Since you are going to make an acquisition, you must do your homework in advance.

Hu Jinchang also conducted a thorough investigation of MediaTek during this time, and now he has an in-depth understanding of this company.

Don't look at MediaTek before it was unknown on the mainland, but in fact, this treasure island company is very well-known.

In the Baodao integrated circuit design industry, referred to as the IC industry, MediaTek and its founder Cai Mingjie have a pivotal position.

And Cai Mingjie himself is known as the "godfather" of the IC design industry on Treasure Island!

In the past, MediaTek's main business was DVD chip design, and its DVD chips once accounted for 60% of the global DVD chip market share!

But with the weakness of DVD sales and the saturation of the market, MediaTek is also seeking transformation, so it aims at the mobile phone industry, which has grown by leaps and bounds in recent years.

Because of its deep background in chip design, MediaTek quickly came up with its own chips.

Unfortunately, there were too many chips on the market at that time, and major mobile phone companies basically had chips of their own design.

There are also veteran chip manufacturers such as Texas Instruments to grab the market, and MediaTek is naturally difficult to compete with them, so it is very difficult.

At the end of last year, Cai Mingjie put forward a new idea after careful market research and full internal discussions.

That is to be a "one-stop mobile phone solution"!

MediaTek's multimedia technology played a huge role at this time.

Cai Mingjie and his family learned about the needs of mainland consumers, and integrated their multimedia technologies, such as MP3 and FM radio, into their mobile phones. came up with a complete set of mobile phone solutions, rather than selling a single chip.

Moreover, MediaTek's whole set of solutions was sold at a low price, and its functions were much stronger than other products at that time, which made MediaTek's chip solution an instant hit in the mainland market.

Prior to this, international chip manufacturers such as Texas Instruments, Qualcomm, and Infineon only provided chip platforms to mobile phone manufacturers, that is, they only sold the most core chips, and all other components were ignored, and mobile phone manufacturers needed to purchase them themselves.

However, the process from the mobile phone chip platform to the finished mobile phone needs to be solved by the mobile phone manufacturers themselves, either to develop it themselves, or to outsource a series of processes such as system integration, UI design, application software integration, and debugging to specialized mobile phone design companies, which leads to the increase in the production cost of mobile phones and the extension of the cycle.

In the earliest years, domestic mobile phone brands were basically launched by old home factories or electronics factories, and this is the reason.

Because ordinary individuals or companies don't have the strength to develop mobile phones, even if all the components can be purchased, but just assembling these components together and making the mobile phone run normally is not a simple matter.

MediaTek's one-stop mobile phone solution pre-integrates the mobile phone chip and mobile phone software platform before selling it to mobile phone manufacturers.

MediaTek's completion rate at that time was very high, more than 70%!

In other words, the adoption of this scheme can enable mobile phone manufacturers to obtain solutions including baseband chips, operating systems, and even mobile phone screens and cameras at one time, greatly reducing the threshold for the production of mobile phones.

At that time, there was also a more exaggerated statement, that as long as mobile phone manufacturers bought MediaTek's solutions and chips, they could sell them directly in a shell!

Of course, the actual situation is not so simple, mobile phone shells, keyboards, batteries, external speakers, etc. still have to be purchased and assembled by themselves.

But in any case, MediaTek's one-stop mobile phone solution allows all manufacturers who are interested in making mobile phones to save costs while shortening the original mobile phone research and development cycle of more than half a year to less than three months!

In addition, there is another point that cannot be ignored, that is, the reason why MediaTek in 2004 became famous, a large factor, is also because of the legendary CQ1 mobile phone, using their whole machine solution!

With the best-selling of the legendary CQ1, MediaTek has also begun to be widely known, especially in the domestic low-end mobile phone circle, everyone knows that if you want to use the simplest and fastest way to make mobile phones, then purchasing MediaTek's complete machine solution is the best choice.

In addition, it is not a simple matter to want to acquire MediaTek.

Because MediaTek has been listed on the Baodao Securities Market, although the market value is not high, it is still a listed company.

If the legendary mobile phone company wants to acquire or buy shares, it also has to go through more cumbersome review procedures.

But now that he has made up his mind to take MediaTek, Hu Jinchang has also made full preparations, and the acquisition consultant hired Citibank, which was recommended by Yu Wenfei.

There's a reason why Citi was chosen.

First of all, Citibank is a shareholder of Facebook, and also undertook the underwriting business of Facebook's NASDAQ listing, and has a very close relationship with Yuwenfei, and the two sides have also cooperated several times.

For Citi's business capabilities, Yuwenfei is still quite trustworthy.

