Yang Chen said.

Yu now fully relies on Yang Chen to rescue Eastern Education Group from its predicament, and must follow Yang Chen’s lead.

After hanging up, Yang Chen sent a message to Qiu Yuhong, instructing him to immediately investigate all information about Wanyou Education Group and Tong Hu personally, both good and bad.

Early the next morning, Yang Chen received Qiu Yuhong’s reply.

The main content had only a few points.

First, Tong Hu recently absorbed funds from Swiss Federal Institute of Technology Zurich alumnus Laurie Murphy, sold 30% equity, and planned to list through a shell.

Second, Wanyou Education Group’s business model has significant problems.

Let me give an example to explain.

A student pays 15,000 yuan to become a lifetime VIP of Wanyou Education, and can study all educational content offered by Wanyou Education. After the five-year completion of study, this tuition of 15,000 yuan is refunded entirely to the student.

At this point, the student only needs to pay 9,000 yuan in tuition to permanently study all educational content offered by Wanyou Education.

When this portion of tuition is paid for another five years, it is still fully refunded to the student.

From this point forward, the student can enjoy all courses offered by Wanyou Education for free forever.

Doesn’t this scheme sound familiar?

Tearing down the east wall to repair the west wall, using new students’ money to fill the refund for old students. Many scams involving capital raising, educational training, gyms, beauty salons, etc., use this scheme.

Initially, when the cash flow has no issues, the money paid by new users can sustain the old users.

Once the number of new users is insufficient, and the money paid can’t sustain the old users, a crash is inevitable.