Chapter 1410 Tough

Yin Jun did not tell Robert Iger that the negotiations with ABC were not that smooth.

It's not that ABC's major shareholders and board of directors don't agree with the acquisition. Companies in North America don't have any resistance to corporate acquisitions, but the conditions they offer are a bit high.

If they follow their asking price, Kirin Group will have to spend a full US$4 billion to acquire all the shares and then delist and privatize it.

Kirin Group now still has a loan line of US$2.5 billion from HSBC, and nearly US$400 million of the first batch of US$1 billion loans from Sumitomo Bank of Japan is left.

In addition, Kirin Group’s own cash flow of HK$7 billion is almost US$1 billion.

It seems to be just right.

If you take it out, you can buy the entire ABC and get the TV network that Yin Jun dreams of, thus turning the Disney TV Channel into a huge TV platform covering the United States.

If such a platform is really established so quickly, it will definitely be a huge benefit for Disney and the North American branch of Kirin Group, and it will accelerate Yin Jun's dream.

A big step.

But purely from an acquisition perspective, this is definitely not the case for doing business.

It is definitely the stupidest thing to do your own acquisition in this way, and it is also very dangerous. It exposes your weakness in front of the giants who are eyeing you!

First of all, Yin Jun’s 400 million US dollars from Sumitomo Bank has already been put to use.

That is currently the more important type B land exchange rights letter.

Li Zhaoji has already discussed with Yin Jun that starting in July, a large number of B-type land exchange rights and interests will be acquired. Yin Jun will not only have to come up with the 400 million US dollars, but also have to prepare more one after another.

Maybe in the end, the entire acquisition scale will reach 1 billion US dollars, or even more.

Just like Li Chaoren regards Hong Kong as his base, Yin Jun also regards Hong Kong as one of his two bases.

The Type B land exchange rights letter is one of the important links in the development of Xiangjiang industry, and it is definitely ranked among the top three.

With the B-type land exchange rights and interests certificate, being able to own so much land assets, Yin Jun's foundation in Xiangjiang can be extremely solid, and it can bring huge support to the film and television industry. He is not afraid of the quality of the market at all, and does not need to Don’t care about the production cost of millions, ten or twenty million.

Then, Yin Jun did not dare to use the 7 billion Hong Kong dollars in his hands.

If anyone knew that the Kirin Group had become an empty shell, there was no telling how many people would attack the Kirin Group.

There are many ways to start this, and it will not fail just because the Kirin Group's operating conditions are good.

The financial market started with the Dutch tulip speculation more than 400 years ago. It has a history of so many years, thousands of cases, and countless elites.

Don't underestimate the power of these people. They dare to plot against every country. Why don't they dare to plot against your mere Kirin Group?

You know, there are not just one or two financial crocodiles who want to swallow up such a big piece of meat like Qilin Group.

yes!

Kirin Group is not a listed company. Even if the situation is worse, Kirin Group's foundation in Hong Kong and the Mainland will definitely still be there.

But if they seize the opportunity and suppress them severely for a while, their vitality will probably be severely damaged.

Among other things, all the territory gained overseas over the years will be lost.

What Yin Jun spent so much energy on, once it is destroyed, and if he wants to rebuild it again, it may not be a problem that money and time can solve.

First of all, Disney and United Artists Film Company cannot be saved, and once they lose them, Yin Jun will never want to buy them back.

This is definitely a huge blow to Yin Jun's wish to export Chinese culture to the world!

So Yin Jun never thought about touching the 7 billion Hong Kong dollars.

Moreover, of the 7 billion, more than 5.5 billion Hong Kong dollars are still deposited in Xiangjiang Commercial Bank. With the current financial situation, this money cannot be touched.

If it makes any move, Xiangjiang Commercial Bank may be on the street.

After all, now they all rely on Yin Jun's credibility and strong strength to support them.

If Yin Jun withdraws all the funds, doesn't it mean that Yin Jun has no confidence in Xiangjiang Commercial Bank?