Secondly, don't ignore Citibank's American background, which may not be much on the mainland, but on the treasure island, this is another "talisman"!

If a state-owned bank is hired as an acquisition consultant to negotiate the acquisition with MediaTek, MediaTek will be nothing, but the authorities on the treasure island are estimated to be doing something.

And Citibank stepped in, which invisibly helped the legendary mobile phone company reduce a lot of trouble.

Those characters like bulls and horses, if they want to jump out and point fingers, they also have to weigh their own weight.

............

No. 2, Hualian Road, Baobei City, the capital of Baodao Province, is the headquarters of MediaTek.

A small science and technology park, with several old office buildings that are some years old, basically no more than five stories high.

Because there is no need to produce it itself, all chips are outsourced to TSMC for processing, so MediaTek does not need a factory, and is essentially a design company.

MediaTek has not had a good time in the past two years, the DVD market is shrinking sharply, and its leading DVD chip company has also been greatly impacted.

The company's market capitalization has fallen from a peak of more than $2 billion around 2000 to only about $800 million now.

The chip that was developed at a great cost was also left out in the cold when it was launched last year.

The setbacks of both core businesses caused MediaTek to almost collapse, and the company was on the verge of bankruptcy for a time.

Fortunately, Cai Mingjie is still very capable, and he did not flinch when facing a desperate situation, but rose to the challenge and led the team to carefully study the mobile phone chip market, and they keenly found that the mainland market will be the most promising market in the next ten years!

And targeted launched a one-stop mobile phone solution, this set of solutions, not aimed at the European and American markets at all, because the mobile phone giants there will not adopt their design solutions.

Cai Mingjie and his team are aiming at the mainland market, and it is a low-end market!

Sure enough, after the launch of this one-stop mobile phone solution, it first set off a small boom in the Huaqiangbei market in Pengcheng, which gave MediaTek a glimmer of hope.

Then a mobile phone company in Pengcheng came to the door to seek cooperation.

The mobile phone company, called Legend, was quite vocal at the time, saying that it would purchase more than five million MTK systems in a year.

Cai Mingjie was surprised and delighted at the time, and he couldn't believe the strength of the legendary mobile phone company, thinking that they were bragging.

But you can't go wrong with a try, and it's not that people don't give money, they just want to use big purchases to reduce the price.

A few months later, in 2004, the legendary mobile phone gave Cai Mingjie and MediaTek a huge surprise!

The legendary CQ1 mobile phone was launched, with an ultra-low price of 998 yuan, which broke through the market of mainland brand mobile phones in one fell swoop, causing a great sensation.

In two months, three million mobile phones were sold!

According to this trend, not to mention 5 million sets, maybe 20 million sets may not be enough!

Legend mobile phones have also become MediaTek's largest customers, accounting for 70% of MediaTek's chip shipments!

Seeing that MediaTek is about to rise again......

............

"Although the situation is very good now, we should not be proud, but take advantage of this momentum, continue to work hard! In the mobile phone chip industry, we are just a new recruit, compared with Texas Instruments, Qualcomm and other old manufacturers are still very far behind. Fortunately, Legend has helped us open up the market on the mainland side, and next, all our R&D goals are to closely integrate the market on the mainland side and cater to the needs of users there......"

At the company's high-level meeting, Cai Mingjie was gushing about giving his subordinates chicken blood and boosting morale, and his secretary hurriedly walked in.

After coming to Cai Mingjie's side, he approached him and whispered: "Mr. Cai, there is an emergency!"

Cai Mingjie was stunned for a moment, and asked rhetorically, "What's the situation?"

The secretary looked at the other people in the conference room, and seemed a little difficult to speak.

Cai Mingjie's heart sank suddenly, it seemed that something bad had happened.

He hurriedly pulled the secretary out of the conference room.

As soon as I went out, I urgently asked, "What the hell is going on!"

"Legend just called, and said...... Said that he was not satisfied with our new quotation and was ready to cancel the next cooperation. The secretary lowered his head and said in a slur manner.

Cai Mingjie was shocked.

The legendary mobile phone company is MediaTek's most important customer, and the legendary order can even be said to be related to the life and death of MediaTek!

If the cooperation is really canceled, not to mention anything else, first of all, MediaTek's stock price will "die" to him first.

The company's market value has plummeted, and shareholders will not let him go.

"Did the other party say what the reason was, why did you suddenly cancel the cooperation, if it was just because of the price, it can be discussed. Cai Mingjie asked nervously.

"It's not very clear on the phone, it's just that other chip companies have also come up with a set of solutions, which are more advanced and cheaper than ours. The secretary replied.

Cai Mingjie calmed down at the moment, and sure enough, there were competitors playing tricks.