Chapter 1521: Eat Qualcomm

During a continuous weekend, while accompanying a group of women and inspecting various giants, Simon also paid special attention to the operating conditions of a company.

Scooper.

At present, dvd has shown a momentum of rapid rise. The western market basically tends to replace video recorders with dvd. In the Asian market, vcd seems to be still prosperous, but this year has already belonged to the highest point of the industry, and it will inevitably decline in the future, and the speed will increase. very fast.

As the largest supplier of technologies such as VCD video decoding chips and complete machine solutions, Scooper had a good time because of the outbreak of the Asian market in the past few years, but it also had to face very severe transformation problems.

The first is the video decoding chip.

The video decoding chip of dvd, because of the insufficient accumulation of its own patents, if it was in the past, Skooper had only one way out.

However, with the intervention of the Westeros system, Daenerys has used Daenerys' advantages in content to exchange interests with major manufacturers who have mastered various patents on DVDs. In the market, Scooper still has a place.

But it's just standing firm.

Most of the benefits this time will only be Panasonic, Hitachi, Toshiba and other dvd patent alliance manufacturers.

However, with regard to the transformation, Scooper has actually achieved some success.

Just in 1996, during the peak period of the first wave of technology stock bull market, and at the same time when the sales of VCDs in the Asian market exploded, Skopper was at the most prosperous stage. The company began to deploy transformation, not only under the arrangement of Simon Into the research and development of chip products for the two major wireless transmission technologies of wifi and bluetooth, and quietly acquired some wireless communication technology companies.

One of them is called Broadcom.

Later, more people only knew about Qualcomm, but in fact, it is also a supplier of wireless communication technology products. Broadcom is completely comparable to Qualcomm in related fields. Later, Qualcomm once hoped to acquire Broadcom in order to further monopolize wireless communication technology. .

This is something.

All in all, Skopper's transformation has been very successful.

At present, Skoop has not only become the world's leading wifi and bluetooth new chip manufacturer, supplying chips to manufacturers such as Tinkerbell, IBM, HP, etc., but also has become a wireless communication or cable TV related company of technology giants such as Nokia and America Online. Suppliers of chip products.

Because of this successful transformation, coupled with the fact that the original vcd and emerging dvd video decoding chip-related businesses are still stable, the stock price of Skooper has also recovered rapidly and climbed steadily in the past two years. As of the last few trading days, this company The market value of companies that also belong to the ranks of new technologies has reached 38.7 billion US dollars.

In contrast, another wireless communication technology company that Simon has been paying close attention to, Qualcomm, had a market value of only US$27.6 billion last Friday.

This is why Simon paid attention to Skopper.

Since Qualcomm tried to acquire Broadcom in the past, Broadcom is now a part of Skoop, and Skoop's market value is even higher than that of Qualcomm. Can it follow the trend and carry out a reverse acquisition?

This is actually a question that Simon began to consider very early on.

Is it necessary to take down Qualcomm in its entirety, or which company will take down Qualcomm for digestion?

Simon has been a shareholder of Qualcomm for a long time, and later bought it many times. According to recent data, only Westeros holds 32.7% of Qualcomm's shares, not counting Black Rock Asset Management, a subsidiary of Cersei Capital. and other related capital holdings.

Therefore, in the new technology market, Qualcomm has always belonged to the ranks of Westeros concept stocks.

Furthermore, standing in Simon's current position, he is actually very dissatisfied with the current Qualcomm or the Qualcomm in his memory.

Another company on the other side of the ocean can start from scratch to make switches, routers, chips, mobile phones and finally become a leader in 5g technology. If the other company goes public, it will definitely become a giant in the technology market.

However, Qualcomm, for decades, is still Qualcomm.

To put it bluntly, Qualcomm's business model is patent licensing, adhering to the open business ideas of the West, and at most it will make mobile phone chips and the like.

Actually not.

Qualcomm also tried to make communication equipment, and also tried to make mobile terminals, but all failed.

Failed.

So they can only use the gimmick of opening up and rely on the patents accumulated in advance to block the road fees.

This kind of company has no shortage of funds and no shortage of technology because its own country is strong enough and no competitors dare to use the name of national security to sanction a company. At this point, it can only think of further mergers and acquisitions to further monopoly to improve. How can market share be satisfactory?

Actually, there is another company, Cisco.

And Nokia.

Moreover, Simon has also discovered the crux of it.

