Chapter 64 Qualcomm and CDMA

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However, the extremes of things must be reversed. Qualcomm was too domineering, and finally attracted global opposition. In the 3G era, everyone suffers from it, and when it comes to 4G, no one wants to continue to be squeezed by Qualcomm. Therefore, Chinese and European manufacturers gave up the idea of evolving new communication standards from CDMA and decided to start playing LTE from OFDM, while INTEL, IBM, Motorola, and Nortel in North America took Japan, South Korea, and Taiwan to play WIMAX.

Qualcomm became a loner, so it had to play CDMA evolution by itself, and one of the biggest weaknesses of CDMA is self-interference, in order to overcome this shortcoming, Qualcomm decided to study multi-user detection (MUD) technology. However, Qualcomm has found that although MUD can improve CDMA, it will also bring out other inherent defects of CDMA, and it is difficult for MUD to support CDMA system design, and the commercialization cost is high. The most important thing is that OFDM and MUD can achieve similar practical results, but OFDM is much less complex than MUD, and the notoriety of Qualcomm rogues directly leads to no one willing to develop MUD with him.

In the face of the strong R&D capabilities of the Huaxia (Huawei, ZTE, Datang) and European (Ericsson, Nokia, Alang) alliances, Qualcomm wants to evolve CDMA through MUD, which is more difficult to develop and more expensive to commercialize, and it is obviously impossible to defeat the LTE of the Chinese and European alliances. So Qualcomm gave up UMB and participated in LTE.

As for the North American coalition that played WIMAX, Motorola was acquired by Google, Nortel collapsed, Japan and South Korea switched to LTE, and the resolute refusal to give in lost more than $30 billion. In terms of 4G communication standards, in addition to Qualcomm, China and Europe dominate the world. Qualcomm, which has been surpassed by China and Europe in the communications industry, has turned its attention to focusing on baseband chips, and with its deep patent accumulation, it is still difficult for MediaTek, Huawei, Apple, and Samsung to match.

Therefore, it is also conceivable that Guo Shouyun coveted CDMA patents. When the era of smartphones arrives, it is possible to make a lot of money by licensing patents alone. If he shows a little ambition and uses the advantages of foreknowledge to lay out in advance in the LTE-based OFDM field, he may not be able to build patent barriers in the OFDM field before Qualcomm reacts to give up MUD, and when the time is ripe, he will compete with Qualcomm for the global market of baseband chips!

Thinking of this, Guo Shouyun's heart became slightly excited. This is the starting point for intervention in the development of baseband chips. Of course, it's not that he hasn't considered buying Qualcomm. It is also a good opportunity to see the stock price plummet due to the Nasdaq crisis. But the capital required to acquire Qualcomm is too high. Moreover, the old Jacob, who controls Qualcomm, is notorious in the capital world, and the rumors of two 'black boxes' not only pit opponents, but also pit his own people. Over the past ten years, Qualcomm, which was originally co-founded by seven people, has become the private land of Jacob and his son. Guo Shouyun is not confident that he can play this old fritter in the business world.

The most important thing is that he doesn't have so much money now. Moreover, he is more willing to plan Apple than Qualcomm!

Therefore, if you can win Juji Electronics at a very low cost and maintain the opportunity to intervene in the field of baseband chips, it will be easier to accept.

"Do you have any information on MegaElectronics?"

"Yes! but I didn't bring it with me!"

"Transfer it to me as soon as you go back!" Guo Shouyun said immediately.

Michael Moretz nodded.

"By the way, why did Qualcomm license the key CDMA patent to Juji Electronics?"

"Juji and Qualcomm were the original co-developers of CDMA and cross-licensed each other's patents. Compared with Qualcomm's first-mover advantage, the strength is more concentrated in the ASIC field, and it is obviously inferior to Qualcomm in the CDMA field. In addition, in order to circumvent the U.S. antitrust investigation, Qualcomm signed an agreement with Juji in 1997 to obtain full authorization from Qualcomm to develop, produce and sell CDMA chips. Moretz explained.

"Even if you can evade the anti-monopoly investigation and enjoy huge profits, Qualcomm is really a good means!" Guo Shouyun sighed.

"Paul Jacob never trades at a loss!"

Guo Shouyun nodded, with a hint of deep thought in his eyes. He realized that MacGene was an opportunity to intervene in the hundreds of billions of dollars per year mobile phone chip market. But opportunities are opportunities, Guo Shouyun also understands very well that if you want to turn opportunities into strength, you need billions of dollars in R&D investment every year, and it is not an easy job to compete with Qualcomm!

And now, what he lacks is precisely the funds!

Originally, I wanted to ask Michael Moretz about his investment in the No. 2 technology sector and the No. 3 biopharmaceutical sector, but Guo Shouyun, who was completely attracted by the opportunity of Giant Electronics, was also not interested.

Moreover, judging from the investment situation of the previous No. 1 fund, Michael Moretz's vision is indeed worthy of his reputation. Since this is the case, Guo Shouyun is also relieved.

After observing that his attention was no longer on the ball, Michael Moretz simply proposed to end it. Both of them are the kind of people whose careers are greater than their lives, and since they have their own goals and Moretz has completed his task of fundraising, neither of them wants to continue to waste time.

