223 Commodore Corporation
In the InterContinental Hotel in New York, He Guoyuan reported to Xu Zhi: "Xu Sheng, the contract with RCA has been signed!"
"Okay, this matter is finally done, I contacted Goldman Sachs the day before yesterday, and they have also found a large consortium, the other party is interested in buying NBC TV, but does not want other departments, it is just right to match us, but some details have not been discussed yet, but it is estimated that it is soon, and this game is about to start. Xu Zhi took a sip of coffee and said with a smile.
Wang Liming also said on the side: "I am also ready to short 100 million US dollars of RCA shares, but because the total amount is not large, I have to see the decline of the stock to know the profit." ”
"Let's just play with this little profit. Xu Zhi waved his hand and said with a smile: "This time shorting Goldman Sachs is the main force, and we can only drink some soup after us." ”
Shorting is very profitable in many cases, but in addition to leverage and decline, what is more important is the total amount of the target, if it is currency, oil, commodities, stock indexes, these basically have no upper limit, then as long as you are bold enough, then you can let go of shorting.
But when it comes to company stocks, there is a problem, you have to borrow enough shares, because the principle of shorting is to borrow shares first, then sell them, wait until the stock price falls, and then buy the shares to return them, and get the difference from them.
The total market value of RCA is as high as 5 billion US dollars, but many shares are owned by large pension funds or union funds, and it is very difficult for investment banks to borrow, so there are not many stocks that can be borrowed above the market.
And you have to be very careful in shorting the company's stocks, because it involves selling stocks, which will easily cause the stock to fall, and when you buy back the shares, it will cause the stock price to rise, Xu Zhi doesn't plan to make too much profit in this speculation, just focus on participation, after all, what he really values is the TV business department that can start RCA in the future.
"Xu Sheng, the negotiations with Kangmaoda are not going well, and Trammel is not willing to sell the company at all. He Guoyuan began to report another matter to Xu Zhi: "But I have also contacted other shareholders privately, and they are very interested in our acquisition. ”
Xu Zhi nodded and asked, "How many shares do these shareholders have?"
He Guoyuan said: "More than 60%, the current major shareholders of Cammodore are Sequoia Capital, Citibank, Silicon Valley Commercial Bank, AIG and other companies, at present, because Apple's new computer is rising in the market, and Cammodore has been unable to provide competitive products, these venture capital and Trammell have a lot of contradictions, and they also have plans to withdraw their capital, if we take over, we can start at a good price." ”
Xu Zhi nodded and said: "Okay, then directly buy these shares first, and then negotiate with Trammell, this person is capable, and it is best to use it for us." ”
"Understood, then I'll do it immediately!" He Guoyuan agreed to come down and immediately went to prepare for the acquisition.
This time, Xu Zhi and He Guoyuan went to the United States, mainly for the purpose of RCA, but another layout was to prepare to acquire a computer company.
When it comes to personal computers, almost everyone thinks of Steve Jobs' Apple computers, but in fact, throughout the 80s, there was another computer company as famous as Apple - Commodore.
In 1969, the founder Trammell began to produce calculators, and in 1974, he developed the 6502 microprocessor chip and developed the famous "pet" microcomputer, which is considered a pioneer of microcomputers.
The peak of the company was in the 80s, in 1982, the commodore64 computer was released, priced at $595, throughout the 80s, the computer sales exceeded 20 million units, which was four times the sales of Apple computers in the same period, and the highest sales in a single year exceeded $1 billion, but in the 90s, because of the wrong development of the strategic route, the company went bankrupt.
Personal computers are an industry that is about to take off in the 80s, and Xu Zhi intends to cultivate Midea into the world's top electronics company, so he will naturally not miss this market.
The manufacture of computers is not difficult, Jobs's first product is assembled in a garage, but that is the most primitive wilderness era, many people do not know what a personal computer is, the cost of the first batch of Apple computers is actually very high, but because there are no competitors, they are all sold out soon, although it has only been a few years now, but the personal computer market and technology have developed rapidly, and customers have long been cultivated to be picky.
It is almost impossible to replicate the experience of starting a business in Apple Garage again, and the only way to enter this market is mass production, cost reduction, and technological innovation.
It is naturally not a problem to start from scratch, Midea Electronics has made its own computer products with 6502 processors as CPUs in its laboratory in Xiangjiang, but if it can acquire a mature company, it is obviously more cost-effective in terms of time. The sales channel, not to mention the commodore64 embryo that is about to explode in 2 years, has been formed, and as long as Xu Zhi injects more funds, it will inevitably achieve the greatest success.
A week later, Mr. Ho spent $5 million to buy back 63 percent of the company's shares in the hands of major venture capital funds.
Xu Zhi smiled: "Let's go, I'm going to meet this Trammel in person." ”
Since the decision to acquire Commodore has been made, Midea's branch in the United States has long been ready to acquire a company, which can not be done in a few words, although the founder Trammell disagrees, but the two sides have been in contact with many parties.
Although Trammell did not agree to be wholly acquired, he hoped that Midea would invest in his company, which was already strapped for money, and several major venture funds were clearly not prepared to continue to invest in it.
The meeting took place at a café near Central Park, and Trammell's first impression of Xu Zhi was a large, flat face that didn't match his towering nose and a casual sitting.
"Mr. Trammell, I'm Eric Hsu from Midea. Xu Zhi politely shook hands and introduced himself.
"Hello, if you are here to discuss investment, I warmly welcome you, but if you want to buy my company, then I'm sorry, I won't agree!" Trammell didn't wait for Xu Zhi to speak, and said it bluntly.
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