Chapter 223: The Deal Is Done
London, United Kingdom. Just when Chu Qing was busy making adjustments to the company. Duan Yongping and Ke Shaoan led a negotiation team composed of lawyers, translators, and chip engineers.
Walked into Armholdings, located not far from the University of Cambridge on the outskirts of the city. This is the fifth time they have come to the door.
Since two months ago, after identifying the acquisition target, BBK has hired an international business law firm.
Help collect ARM's materials and prepare for the acquisition. Today's ARM, in every sense of the word, is a small company.
Especially Apple, the Newton PDA market equipped with ARM chips has reacted miserably, making Arm's current situation even more embarrassing.
The reason why Apple invested in Arm in the first place was to use their chips to develop new products that it had invested heavily in.
However, with Apple's continued losses, the Newton PDA was already doomed to its failure. Even though the product has only been launched for more than a year, Apple has already decided not to invest in further research and development.
Therefore, it has become inevitable to cut the investment in ARM. It's just that when Duan Yongping and his entourage came to the door and made a takeover offer, several ARM shareholders, including Apple, were very surprised.
In their original expectation, the buyers who were interested in ARM would indeed come from Asia, but they never expected it to be Huaguo.
After Apple released the news, it also contacted several companies in the book and Smecta. It's just that today's book is in a time of economic downturn, and even if one or two are slightly interested, they can't afford to spend much money to buy arm.
As for Toshiba and Samsung, these powerful companies don't look down on Arm's technology. These large companies are still in the IDM mode in the direction of chip manufacturing.
Before TSMC's OEM production model showed its strength. The IDM model, which has a full set of design, manufacturing, packaging and testing capabilities, is the main development direction of chip manufacturers.
This is also the reason why Apple was so shocked when it learned that a Chinese company was going to buy Arm.
In their perception, China is a country that is still very backward. Although they have been inspired to make their own semiconductor chips since the eighties.
But ten years have passed, but there has not been much progress, although there are several chip manufacturers, but there is no advantage in the world.
It can only be barely used to produce some low-end chips. Although the market response of Arm's products is not very good, no matter what, the chip made of 32-bit Arm processor is also a high-end chip.
Even if Huaguo enterprises are acquired in the past, whether they can produce them or not has to put a big question mark.
Even if the ban on Batumi is lifted and restrictions on chip production in China are relaxed, it is still unrealistic to build a wafer factory capable of producing high-end chips.
Fortunately, the people at Apple and Arm are not really arrogant enough to look down on the starting step at all. After all, not long ago, the DVD copyright dispute between BBK and Sony was still in the news for a while.
After a little inquiry, you will know that BBK is a technology company with a bit of strength. As for how much strength there is, in their opinion, that's it.
After all, whether it's the DVD standard launched by BBK today, or Xbox. In the eyes of these insiders, there are not many autonomous technologies that can be used.
Many people feel that this time the DVD standard can win Sony, or Sony's own strategic mistakes, giving such a Chinese company a chance.
As for Xbox, the main chips in it are all from Mi companies. In these areas, BBK does not have any technical capabilities.
Even if such a company acquires ARM, it may not be able to function. So after learning about this, in the eyes of Apple and several other shareholders who wanted to make a move, Duan Yongping and his party, who took the initiative to find the door, became the best wronged leader.
Duan Yongping and his party entered ARM. The front desk, who had already received the news, led them into a conference room that had been prepared in advance.
"Mr. Daniel, it's a pleasure to see you again." Seeing the ARM senior executives who were already waiting there, Ke Shaoan took the lead in saying hello.
Duan Yongping, because of his spoken English, this time, Ke Shaoan has always acted as the one who took the initiative to come forward to contact.
"Mr. Ke, Mr. Duan, I am also honored to see you again." Daniel, as ARM's negotiator, showed the usual gentlemanly demeanor of the British.
Although he was very contemptuous in his heart, for the sake of money, his actions were very honest. After several rounds of negotiations, the shareholders on the ARM side have already reached a consensus on the sale of ARM.
The reason why I have been dragging backgammon now is nothing more than wanting to raise the price more. Especially this is the initiative of backgammon to send to the door.
After a circle of routine and polite greetings between the two sides, the negotiations went straight to the main point.
"Mr. Daniel, regarding the issue of ARM's patented technology you mentioned, we have negotiated and agreed to include this part of the fee in the acquisition contract for this purpose." After making a gesture in front of the other party a little and pulling a few times, Ke Shaoan still came forward to agree to the other party's request last time.
The reason why we didn't negotiate last time was that Apple asked BBK to pay a separate patent research and development fee for the patented technology developed by ARM in recent years.
In general, this part is included in the amount of the acquisition of ARM. Just to repeatedly raise the purchase price, ARM shareholders, who sat on the ground and raised the price, forcibly joined this part.
Even if Duan Yongping's side was already very sincere, he was still broken by this unreasonable request.
The last negotiations ended up on an unhappy note. According to Duan Yongping's meaning at the time, it was a big deal not to buy arm, and he would not be affected by this bird's anger.
