Chapter 1616 Taking Advantage of the Chaos to Buy

Time has entered 2008, and the subprime mortgage crisis in the United States not only has not weakened, but even has a tendency to intensify.

Many companies related to real estate have been caught in the wind and rain. This is not the most important thing. The most serious thing is that many Wall Street related to it have also been seriously dragged down.

Everyone knows that over the years, Wall Street, relying on the rapid development of the real estate market in the United States, has packaged those mortgage-backed bonds with bb and bbb- credit records into gorgeous financial derivative bonds with "high investment returns" and "low risk" , sold to people all over the world who wanted to hold U.S. bonds.

When the U.S. economy is developing well, these bonds are irrelevant. They are fixed value preservation, and there will be generous interest returns every year, which makes everyone feel very good.

But once the U.S. economy stagnates, those people with poor credit records, after losing their own stable source of income, don’t care about your house mortgage repayments, just default and leave, leaving only the house to let the bonds Mortgage company to collect.

The bond mortgage company needs to collect repayments as its own income and pay interest to people who own bonds. Now they have nothing but an empty house, and there is no way to pay bondholders. Interest.

If there is no way to pay interest, then the bondholders will simply quit and directly apply for bond redemption. This is a huge disaster for any bond mortgage company.

Therefore, many bond mortgage companies and financial loan companies just fell into the huge wave of redemption.

In the previous life, Bear Stearns survived until March 2008, before finally being on the verge of bankruptcy, and was finally rescued and acquired by JPMorgan Chase.

But this life is different. With the appearance of Xiao Qi, Fannie Mae and Freddie Mac put away a large amount of bond funds prepared for Bear Stearns. The purpose was to take back more than 3,000 Freddie and Freddie Bonds in the hands of Huaguo's China Investment Corporation.

This result directly led to Bear Stearns not receiving any liquidity injection. On January 4th, it was revealed that because of holding a large number of junk bonds, investors exchanged a large amount of cash, and the cash in hand was almost zero. It caused a strong shock in the American financial world!

To know. Bear Stearns is one of the five largest investment banks in the United States. It has a history of more than 80 years. If this investment bank collapses, it will be a serious blow to the entire US bond market and even the entire financial circle of Wall Street.

So the Federal Reserve immediately reached an agreement with JPMorgan Chase, through the Federal Reserve's commitment to lend to JPMorgan Chase, let JPMorgan Chase announce the acquisition of Bear Stearns' shares, which can be regarded as slightly stabilizing investors.

After all, the Morgan Group is a symbol of the American financial world, although they have not shown many fangs now. But in fact, in the US financial and banking industry, they are still absolutely well-deserved leaders.

The financial crisis in the United States in the 1930s was so severe that it was not because of the efforts of the Morgan Group that it finally survived, and took advantage of the World War II to crush the European economy in one breath and established the strongest economy in the United States today. State status?

Therefore, seeing JPMorgan Chase come forward, consumers are not so panicked. But everyone also knows that if there is no continued strong move. The U.S. economy is bound to get a more serious blow.

The damage to the financial industry is not terrible. The most terrible thing is the chain reaction, that is, the basic industry and daily life that spread to the entire country. This is a precursor to the collapse of a country.

Naturally, it is impossible for the United States to want to experience another financial crisis in the 1930s, so with the lessons learned from Bear Stearns this time, the Federal Reserve is obviously much more active. They continue to throw out words, claiming that the Fed will have the strength to deal with this crisis and has made sufficient preparations.

However, it is clear that the Americans have been slack for too long, and some things cannot be achieved by just talking.

Xiao Qi has long valued some companies and is planning to acquire them during the financial crisis. Now it seems that the negotiation to acquire one of them should start.

It is Nortel Networks, which had great glory ten years ago.

It was from Nortel Networks that Xiao Qi bought all the personnel and patents of the wcdma department, creating his own opportunities in the 3g network era.

At the same time, the exclusive buyout of the optical fiber technology in the Huaguo area allowed Xiao Qi to earn untold amounts of money, and he used this to enter the Huaguo's telecommunications industry in one fell swoop.

From now on, the two acquisitions have been praised by all market experts, saying that each of Xiao Qi's acquisitions is full of imagination for the future.

