Chapter 27 The Source of VCDs

Zhang Lexing left Burbank and came to Las Vegas, not to go to the casino, but to visit the annual fall Comex show, which may be a new place for others, but a good place for Zhang to find investment objects.

In addition to the latest exhibits of operating systems, office software and databases, this time it also brought an Internet business package running on the KylinServer platform (including Web server, FTP server and other components), and even a World Wide Web browser related information promotion that has just begun to be studied, which attracted the attention of many audiences.

Now it has been two years since the formulation of the multimedia computer 1.0 standard (MPC1.0), and there are many related products on display at this conference, such as the DVIActiveMedia750I interactive digital video processing card jointly developed by Intel and IBM, so that many conference media call this year "multimedia year".

Zhang Lexing originally wanted to come by herself this time, but Yang Xinxin didn't do it, he had to go with the exhibition group of Visual Software Group, otherwise she would come over to arrest people in person, it seems that the incident in Hong Kong really stimulated her, she hadn't been so tight before. Zhang Lexing had no choice but to compromise, and aggrievedly followed the team to Las Vegas and lived in a well-guarded hotel room.

Finally, when the day of the launch, Zhang Lexing was no longer willing to mix with the team, he didn't come here to see the stalls, he stayed in the booth of Visual Software Group, how to find investment opportunities. So Zhang Lexing slipped away early in the morning with the manufacturer's representative card, of course, there were still three or four black, white, fat and thin bodyguards dangling around behind him.

Wandering around the exhibition hall, along the way, Zhang Lexing saw a lot of interesting things. For example, the original generation of ThinkPad (ThinkPad 700C) launched by IBm, using a 10.4-inch color display, with a TrackPoint mouse positioning device (that is, the legendary "Little Red Riding Hood"), weighing less than 8 pounds (about 3.6 kilograms), of course, what is more special is that this machine has a distinctive black coat from the beginning, which is one of the characteristics of IBM notebooks in the future. In addition, Adobe launched PDF (PortableDocumentFormat, a portable file format) 1.0, which began to take the first step towards digital publishing on the desktop. Microsoft released the standard and professional versions of VisualBasicforKylin, which can be regarded as a long-cherished wish of Gates. There are also things like Texas Instruments exhibiting their new product TI486 microprocessor chip, and so on.

It's a pity that nothing has left Zhang Lexing's eyes shining until he came to the booth of a small company called C-Cube that an unexpected change occurred.

This company is not well-known, Zhang Lexing has never heard of it in all these years, and what is on display at the booth today is a set of MPEG-1 decoder boards. MPEG-1 is the first video and audio lossy compression standard developed by the MPEG organization, the definition of video compression algorithm was completed in 1990, MPEG-1 audio is divided into three layers, namely MPEG-1Layer1, MPEG-1Layer2 and MPEG-1Layer3, the high layer can be compatible with the low layer, of which the third layer protocol (MPEG-1Layer3) is referred to as MP3, but now MP3 this standard is still being studied in the laboratory.

In order to display the product, C-Cube employees placed a computer with the lid open and a TV in the booth, through which it was clear that the input signal of the TV came from an expansion card in the computer, which is the MPEG-1 decoder board claimed by C-Cube. Zhang Lexing stood there and pondered for a while, and suddenly thought that this thing was not the same as the kind of VCD decompression card he had heard about back then, could it be that there was some connection between this company and VCD.

VCD is very clear to Zhang Lexing, of course, the clear here refers to the use of VCD, but the short golden period of VCD in China has allowed many companies to take the opportunity to make a lot of money, and many companies have successfully risen. It is impossible for the learning machine factory in Shenzhen to continue to produce forever, and in a few years the computer will really become popular, and the living space of the learning machine will become smaller and smaller, but these factories can not be shut down, so it is a good choice to switch to VCD. So the employees of C-Cube next to Zhang Lexing's booth asked for some product information, and studied it against the real thing while looking at the data.

