To be honest, Chen Jin had quite a good impression of Qualcomm.
Although it was a gangster through and through.
But compared with the super gangster Fruit, Qualcomm was more like a philanthropist.
It was well known that Fruit was unscrupulous in its pursuit of profit. On the one hand, the Fruit mobile phone was getting more and more expensive. The selling price was more than three times the hardware cost, taking more than 80% of the hardware profits of the entire mobile phone industry.
Even so, Fruit was still not satisfied. It took advantage of the closed nature of the iOS system to play tricks. All applications that topped up and spent money in the iOS system would take a 30% cut. Only a few applications could be exempted.
It was also known as the "Fruit Tax."
Through various means, Fruit became the most profitable technology company in the world, with a market value of more than 1 trillion US dollars.
But even so, Fruit found out that after adopting Qualcomm's baseband, it had to pay Qualcomm tens of billions of US dollars in patent licensing fees every year. So much money was actually given to Qualcomm, and such a big piece of meat was poached from them?
According to the principle of 5% commission, the more expensive the Fruit mobile phone was, the more Qualcomm would take.
How could this be tolerated?
Unwilling to give up any profit, Fruit immediately dumped Qualcomm and supported Intel. It chose to adopt Intel's communication baseband, and completely bade farewell to Qualcomm.
The problem was that Intel had only been engaged in communication technology for a few years. Many patented technologies could not bypass Qualcomm's patent barriers. But Fruit didn't care. It directly let Intel infringe, risked patent lawsuits, and directly used Qualcomm's patents … For the sake of profit, Fruit was going all out.
And when Fruit did this, Qualcomm, which was originally making a lot of money, saw its revenue plummet by 30% that year.
Qualcomm's eyes instantly turned red. Cutting off one's source of wealth was equivalent to killing one's parents. It also concluded that Fruit had infringed on their patents and immediately launched a patent lawsuit.
Since you're heartless, don't blame me for being unjust. Both sides were at loggerheads.
After fighting the company for two years with bloodshot eyes and collecting enough evidence to prove that the Fruit Company had indeed committed infringement, Qualcomm won a great victory. First, a court in Z country banned the sale of the Fruit mobile phone. Other countries and regions also ruled in favor of Qualcomm.
The war between the two gangsters ended with Qualcomm's victory.
After the ban took effect, Fruit mobile phones disappeared from the Z country market for a few months.
In the end, Fruit had to admit defeat. They paid a one-time fine of tens of billions of US dollars and made a guarantee that they would no longer infringe. Only then did both sides reach an understanding.
The fruit companies paid the price for their greed.
A few years ago, the trade war was extremely intense. Hua Yao's 5G was besieged and intercepted by Merica. At that time, there were countless voices calling for a boycott of Fruit Phones and countless articles exposing Fruit Phones as hooligans on the Internet. But none of them could make countless die-hard Fruit Fans give up on buying Fruit Phones. However, a company from Merica had helped to successfully boycott Fruit Phones.
What kind of spirit was that?
Therefore, on the Z nation's internet, the title of "Righteous Annihilation Fruit" was given to Qualcomm by a large number of netizens.
Benevolent and righteous, too benevolent and righteous. I give Qualcomm a like.
Last year, Qualcomm moved its headquarters to Z country and reduced the patent licensing fees in the Z country's market. It also won the favor of a large number of netizens and gave the company the title of "Z Emperor's Conscience."
However, Chen Jin knew that deep down, Gao Tong was still a gangster. But after doing a few good deeds, in his eyes, Gao Tong was a better "gangster."
He welcomed Qualcomm's initiative to cooperate.
This was because Xing Hai Technologies did not have much experience in the field of communication technology. They were very dependent on Hua Yao.
Looking at it now, this dependence was not too big of a problem. But in the long run, it was a little under the control of others. The application scope of communication technology was too broad. There would always be a place for it. The annual market was more than a trillion dollars.
Xing Hai Technologies did not want to enter this field. It was even more unrealistic to start research and development from scratch. Xing Hai Technologies just wanted to avoid being restricted and being cheated by others in the future.
