Back in the car, Kirilenko asked excitedly. "Feng, IBM is exchanging shares with Lenovo Kingsoft? How are they exchanging shares? When will it start? "
"Calm down. This is still being discussed."
If IBM joins in, Lenovo Kingsoft's shareholding structure will be more complicated. Lenovo Kingsoft already has Feng Yu, Kirilenko, Hua Xia, Qiu Bojun, Lei Jun, Liu Chuanzhi, and other individual shareholders.
After Lenovo Kingsoft was listed, Li Zekai and Fu Guangzheng had bought some shares. If it were any other company, it would not be a problem. There were too many joint ventures, and many of Hua Xia's companies were controlled by foreign investors.
But Lenovo Kingsoft had grown too fast and had overtaken IBM. Now, many companies in the industry admit that Lenovo Kingsoft is going to challenge the world's number one company, Microsoft. Lenovo Kingsoft had even become the industry's number one HOS operating system.
Why do all the superpowers need to have their own PC brands and develop their own operating systems? It's because they are worried that other countries' computers will have backdoor programs that will steal their information.
The US also has such a program, and Hua Xia and Russia do not have it.
This is also why in the future, many politicians do not like to use smartphones. They only use function phones as they feel it is safer.
IBM is a US company, and their PC was once the main purchasing target for the US government. No one will believe there is no relationship between these two companies.
Although Lenovo Kingsoft's operating system is using the open source Linux operating system, it is very difficult to develop a mature operating system. If not, Lenovo Kingsoft will not be the only company that has developed to this stage.
IBM had tried and realized it is hard to get around Lenovo Kingsoft's patents. That's why they decided to cooperate. IBM is currently the world's third largest software company, and they are also very famous in the IT industry.
If IBM becomes a shareholder of Lenovo Kingsoft, it will be easier for them to market their products in the US. IBM even promised Lenovo Group's PC will be included in the government procurement list.
Even in Europe, IBM's influence is not to be underestimated. Together with Lenovo Group and Lenovo Kingsoft, they can easily suppress Microsoft.
IBM drew a big pie, and Feng Yu and the rest were discussing whether they should eat it or not, and whether the higher-ups would object.
When Kirilenko became a shareholder of Lenovo Kingsoft, it was because he had used his software company in Russia to invest. This was equivalent to Hua Xia's company expanding into Russia and Eastern Europe. This was an honor, and the higher-ups did not object.
Besides, Hua Xia's relationship with Russia was not bad, at least much closer than with the US.
This time, IBM will not be exchanging shares with Lenovo Kingsoft. Lenovo Kingsoft will not be acquiring IBM. They will only exchange some shares and become each other's shareholders. Both companies will send a director to each other and cooperate on many businesses.
Was IBM powerful? Powerful. In terms of technology and business services, their market share was number one. In terms of software, they were number three in the industry. In terms of electronic technology research and development, they were also among the best in the world. They were definitely qualified to compete with any company in the IT industry.
But after the financial crisis, IBM's market value had dropped significantly. Now, it was worth less than 150 billion USD. But it was still worth more than Lenovo Group and Lenovo Kingsoft.
After Lenovo Group became the industry leader and introduced L-Pad, their market value had increased. Now, their market value was only slightly more than 50 billion USD.
Without L-Pad, their market value might be lower. PC companies' profit margins were not high, and everyone did not have high expectations of them.
Lenovo Kingsoft's market value had increased and had surpassed Lenovo Group. Their market value had reached more than 70 billion USD. This was different from Feng Yu's previous life.
But Lenovo Group and Lenovo Kingsoft's combined market value was not as high as IBM. If they exchanged shares, the shares of the same value would carry different weights.
Lenovo Group's market potential was not high because the profits from selling their hardware were not high. If it wasn't for L-Pad, Lenovo Group's market value might be less than 40 billion USD.
But Lenovo Kingsoft was different. Even after Microsoft's market value had fallen, it was still worth 200 billion USD. Even if Lenovo Kingsoft was not as good as IBM, its market value should not be too far off. Now, many investment banks were raising Lenovo Kingsoft's share prices.
Feng Yu also felt Lenovo Kingsoft's market value should not be lower than IBM. It might even be on par with Microsoft. After all, Lenovo Kingsoft still has its HOS operating system, anti-virus software, and office software. In the future, Lenovo might even surpass them and become the leader of the software industry.
That's why exchanging shares now was not worth it. If Feng Yu wanted to exchange Lenovo Kingsoft's shares with IBM, IBM would not agree. After all, the market value of both companies was more than double of each other.
Furthermore, Feng Yu still had to consider security and other issues. It was difficult for Lenovo Kingsoft to cooperate.
The benefits of cooperating with IBM was obvious. With IBM's distribution channels, Lenovo Kingsoft's operating system and software sales will increase, and they might be able to suppress Microsoft.
Feng Yu was also considering if he should lower his conditions and cooperate with IBM to suppress Microsoft.
But what if IBM wanted to enter the core research business? IBM's technologies were there, and they were qualified. But if IBM separated from Lenovo Kingsoft again, they might be able to introduce their own PC Windows operating system. This operating system was from the same source as Lenovo Kingsoft, and Lenovo Kingsoft would be in a disadvantageous position.
After all, IBM and Microsoft had a good relationship. Microsoft had been working for IBM in the past, and after that, they set up their own company and got to where they are today.
Feng Yu explained the situation to Kirilenko, and Kirilenko asked. "Feng, you don't trust IBM?"
Feng Yu understood. That's right. He does not trust IBM.
Since he does not trust IBM, why should he force himself to cooperate with them? Although this cooperation might bring better developments, it was not worth the risk.
Feng Yu had told Kirilenko that the most important thing in a cooperation is to build trust between both parties, followed by benefits. Without trust, Kirilenko will not cooperate.
"Brother Ki, to be honest, I do not trust IBM, and that's why I do not want to cooperate with them. What do you think?"
Kirilenko was also Lenovo Kingsoft's major shareholder, and Feng Yu had to ask for his opinion. This was a form of respect.
"Since you do not want to cooperate, then let's not cooperate. Without IBM, we can still do well, and I do not want another shareholder to share the profits with us. "Kirilenko replied.
"Fine. Then we will not cooperate. But don't worry. Our Lenovo Kingsoft's market value and profits will continue to increase. We will be the top software industry in the future! "
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