After they separated, on the way home in the car, Guo Shouyun in the back seat fell into deep thought. In the development plan he has drawn for himself, at least three to four years, his energy will be mainly concentrated in four areas: the Internet, pan-entertainment, finance and investment. As for high-tech, when one's own capital becomes abundant, can leverage more powerful financial power, and has a wider range of contacts, it is far easier to acquire than a little research and development. In later generations, whether it is Google, Amazon, Ali and Tencent, they all did this. With strong capital, the acquisition of technology companies to make up for their own patent barriers. At the beginning, Guo Shouyun planned to do the same. But now, IBASE has given itself a small opportunity to join in advance.

"Forget it, let's take a look at the information of Giant Electronics first, and buy it if the acquisition price is not big. Give up if the cost is too great!"

Guo Shouyun made up his mind. Now the capital in his hands does not allow him to be capricious, and living within his means is a necessary condition. made a decision, and Guo Shouyun's heart became a little lighter.

After putting the matter of Giant Electronics for the time being, Michael Moretz's investment request of $50 million came out of his heart.

The future of Netflix is also a giant with a market value of 100 billion, so if there is an opportunity to enter it, he does not plan to let it go.

Guo Shouyun began to calculate the funds in his hand. Although shorting Enron accounted for 80% of the amount of funds in his hands, he still had some spare funds in his hands.

Thinking of this, Guo Shouyun took out his mobile phone to find Zhang Lei's number and dialed it.

"Boss!"

"How's the talk with IDG?"

"There is no consensus within IDG on whether to give up a stake in Tencent, but they are very impressed by our $8 million offer. ”

"It's good to be tempted, and if it doesn't work, continue to increase the price, as long as they are willing to sell. Of course, you have to grasp the scale of this. Don't let them think they can use this to ask for a price!"

"Understood!"

"What does Tencent say?"

"There has been no response yet. However, from the information we have received, the management is more willing to sell part of the equity reserve to survive the winter. But they haven't made a decision on how much to sell. Zhang Lei said.

"So, now we only have 20% of the shares we hold in Tencent that we bought from PCCW for $5 million?"

"Boss, it's my job mistake...!"

"No, you've done a good job, I didn't mean to blame you!" Guo Shouyun interrupted him. After a pause, "What do you think of Sina and Sohu?"

Zhang Lei was a little unsure of the purpose of his question.

"It's a good investment, and now it's just being dragged down by the NASDAQ crisis!"

"Do you want to invest?"

"What do you mean...?"

"It's very simple, Hanhua Investment Management Company gave up the equity acquisition of NetEase and Sohu, and transferred it to your Hanhua Capital Lichun Fund!"

"Can I ask why?" Zhang Lei hesitated.

"I'm going to transfer some of the funds from Hanhua Investment Management! Although I will make up for it later, I don't want to affect my investment in Huaxia, so I can only pick some secondary targets to abandon. For the people he approves, Guo Shouyun has not hidden.

"Understood, I will take over the investment in Sina and Sohu. But for NetEase, I think we have the opportunity to acquire it now. Moreover, some time ago, I sent someone to contact Ding Lei from NetEase, and I felt that there was a great opportunity. ”

"I haven't paid attention to NetEase's stock price on the NASDAQ during this time, how much has it fallen?"

In later generations, everyone knew about Ding Lei's almost sale of NetEase, but it was not news.

"$3.5 per share, and it's still falling. Looks like it's going to fall into junk stocks!"

Guo Shouyun thought for a while, "NetEase can buy it, but Ding Lei must stay, even if he gives shares, he must stay!"

Among the four major portals in China, TOM has been brilliant for a while with multimedia value-added products and services, but as soon as 3G comes out, it is like a yellow flower yesterday. Sohu used to be brilliant, but Zhang Chaoyang was too casual. Sina is also very good, but after sending Wang Zhidong away, there is no spiritual leader and lack of expectations. Only Ding Lei's NetEase has been brilliant all the way, and even after more than ten years, it has not fallen out of the ranks of China's first-line Internet enterprises, but has become more and more prosperous. It can be seen from this that Ding Lei's talent in business management and strategic control.

As long as Guo Shouyun doesn't pump his brain, this kind of handsome talent, even if it costs a certain price, he must resolutely stay.

"If the acquisition of NetEase can be agreed upon in the end, I will meet Ding Lei in person. For the sake of insurance, Guo Shouyun decided to go out in person.

Although he was surprised by his attention to Ding Lei and NetEase, Zhang Lei dutifully agreed.

"Also, recruit more people. Otherwise, every company will have to ask you to come out in person, it's too slow!"

"The recruitment has not stopped. However, we have only been established for a short time, and the attraction of top talent is still too low!"

"It's understandable that there are difficulties. I'm just reminding you. Of course, it's you who make the decision, and I still say that, as long as there are no major losses, I will not interfere with the operation of GCA Capital. This promise will always work!"

"Thank you boss for your trust!"

"You're welcome. Okay, that's all I have to say. If you're okay, then I'll hang up!"

"I'm fine here!"

"Okay, goodbye!"

"Goodbye!"