Chapter 690 will not give up
When I heard Eric's question, Irving Jacob didn't know how to answer it for a moment.
Although Qualcomm has been willing to authorize the CDMA technology to the outside world, so far, there is not even a large-scale CDMA equipment manufacturer worldwide. With G** equipment manufacturers blooming around the world, even Nokia, which has accumulated strong production technology, has almost collapsed the supply chain due to the rapid market demand, not to mention Qualcomm, which is almost in poverty in equipment production capacity.
In fact, Qualcomm has its own communication equipment and mobile phone factory, but most of the equipment produced in that factory is only used to meet the testing needs of cdma technology. Nokia also has its own supply chain to "collapse". Qualcomm factory does not even have a complete component supply chain, and often only purchases a small amount of component according to demand. This situation cannot support large-scale cdma equipment production at all. It can be imagined that if the situation continues, even if those large telecom operators intend to choose cdma as their mobile communication technology standard, they will definitely turn to the g** technology camp again if they do not get enough cdma communication equipment to build a mobile communication network.
Seeing that Irving Jacob didn't speak, Aaron Salmasi, who was sitting next to him, explained actively: "Eric, the difficulty of manufacturing communication equipment is mainly the design and development of core chips. In this regard, Qualcomm already has very mature products. As long as the CDMA technology can be promoted, Qualcomm can not only quickly build a factory for equipment production in a short period of time, but also entrust communication equipment manufacturers to produce products."
Eric smiled and nodded without objection. The main reason why he said the words before was to lead to the remarks of Aaron Salmasi at this time.
It is true that technology research and development is expensive, but in fact, what is more expensive is the construction and operation of equipment manufacturing factories. The 420 million US dollars obtained by Nokia from Firefly and the profits in the past two years have basically been invested in the expansion of its factories. Qualcomm's main business after more than ten years did not produce communication equipment and mobile phones, but mainly focused on patent licensing and chip research and development. Eric knew about these, but it was not in line with Firefly's interests to guide Qualcomm on this path at this time, because if Qualcomm did not involve the product manufacturing field, it would not require large-scale equity and debt financing, and Firefly would find it difficult for Firefly to acquire a large number of Qualcomm shares by relying on its capital advantages.
Through communication on the dining table, both parties roughly determined their intentions.
After lunch, Eric, Chris, and Kelly took Owen Jacob and Aaron Salmacy to the study. Both sides also made it open and honest.
Eric handed a share document to Irving Jacob and Aaron Salmasi, saying: "I have noticed Qualcomm since last year and am very optimistic about CDMA technology. During this period, Firefly has absorbed 2.1 million Qualcomm shares one after another. We will report to SeC and Qualcomm boards in the near future. In order to show Firefly's sincerity in cooperation, we will first inform the two of them about this."
Irving Jacob and Aaron Salmasi just symbolically opened the document and looked at it, then looked at each other, almost at the same time able to see disappointment in each other's eyes.
Qualcomm has long realized from the abnormal fluctuations in the company's stock price in recent times that someone is buying Qualcomm's stock. The board of directors and management originally thought that someone had obtained the "insider information" that CDMA technology will be determined by large telecom operators as the technical standard, so they took the opportunity to enter the market to make a big profit after the relevant facts were disclosed. Qualcomm only issued 30% of the outstanding shares, so the board of directors was not worried about losing control of the company. Instead, it was quite excited because of this speculation and made some relevant preparations for this.
Unexpectedly, the answer to the mystery is suddenly revealed. The facts have nothing to do with the original speculation. CDMA has not been "decided" by any telecom operator. The disappointment of the two can be imagined.
However, after a brief disappointment, Irving Jacob and Allen Salmacy remembered Eric's identity again and felt better. At least, it was not the stock speculator who secretly bought Qualcomm's stock, but a billionaire like Eric who is truly interested in Qualcomm. As long as he can spare no effort to use his capital and influence to promote the CDMA technology, Qualcomm has a great chance of getting rid of the current dilemma.
Of course. Although I have always focused on technology research and development, Irving Jacob would never naively believe that the 2.1 million shares that Firefly already holds can satisfy Firefly's appetite. This equity only accounts for 10.5% of Qualcomm's total share capital. He said: "Eric. Since Firefly has done so much preparation, I think you must have a detailed plan, right?"
Eric nodded and said, "So far, no large telecom operator is willing to use cdma technology as the technical standard for its mobile communication network. This is the main dilemma faced by Qualcomm. Firefly can use the personal resources, media channels and capital advantages in its hands as much as possible to help Qualcomm promote cdma technology. However, at the same time, Qualcomm also needs to solve the problem of being unable to produce cdma devices in large quantities. I don't want to see Firefly spend a lot of effort to make operators accept cdma technology, but it has been transferred to the g** camp again because cdma devices cannot be supplied in time. Therefore, I suggest that Qualcomm immediately build communication equipment and mobile phone factories from now on."
