Sony had only rented an office in Shanghai and did not set up any branches. They will enter the Hua Xia market after 1996.
When they arrived at Sony's office, Feng Yu was disappointed. This was not the office of the world's top companies. It was not even as spacious as Bing City's Machinery Company's office.
This was because of the difference in mindset. The US and other European countries will build a big, spacious and comfortable office. But Japanese and other Asian companies will use as much space as possible. After all, Japan's housing prices were the highest in the world two years ago. In the future, Hua Xia's housing prices could not be compared to Japan.
Also, Sony was trying their best to cut down on their expenses. They even stopped hiring new employees every year. They could only guarantee that they will not fire any employees this year.
Japanese companies had an interesting rule. It was similar to the state-owned enterprises in China's future. After the first contract was over 10 years, the second contract will be a lifetime contract until the employee retires. As long as the employee did not make any serious mistakes, then the employee will not be fired.
Also, Japanese companies had a tradition. After the employee got married, the male employee's salary would be doubled. The reason was that the male employee's wife can stay at home to take care of the family. If the male employee still uses the family as an excuse to not work hard, then the employee can be fired.
What will they do when the company's economy is not good? First, they will fire the "temporary workers." Those who were not on a lifetime contract were mostly foreigners, and most of the foreigners were Chinese. Second, they will give a speech about the company's difficulties and ask the employee to resign. The company will also give them a reasonable compensation. Aiwa had used this strategy to fire their employees in 1987. The 3,000 employees were reduced to around 1,000.
Feng Yu and the rest sat down, and Norio Ohga asked his men to serve tea. He then said: "Mr Feng, before we talk, I would like to know what you know about Aiwa."
Feng Yu told Norio Ohga about what he knew about Aiwa. Of course, he did not mention that Aiwa will be successful in the next two years. He only said that Aiwa had a glorious history and Norio Ohga hopes to lead Aiwa out of its difficulties.
Norio Ohga frowned. Lead? Could it be that this Hua Xia person wants to be the President of Aiwa? But according to the contract between Sony and Aiwa, although Sony owns more than 50% of Aiwa's shares, it was only a shareholder. The Chairman of Aiwa was still Heitaro Nakajima.
After hearing Norio Ohga's explanation, Feng Yu purposely frowned: "Really? Aren't you all the controlling shareholders of Aiwa? "
"No. We only own slightly more than 61% of the shares. We are not the controlling shareholder. But Aiwa's President is very capable. So, Mr Feng, you don't need to worry about losing money."
"Is that so? I heard that under his leadership, Aiwa started to go downhill. Now, Aiwa is still in debt of a few billion Yen. "Feng Yu asked back.
Norio Ohga was embarrassed. He did not expect Feng Yu to know about this. That's right. Although Aiwa's operations had improved, it was still in high debt. A company's debt was several times of the company's market value. It was hard to believe that Aiwa could survive this crisis.
If it wasn't for the market, Sony would have withdrawn from Aiwa. But Heitaro Nakajima had threatened Norio Ohga. If Sony does not invest in Aiwa, Aiwa will look for Panasonic and other companies to invest in Aiwa. Their agreement to monopolize the market will be invalid!
"Mr. Feng, there are still 2 banks that own about 6% of Aiwa's shares. Together with our shares, it will be 67%. You will be the controlling shareholder of this company, and you can run it however you want." Feng Yu said.
Feng Yu showed a satisfied expression and continued to ask: "So, Mr. Norio Ohga agrees to sell Aiwa's shares to me?"
Norio Ohga replied awkwardly: "Before we talk about this, I want to talk to Mr Feng about another matter. Mr Feng, since you like to use Walkman, then which company produce the best Walkman in the world? Does your Hua Xia have any good Walkman? "
Damn! You are so shameless. You want me to praise you?
In Feng Yu's previous life, he had heard that when companies sell their brands, they firmly believe that their brand is the best. If the other party does not praise their brand, they will not sell it. For example, Volvo. In the past, Volvo sold to Geely because the other party said "I love you".
Feng Yu did not expect the Japanese to be like this. But currently, Aiwa's sound quality is the best, followed by Sony.
Feng Yu lied: "Sony is the best, and Aiwa should be in the top 3. As for our country, there is no good quality Walkman. "
Hua Xia was involved in anti-spies, and in the beginning, the Walkman was only a player. There was no recording button. Now, the conditions were relaxed. But small devices like Walkman still cannot have a recording function. As for a recording pen, it is a professional tool that only the State Security and other departments have!
"Mr Feng, I am not trying to belittle your Hua Xia. But currently, Sony and Aiwa are the best Walkman brands in the world. Sony and Aiwa have an agreement to join forces in the market and compete with each other. We will exclude Panasonic and other brands from the Walkman market. That's why before we sell Aiwa's shares to you, we hope that you can renew this agreement! "
Renew alliance agreement? Feng Yu was overjoyed. If Sony used money to fight for the market share, Aiwa will be finished. Although Sony will suffer more losses, Aiwa will be finished.
Feng Yu's current funds are still far from Sony. Just by cooperating with Aiwa, Sony can compete with Panasonic, Sharp, and many other large electronics companies and still have the upper hand.
Currently, the Walkman market is split into 3. Sony owns 40% of the market share, and Aiwa owns 30%. The rest of the companies own the remaining 30%.
"Brand alliance? Alright, I can agree to it. Mr. Norio, do you have any other questions? Can we talk about the purchase price? "Feng Yu pretended to hesitate for a while and agreed to the terms. What a joke. Only an idiot would not agree.
In another 2 years, Sony will regret. The Walkman market will no longer be split into 3. Aiwa will own more than 50% of the market share!
"20 million USD. I can convince the shareholders to sell all of Aiwa's shares to you."
20 million USD? Damn. You really think I don't know the market value of Aiwa? Feng Yu can accept a higher price, but he will never accept a price that is more than 3 times higher!
"Mr. Norio, Aiwa's debt is quite high now. If you can help me get rid of the debt, I can accept 20 million USD. Aiwa's market value is less than 1.2 billion Yen. How did you calculate 20 million USD? If I am also responsible for the debt, then 5 million USD is the highest price I can offer! "
Based on the proportion of shares, Sony's debt to Aiwa was more than 15 million USD, and the shares were worth about 6 million USD. Feng Yu had haggled with him.
Norio Ohga smiled embarrassedly: "Mr. Feng, we will not take on the debt. Our company's funds are under a lot of pressure. But 5 million USD is too low. We cannot accept a price lower than Aiwa's share price. How about 10 million USD? I can convince the shareholders to sign the contract as soon as possible. "
"Mr. Norio, are you sure you can convince the shareholders?"
"I promise there will be no problem." Norio Ohga thought to himself. Feng Yu does not know how much the shareholders want to get rid of these bad assets. In the past, I had proposed to acquire and inject funds into Aiwa. In the end, I had suffered losses every year and was scolded by the shareholders.
"Then I will also increase the price. 6 million USD."
One of them wanted to buy, and the other wanted to sell. The negotiations went smoothly. In less than an hour, the final price was set, 7.2 million USD.
It was a premium of more than 20%. But compared to Aiwa's profitability in the next 2 years, Feng Yu had made a huge profit!
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