On Monday, November 14, 1983, Dongfang Electronics Corporation formally issued a cash tender offer to RCA. Each share is quoted at $45, representing a premium of about 10 percent to the current market price of $40.8 for RCA stock.

But RCA thought the offer was too low, and they replied at $55 per share. Dongfang Electronics was naturally unwilling to accept such a high price, so the negotiators of the two sides launched a heated debate in the conference room of the Waldorf Astoria Hotel.

Li Xuan's original plan was to prepare for the acquisition next year, but the progress in all aspects was much smoother than he had expected. And the thinkers in Li Xuan's team also reminded him that next year is a quadrennial election year in the United States.

In order to attract the attention of voters, many politicians will try to create some troubles. And large-scale mergers and acquisitions of American companies by foreign companies such as Dongfang Electronics' acquisition of RCA are easy targets for politicians.

Therefore, Li Xuan decisively decided to start the acquisition in advance. For this plan, Oriental Group has prepared $1.6 billion in cash, and a consortium of Citibank, HSBC, SITC and Standard Chartered Bank has provided credit endorsement for Oriental Electronics, giving a total loan line of $4 billion.

The first media to expose this news was, of course, RCA's own television station, NBC TV. As soon as the news of Hong Kong's Oriental Electronics Company's acquisition of RCA Company was exposed, it immediately caused quite a stir on Wall Street. The merger is likely to be the largest in the history of the U.S. capital markets outside of the oil sector. Moreover, it is the acquisition of local companies by foreign capital, which has touched the sensitive nerves of the market.

"Mr. Xuan. What prompted you to make the decision to buy RCA?", asked the host, Bill Rohm.

This is the second time Li Xuan has been interviewed by NBC's morning talk show "Meet the Media" in a short period of time. Li Xuan had an in-depth exchange with Grant Tinker, president of NBC Broadcasting, before. The two sides reached some tacit understanding.

Li Xuan promised that after Dongfang Electronics acquired RCA, it would give NBC broadcasters greater independence and autonomy. Grant Turk expressed his support for Dongfang Electronics' overall acquisition plan for RCA. NBC TV in its coverage of this incident. Will take a friendly stance.

"RCA is a large electronics manufacturing group with a market capitalization of up to $4 billion. In fact, Dongfang Electronics Company first intersected with RCA in 1980. At that time, RCA was one of the CRT suppliers of Oriental Group's arcade products.

Later, in 1981, the Oriental Group established a new Oriental Semiconductor Company for the production of semiconductor chips. At that time, RCA was interested in gradually reducing the production scale of the semiconductor division, so Dongfang Semiconductor purchased a wafer factory and chip packaging and testing plant from RCA.

Later, the Oriental Group acquired the LCD Projects Division of RCA, and the two companies also established a large-scale picture tube manufacturing plant in Asia. In the process of more and more in-depth cooperation and exchanges, the management of Dongfang Group and I gradually discovered some complementarities between RCA and Dongfang Electronics.

For example, in the field of semiconductors, our strength in the Eastern Group lies in the field of digital chips, while the strength of RCA company lies in the field of analog chips. In the field of electronics manufacturing. Our products are mainly concentrated in the emerging electronics industry such as game consoles and computers, while RCA has strong strength in traditional home appliances such as televisions, radios, and video recorders.

We at Oriental Group have strong self-confidence in the field of scientific and technological innovation and R&D investment. And RCA company has deep strength in marketing, brand building and other fields!

It is precisely because these two companies have so many complementarities that I believe that the combination between the two is bound to play a 1+1>2 effect!"

Don't look at Li Xuan talking there, but in fact, the reasons he said before were a bit vague and reluctant.

"I'll change the way I asked, Mr. Li, what do you think is the part of the RCA company that interests you the most?" Bill Romon was obviously not satisfied with Li Xuan's answer just now.

"An acquisition of up to four or five billion dollars is not one or two attractive things that will make me make a merger and acquisition decision lightly. You must know that raising billions of dollars in cash will definitely put the entire Eastern Bloc under a lot of financial pressure in the next few years!

Actually, I am interested in a lot of things about RCA, and one of them is RCA that attracts me the most. Profound channel influence in the U.S. consumer electronics market. It has been less than five years since the founding of Dongfang Electronics Company, and the U.S. market has always been the largest and most important overseas market for Dongfang.

After the initial brutal growth, Dongfang Electronics Company has now reached a period of adjustment and consolidation. We need to use RCA's marketing, brand promotion and other channels to consolidate Dongfang Electronics' market influence in the United States.

In fact, the Eastern Group has been deeply cultivating in the two fields of game consoles and personal computers. Now we are in both areas. Having established a significant advantage, it is time to further diversify the industry and find new profit points for the group.

And I think the field of home appliances is a good breakthrough direction. Among them, the color TV industry is the largest market segment in the home appliance market. And RCA is one of the most popular brands in the American color TV market.

However, RCA's color TV business is also facing a big crisis,The price war of Japanese companies has put most color TV manufacturers, including RCA、GE、Westinghouse Electric, etc., into a dilemma of making profits。

The Eastern Bloc, on the other hand, is located in Asia, where manufacturing costs are much cheaper. The new division of labor model of 'R&D in the United States and manufacturing in Asia' can be used to offset the advantages of Japanese companies in manufacturing costs. And then reshape the former glory of the RCA TV industry!" Li Xuan took this opportunity to constantly sell his views to the audience in front of the TV.

"Mr. Lee, I don't know if you have noticed, but one of the most important assets of RCA is NBC Broadcasting. And does a foreign company's acquisition of the parent company to take control of America's largest public television network raise suspicions of ulterior motives?"

"No, it's just a business investment, and my team has done a detailed asset appraisal for RCA. We believe that NBC broadcasters are worth at least $2.5 billion of RCA's $4 billion market capitalization, and it is the most premium asset in the entire RCA company!

The U.S. television advertising market has maintained high growth, even during the recession of 1981 and 1982, when the market grew at double-digit rates. If it is in other fields, such as the personal computer market, in the face of such a thriving market, there will definitely be a large number of companies who can't wait to come in and get a piece of the pie!

Taking the personal computer industry as an example, in addition to competing with old personal computer factories such as Apple and Kemodo, I also have to fight fiercely with new electronic giants such as IBM, HP, and Deyi.

But this particular industry in television is different, and for decades NBC has only competed with two companies, NBS and ABC. Although it is still facing competition from pay TV stations such as TBS and CNN, this is far from being like others, where dozens or even hundreds of companies often fight fiercely together.

Therefore, in my opinion, the TV industry is a golden project that can avoid fierce competition and make stable profits. NBC is also a big reason why I want RCA, it's a quality property to hold for the long haul.

And although U.S. law does not allow foreigners to own both newspapers and television stations, it does not prohibit foreign companies from buying U.S. television stations. I feel that those who feel that I have ulterior motives are typical of persecution paranoia.

In order to dispel these fears, the Eastern Group, after the successful acquisition of RCA, was willing to spin off NBC Broadcaster and make it a public company subject to market scrutiny. The special nature of the industry has given media companies the functions of information dissemination and public opinion supervision.

The media industry is also an important force in American society to uphold fairness and justice and expose ugly crimes. In order to prevent these rights from being abused by foreign capital like me, I am willing to let NBC go public and let all shareholders supervise its operation!" Li Xuan said very calmly. (To be continued......)