However, after reporting to Chu Qing, when he heard that it was only because of a sum of two million, he didn't talk about it.
He didn't say a word, and directly increased the amount to five million. In this way, the final purchase price was raised to 20 million US dollars.
When Arm was created four years ago, Apple and VLSI invested no more than £1.7 million in total.
Even with the stake in the engineer at the time, the valuation was only £3.2 million. In four years, ARM has not achieved much.
The latest ARM chip did not enter the market because of the failure of Newton's PDA.
At present, it is still in a state of loss, and there is not much possibility of subsequent profits. BBK bought what it is now ARM, and it would have to invest more money to keep it running.
Especially after losing VLSI, a shareholder with chip production capacity, the chips designed by ARM have to find a new foundry.
This is another big problem for backgammon. So from an outsider's point of view, at a premium of $10 million, the acquisition of ARM is definitely a super uneconomical business.
If it weren't for Chu Qing's insistence, Duan Yongping would be very optimistic about this acquisition.
Fortunately, ARM's current president, Tudor Brown, and many company executives have maintained a positive attitude towards the company's change of ownership.
Especially when they learned about BBK's current main industry, whether it is Xbox or their layout in the PHS industry, this has a positive significance for the practice of ARM chips.
If the acquisition is really achieved, ARM's chips will definitely enter more commercial fields. The biggest problem facing ARM today is that it has not been tested by the market and has not been recognized by the market.
Chips are different from other industries. No matter how good the architecture and design are, if there is no application channel, it is just a lonely self-appreciation.
It's not that today's backgammon is necessarily more suitable than Apple. It's just that because of Apple's Newton PDA project, after the ARM chip was produced, it was not authorized externally.
That's why the company hasn't been profitable for four years. They first existed for Apple's Newton PDA project.
Now with the support of consumer electronics like Xbox, which has been available to players around the world, Arm will definitely be able to prove itself again.
…… It's still afternoon in Shenzhen and London, but it's already dark here. Employees of the head office have already left work one after another, and the huge backgammon group, only the chairman's office in the southeast corner, is still lit.
Brother Tan Jiao, who had been guarding outside, took a careful look at his boss through the shutters outside.
It's been a few hours since she came back from a meeting at the record company, Chu Qing hasn't come out since she went in, and she brought in dinner herself.
Seeing where Chu Qing was, crackling at the computer, Tan Jiaodi subconsciously pursed his lips.
Since the last time she brought tea in, she accidentally saw what Chu Qing was doing, and her awe of Chu Qing was completely gone.
Others think that the boss works so hard every day for the company. But only she knew that he was working overtime, obviously filling the BBS with water.
Compared with those employees who have only joined the company in the past two years, Tan Jiaodi is an old man who has been in the factory era. It's very clear to your own boss.
In the eyes of outsiders, he is a mature, steady, sunny and handsome, benevolent and kind boss. But in the eyes of Tan Jiaodi, Chu Qing is a capitalist.
She still remembers the night when the P2 ad first appeared on CCTV. For that event, dozens of them were called in a month in advance, and at the high demands of the boss, only a dozen people were left behind.
The slightest mistake in reciting a word can kick out the operator team instantly. is completely cold-blooded and ruthless, without the slightest affection.
Especially in the month after the ad was launched. It is even more unforgettable for Tan Jiaodi. When she answered the phone and felt vomit, she never wanted to come again.
And I couldn't leave that room at the time, and I couldn't even sleep there. Is such a high-pressure policy something that ordinary people can think of?
Even Huang Shiren didn't squeeze labor like him. This kind of person is also said to be benevolent and kind.
She didn't know how she spent that month. Day and night, answering the phone day and night.
It was also after that experience that she strengthened her determination to jump out of the call work. [Recommended,Changyuan app chasing books is really easy to use,Download it here.huanyuanappEveryone can try it soon.】
She didn't want to be like a machine and answer phone calls for the rest of her life. Fortunately, with my own efforts, I finally don't have to answer the phone every day and night.
Spit and complain, but what should be done, she is not sloppy at all. After all, as long as she is still in the company, she must rely on working for him to eat.
Even if I can't get used to this boss in my heart, I still have to admit that he is still very authentic in terms of salary.
In the month when she answered the phone day and night, although the work was hard, she didn't take less money, and she took more than 1,600 in total that month, including commissions.
You must know that other front-line female workers at that time were only more than 200 yuan a month. She was able to top others for more than half a year that month.
"Ding, ding, ding!" Just as Tan Jiaodi was reminiscing about the past, a GSM mobile phone on his desk suddenly rang.
"Hello! Welcome to call BBK, this is the office of the secretary of the board of directors. "This is a work mobile phone that Chu Qing was equipped with not long ago, and not many people know about it so far.
Although the call came suddenly, the reaction from the original exercise was still there. When I picked up the phone, I came up with a set of technical terms.
"Xiao Tan, has the chairman gotten off work?" Duan Yongping on the other end of the phone, after answering the phone, was not particularly polite, they were all old people in the company.
Usually when Chu Qing was away, he was mostly transferring work with Brother Tan Jiao. So the opening is straight to the point.
