This year's Lunar New Year is January 31, and Chen Qing and her daughter did not return to North America until the end of February, not because they were lazy, but because they were busy with the work of several projects, the most important of which was the newly established BBK.

However, in the process, Chen Qing found another big business opportunity. It is mainly the inspiration generated by the BBK team in the process of researching and dissecting the VCD product.

Here I have to talk about the origin of VCD.

In 1992, the founder of Wanyan Group in Anhui, China, was inspired by the video decoding chip products displayed by the American video decoding chip manufacturer Scober during a technology fair, and came up with the idea of developing a VCD.

Wanyan Group was subsequently established.

In September 1993, after burning a huge amount of 140 million yuan, Wanyan Group successfully completed the first VCD product, and in 1994 launched to the market, which should have been China's first player product with independent intellectual property rights. However, due to various reasons, a series of core patents of VCD have been preemptively registered by major overseas manufacturers, and the whole machine patent has also become an open technical standard because it missed the opportunity to apply.

This has to be said to be a great regret.

For downstream manufacturers in the industrial chain, losing patents is equivalent to losing the right to speak, and they can only be slaughtered in component procurement.

Midtown Manhattan, Rockefeller Center.

In Simon's office at the company's headquarters in Westeros, Chen Qing was introducing her thoughts: "I have contacted Scober, but I have not been able to get any specific information. However, with the help of Miss C in Silicon Valley, I have roughly confirmed that the latest video decoding chip developed by Scober based on the MP4 video format launched by Westeros will not exceed $10 at a maximum production cost, however, the price sold by Scober to downstream manufacturers, even if it is the close-knit Wanyan Group, the price of a single piece has reached $80, and the gross profit is as high as 700%. For other core components such as laser reading heads and system control chips, the gross profit of each manufacturer is also several times the production cost. In comparison, Wanyan Group's VCD products, which are currently priced at $500, have a manufacturing cost of more than $350 and a gross profit margin of only 40%. Therefore, if China's VCD industry can really explode as we predicted, I think it is the best investment to control the upstream component manufacturers, so that we can even dominate the entire Chinese VCD industry and maximize benefits. ”

After listening to Chen Qing's words, Simon nodded slightly, and did not speak immediately, but looked at Lin Su, who was on the sofa opposite, lowering his head and eyebrows, and seemed to be very focused on flipping through the papers on his lap.

Sensing that the surroundings were quiet, Lin Su raised his head and happened to look at Simon, his eyes flickered slightly, and he quickly turned into doubt.

Simon looked at the woman's delicate face, and suddenly asked, "Does it have a feeling of being in the enemy camp and fighting for the tiger?"

Lin Su's eyes flashed again, he didn't deny it, but he didn't affirm it.

Simon changed to a more relaxed posture and leaned on the sofa in the reception area, and continued to say in Chinese: "This is actually very normal, which shows that your outlook on life is very good under the red flag for so many years." However, you also have to remember that you don't owe anything to others, and you don't owe anything to your own country, but I heard that you went back this time and donated most of the year's salary you got in advance, Hope Project, a very good project. So, you've done well enough. Now, you are mine, and all you have to do is remain absolutely loyal to me. ”

Lin Su finally spoke: "I'm not yours, I'm just working for you." ”

Simon didn't have the slightest intention of theorizing with women, and instead said: "Chen Qing's idea is very good, for this matter, we only need to do it from a purely commercial consideration, everyone is within the rules, and there is nothing to blame." Moreover, I have always believed that the sympathy and pity of others can never make a person truly strong, and that this can only be done by constant blows and setbacks, and the same is true for a country. I believe that after this incident, the Chinese side will definitely reflect on it and learn from it, which is an inevitable bump in the development process of many countries. ”

Lin Su paused, wanting to refute, but after all, he only nodded slightly.

Simon smiled and said, "However, I still remember that Hegel once said that the only lesson that history teaches mankind is that mankind never learns a lesson. So, I believe there will be a second, third, and even fourth time for this kind of thing. ”

Lin Su's mood had just dropped a little, and when he heard Simon say this, he suddenly realized that a certain guy had started to tease him again, so he could only stare at him very ineffectively.

