Chapter 304 Acquisition of 40% shares of Qualcomm

To be honest, Chen Jin still has some good feelings about Qualcomm.

Although this is an out-and-out hooligan.

But compared with the super hooligan of Fruit, Qualcomm is like a philanthropist with a conscience.

On the one hand, fruit mobile phones are becoming more and more expensive, selling more than three times the cost of hardware, taking away more than 80% of the hardware profits of the entire mobile phone industry.

Even so, the fruit company is still not satisfied, using the closed characteristics of the ios system, and engaging in the trick of plucking the goose, all APP applications that are recharged and consumed in the ios system will be drawn 30%, and only a few APPs can be exempted.

It is also known as the "fruit tax".

Through multiple means, Fruit Company has become the most profitable technology company in the world, with a market value of more than $1 trillion.

But even so, after the fruit company found out that Qualcomm's baseband was adopted, it actually had to pay Qualcomm tens of billions of dollars in patent licensing fees every year.

According to the 5% commission principle, the more expensive the fruit mobile phone sells, the more Qualcomm will take away.

How can this be endured?

Unwilling to give up any piece of profit, he immediately got rid of Qualcomm, supported Intel, and chose to use Intel's communication baseband, completely saying goodbye to Qualcomm.

The problem is that Intel has only been engaged in communication technology for a few years, and many patented technologies cannot bypass Qualcomm's patent barriers at all, but the fruit company does not care, and directly allows Intel to infringe, risking patent lawsuits, and directly using Qualcomm's patents...... For the sake of profit, the fruit company is also fighting.

As soon as the fruit company did this, Qualcomm, which had made a lot of money, plummeted by 30% in revenue that year.

Qualcomm's eyes instantly turned red, cutting off people's financial routes, which is equivalent to killing their parents, and also concluded that the fruit infringed their patents, and immediately launched a patent lawsuit.

If you are unkind, don't blame me for being unjust, and the two sides are on the same page.

After two years of red-eyed beating of the company, after collecting enough evidence to prove that the fruit company did have infringement, Qualcomm won a big victory, first a court in country Z ruled to prohibit the sale of fruit mobile phones, and other countries and regions also made judgments in favor of Qualcomm.

The war between the two hooligans ended with Qualcomm victorious.

After the ban came into effect, fruit mobile phones disappeared from the market in country Z for several months.

In the end, the fruit company had to relent, compensated tens of billions of dollars in fines at one time, and made a guarantee that it would not infringe again, and the two sides reached an understanding.

Fruit companies paid the price for their greed.

A few years ago, the trade war was extremely fierce, and Huayao's 5G was chased and intercepted by Emperor M, when there were countless voices calling for a boycott of fruit on the Internet, and countless articles exposing fruit hooligans, all of which could not make countless die-hard fruit fans give up the fruit mobile phone they bought, but a company in country M helped to boyop successfully.

What is this called spirit?

So on the network of country Z, the title of "righteous fruit annihilation" was given to Qualcomm by the majority of netizens.

Benevolence, it's so benevolent, praise to Qualcomm.

Last year, Qualcomm moved its headquarters to country Z, reducing the patent licensing fees in the country Z market, winning the favor of the majority of netizens, and adding the title of "Z emperor's conscience" to the company.

However, Chen Jin knows that in his bones, Qualcomm is still a hooligan, but after several good things have been done, in his eyes, Qualcomm is a relatively good "hooligan".

He welcomed Qualcomm's unsolicited application for cooperation.

Because in the field of communication technology, Xinghai Technology really has no accumulation and relies on Huayao Company very much.

For now, this dependence is not too much of a problem, but in the long run, it is a bit of a constraint...... The application scope of communication technology is too wide, and there will always be a place for use, and the annual market is more than one trillion yuan.

Xinghai Technology does not want to enter this field, and it is even more unrealistic to develop it from scratch, Xinghai Technology just wants to avoid being restricted and being slaughtered in the future.

