Chapter 54: The Citi Scheme
"But you have to know that most of the overseas subsidiary network of Yuntong is created by the partnership system, and they do not have much autonomy, and these partners are not necessarily willing to help the development of Orange Technology, and even they will make moves to restrict the development of Orange Technology with the support of their own countries, which is the regional economic protection policy, and I believe Mr. Li will understand this." Pen ~ fun ~ Pavilion www.biquge.info" Sandywell smiled confidently, he clearly knew what kind of impact any product or technology that can change the world will have on the existing system.
Judging from the technology currently in the hands of Orange Technology, this is a completely new technology involving an entire scientific and technological discipline, but Li Mubai is still very smart in the eyes of Sandywell, and knows how to choose to share the dividends brought by the new technology with these American consortiums at the beginning, otherwise Orange Technology will never have developed so smoothly.
However, even so, in the face of the counterattack of the old market share, it still greatly restrained the development speed of Orange Technology, which can be clearly concluded through the targeted accusations and market counterattacks of Samsung Group and Nokia Group in Asia and Europe, not everyone will welcome Orange Technology as a company that has mastered the core new technology.
"However, I believe that the example of Samsung Group will warn all those with bad intentions whether they will do anything to prevent us from entering the country's market in the face of reasonable competition from Orange Technology!" Although Li Mubai had expected this, he inevitably felt sad when he said this, after all, the policies of countries around the world are different.
There are those who welcome Orange Technology to create jobs in the local area and stimulate economic development. Naturally, there are those who refuse or even resent Orange Technology to enter the country's market, because they already have similar companies or mobile phone manufacturing partners in their own country, which already occupy a fixed market and provide stable employment security and tax protection.
The development time of Orange Technology is still short, not to mention how many jobs can be created, how much GDP can be driven, and the relationship with governments is obviously not comparable to the local development of several years or even more than ten years of old enterprises, in this regard, especially in the case of Samsung Group.
With Lee Kun-hee and the two generations of Samsung empire founders operating for nearly 50 years, Samsung Group has not only woven a dense network of relationships in South Korea, but also established a perfect network of contacts in many Asian countries.
After all, many people are using money, beauty, power and other means to win over corrupted high-ranking officials, some of them are hostile to Li Mengxi, and some are yin and yang, after all, the transfer of power to Samsung is chaotic, and many places need to rely on these local powerful factions, Li Mengxi does not dare to easily touch this network, so as not to cause Samsung to be artificially destroyed in the inherent markets of various countries.
Li Mubai also has no good way to do this, he can only let Li Mengxi continue to open the way with money, but this process is long, trust is not a day or two to establish, to achieve the original Samsung Group and these powerful faction of the degree of relationship, conservative estimates will take a year or two, but this time, Li Mubai can accept, after all, the entire technology system of Orange Technology into the actual product to occupy the market, it will take a year or even more than a year and a half, he has the time to calm down and slowly clean up this messγ
But after all, Samsung Group is only an Asian company, and most of the networks covered are also countries in East Asia and Southeast Asia, and it has a certain influence in Australia and New Zealand, but in Europe, especially in North America, there are conflicts with many technology companies.
But now, Samsung Electronics has been carved up, and the Samsung Group, which has lost its core industry, is licking its wounds, and naturally has no time to take care of the power in the United States.
Although he now maintains a good cooperative relationship with the American consortium, Li Mubai knows that this stable and good relationship is based on the continuous blood loss of Orange Technology, if he is a veteran multinational company based on the electronics industry for more than ten years, then why should he share some of the technology.
Taking the agreement reached with Qualcomm as an example, the technology of a global 4G network is worth at least more than 50 billion US dollars, and it will earn a large amount of cash every year in the future, but after it is handed over to Qualcomm, Li Mubai only owns 51% Although there is no need to invest about $30 billion in the construction of the nation's communications infrastructure network, in the long run, nearly half of the profits of this technology, which can generate about $80 billion in technology licensing costs and about $110 billion in direct operating revenue in the next five years, will be taken by Qualcomm and its affiliates.
Even if the cost of infrastructure construction in Europe and Asia is added, it will not exceed this figure itself, so Li Mubai also wants to develop Orange Technology as soon as possible, even if it can't be alone, at least it must have the power of self-protection, and only one or two companies as strategic partners will be enough to offset external pressure.
Sandywell doesn't think so, if it is just to cooperate with Orange Technology in financial services, then how can Citigroup pay 1.5% of the shares, don't underestimate the 1.5% shares, how many rich people in the United States want to invest in Citigroup, but they have been turned away, and now the board of directors of Citi is willing to open the door to accept Li Mubai into the market, and what he values is the profit brought by the technology itself in his hands.
Without technology, everything is fake, and the reason why Orange Technology is touted is mostly due to this.
"Mr. Li, you should know that our Citigroup is sincere this time, we are willing to hand over 1.5% of the shares to you, and we are willing to authorize you to operate most of the business in China, if we can reach an agreement smoothly, then in all regions outside China, Citigroup is willing to provide all the assistance for the development of Orange Technology, including any means!" Sandywell is very confident in the strength of Citigroup, because in this world, there is nothing that Citigroup cannot solve.