"Mr. Duan, the chairman is here, and he reminded me just now, let me pay attention to your phone." looked at Chu Qing in the room, who was still typing on the computer, and Tan Jiaodi immediately replied.
"Okay, you can transfer it to the chairman for me."
"Okay, wait a minute." When Tan Jiaodi came in with a GSM mobile phone, Chu Qing was standing on the horse, chatting energetically with a group of people.
Since returning to Shenzhen, the four places in the horse station are already a little insufficient. Especially Chu Qing in the first two days, after experiencing the embarrassment of not being able to grab a position for half a day.
In a fit of anger, he directly asked Xiao Ma for his home address and asked the telecommunications bureau to pull a few new telephone lines.
After expanding the capacity of the horse station to 10 places in an instant, Chu Qing felt a little better. At the beginning, when he was a telecommunications staff and notified the door-to-door security call, Xiao Ma was still a little confused.
He had no idea who pulled it. It wasn't until Chu Qing went online the next day and complained in the chat room that they knew that it was sponsored by this big boss.
Pony: "Back pain boss, do you want to give me a sponsorship point here, recently many netizens have called me every day to urge me to expand my capacity." "Since the station has expanded to 10 people, the Internet resources are not only not abundant, but have become more and more tight.
After all, compared to other websites, the embarrassment of only being able to get on one person at a time. The spaciousness of the horse station, which can land ten people at once, is simply a bonfire in the dark.
For netizens who are accustomed to chatting on their own, such a large chat room is no less than a temple fair.
The excitement makes many people feel like they have finally seen a living person on the Internet. This made more and more netizens rush towards the horse station.
Don't make a backache: "Okay, why don't you go to work at the paging station, I'll buy this horse station for you, how about you come to work with me." Although Chu Qing was joking, after a few months of contact, he really had the idea of accepting Brother Xiaoma.
After all, with the technology that Xiao Ma has shown so far, his ability in network communication is really not bad. Pony: "Okay, I'll come to work at your company tomorrow." Ding: "Boss with back pain, can you call the shots, don't just finish speaking, you will be punished by Sister Ling for kneeling on the washboard later." "I've been in the chat room for a long time, and everyone loves to take out the back pain and joke.
Especially Wei Ling's fierce image in the chat room, many people speculate that these two must be strong women and weak men.
Eldest Sister Ling: "Although my man has back pain, his knees don't hurt, I am okay with this matter." Qiuqiu: "Okay, I'll play tomorrow, and then double the line." Chu Qing looked at the computer screen, and just as he wanted to reply to the message, he saw Tan Jiaodi walking in with his mobile phone.
He immediately put away his smile and stood up.
"Is it Lao Duan?"
"Yes, Mr. Duan called back from the UK."
"Hey!" After receiving the phone, Chu Qing walked to the window. Even Ericsson's GSM business has begun to open in eastern Guangdong.
But now this kind of international long-distance signal, the signal is still not very good. Especially if you want to make international calls, you have to go to the telecommunications bureau to open the call function to use it.
And every minute of calling, it is as high as 15 yuan.
"We've already negotiated with Arm." Although Duan Yongping's voice was a little intermittent, Chu Qing still heard it clearly.
Hearing the news, he couldn't help but feel happy in his heart. The heart that has been hanging can finally be put down.
"What is the final price?"
"$23 million!" Even if BBK agreed to their previous conditions, the final negotiated price was raised by three million again.
Fortunately, this time, the shareholders of ARM did not do anything else. The two parties have just initialled a basic contract.
The full contract will have to wait a few days. After all, such a cross-border acquisition must be approved by the British government.
Fortunately, in these years, a small company like ARM has not received much attention. There is also no problem of stuckness and prohibition of acquisitions.
Basically, just go through the program. The purchase price of 23 million is indeed outrageous, but for Chu Qing, as long as he can buy ARM, this is completely acceptable.
Because of this price, it is much more cost-effective than forming a team to develop it yourself. In many cases, good technology is the real price.
The acquisition of ARM is a very critical step for BBK. Their basic chip architecture is currently very much needed by BBK.
ARM's RISC microprocessor is a low-power processor. ARM processors are inherently 32-bit designed, but they also come with a 16-bit instruction set, which is typically up to 35% more energy-efficient than equivalent 32-bit code, while retaining all the benefits of a 32-bit system.
To put it simply, their advantages are small size, low power consumption, low cost, and high performance. This kind of low-power, high-performance chip is suitable for meeting the needs of consumer products, such as mobile phones, MP3, etc.
This is the best supplement for backgammon to do consumer electronics.
"When your contract is officially signed, you will immediately arrange for someone to go to the UK to take over. ARM we want to focus on building, the current company's engineers, must all stay, and after the company is newly established, take out 15% as the reward of the option pool. All of their wages have been doubled, and they must be fully received. After a few more words of instruction to Duan Yongping, Chu Qing hung up the phone.
Thinking of what happened after the acquisition of ARM, Chu Qing immediately said to Brother Tan Jiao.
"Inform Huawei and Huajing that we are going to carry out a new cooperation!"