Simon praised: "You look good when you're angry, beautiful woman, you're really the darling of heaven." ”

Lin Su simply lowered his head again.

Simon didn't mind, but said, "Actually, just like going back to donate this time, I think it's a very appreciative thing." So, keep it up. Also, work hard for me so that you can get more and have more capital to give back to your country. ”

Lin Su still hung his head and waited for a moment, confirming that a certain guy was not teasing himself this time, and then said softly: "Thank you." ”

Attention turned to Chen Qing again: "Okay, our two villains continue, I have already read the plan you submitted, the acquisition of Scober, I very much agree, however, the establishment of a plan to dominate the core component industry chain of the VCD market is forgotten." It is true that China is currently unable to produce these core components, but for electronics manufacturers in Europe, America and Japan, the development of VCD core components is not very difficult, and it is impossible for us to monopolize it. ”

Chen Qing shook his head and said, "Time, boss, this is our biggest advantage." Just like the video decoding chip, Scopber has developed a very mature MP4 format video decoding chip, because of the lack of attention to VCD products, other manufacturers have not invested much energy in this field, even if it is an electronics industry giant like Sony, if you want to catch up with Scopber, it will take at least a year. In this year's time, Scooper will not stand still, and there will definitely be more advanced products launched. ”

"But you seem to have overlooked one thing," Simon continued: "The DVD standard has been formed, VCD is only a replacement product developed on the basis of CD after all, one has a fixed capacity of 4.7G, and the other is only 700M, which is something that VCD can't surpass no matter how hard it tries, because it is a product that is more than one generation apart." So, Chen, I have to remind you, and I still need you to remind them, VCD is just making a quick buck for us, and in five years at most, you have to think about transformation, otherwise it will only be replaced by DVD, or even completely eliminated. ”

"I know this, boss," Chen Qing said without being hit at all, "In my opinion, DVDs will indeed replace VCDs eventually, but it will take a long time for various manufacturers to promote DVDs because of their content, and during this time, we can accumulate enough technology to get a share of the larger DVD industry in the future." ”

"Huge, how big do you think?"

"At least it's not much worse than a VCR, because DVDs have a clear cost advantage in comparison. Although the core patents have been held by Sony and other manufacturers, it does not mean that there are no opportunities for us. ”

Simon looked at Chen Qing for a moment: "I have to say, your thinking is very good." ”

Chen Qing looked forward to it: "The boss agreed?"

Simon shook his head: "Unfortunately, I still don't agree. ”

"Why?"

"Do you use the Internet a lot now?"

"Yes. ”

Simon said: "Go back and study it carefully, and you will find that some pirated music and movie download websites have begun to appear on the Internet now, Chen, this is the trend." Whether it is genuine or pirated, it can only be the world of the Internet in the future. The globalization of the Internet will completely destroy the traditional player industry. If there is no internet, I will definitely approve your proposal and invest a lot of money. Now, that's not possible. ”

"Boss, you just said that the capacity of DVD is 4.7G, and the picture quality experience of a movie of such specifications is absolutely incomparable to the Internet at this stage. ”

"It's not comparable at this stage, and in five years, it's probably about the same. ”

"But...... The West is not China, copyright protection is very strict, and the survival of DVDs should be easy. In China, the Internet is just getting started, and DVDs have survived for at least a decade. ”

"You obviously haven't seen through the openness of the Internet, which cannot be stopped by both the East and the West, and it is one of human nature to get something for nothing, and no one can stop it. Simon said this, stopping Chen Qing from continuing to argue with himself, but said: "All in all, this is the way it is, whether it is a VCD or a DVD, in my opinion, it will only be eliminated by the Internet." What's more, many of the core patents of the two have been held by Sony, Hitachi, Philips and other manufacturers, we spent a lot of money to join, after all, we have missed the most lucrative profits, and it is difficult to determine when this part of the profits will disappear completely, so this is making a quick profit. ”

When Simon said this, Chen Qing understood that there was no room for turnaround, so he had to say, "What does the boss mean, we only buy one Scooper?"

