Extraordinary Genius

Chapter 1615 Brother Ji's New Goal

"Feng, there is a British semiconductor company. My team says it is very good, and I plan to acquire it."

Semiconductor company? British?

"Oh? What kind of company is it, what products do you mainly produce, and how much does it cost?" Feng Yu asked casually.

Obviously, Brother Ji is hesitating and wants to ask his opinion. Feng Yu's opinion is generally that he has heard of a very good company in his previous life, so he recommends Brother Ji to buy it. If he has never heard of it in his previous life, then he naturally does not recommend buying it, unless the price is very low.

"It's a company that designs electronic semiconductor microprocessors. Their company name is Advanced Reduced Instruction Set Processor, or ARM for short."

At first Feng Yu looked indifferent, but when he heard the abbreviation ARM, he sat up straight suddenly.

What, is this company? This company is British?

To put it simply, ninety-five percent of the cores of tablets and smartphones in the previous life used the ARM architecture, and they also had a dominant position in embedded control, multimedia digital, and other aspects.

They have designed a large number of processors with high cost performance and low energy consumption, own the most related patented technologies, and even designed a lot of software for this.

This is a company with extremely high technology and potential, Feng Yu has never thought of it.

It's just that there are no real tablet PCs yet, and the sales of smartphones are far behind feature phones. As for embedded control, multimedia digital, etc., there is also competition from other semiconductor companies. But even so, the number of mobile phone cores of their technology is very large.

But the most interesting thing about this company is that they don't produce processors at all, they only license technology to make a profit by charging patent fees.

"The equity of this company is very complicated. Many of the world's top semiconductor companies own shares, but their major shareholder is Acorn Computer Company. Its status in the UK is equivalent to the fruit company in the United States."

"Fruit companies, VLSI companies, industrial technology companies, Texas Instruments, Qualcomm, etc. all have shares in them, and none of them are controlling parties."

"This company is a listed company, which is listed in London and NASDAQ respectively. Its current market value is about 2.6 billion pounds, and its annual profit is less than 200 million pounds. My team contacted Acorn Computer and they agreed to sell it to us. , but ask us to pay a 30% premium."

"Companies such as Texas Instruments are even more demanding. They demand a 33% premium from us. Even the fruit company intends to acquire it, but the price offered by the fruit company is almost par, so it was directly rejected."

"Feng, you said a 30% premium, is it a good deal? The profit is too low, only 200 million pounds a year. But my team told me that I can produce processor cores by myself and sell them for money, like Intel. Like Chaowei, it will definitely make money."

Kirilenko saw that when Feng Yu bought those semiconductor companies, the premiums were not low, and in the end they all brought Feng Yu huge profits.

But when Feng Yu acquired those companies, most of them were unlisted companies. The market value of this listed company is obviously inflated.

Feng himself said that two years later, the stock prices of many listed companies will plunge again, and next year will be the peak market value of many companies. Will it be a bit of a loss to buy at this time?

"Brother Ji, my suggestion is to become a major shareholder of this company, but don't drive out all other companies, and maintain cooperation to facilitate the company's technology authorization. I can let Chaowei and other companies also acquire a small share, which is enough to guarantee you Can take full control of the company."

This is ARM, not only the current mobile phone processors are starting to explode, but also set-top boxes, smart TVs, tablets and other products in the future, ARM is the absolute leader.

Just licensing patented technology can already guarantee them a lot of profits. Just like Ericsson, it was also the top mobile phone manufacturer at the beginning, but now it is slowly withdrawing from production?

In the future, Ericsson will specialize in communication technology research and development.

Then by relying on patent authorization, you can also have a lot of profits, and it is more secure, with extremely low risk.

"Feng, why don't you just become the controlling major shareholder?" Kirilenko was a little dissatisfied. Even if he couldn't be a sole proprietor, he should have acquired it and become the controlling major shareholder, right?

Holding more than two-thirds of the shares, and more than 50% of the shares, the power is completely different.

"Brother Ji, you need to know that ARM's business model is completely different from that of Intel and AMD. He does not produce processors himself, but only does core design, and makes money by licensing patents."

"How can it be authorized to more companies? It cannot be boycotted by other companies, so ARM needs more allies."

"In this way, your patents can be licensed to more companies and adopted by more companies. The more companies buy ARM's patent licenses, the higher the profits will be."

"And the operating cost of this company will be very low. I guess the company has less than 2,000 employees now? Think about it, how many employees does Intel have?"

"The small number of people also has a great advantage, that is, the ability to resist risks. Whether it is rising material prices or other risk factors, as long as people still use mobile phones and other electronic products, your patents will not worry about profit."

"And this kind of profit is still showing an upward trend. The more patents you have, the more profits you can get. It's still a long-term flow, not a one-time deal."

"My shareholding is to help you have the same right to speak as an absolute controlling stake. If you are not satisfied, then these shares can be transferred to you at a par price in two years."

Kirilenko immediately said: "Feng, what do you mean by this? Many good projects you found have brought me to invest. You want to invest in this company together. How can I object? Since you said this is more reasonable, Then I will definitely believe you."

"In this way, I will negotiate with Acorn Computer first, and then we will acquire part of the shares of other companies together. In the end, we can also directly let Chaowei and other companies invest in shares, which will expand our camp."

"Feng, if Daoguo and other companies want to buy our patented technology, will they sell it?"

"Sell it, why not sell it!" Feng Yu immediately said, "Anyway, we are authorized, not a one-off sale. In the future, they will follow our architecture standards to produce processors and other products. Whether they make money or not, we will can make money.”

"And in this way, they will slowly rely on our product architecture, thus losing the ability of independent research and development, so that their lifeblood is in our hands."

"Brother Ji, the market value of this company may double in a few years. If you buy it now, you will definitely not lose money!"

... (To be continued.)

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