Compared to Irving Jacob, who is focused on technical research and development, Aaron Salmasi has devoted more energy to the actual management of Qualcomm. When he heard the first half of Eric's words, he was a little excited just now, but he was upset because of Eric's second half of the words. He said in the jam: "Eric, we have not considered this aspect, but have also done detailed research. According to the original research results, it is only necessary to build a factory with an annual output of 1 million CDMA mobile phones. The total investment is 80 million US dollars. We cannot, um..."
Speaking of this, Aaron Salmasi noticed Eric looking at him with a smile, and suddenly realized something, stopped talking, and smiled awkwardly.
Eric didn't mind Allen Salmasi interrupting herself, and continued with a smile: "I know that Qualcomm will definitely not be able to provide funds to build a equipment factory, but this money can be paid by Firefly. To be honest, Firefly helped Qualcomm promote CDMA technology and hoped to get enough returns. So, I hope to increase Firefly's shareholding ratio in Qualcomm through capital injection."
Irving Jacob just realized this and asked, "How much money is Eric Firefly going to inject into Qualcomm?"
Eric said in a relaxed tone: "As Alan just said, a mobile phone factory needs to invest 80 million US dollars, and Qualcomm must also need to build a CDMA base station equipment factory at the same time. This investment can be counted as 80 million, or 160 million. Just the investment of the two factories is definitely not enough. Qualcomm also needs to establish a component procurement and product marketing system. Then, this expenditure is counted as 200 million US dollars. According to the current stock price, Qualcomm probably needs to issue 10 million additional shares to Firefly."
Irving Jacob thoughtfully and issued an additional 10 million shares, Qualcomm's total share capital will expand to 30 million shares. Firefly already holds 2.1 million shares, and then its shareholding ratio in Qualcomm will increase to 40%. Although it has not achieved controlling shares, Firefly will also become the largest shareholder that plays an important role in Qualcomm.
In order to create Qualcomm, Irving Jacob almost invested all his wealth, but after many financings and 1992 Irving Jacob's stock in Qualcomm's hands is less than 1%. As long as Qualcomm can continue to survive, Irving Jacob doesn't care much about the company's equity changes. He also knows that Firefly does not get enough equity and will definitely not do his best to help Qualcomm promote CDMA technology. He nodded and said, "Eric, I don't oppose your proposal, but when it comes to stock issuance, this matter will be decided by the Qualcomm board of directors."
At-t's announcement of joining the G** camp has caused Qualcomm to lose more than half of its potential North American market. If companies such as veJizon and SPJiznt will also choose G**, Qualcomm will have to go bankrupt and liquidate. Firefly bets on Qualcomm at this opportunity. Once it fails, the 200 million US dollars will be wasted. Eric believes that Qualcomm's board of directors should understand that Firefly does this. It is equivalent to indicating that the entire Firefly system will spare no effort to promote Qualcomm's CDMA technology. Although the final investment plan will be adjusted, the possibility of Qualcomm's board of directors rejecting Firefly's investment is very low.
After looking at the watch, Eric said: "Then, Irving, the specific matters will be handled by Chris and Kelly. I hope to hear good news from Qualcomm as soon as possible."
Just as Irving Jacob was about to say something, he felt that his shoes were gently kicked by Allen Salmasi. He immediately remembered the plan that the two discussed yesterday and said, "Eric, Allen and I have another plan here, I hope you can take a look."
Eric nodded, took the documents that Owen Jacob took out from his briefcase, read them carefully, and then passed them to Chris and Kelly beside him one by one.
Irving Jacob and Aaron Salmaci were concerned about the three people on the other side with some anxiety, worried that Eric would directly refuse the plan.
After waiting for a while, Chris and Kelly finished reading the information, then just looked at Eric and did not make any suggestions. After all, Eric needed to make an idea in person when it involved a huge $4 billion plan.
Eric thought for a while and said, "I think this plan is a bit idealistic."
When Irving Jacob and Aaron Salmacy heard Eric's words, their hearts were relieved. At least, Eric did not refuse the proposal on the spot.
Eric didn't know what the two were thinking, and continued: "You must know about the lawsuit for Section C license. The reasons for the lawsuit are very absurd, but they can still delay the auction of Section C license for a long time. From this point of view, it can be seen that old telecom operators will not allow those small and medium-sized telecommunications companies to develop at all. Even if we buy all Section C licenses, the final rental users should still be several telecom giants such as At-T. Perhaps before the auction of Section C licenses, these mainstream telecommunications operators have already determined the technical standards, so this plan is of little significance to the promotion of CDMA."
Irving Jacob and Aaron Salmacy realized that Eric was not saying death and waited patiently for the following.
Eric didn't keep it a secret, saying, "However, this plan can be our last move. If mainstream telecom operators do not choose cdma technology next, Firefly can start this plan, obtain all C-section licenses, and then acquire a telecom operator. Build a cdma communication network by itself." Speaking of this, Eric looked up at the two of them and smiled, "Of course, the premise of all this is that our cooperation can be successfully achieved, otherwise Firefly will not waste money on cdma technology."