On the other side, the employees of C-Cube are also busy, trying to recommend the company's products to the people around them.

"Don't be in a hurry, sir. This is the latest technology that allows you to restore images compressed using the MPEG-1 format to your TV. "Employee A is trying hard to solicit it.

"How's the clarity?" a passer-by who heard the introduction paused, trying to understand it a little more clearly.

"It's very high, with 250 lines. Employee B replied honestly.

"Cut, I haven't seen my videotape yet, so I won't watch it. The passerby waved his hand and turned to leave.

"Who told you to say that, stupid to death!" Employee A was angry, and looked at the stupid employee B with a look of hatred for iron and steel.

……

After reading the information for a while, and listening to the flickering of the employees of C-Cube, Zhang Lexing determined the value of the company in front of him, and the product they developed seemed to be the decoder board used in the future VCD. After leaving the C-Cube booth, Zhang Lexing felt a little absent-minded, not interested in anything, and it seemed that his heart was occupied by the MPEG-1 decoder board.

Zhang Lexing wants to do more things, but he doesn't know much about the C-Cube company, the only impression is that after the rise of the domestic VCD market, it is said that the market of decoding boards has been monopolized by the C-Cube company for several years, and what is useful in his hands now is the relevant information of the C-Cube company that he took at the exhibition, there is a little company introduction, as well as contact information and product introduction, relying on this to contact, I am afraid it is a bit rash。

Zhang Lexing has set up some commercial investigation companies over the years, although we are reborn people, but whether we have been favored by God too much, not all major events in the world are remembered clearly, so with a commercial investigation company, it is of great help to obtain information for yourself. In addition to the company's internal corporate consulting and research department, which is responsible for this matter, there are many independent business research companies in Europe, America, Japan, Hong Kong and other regions outside the group, after all, a single information channel is not secure.

Now it is naturally time for these people to appear again, Zhang Lexing picked up the phone and dialed the number of Russell Market Research Company. The company, which was founded many years ago, is one of the business investigation firms owned by Zhang Lexing, mainly responsible for investigations in North America. Russell was so efficient that a week later, when Zhang returned to the Visual Software Group headquarters office, a report on C-Cube was delivered to him.

Zhang Lexing flipped through the investigation report: "C-Cube Microsystems was founded in 1988, headquartered in Miypida City, mainly engaged in digital video compression, decompression technology research, founders include Dr. Edmund Sun, Dr. Balkansky and others, early funding from the Taiwanese venture capital company Han Ding...... At present, the company's entrepreneurial team still holds about 35% of the equity, and two venture capital companies (Van Clew United and Kroeler) each hold 30% of the equity, and the remaining 5% is in the hands of JVC in Japan...... Scooper's current financial situation is relatively tight, and the company's CEO, Bill Omara, is actively seeking new sources of financing under the active promotion of two venture capital firms, and does not rule out the possibility of a public offering in the future......"

The content of the report is very detailed, from the company's inception to the current development, and even the biographies of the company's main founders and current management team. After reading the report, the past and present life of C-Cube began to blend together in Zhang Lexing's heart, and once again strengthened Zhang Lexing's determination to acquire.

When Zhang Lexing was secretly thinking about his next move, the door of the office was suddenly pushed open, and someone walked in, and he didn't need to look up to know that it was Yang Xinxin who came, and she was the only one in the entire company who dared to enter Zhang Lexing's office directly without knocking on the door.

"Sister Xin, come in without knocking on the door, and you're not afraid of seeing things you shouldn't see?" Zhang Lexing said solemnly, putting down the report.

"Cut, what's unseeable, I already knew. Yang Xinxin smiled and said, "Brother, as soon as you come back, you will be in the office, do you have a crush on which company again?"

"It's nothing, it's just a small company. Zhang Lexing handed over the information, "Don't believe it, take a look." ”

"Small companies? How many small companies have you invested in before, and that time it wasn't a big return, and you can't play alone this time. Yang Xinxin took the information and looked at it, and did not forget to teach Zhang Lexing a few words.