Ling Jun Dong suggested:
"President Chen, why don't we acquire Qualcomm and get the free use of tens of thousands of the company's communication patents. Then, we can cooperate with Qualcomm to develop more advanced 6G communications or other new types of communication technology to make up for this shortcoming. Of course, Hua Yao is our partner. We will not give up on cooperation with Hua Yao. But what about 10 years later or 20 years later? If Hua Yao dominates the market at that time, will they continue to give me preferential treatment? "
Would Hua Yao become a new gangster at that time?
In short, it was hard to say what would happen in the future.
"Acquire Qualcomm?"
Chen Jin nodded. "This is a very good idea." He had to admit that he was a little envious of the tens of thousands of communication technology patents. He also wanted to have a taste of being a patent gangster.
In fact, there was no need to think about it. Xing Hai Technologies was already on the road to becoming a patent gangster. For example, Xing Hai Technologies' recent breakthrough in graphene technology did not build a variety of factories to produce various graphene products. Instead, they recruited partners and licensed a large number of graphene technologies for 50% of the net profit. At present, they had recruited more than 30 partners. It was expected that various graphene products would soon emerge like bamboo shoots after a spring rain.
But with Qualcomm's current market value of 60 billion dollars, which was about 380 billion dollars, could Xing Hai Technologies come up with 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 dollars, I can find a way to raise it." Ling Jun Dong's words were shocking.
Chen Jin was shocked and almost spat out a mouthful of saliva. 500 billion? Did it have to be so exaggerated?
In the field of capital operation, there was actually a concept of "leverage." Xing Hai Technologies did not really need to come up with 500 billion. It would be enough to take out 100 billion. Then, it would raise another 100 billion from the private sector and find a bank loan of 300 billion for the remaining funds.
With the profitability of Xing Hai Technologies, it would not be much pressure to swallow up Qualcomm.
After listening to Ling Jun Dong's analysis, Chen Jin nodded and said, "Okay, go and try to acquire it. If it is within 500 billion dollars, take down the other party."
…
Qualcomm.
After receiving the acquisition request from Xing Hai Technologies.
The senior executives of Qualcomm did not think much about it and rejected it. They were sitting on a mountain of gold. They could earn a lot of money every year without having to work. Who would sell the mountain of gold under their buttocks?
Moreover, the M government would not approve it. There was no possibility of acquisition at all.
However, Qualcomm's head office in the Z region was not under the jurisdiction of the M nation. Xing Hai Technologies could become a shareholder.
The senior executives of the two companies carried out negotiations that lasted for several days. The two parties finally reached an agreement and signed a cooperation plan. The main terms were as follows:
First, Xing Hai Technologies would inject 80 billion dollars and hold 40% of Qualcomm's shares in the Z region. They would enjoy the free use of all Qualcomm's communication patents.
Second, Qualcomm's chip OEM orders would be handed over to Zhongxin International to complete.
Third, Xing Hai Technologies would provide technical services such as the "virtual factory" to speed up Qualcomm's research and development and reduce research and development costs.
Fourth, the two parties would carry out technical cooperation to jointly develop more advanced communication technologies.
After the cooperation was successfully reached.
There was no doubt that this was a win-win situation.
For Chen Jin's Xing Hai Technologies, he only spent 80 billion dollars to obtain the free use of tens of thousands of communication patents. He saved a lot of time and massive research and development funds. He could also share the profits.
For Qualcomm, while cooperating with Xing Hai Technologies and injecting a sum of cash flow, it also received support from Xing Hai Technologies. Although it could not immediately catch up with Hua Yao, which was clearly in the lead, it could at least be in an equal position. It could quickly recover from its disadvantage and would not be defeated by Hua Yao.
Qualcomm's president, Christian Amon, breathed a sigh of relief.
He walked back and forth and said excitedly, "We will soon be able to get out of this predicament.
Xing Hai Technologies' 5G baseband orders alone can bring us tens of billions of dollars in revenue every year! In addition, with the help of the 'virtual factory' technology, the speed at which we accumulate patents and the cost savings will soon be the same as that of Hua Yao (Hua Yao has already purchased a supercomputer equipped with the virtual factory). We are finally on a fair track. "
…
November 20th.
Once the news that Xing Hai Technologies had invested in Qualcomm and the two parties had reached a strategic cooperation was announced, it immediately caused a huge response.
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