Ling Jundong suggested:

"Mr. Chen, we might as well acquire Qualcomm, get the free right to use tens of thousands of communication patents of the company, and then cooperate with Qualcomm to develop more advanced 6G communication or other new communication technologies to make up for this shortcoming. Of course, Huayao is our partner, and we will not give up cooperation with Huayao, but what about ten or twenty years from now? If Huayao's family was dominant at that time, would they continue to give me discounts? ”

At that time, was it possible for Hua Yao to become a new hooligan?

In short, it is difficult to say what the future holds.

"Acquisition of Qualcomm?"

Chen Jin nodded: "This idea is very good. With tens of thousands of communication technology patents, I have to admit that he is a little greedy, and he also wants to taste the taste of being a patent troll.

In fact, there is no need to think about it, Xinghai Technology has been on the road to becoming a patent troll, for example, Xinghai Technology's recent breakthrough in graphene technology did not build a variety of factories to produce all kinds of graphene products, but recruited partners, licensed a large number of graphene technology, and took 50% of the net profit...... At present, more than 30 cooperative manufacturers have been recruited, and it is expected that all kinds of graphene products will soon spring up.

But with Qualcomm's current market value of 60 billion dollars, which is about 380 billion soft sister coins, can Xinghai Technology get so much money?

"Money is not a problem, as long as Qualcomm agrees to the acquisition request, even if it is a premium of 500 billion, I can find a way to make it up." Ling Jundong's words were astonishing.

Chen Jin was taken aback, and almost squirted out, 500 billion, should it be so exaggerated?

In the field of capital operation, there is actually a concept of "leverage", Xinghai Technology does not need to really take out 500 billion, it is enough to take 100 billion, and then raise 100 billion from the private sector, and find a bank loan of 300 billion for the rest...... That's enough money.

With the profitability of Xinghai Technology, swallow a Qualcomm without much pressure.

After listening to Ling Jundong's analysis, Chen Jin nodded and said: "Okay, you go and try to acquire, within 500 billion, if you can take it, take the other party." ”

……

Qualcomm.

After receiving the acquisition request initiated by Xinghai Technology.

Qualcomm executives didn't think much about it, so they refused, they sat on top of a mountain of gold, they don't have to work and can make a lot of money every year, who will sell the mountain of gold under their butts?

What's more, the government of country M will not approve it, and there is no possibility of acquisition at all.

However, since Qualcomm moved to the head office of country Z, since it is not under the jurisdiction of country M, Xinghai Technology can become a shareholder.

The senior management of the two companies conducted negotiations that lasted for several days, and the two sides finally negotiated and signed a cooperation plan, mainly the following articles:

First, Xinghai Technology injected 80 billion yuan, held 40% of the shares of Qualcomm (Z country), and enjoyed the free right to use all communication patents of Qualcomm.

Second, Qualcomm's chip foundry orders are all completed by Zhongxin International.

Third, Xinghai Technology provides technical services such as "virtual factory" to accelerate Qualcomm's R&D speed and reduce R&D costs.

Fourth, the two sides will carry out technical cooperation and jointly develop more advanced communication technologies.

After the cooperation was successfully reached.

Without a doubt, it's a win-win job.

For Chen Jin's Xinghai Technology, he only spent 80 billion yuan to get the free right to use tens of thousands of communication patents, saving a lot of time and a lot of research and development funds, and can share the profits.

For Qualcomm, while cooperating with Xinghai Technology and injecting a cash flow, it has also received the support of Xinghai Technology, not to mention immediately catching up with Huayao, which is obviously ahead, but at least in an equal position, quickly recovering its disadvantages, and not being defeated by Huayao.

Qualcomm President Christian Amon breathed a sigh of relief, walked back and forth, and said excitedly:

"We'll be able to get out of this situation very quickly."

"Xinghai Technology's 5G baseband order alone can bring us tens of billions of revenue every year! In addition, with the help of the 'virtual factory' technology, the speed of our accumulation of patents and the cost savings are immediately the same as Huayao Company (Huayao has purchased a supercomputer equipped with a virtual factory), and we are finally on a fair track. ”

……

November 20th.

The news that Xinghai Technology invested in Qualcomm and reached a strategic cooperation between the two sides immediately caused huge repercussions after it was announced.