252 Acquired RCA's television business

"Oh, it's pretty fast, I thought it would't be over until at least next year?" Xu Zhi said with a smile and shook his head.

Wang Liming said: "The main thing is that Wanwan is relieved, in fact, General Electric and RCA have already negotiated the details, and the biggest trouble is that more than 200 American employees are detained in Wanwan, and the U.S. Department of Commerce will not agree to this merger if this matter is not resolved." ”

"So that's the case, what about Wanwan?" asked Xu Zhi.

Wang Liming said: "The official data is that GE will build a hospital in Taoyuan City, as long as cancer patients within 20 kilometers of the RCA plant can go for treatment, and according to the situation of these people, GE will also pay a lump sum of money."

In terms of the environment, GE will pay $100 million to set up a professional environmental protection fund, which will try to alleviate the harm of pollution to the human body by planting greenery and filtering water sources.

Others include severance pay for 15,000 former employees, and GM will invest in a large manufacturing plant in Taoyuan City to help with employment, and so on.

These are only on the surface, and it is not known what agreement the Wanwan government and the U.S. government have reached. ”

"100 million US dollars!" Xu Zhi smiled and asked, "What is the purchase price of RCA?"

"$4.2 billion, GE has to bear all the liabilities. Wang Liming replied.

"No wonder GE is so generous, willing to pay $100 million, and only $4.2 billion to acquire RCA. Xu Zhi couldn't help but sigh, in 1986, the purchase price of General Electric was 6.3 billion US dollars, although it is a little early, but this transaction price is still too cheap.

The biggest beneficiaries of this incident are obviously General Electric and Goldman Sachs, but they just took a sip of soup. However, there is no way, the United States cannot take the initiative to end this kind of thing, and it does not have the resources and capabilities.

Xu Zhi thought for a while and said: "Then let's go to the United States, although RCA's TV business is in decline now, it is a business with annual sales of more than 2 billion US dollars after all, and I have to talk to Welch in person." ”

......

Headquartered in Boston, USA, GE has become the world's largest multinational manufacturing group from an electric lamp company founded by Edison, the "king of invention" in 1878, to today, 100 years later, involving aircraft engines, power generation equipment, medical equipment, household appliances, finance, infrastructure, etc., and was rated as one of the top ten companies in the United States by the American Fortune List in 1980, ranking fifth.

Historically, Welch would have taken over as GE's CEO next year, leading the giant to glory again.

"Congratulations to Mr. Welch for getting his wish and acquiring NBC TV!" Xu Zhi congratulated with a smile in Welch's office.

"That's the result of everyone's communication efforts!" Welch was pleased, the successful acquisition had made him highly appreciated within GE, and the board of directors was very pleased with his accomplishments, which would certainly be a major plus in the future for the position of CEO.

But now there is another task, which is to divest RCA's messy assets, RCA's previous business was very complicated: carpet business, insurance, aero engines, medical equipment, etc., these businesses are either not obvious to General Electric, or they have this kind of business itself, and it is not profitable, Welch naturally wants to dispose of these as soon as possible, after all, the billions of dollars borrowed for acquisition financing are not low.

RCA's most important business, in addition to NBC television, is the television business, the former is the most profitable, the latter is the largest, but it is not efficient and needs to be sold urgently.

Welch said: "Mr. Xu, according to our previous agreement, after our company acquires RCA, you will take over the TV and radio business, and the specific value of the business, the third-party organization jointly invited by you and my company has given the value, 470 million US dollars, I don't know what Mr. Xu thinks?"

"It's too expensive. Xu Zhi shook his head and said: "The pollution incident in Taoyuan City has done great harm to the RCA brand, and there has been a market vacancy problem for a period of time before. ”

Welch said: "Mr. Xu, the total output value of RCA's TV business is more than $2 billion, and if it weren't for the RCA incident, it is estimated that $1 billion may not be able to buy." ”

"The output value is high, but the annual profit is very unstable, the whole 70s was mostly loss-making, and the occasional profit was only 10 million US dollars, what is the value of this kind of company, Mr. Welch really doesn't know?" Xu Zhi replied.

Welch didn't refute and asked, "Then what price is Mr. Xu willing to offer?"

"$400 million!" Xu Zhi said.

Welch shook his head and said, "Impossible, it's too low." ”

"Really!" Xu Zhi smiled, took out a contract and handed it over, and said, "Mr. Welch, can you take a look at this first?"

Welch took it, looked at it carefully, and said, "Now that the pollution incident has been dealt with, is Mr. Xu still going to use this contract to fight a lawsuit with us at General Electric?"

Xu Zhi smiled: "If it is not necessary, I don't want it to be like this, but according to this contract, in the past six months, RCA should provide our company with a total value of 60 million US dollars worth of picture tubes, but I have not received any of them, according to the contract, but 30 million US dollars in compensation!"

"It seems that Mr. Xu has already laid out everything!" Welch thought for a moment and said, "$450 million, and at the same time, I can transfer a set of GE's most advanced cathode ray tube technology." ”

Xu Zhi thought for a while and said, "It's not impossible, but I also want all the patented technologies of RCA in liquid crystal." ”

"Liquid crystal patents. Welch had heard of this kind of thing, but he didn't take it very seriously, and it wasn't GE's main business, so he said, "Yes." ”

"Okay, but there is another problem, it takes a lot of time to relocate the Taoyuan factory in Wanwan, so this transaction will be carried out in batches until all the equipment inside the factory is moved to Xiangjiang Wharf, where one of my companies has prepared two large warehouses. Xu Zhi said cautiously.

Welch thought for a moment, nodded and said, "No problem, then I wish us a happy cooperation!"

"Happy cooperation!" Xu Zhi also stood up and said, "I heard that Mr. Jones is about to retire?"

"Mr. Xu's news is really well-informed!" Welch nodded and replied, Reginus Jones is the current CEO of General Electric, because of his advanced age, he is ready to officially retire next year, this matter is not a major secret, the middle and senior management of General Electric already know about it, but if outsiders are not particularly concerned, they may not know.

Xu Zhi smiled: "I heard that Mr. Welch is one of the candidates for the next CEO of General Electric?"

"Not bad!" Welch nodded, there were three people in the competition.

"With this NBC acquisition, I think Mr. Welch's odds are bound to increase dramatically. Xu Zhi paused for a moment and said: "I am more optimistic about Mr. Welch's business ability, so if Mr. Welch is elected, I want to invest in General Electric, I don't know what Mr. Welch thinks?"