Chapter 223: The Next Plan
Nortel Networks quickly settled the matter, and Nortel Networks used all their patents as collateral to borrow $1 billion from a shell company set up by the White Tiger Fund, with an interest of $110 million per year, and the interest for the year was paid in advance by the third Friday of January every year. If it is overdue, the patent will be automatically transferred to the shell company of the White Tiger Fund. It also stipulates that it can be redeemed at a price of $1 billion within three years, and after three years, the two parties will negotiate a settlement, and after five years, all patents will automatically vest in the company.
"Are you really sure that Nortel Networks will go out of business?" said Li Yinan
"It doesn't matter if we go out of business or not, we won't lose money anyway. Zhou Shi said indifferently
"But all my efforts for so long have been in vain. "Li Yinan
"It seems that this is really the case! What have you done in the past few months?" Zhou Shi
Li Yinan's face was blue and red for a while when he heard it, but he didn't squeak. Although he was not led by this acquisition, after so much effort, it seemed to have no effect in the end, so he was naturally very uncomfortable.
"What are your next arrangements?" Zhou Shi didn't think much of it, and didn't tease him too much.
"What is the arrangement, returning to China, Android system, Guoke mobile phone still has a lot of problems. ”
"That's not arranged!" Zhou Shi, "What do you think of the Fruit Shell Phone?"
"Very good!" Li Yinan
"Really? This phone system is Google's, the CPU is Qualcomm, the GPU is PoerVR, and the screen is LG....... None of them are our own. "Zhou Shi
"So what?" said Li Yinan
"So we need to concentrate on the core breakthrough!" Zhou Shi
"Do you want me to buy a certain company again, aren't you playing with me? I won't go, anyway, you have a lot of money, just use the money to smash it. "Li Yinan
"You're not angry, how much money we can have, a lot of things can not be done with money. And I'm not asking you to buy the patents of big companies this time! Without you, a lot of things will not be able to develop. "Zhou Shi poured him ecstasy.
"Tell me, what is my role?"
"Our goal this time is mobile phone CPU design, looking for small companies with technological advantages, and acquiring and integrating them one by one, such as Spreadtrum!"
"Poof~~, Spreadtrum is a small company?" Li Yinan felt that he really shouldn't believe Zhou Shi, the concept in this guy's mind was different from others.
"They haven't been on the market for a long time. "Li Yinan
"But their market value is only about $400 million, and we can wipe them out with a wave of our hand. Zhou Shi's words ruthlessly hit Li Yinan, what about going public, he was crushed without money.
"What do you want to do and buy it directly?" Li Yinan
"You stupid, how is this possible. "Spreadtrum has only been listed for half a year, and many shareholders are not completely desperate, and the founder's shares have not yet been lifted.
"Of course, it is asset restructuring, capital increase and share expansion. But there's no hurry, let's buy some small start-ups first. "Zhou Shi
"Why?" Li Yinan was puzzled, since he wanted to buy it, why not as soon as possible?
"You just got a lot of money, don't you want to make a big deal? Why wait until they finish the money, and there is no hope in sight, and then we will make a move!" This is not that Zhou Shi is reluctant to send money, the main reason is that the founders and investors still have great hopes for them, and it is difficult for outsiders to intervene. However, the contact that should be there cannot be broken, and funds such as NEA, Fuxin, and Pacific Venture Partners, which hold a large stake in Spreadtrum, must also start contacting now.
"What does this have to do with me, and what can't I help you?" Li Yinan
"I want you to look at the big picture and think about what kind of technology companies need and what direction these companies are going to go. I'm sure you're gifted with these. Although Zhou Shi knows the development trend of mobile phones, he doesn't know anything about the specific technical direction, and at this time, a genius like Li Yinan has a lot of use. Zhou Shi said the idea, and he was responsible for coordinating these enterprises to realize Zhou Shi's idea.
"Nothing else?" Li Yinan asked tentatively
"Yes, but the time has not come. "Zhou Shi
"What time, what is the matter?" Li Yinan
"SMIC!" Zhou Shi said simply
"What do you want to do? A little east, a little west, not afraid of dragging yourself to death?" Li Yinan knows that whether it is mobile phone chip design or chip foundry, it requires a lot of money, billions and tens of billions of investment, which is not something that a private person can do. Zhou Shi is very irrational like this, no matter how you look at it, he will fail.
"You don't even dare to think about it?" Zhou Shi mocked Li Yinan indifferently
Zhou Shi must have his own ideas, now the smartphone industry has just begun, Qualcomm has only just set foot in it, and even the GPU is not integrated into the CPU. If it weren't for the fact that he couldn't spare his hand now, Zhou Shi really wanted to go to AMD to acquire ATI's mobile phone graphics technology, although Qualcomm and ATI have long cooperated, but buying things ultimately depends on the price.
In such an initial stage of the industry, if the acquisition of Spreadtrum can quickly adjust the direction, and then with the support of Husk, Nuts and Tomato mobile phones, Spreadtrum's orders will not be less, and Spreadtrum has orders, naturally with the support of foundry, SMIC's development will also be guaranteed. This is almost an industrial chain, if these brands of mobile phones can develop well, this industrial chain can also be revitalized, if the mobile phone brand is not successfully established, sales do not go up, Spreadtrum and SMIC will be very difficult to develop. In addition to technical reasons, SMIC has no supporting industrial support, and state-owned enterprises like Datang are good at infighting, which has infinitely magnified SMIC's management problems.
It takes a lot of money to make semiconductors, that's right, and Zhou Shi is not prepared to bleed all the time. The role of finance is to use other people's money to develop his own industry, and if he can't understand this, it will be in vain for so long. The reason why those entrepreneurs want to go public so much is because they can get low-cost financing after going public. Venture capital is just a choice that has no choice but to go.
In Zhou Shi's plan, when Nortel's patent is in hand, Tomato mobile phones will use the price of copycat machines and the quality of brand phones to open up the low-end mobile phone market in underdeveloped countries and regions. In the past two years, it is still necessary to work diligently, ensure quality, reduce costs, and build our own factories. In the case of OEM, the timing and plan of mobile phone production and launch are not under control, and many of them depend on the production schedule of the OEM. Foxconn pits people not once or twice, but Xiaomi doesn't seem to have many options at that time.
"By the way, do you want to join the board of directors of Guoke, so that you can also have a name when you engage with Spreadtrum and SMIC. "Zhou Shi
"Guoke Board?" Li Yinan was a little moved, at this time, the Guoke mobile phone had been listed, and the final price was 499 for the 8G version and 399 for the 4G version. Although there is no Apple brand bonus, 300,000 mobile phones were sold out within a week as soon as they were launched. The next batch of 500,000 mobile phones will have to wait until mid-January 2008. In order to better expand overseas markets, the spokesperson selected by Guoke has also determined one, that is, Manchester United's No. 7, Cristiano Ronaldo. There is another one who has not agreed for the time being, and that is Kobe Bryant of the Lakers.
(End of chapter)