Aaron Salmasi suppressed his mood and asked, "Eric, do you mean that as long as Qualcomm accepts Firefly's investment, will you agree to implement this plan?"
Eric shook his head and smiled, "I just said that this will be Firefly's best move. If you become a major shareholder of Qualcomm, Firefly will first choose to promote CDMA technology to veteran telecom operators such as VRZON. Only when these mainstream operators do not accept CDMA will Firefly launch this plan."
Hearing Eric's words, Owen Jacob was far more excited than Aaron Salmasi. CDMA is the result of his ten years of hard work. In any case, Owen Jacob hopes that CDMA can continue. Instead of being silently squeezed and destroyed by g** and other technologies: "Eric, can I understand this way, as long as Firefly becomes a major shareholder of Qualcomm, you will never give up CDMA technology?"
Eric nodded without hesitation. Even if g** really dominates the world, the technology will eventually be upgraded. 3G communication technologies such as wcdma, td-cdma in their previous lives will never be able to bypass the cdma standard. Therefore, even if cdma temporarily fails in this industrial upgrading, it is profitable to win Qualcomm, which has a large number of cdma patents.
But Irving Jacob was still a little worried. He said, "Eric, I mean, can Qualcomm get written endorsement from Fireflies about this promise?"
"Yes," Eric nodded again.
"Then." Owen Jacob stood up, stretched out his hand to Eric, who also stood up, and said, "I will give you good news as soon as possible."
...
Irving Jacob and the others were sent away, and it was already evening.
Eric and his friends sat down by the glass curtain wall in the villa, looking at the magnificent sunset sea view outside the curtain wall, Chris asked: "Eric. Are you really planning to buy all C license plates for US$4 billion?"
Eric took the coffee that had just been refilled from Kelly and smiled and said, "I said that this is a last resort. Instead of buying a C-section license, I would rather use this $4 billion to invest in any of VeJizon or SSPNNT."
Hearing Eric mentioning the topic they were talking about before Irving Jacob arrived in the morning, Chris said: "It may not be easy about this. Compared with high-cost equity financing, veteran telecom operators prefer debt financing. However, the demand for funds between these two companies is very large at the moment, so your idea is not impossible. If you are sure to do this, I will start this as soon as possible."
Eric nodded decisively and said, "Let's talk to them at the $4 billion investment amount. As long as I can get shares in the two companies, I don't mind losing some money in the price."
Chris smiled and said, "4 billion is too difficult. It would be good if they are willing to accept the $2 billion investment in Firefly."
US$4 billion is equivalent to 40% of the equity of SSPNNT. Even for Vejizon, which is twice as large as SSPNNT, can still acquire 20% of Vejizon's equity. Eric also knows the difficulty and said: "Just do your best."
While chatting, Drew and Emily walked in in big and small bags, and the twins following behind were also carrying a bunch of things in their hands. It was obvious that the two girls should have gone shopping in the afternoon.
He walked over, Emily looked at her boyfriend's surprised expression, put down the convenience bag in her hand, and explained: "These are all Drew's things. I only bought a few of them, and they are all in the car."
The little girl smiled and immediately blew the stage, saying, "Yes, yes, it's just a few pieces. Maybe it's a bit big, stuffing the rear compartment and the rear seats."
After teasing each other for a few words, Chris and Emily planned to get up and say goodbye.
Eric did not try to keep them, and sent them out of the villa. When the two got in the car, he asked, "When are you going to go back to New York?"
Chris didn't answer, just looked at Emily.
Emily explained: "Visit Secret has been shooting commercials in Los Angeles recently. In addition, Cindy will also attend the Golden Globes ceremony. We will probably wait until the Golden Globes before leaving."
Eric said: "How come Cindy Crawford was invited alone?"
"The Golden Globes were originally expected to be awarded the Best Soundtrack Award for the Five of them, but we then received an invitation from the Oscar Committee, hoping that the Five of them would come on stage together. Between the Golden Globes and the Oscars, we would of course choose the latter. Then the Golden Globes settled behind, only Cindy was invited."
Emily said, got in the car, then poked her head out and said, "By the way, Eric, if you have time in the past two days, please help me see the effect of the Victoria's Secret commercial. We will do the late stage at Firefly Cinema."
"No problem, I'll probably be there these days, you can contact me at any time."
After seeing off Chris and the others, Kelly also took the initiative to say goodbye and leave. Returning to the villa, the little girl entered the room to test today's shopping results. Eric sat on the sofa beside the curtain wall, carefully combing everything about today in her mind.
The sun completely sinks to sea level and the light gradually dims.
I don't know how long it took, but I felt a tall and slender figure walking over quietly. Eric looked up and looked at Natasha's beautiful Bai Xi's pretty face, signaling her to turn on the nearby lights.
Natasha walked quietly to the wall and turned on the lights, whispering: "Master, dinner is ready."
Eric nodded, just got up, remembered something, and asked, "Where is the package Chris brought me in the morning?"
Natasha said: "It's put in the bookcase in the living room."
"Send it to the study after dinner."
Chapter completed!