These companies are all born because of an outstanding professional manager who took advantage of the times. Cisco is John Chambers, Nokia is Joma Olia, and Qualcomm is simply the son of the Jacobs family. .

It's just that the agents who created brilliance ended up becoming old kings who cling to power and don't have enough aggressiveness. As a result, one by one stagnated, and even collapsed like Nokia.

Simon first introspects about this.

Of course, Simon knows that people are lazy, and hard work is against human nature.

However, it happens that he has more experience than those professional managers.

There is a higher power, and the aggressive ambition is not lost. Therefore, when the time is right, Simon will let some people step down as soon as they should, even if it will cause criticism.

If they are unwilling to step down with dignity, force them to step down with dignity.

In short, since the Skober team is doing well, Simon wants Skopper to eat Qualcomm.

This past weekend, after communicating with the Scooper team, Simon, who had been hesitating, also made a final decision.

After all, this is also the last chance.

One of the reasons why Qualcomm's current market value is not as good as that of Scooper is that the commercial potential contained in the third-generation communication technology patents owned by the company has not been fully realized.

However, it will be played out soon.

Because Simon is about to push Verizon to update and upgrade the mobile communication network as soon as possible and move forward to 3G.

In the past in the United States, the update and iteration of communication technology was very slow. The reason is actually one, it is too expensive. The technology of the older generation can still be used and can generate good profits. Why spend huge sums of money to update the next generation? Isn’t that thankless?

This is actually a common phenomenon in the West after entering the new century.

As a result, when China has entered the 4G era and entered the fiber optic era, some western countries are still using 3G, and they are still using telephone dial-up to access the Internet.

Either there is no technology, or the profit-seeking nature of capital.

Is the choice made by capital relying on nature correct?

Simon couldn't give a sound argument.

However, Simon knows that, still taking the United States as an example, one of the reasons why the United States was able to get out of the Great Depression in the 1930s was extensive infrastructure. After World War II, the rapid development of the U.S. economy again relied on large infrastructure such as the U.S. national highway network.

Going forward and wider, the reason why human beings can enter the industrial society from the agricultural society, and the large infrastructure of the railway network that runs through all continents of the world is definitely one of the foundations.

Even, further forward, a certain Grand Canal can be regarded as a major infrastructure.

If there is no dragon boat event in the water palace, there will not be much meritorious deeds of Gong Yu.

What is the most fundamental theory for infrastructure to drive social progress? It is very simple, to improve production efficiency and increase productivity.

productive forces!

In the information age, in addition to traditional infrastructure, high-speed broadband, wireless communications, large data centers, etc. are also infrastructure.

Infrastructure for a new era.

Having recognized this point, Simon will not allow companies such as Verizon and America Online to refuse to update technology due to short-term capital interests in the Westeros system, no matter how other capital chooses replacement.

Therefore, Simon's requirement is that in the next two years, Verizon must complete the technical iteration from 2g to 3g.

As for 2.5g or something, forget it.

This means that once the technology upgrade starts, it is inevitable that other communication manufacturers will also be forced to upgrade their technology. At that time, the value of the 3G technology patents held by Qualcomm will increase rapidly.

By winning this company in advance, Simon can not only avoid more variables, but also change the development trajectory of Qualcomm.

After all, the bottom line is that you can basically rely on patent barriers to block the way to collect money. It is a little better, not only to make another mobile phone chip, or, at least, if the communication base station cannot be made, then such a deep barrier-level technology accumulation will be in vain. In addition, the future 4G and 5G can also be deployed in a more in-depth manner.

In short, now that the basic foundation has been laid, Simon feels that at least it will not be worse in the future.

When the matter was finalized and Simon left the Bay Area on Monday morning of the new week, Skopper had already begun to organize a dedicated team, and at the same time contacted Westeros and Cersei Capital to assist in launching the annexation plan for Qualcomm.

Simon didn't think it would be too difficult.

According to the proportion of shares held by Westeros, it is already the largest shareholder of Qualcomm, far exceeding the original co-founders. Next, when Skopper initiates an acquisition from Qualcomm, Westeros will naturally use its voting rights to cooperate.

Even, if Qualcomm does not agree, it will be nothing more than a forced hostile takeover.

As for the possible separation of the original founding team once this happens, Simon really hopes that the current team can stay temporarily. However, if it is really impossible to keep it, Simon will not force it. After all, it was just a few years ahead of schedule.