Simon nodded: " I have seen the information of this company, listed at the beginning of last year, the revenue of the 1994 fiscal year was only 21 million US dollars, the market value is affected by the new wave of science and technology, it is currently 120 million, even if it is a hostile takeover, I think it can be won within 200 million US dollars, this is a very cost-effective business, as the only supplier of VCD video decoding chips at this stage, until the outbreak of the VCD industry in China, 200 million US dollars to win, take the opportunity to cash out in about five years, we may be able to recover 10 times the income, very cost-effective. ”

Founded in 1988, Scober is a peripheral company incubated by Texas Instruments, similar to small companies such as Intel around IBM a long time ago, mainly engaged in the research and development of video decoding chips, because VCD sales in China last year were only tens of thousands of units, so no one has yet realized the potential of this company.

That's the opportunity for the Westeros system.

Interestingly, in addition to Texas Instruments as a shareholder, Scober is also a key investment project of Sequoia Capital, and Sequoia Capital founder Don Valentine is currently the chairman himself.

With the venture capital nature of Sequoia Capital, if the Westeros system initiates an acquisition, as long as the price is right, the other party will be happy to sell it, Texas Instruments, as Nokia's most important baseband chip supplier, will not care too much about the transfer of such a small company with obvious bubble components for the sake of maintaining a good cooperative relationship between the two parties.

There may also be people who have the idea that the companies favored by the Westeros system must of course be held in their hands, and the big deal is, hostile takeovers are.

Chen Qing heard Simon say this, and her eyes showed expectation: "So, boss, can you leave this matter to me?"

Simon nodded: "If it's something else, it's definitely not going to work." If it is to lay out the entire player industry according to your suggestion, I will definitely not hand it over to you. However, since it is just a small company like Scooper, it is also related to the layout of China's VCD industry, so it is nothing for you to do. This is also a test, Chen, once China's VCD industry begins to explode, as the only supplier of video decoding chips at this stage, you need to balance the supply distribution between BBK and other VCD manufacturers in China, this thing is done, we can control China's VCD industry to the greatest extent, if we don't do it well, we may drive other manufacturers to competitors. ”

Chen Qing nodded solemnly: "I understand, boss," he hesitated a little and asked, "Boss, can I still have a share of Lin and me this time?"

Simon smiled and nodded: "It's still 5% per person, your position is on the side of Apollo Management, so you can initiate this acquisition in the name of Apollo Management, but you have to think clearly, according to the acquisition budget of 200 million US dollars, each of you will owe me $10 million." ”

Chen Qing blinked, and her face was a little more charming: "Boss, if you lose, we will compensate you." ”

Lin Su, who had been silent just now, glared at Chen Qing, and finally spoke: "Don't count me as a person." ”

Not to be outdone, Chen Qing glared over: "If you don't want it, I'll take 10%." ”

Lin Su opened his mouth and looked at Simon again, seeing that the man had a hateful expression of looking lively, he still didn't refuse.

After talking about the matter, Simon closed the folder in his hand, relaxed his legs, and said with a smile: "Okay, that's it, you guys go back and prepare first, well, I'll have someone pick you up in the evening and have dinner together." ”

After dinner...... This.

Lin Su's face suddenly flushed with some unnatural flush, this hateful guy, does it have to be two people together every time?

Chen Qing looked forward to it, but did not get up, but asked: "Boss, do you really stop thinking about the invitation of the Chinese official visit? ”

Simon shook his head and said, "Let's talk about it when I have time, I haven't been free lately." ”

Today is April 2nd, next, Simon is going to fly to Australia tomorrow, stay there for less than a week, April 6th Universal Studios Osaka opens, in order to avoid causing the 'Westeros effect' again, Simon does not plan to go to Japan, but still has to pay attention to this matter.

Also, on April 7, the first anniversary of the Rwandan genocide, because of last year's events, the United States officials have naturally taken most of the credit, this time Clinton will go to the first anniversary event, and Simon will also take the opportunity to go to Africa.

Further back.

In short, there is no time at all in the short term.

Moreover, Simon's private trip last year has already attracted too much attention after it was exposed, and if he contacts the Chinese authorities directly, with his current status, there are many things to weigh.

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