Tao Liangchen
Chapter 566 Pie in the Sky for Qualcomm
Strictly speaking, from a seller's point of view, almost no one likes buyers haggling. When foreigners bargain for goods, they can be even more ruthless than anyone else.
If it were anyone else who suddenly dropped the price from $200 million to $80 million, the Qualcomm executives present might have walked away immediately. But Su Yehao was a little different.
A man's reputation is like the shadow of a tree.
News about Su Yehao had already spread throughout Silicon Valley.
Not only was he the absolute controlling shareholder of Yanwenzi Group, but he was also one of the major shareholders of Yahoo. He had also successfully bet on companies like Amazon and Google. This was all public knowledge.
In addition, he seemed to be quite influential in Asia. According to Qualcomm's Chief Operating Officer, Gray, the Internet was just one of his family's businesses.
Information such as developing real estate and starting Internet companies in the mainland made Su Yehao and his family seem very mysterious to these foreigners.
When he acquired the ICQ instant messaging software at the beginning of last year, a Chinese-funded bank supported Su Yehao. Many outsiders didn't know this. Gray and others only discovered clues from numerous documents when they purchased information about him through a consulting company for today's meeting.
Some people just ask for a price.
In the eyes of Gray and others, Su Yehao was a true buyer candidate, with the strength to stand on an equal footing with Qualcomm.
Any super-rich man with a net worth of over ten billion US dollars cannot be underestimated.
Therefore, regarding the statement that "$80 million is a reasonable number," Qualcomm's COO Gray just smiled and shook his head, decisively saying:
"No, no, no, this price is too low. In fact, people from Japan are already in contact with us, and the negotiated price is around $200 million. In order to break the monopoly of Nokia and Motorola, we launched an integrated mobile phone baseband chip with call and multimedia functions, which took a lot of effort in research and development. This integrated GPS, Bluetooth, call and other function modules, it is a revolutionary product."
Su Yehao spread his hands and said:
"Being too advanced is not a good thing, as evidenced by the hundreds of thousands of units in your warehouse. If the Japanese company's offer can satisfy you, why hasn't the deal been closed yet?"
"This... there are just some details that haven't been agreed upon."
Senior engineer Sanjay Jia said.
This talented Indian is currently responsible for several important positions at Qualcomm and is being cultivated as a high-level management talent.
Silicon Valley now has Yang Zhiyuan, Huang Renxun and other wealthy Chinese representatives, but Indians are rapidly growing in Silicon Valley, relying on their language and personality advantages.
For example, a development department under TVT, since the supervisor was replaced by an Indian, the entire team quickly became Indianized. John Zhou once mentioned it as a joke, saying that they even protested that there was no curry in the company's restaurant.
As for Su Yehao, he recruited more than 300 mainland students from various universities in the United States in the first half of this year, and hundreds of students from Hong Kong and Casino, 1997.
With his strength, he could choose any of the top students from Qingbei Fudan Jiaoda Zhejiang University, USTC, Nanjing University, the two financial universities and one foreign trade university, and the universities of Aeronautics, Shipping, Economics.
So it is a little difficult for Indian executives to stand out under Su Yehao.
But honestly speaking, he knows that with the character of the vast majority of his compatriots, whenever they have the opportunity, they like to put the words "Are kings, nobles, generals, and ministers born with a silver spoon in their mouth?" and "Dare to pull the emperor off his horse" on their lips and put them into practice.
If Su Yehao wasn't so confident, he would probably worry that after being learned and stolen, dozens or hundreds of competitors would emerge out of thin air.
On the other hand, Indian employees are much more obedient. They have finally gone abroad to settle down and live, standing out from millions of people. In addition, the slow economic development in India has led to these Silicon Valley Indian employees having no way out. They can only bury themselves in hard work and listen carefully.
Faced with such diligent employees, the executives of major companies naturally like them...
Qualcomm's COO Gray continued to explain:
"That's right, the Japanese company is very sincere. If you, Mr. Su, are only willing to offer $80 million, our board of directors will definitely not agree to your offer. Just now you mentioned 30% of the OEM (Original Equipment Manufacturer) orders... What exactly does that mean? Did you acquire another chip foundry? A company in Treasure Island? Korea?"
Su Yehao casually mentioned $80 million just to test the waters.
In this era, as long as it is a solution that can produce mobile phones, the prices are all very expensive, and the patents are controlled by a few companies.
If it weren't for the fact that the vast majority of the market share had already been divided by mobile phone manufacturers such as Nokia, Motorola, Ericsson, and Siemens, making it difficult to open up the market, Qualcomm's mobile phone production business would never have sold for only $200 million.
Su Yehao smiled, spread his hands and said:
"I plan to invest in a wafer foundry in Hong Kong. We can talk about it then. The foundry price will definitely be lower than our competitors."
"Your mobile phones are too advanced, which leads to the cost being much higher than other products. After acquiring it, you will have to redesign everything. I have a way to rely on my own reputation and promotional channels to take the markets in Southeast Asia and China. Can those Japanese help you earn more patent licensing fees and money from selling parts?"
"Perhaps they will replace them with Japanese-made parts as soon as they buy the production line. But I need to purchase in large quantities from your Qualcomm company."
"If we don't want the stockpiled PDQ phones, and promise to purchase a certain number of integrated baseband chips, shouldn't the acquisition price be lowered? I want to create a high-volume, low-end model, mainly sold in China, which has a population of 1.2 billion. In the next five years, I expect to sell at least 20 million units. At that time, I will cooperate with operators to launch businesses such as giving away mobile phones for recharging phone bills, or giving away mobile phones for promising minimum consumption..."
Having dealt with foreigners a lot in the past two years, Su Yehao's spoken English has been soaring. The speaking speed is a bit slow, but it is clear and fluent.
To put it bluntly, he is drawing a big cake.
In the short term, it is very difficult to break through the integrated mobile phone baseband chip technology. The patent barriers have already been formed.
In the next few years, the focus is expected to be on foundry, lithography machine research and development, and the research and production of some semiconductors. Therefore, there will be no conflict with Qualcomm. On the contrary, there will be more opportunities for cooperation and win-win results.
Qualcomm's communication equipment has already been sold to the mainland. Their company's research and prediction of the mainland's communication market is more comprehensive than the information Su Yehao has on hand.
Hearing that Su Yehao was confident in cooperating with mainland operators, Gray immediately showed interest, hesitated for a moment, and said with a smile:
"If you can promise to purchase a certain amount of parts and achieve certain sales targets, I believe the company's board of directors will definitely be willing to make concessions on the basis of the offer. China Unicom is an excellent company. I heard that it is planning to restructure and go public?"
"... That's right, I will try to become its shareholder at that time."
Even if he had never heard of this, it would not affect Su Yehao's nonsense, and then added:
"Believe me, if our two companies cooperate, there will be many opportunities for win-win results in the future. I control the largest Internet ecological enterprise in the mainland. The layout in home appliances, computers, and mobile phone businesses is enough to give you surprises."
"I am looking forward to it."
Gray COO smiled and invited:
"Let's go to the conference room to talk and try to discuss the details as soon as possible. There will be a board meeting tomorrow morning, and I can bring it up for discussion. Eighty million US dollars is definitely not acceptable. My psychological price is between 190 million and 200 million US dollars. If other agreements are reached, a moderate price reduction should not be a problem..."