Since he cannot use the 7 billion Hong Kong dollars in cash flow, Yin Jun can only choose to use loans from two banks.

The young man understood that if he asked to borrow money, if nothing else, Goldman Sachs would definitely be willing to lend it to him, and someone as wealthy as Sumitomo Bank would definitely be willing as well.

But just borrowing money is not a good idea.

Yin Jun is not afraid that he will owe too much debt, but that if borrowing money becomes a habit, he may become dependent in the future.

Bankers are no more merciful than the financial giants on Wall Street!

However, although Colauti personally took action and negotiated one by one with ABC's major shareholders and board of directors, their asking price was never less.

They clung to the overall purchase price and refused to let go.

Because everyone knows that if Disney wants to continue to develop, a strong TV news network is essential.

ABC, which has good cooperation with them, is the best choice.

If they start a new one, it will definitely cost more effort, and it will not be as good as this ready-made one.

Regarding this matter, Colauti advised Yin Jun not to be anxious, wait and see, negotiate slowly to see if there is any improvement.

Yin Jun thought the same thing.

Don’t be in a hurry when buying something. The more you want something, the harder it is to let others see it, otherwise a big pit will be waiting for you to jump.

That is to say, it is not cost-effective to buy stocks from the stock market, which may easily cause the stock price to skyrocket. Otherwise, Yin Jun is willing to collect some stocks on the stock market first.

Now think about it, the development and growth of a group company must be after mergers and acquisitions.

In the previous life, the Disney Group would never have become the world's largest entertainment group if it hadn't acquired most of the businesses of ABC, Pixar, Marvel Studios, Lucasfilm, and 20th Century Fox...

This is not only true for entertainment companies, but also for technology and Internet companies.

Take Alibaba and Penguin in mainland China, for example. Twenty or thirty companies have been annexed by them to create a complete ecological chain, making themselves a behemoth that others cannot catch up with.

Even Apple does.

Beats Company, Texture... Starting from the acquisition of NeXT Company owned by Joe Gang in 1996, by the end of 2017, they had acquired a total of 100 companies, setting a world record for acquiring companies!

That’s why they can become the world’s largest company by market capitalization, with a value far higher than that of giants such as General Electric.

This is the gap between modern technology and traditional industry, and it is a kind of value that will inevitably arise from an emerging industry.

However, there is a difference between acquisition and acquisition.

Some companies acquire to strengthen themselves, and some acquire for the sake of acquiring.

Yin Jun will definitely learn from those good companies, and will definitely not touch some companies that are not worth owning at all.

At most, it’s just to invest in some stocks to make money.

For example, Cisco more than ten years later, such as Nortel.

Over in Xiangjiang, Yin Jun will also buy some good real estate company stocks.

For some real estate that can be used to increase in value, such as mid-level villas, etc., Yin Jun will also take advantage of the low price and sell most of it when the price is high.

This is the difference between Yin Jun's investment and acquisition.

Of course, Colauti was not only running about ABC, he also brought a cooperation proposal to Yin Jun.

It was about another target he negotiated with Yin Jun - the American Telegraph and Telephone Company.

The offer to collaborate is a mobile phone.

Motorola started mobile phone testing and trial operation in Chicago in March this year, not much later than Xiangjiang Telephone.

In order to prevent it from losing its tail, Motorola chose not a super giant like American Telegraph and Telephone at all, but a small regional communications operator.

But this does not mean that several giants are not paying serious attention.

Several American communications giants, including Telegraph and Telephone, have hired professionals to observe and make various assessments.

The United States Telegraph and Telephone Corporation concluded that cellular mobile phones have a very bright future, especially for business people, and are of great practical use.

They suggested that the company follow up quickly.

Although American Telegraph and Telephone Company is a giant in the field of communications, Motorola is not bad either. They also have a profound background. When they have mastered the mobile phone patents and can already use them for commercial purposes, who should they care about? It won’t work for anyone!

Therefore, the negotiations between the two parties were not smooth.

Motorola didn't do anything, they just said they would wait for the specific results to come out.