On the contrary, Nortel Networks is in a bit of a miserable situation. They did not get much benefit in the 3G era. Now they are focusing on the development of 4G, Ethernet, semiconductors, etc., and they will not get much benefit for a while. Projects that require constant investment of large sums of money have already overwhelmed them.

Moreover, the stock market is still in a period of turmoil. The stock price of Nortel Networks has dropped to 1.2 US dollars, which has shrunk by more than 60% compared to its peak.

But Xiao Qi knew that this was not their bottom line. Their stock price was only about US$0.3 at the lowest point, which directly led to their filing for bankruptcy protection.

Although they sold more than 8,000 core patents in the communication field in their hands at a price of 4.5 billion U.S. dollars, which seemed high at the time, in the next few years, when the world entered the era of wireless and intelligence, this Granting patents alone can earn about 2 billion U.S. dollars in patent fees every year!

However, no one can tell the accounts in it. After all, it is not easy to sell the patent at such a high price when the mountains are at the end of their lives.

It is now one year before they file for bankruptcy protection and sell more than 8,000 patents in their hands.

Xiao Qi now proposes to Nortel Networks to acquire their company patents. Although it is a little earlier in time, another advantage is that no one competes with him.

Except for Samsung, the rest of the European and American companies are panicking about the coming crises. They just want to reduce their investment and prepare to survive the cold winter. They have no interest and energy to buy Nortel Networks patents at all.

Although Samsung's foundation is stronger than anyone else, they have been stimulated by Xiao Qi's dream stars, and they are afraid of the Android Alliance's attack, so their only goal now is to make smart phones, and they must not fall too far behind , otherwise it will fall behind the entire era.

American companies are very strange. Many of them are on the verge of bankruptcy, but they still work very hard.

Don't get me wrong, I'm not talking about Nortel Networks, although they are the same, Xiao Qi is talking about Citibank.

Citibank is certainly not as miserable as Merrill Lynch, but since the end of last year, their life has been difficult for the next few years, and they were once the target of the Federal Reserve's rescue.

But their daily work has not been affected in any way, and they work hard when they should work hard.

In particular, the staff of Wade, the vice president of the New York branch, helped Xiao Qi get linkedin some time ago, and then rushed to Nortel Networks without stopping, and started negotiations with Nortel Networks for more than 8,000 patents. Very busy.

Nortel Networks is now a down-and-out aristocrat who is not as good as a commoner. Coupled with the debts owed by the company, it is very difficult to continue to operate, let alone continue to grow.

However, Xiao Qi's appetite is too great. More than 8,000 patents are almost all of Nortel Networks, including the core patents of many projects they are currently researching. Naturally, Nortel Networks is unwilling to give them.

But Xiao Qi is really too rich. The initial price was 1 billion US dollars. After being rejected, two or three months later, he gradually negotiated 2.3 billion US dollars. For this price, the board of directors of Nortel Networks had already Already very satisfied.

But the management of Nortel Networks is not very happy, because this is completely taking away the most valuable things of Nortel Networks, and it is useless to leave them managers and R&D personnel.

So in the end they came up with a solution, which is to buy more than 6,000 patents for 2.3 billion, and the remaining more than 2,000 patents belong to Nortel Networks and Fairy Company. Nortel Networks is still continuing to develop. According to the results of the development, The last two will negotiate the distribution of rights and interests.

They have a good idea. Although they are co-owned now, after the research and development, they will definitely use various reasons to adjust the proportion of interests held by Nortel Networks to the highest level. The co-owned rights in Xiao Qi's hands have no rights at all.

Xiao Qi pondered for a few days, but still agreed to their conditions.

When Nortel Networks filed for bankruptcy protection in January 2009 in its previous life, these technologies still had not made breakthroughs, such as 4G, Ethernet super-light speed connection, etc. These technologies will obviously not mature until 2012 and 2013. Nortel Networks No matter how powerful people are, there is no way to develop them 3 or 4 years in advance.

However, Xiao Qi also added a priority to acquire more than 2,000 patents from Nortel Networks, and Nortel Networks also agreed.

Speaking of which, these are poor people. Although they have so many core wireless, optical fiber and communication technologies, it is because of the pig-like management that they will inevitably fall into the hell of bankruptcy protection in the end!

But it doesn't matter, Xiao Qi will not only accept their patents, but these R&D talents can also be recruited! (To be continued..)