"Okay, as long as you can afford it, it's good for you to invest. ”

"What Scober is currently working on is the MPEG1 format decompression chip, what is the use of this?" asked Yang Xinxin curiously.

"This is said to have been researched at the request of a company from China, and I heard that it was intended to develop a player that could use a disc to play the video on a TV. Zhang Lexing explained.

"I look at the image definition mentioned in the data and it doesn't seem to be as high as the videotape, and the disc can't be recorded, will there be a market for this thing?" Yang Xinxin looked worried.

"It may not work here, but it's different in some emerging markets in Asia, where VCRs haven't been widely used yet, and if you can bring down the price of these players and discs, I believe it will definitely create a huge market." Zhang Lexing said confidently.

Yang Xinxin thought about it for a while, and then said as if she had made a lot of determination: "Okay, I believe in your vision." Well, I've decided to hand over my entire net worth to you, what do you think?"

"Sister Xin, this is just a small project, all your net worth, you are too exaggerated!" Zhang Lexing had a headache.

"Just kidding. When will this project officially start, give me a proposal when the time comes. Yang Xinxin smiled proudly, obviously with a successful expression.

"I am ready to contact this company in the near future, and Dongfang Microelectronics Co., Ltd. will come forward to discuss the acquisition, after all, they all belong to the electronics industry, and the company's income in the future will also be a good supplement to Dongfang Microelectronics. The acquisition will be led by Red River Fund, which plans to buy its stake in C-Cube from two venture capitalists and Japan's JVC, which will give us a 65% stake if it goes through. If Sister Xin needs it, I can give you no more than 10% of the equity. I estimate that the capital required for this acquisition should not exceed 30 million US dollars, and Sister Xin, you only need to prepare more than 4 million US dollars. ”

……

Two days later, the joint negotiation team formed by the Red River Fund and Dongfang Microelectronics began to contact Van Cleo United, Kohler and Japan's JVC, and Zhang Lexing could also rest assured that he could devote his energy to the technical seminar of the "White Tip Dolphin" operating system.

Soon after, the situation of the negotiating team began to be fed back one by one. The joint talks with Van Rock went well, perhaps because Ray Rosrock felt that Scober's development over the years was too slow, and the joint negotiating team's $10 million offer was quite satisfactory to him, so a preliminary agreement was quickly reached and the formal signing process has begun. The negotiations with Kohler were slightly choppy, with the initial $10 million not knocking John Doerr down, until the joint negotiating team raised the offer to $12 million, and John Doerr's attitude relented and he began to enter the formal signing process. Japan's JVC company's attitude is extremely stubborn, and it will not let go, and even the joint negotiation team will not be able to offer a high price of $4 million for its 5% stake, which makes Zhang Lexing a little doubtful that JVC company can see a good future in the VCD market. Fortunately, in early December, after Van Rock and Kohler signed an equity transfer agreement with Dongfang Microelectronics Co., Ltd., JVC finally gave up its resistance and agreed to transfer the equity to Dongfang Microelectronics, perhaps fearing that Dongfang Microelectronics would take advantage of the privileges of the major shareholder. In mid-December, after nearly two months of hard work, the joint negotiating team finally won a 65 percent stake in C-Cube, and then it was time for a showdown with the company's existing management team.

The meeting with C-Cube Chairman Edmund Sun, CEO Bill O'Mara and others went well, and perhaps the biggest concern of the management team now is that the company's funds will have problems before the public offering, so when the joint negotiation team promised to provide financial guarantees to ensure the smooth realization of the public offering plan, the company's management team all chose to stay, and Zhang Lexing can finally rest assured, at least he does not have to worry about the problems of Scottber's operation. After Christmas, the equity change ended smoothly, C-Cube continued to operate normally, and Yang Xinxin also got 10% of C-Cube's equity as she wished. Zhang Lexing did not forget to dial a phone in Hong Kong, and the bald reading technology obtained from Sony came in handy again.

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