Then Motorola will not accept a cooperation method that only provides mobile phones. They only accept a profit-sharing model. They must directly enter the overall operation and share the call costs.

MMP!

If these involve you, what else do we do?

American Cable and Telephone Company could only suffer a temporary defeat.

Coincidentally, they already knew that there was another small company in Xiangjiang that was also making mobile phones and had purchased enough related patents to sell mobile phones freely.

Moreover, they operate mobile phones one step ahead of Motorola. In a small place like Xiangjiang, mobile phones have become people's new favorite. Tens of thousands of users are using them, and the results are very good.

So the American Cable and Telephone Company sent the previous group of professionals to Xiangjiang for a detailed inspection.

After half a month of use and evaluation, the professionals came to a pertinent conclusion that "the performance of Kirin mobile phones is improved by more than 30% compared to Motorola mobile phones."

Kirin mobile phones are not expensive either. The external selling price is only HK$8,888, which is less than US$1,300, while Motorola’s mobile phones cost US$3,995!

The price difference is almost 2 times!

In terms of mobile phone operations, Cable and Telephone Company has already made detailed deductions and calculations.

Building signal base stations has always been their specialty. Thousands of base stations across the United States belong to the American Telegraph and Telephone Company, and their annual R&D investment exceeds hundreds of millions of dollars. Motorola cannot compare with them.

As long as you modify the signal base station of the wired phone you have, you can achieve wireless phone communication.

Even if the existing patents and technologies are not enough, they are sure to get the technology from other places - no patent company is willing to offend a behemoth like the American Telegraph and Telephone Company, unless they no longer want to do communications business in the United States.

Only giants like Motorola can ignore them, but in terms of wireless communications, Motorola's technology is not unique.

Therefore, American Cable and Telephone Company was ready to contact Kirin Group.

Coincidentally, they discovered that Kirin Group was preparing to purchase Bell Labs, and the two parties were in active negotiations.

This is kind of interesting.

The two parties have actually been in contact for a long time and have a certain understanding. Wouldn't there be opportunities for cooperation?

So Colauti acted as a middleman and conveyed the American Telegraph and Telephone Company's intention to cooperate to Yin Jun.

"The contract is tentatively for five years, and it guarantees to purchase no less than 1 million mobile phones every year, but the price can only be 500 US dollars?" Yin Jun laughed after hearing this condition, "Go and tell them that our Kirin Group does not have any for the time being. If they want to develop their mobile phone business, Motorola is the best choice."

"Very well, Mr. Jun, don't say that. The conditions are for negotiation!" Colauti also smiled, "I think they still want to cooperate, and the amount is very large, so they should consider it... It's just that The price must not be like this, what do you think of the same shipping price as Xiangjiang?"

"no."

Yin Jun refused without thinking, "Tell them that if they want to buy a mobile phone, the FOB price from Xiangjiang is US$3,000, not even a cent less."

"What!?" Colauti was frightened and asked Yin Jun in horror: "You are so much more expensive than in Xiangjiang? Why? They purchase in large quantities!"

"I'm still losing a lot of money here in Xiangjiang. You helped me buy so many patents. How much money did you spend? Have you forgotten? Shouldn't the expenditure of hundreds of millions of dollars be included in the cost? They don't care about others. That’s how it’s done!” Yin Jun sneered, “It’s better for them to get some machine manufacturing costs and just want to buy it. Who will pay my patent fees?”

Colauti was speechless.

He can't say that Yin Jun is wrong, because Yin Jun did spend a huge sum of 200 million US dollars to buy patents, and he is still buying them.

It is also a normal business rule to add patent and other fees to the price of a single product.

But Yin Jun's price increase was really too drastic.

Compared with the price of American Telegraph and Telephone Company, it is 5 times higher!

The gap between the two sides is so big, God knows whether they can successfully cooperate.

This is also the fault of American Cable and Telephone Company.

You don't even know who Yin Jun is, but you think you are a big customer, so you can lower the price arbitrarily?

Although Yin Jun is gentle, he has never been bullied. Your behavior will only make Yin Jun tougher!