This super financial group with more than 10,000 independent shareholders, secretly controls about $5 trillion in loan deposits, and has 26 good cooperation channels for more than $10 billion funds, and it has established a perfect communication system with almost all the banks in the world.
This is Citigroup's strength, no one can ignore its existence, even people like Li Mubai have a little headache in the face of such a behemoth, after all, even if 10,000 people stand in front of him, they have to splash blood if they are all killed, how troublesome.
"I myself am very inclined to establish a good cooperative relationship with Citigroup, but I would like to ask, will Apple and Microsoft hand over their overseas networks to a financial company?" Li Mubai asked rhetorically, which made Sandywell understand the huge ambition hidden in his heart.
He had to explain, "Citigroup just wants to have the friendship of Orange Technology, and we don't want to cut off the external channels of Orange Technology." β
Li Mubai shook his head and resolutely refused, "Although Citigroup has a strong relationship network, but this network itself is for Citigroup, I can even maliciously speculate that if one day, Orange Technology's technology stagnates, or Citigroup's attitude towards Orange Technology changes, then does it mean that Orange Technology's overseas system will instantly become fragmented? Who can guarantee that in the face of greater interests, Citigroup will continue to choose to maintain its friendship with Orange Technology?"
"It's a normal idea, but I really can't think that Citigroup will reject the friendship of Orange Technology, and I want to ask a little bit, is Orange Technology not confident in the technology in its hands? With the benefits you can provide, I dare to guarantee that in 20 years, the above situation will never happen. Although Sandywell was exposed in person, there was no trace of embarrassment on his face.
Instead, he continued to tempt with words, "As long as Orange Technology shows value that is in line with its positioning, then Citigroup will always maintain this normal strategic cooperation friendship and have always provided help to Orange Technology, and I would like to tell Mr. Li a statistic, Citigroup spends about $80 billion a year on maintaining overseas relationships, including but not limited to loans to friendly parties, financing help, and listing services, private customer service, and even services for our allies to wage a war." β
"But don't you know that I'm poor and only have money left?" Li Mubai laughed, he knew that what Sandywell said was not a lie to him, but so what?
Isn't it normal for a bank to lend selectively, capitalists will always make choices that are more beneficial to themselves, although Sandywell's words are correct, but there are quite a few key words hidden in them, that is, these so-called allies can bring profits to Citi one by one.
As for the so-called help for allies to develop and grow, it is just a, if a very good company that has cooperated with Citigroup in the past puts forward a plan that is extremely risky, but the benefits are not necessarily great, and the possibility of loss is greater, then Citi will carry out financial services? This is simply not to be thought about, Citi will definitely reject these risky investments, because this will not bring them much profit, on the contrary, it will bring terrible losses, they are not open-minded.
After all, for a new company, to expand its market capacity and sell its products overseas, it is inseparable from the help of large multinational companies, after all, compared with the independent construction of an overseas customer relationship network, whether it is the cost of money or time, it is impossible for ordinary companies to bear.
The most important thing is that once there is an economic dispute, it is a bolt from the blue for the enterprise, and over the years, I don't know how many companies have been involved in overseas trade problems, and then for many years in court, and finally dragged down the enterprise itself.
In this case, if the general company gets such generous treatment from Citigroup, it must be ecstatic to pounce, even if it is discounted, it must also be on the fast track of Citigroup's global financial service system, because this can solve countless troubles and enjoy countless conveniences.
But did Citigroup lose money?
No, on the one hand, they use these emerging enterprises and emerging technologies to make up for their shortcomings, and borrow the funds provided by these companies to maintain their own relationship network, after all, the bridge built by favor and money, in terms of use, is not a principle, favor with a point less, and the money relationship is more frequent and stronger, who would refuse a friendship with a company that sends money to themselves every day.
In this way, Citigroup took the money given by others, maintained its own network, and in turn, mastered the overseas sales network, contacts and markets of these companies, once the company has a problem, or there are more technically mature products into the market, then they will decisively choose to replace the partner, and repeat the cycle, anyway, has been firmly in the Diaoyutai, to be a behind-the-scenes man who sits and watches the changes.
"I think Citigroup provides this condition, looking at the world there are few companies can give better treatment, we don't need much, just want Orange Technology in Europe part of the capital and other services, North America, we are willing to compete with Amex company, I believe that Mr. Li will not refuse our Citigroup friendship." "There are a lot of smart people in the world, and of course Sandiewell doesn't think Li Mubai is stupid and can't see the inside story.
But Citigroup has a deep heritage, enough to force Orange Technology to bow its head and admit defeat, otherwise, the so-called American consortium will collapse from the inside in an instant, and then a new alliance to deal with Orange Technology will be established, and the US federal government will also introduce a policy to restrict Orange Technology products from entering the American market at the first time.
"I need to think about it before I can give you an answer. Li Mubai didn't want to tear his face in person, after all, he had the means to deal with these consortia, but if he let the opponent form a group to deal with himself, it would be quite a troublesome thing, and now he can only deal with it first.