This year's Lunar New Year is January 31. Chen Qing and her two women did not return to North America until the end of February. They were not lazy, but were busy with their work in several projects. The top priority was the newly established Bubugao. However, in this process, Chen Qing also discovered a great business opportunity. It was mainly the inspiration generated by the Bubugao team in the process of studying and analyzing the VCD product.

Here we have to talk about the origin of VCD.

During the period when the founder of Anhui Wanyan Group of China participated in a technology expo in 1992, he was inspired by the video decoding chip products displayed by American video decoding chip manufacturer Scooper, and had the idea of ​​developing VCD.

Wanyan Group was subsequently established.

In September 1993, after burning down a huge amount of RMB 140 million, Wanyan Group successfully completed its first VCD product and launched it on the market in 1994. This should have been China's first player product with independent intellectual property rights. However, for various reasons, a series of core patents of VCD were registered by major overseas manufacturers, and the entire machine patent also became an open technical standard because it missed the application time.

This has to be said to be a great regret.

For downstream manufacturers of the industrial chain, losing patents means losing their voice and can only be slaughtered in component procurement and other aspects.

Rockefeller Center, Midtown Manhattan.

Simon is in the office of Westeros headquarters, Chen Qing is introducing her thoughts: "I have contacted Scope Company and I have not obtained specific information. However, through the help of Miss C in Silicon Valley, I roughly confirmed that Scope's latest video decoding chip developed based on the MP4 video format launched by Westeros, the current production cost will not exceed US$10. However, the price of Scope's sale to downstream manufacturers, even for the close cooperation of Wanyan Group, the single chip price is 80 US dollars, and the gross profit is as high as 70 US dollars.

0%. For other core components such as laser reading heads, system control chips, the gross profit of each manufacturer is several times the manufacturing cost. In comparison, Wanyan Group currently sells VCD products worth US$500, but the manufacturing cost is more than US$350, and the gross profit margin is only 40%. Therefore, if China's VCD industry can really explode as we predict, I think controlling upstream component manufacturers is the best investment, so that we can even dominate the entire VCD industry in China and maximize profits."

After hearing Chen Qing's words, Simon nodded slightly and did not speak immediately. Instead, he looked at Lin Su, who was tilted his head and lowered his eyebrows on the sofa opposite, who seemed to be very focused on flipping through the documents on his knees.

Seeing that the surrounding area became quiet, Lin Su looked up and happened to look at Simon. His eyes flashed slightly, and soon turned into doubt.

Simon looked at the woman's delicate face and suddenly asked, "Did you feel like you are accusing a tiger in the enemy camp?"

Lin Su's eyes flashed again, without denying it, but without affirmation.

Simon changed into a more relaxed posture and leaned on the sofa in the reception area and continued to say in Chinese: "This is actually very normal. It means that you, who have been under the Red Flag for so many years, have a good outlook on life. However, you must also remember that you donate nothing from others or your own country. I heard that when you went back this time, donated most of the salary you earned in advance for a year. Hope Project, a very good project. So, you have done well enough. Now, you are mine, and all you have to do is to maintain absolute loyalty to me."

Lin Su finally spoke: "I'm not yours, I'm just working for you."

Simon had no intention of arguing with women, and said instead: "Chen Qing has a good idea. For this matter, we only need to consider purely commercial aspects. Everyone is within the rules and there is no point in criticizing them. Moreover, I have always believed that the sympathy and compassion of others can never make a person truly strong. Only continuous blows and setbacks can do this. The same is true for a country. I believe that after this matter, China will definitely reflect on it and learn from it. This is the bump that many countries will inevitably encounter in the development process."

Lin Sudhu paused and wanted to refute, but in the end he just nodded slightly.

Simon smiled and said, "But I still remember Hegel once said that the only lesson that history has taught mankind is that mankind never learns. So, I believe that this kind of thing will be a second, third, and even fourth time."

Lin Su's mood had just fallen a little, and when Simon said this, she suddenly realized that a guy had started teasing him again, and could only glar at him with little lethality.

Simon praised: "You are also very beautiful when you are angry. You are beautiful women. You are really the favorite of God."

Lin Su simply lowered her head again.

Simon didn't mind, but said again: "Actually, just like going back to donate this time, I think this is a very appreciated thing. So, keep going. Also, work hard for me so that you can get more and have more capital to give back to your motherland."

Lin Su still lowered her head and waited for a while. She confirmed that a guy was not teasing him this time, and then said softly: "Thank you."

The attention turned to Chen Qing again: "Okay, we two villains continue. I have seen the plan you submitted and the acquisition of Scooper. I agree very much. However, it is for nothing to establish a plan to dominate the core components industry chain of the VCD market. It is true that China is currently unable to produce these core components. However, for electronic manufacturers in Europe, America and Japan, the development of core components of VCD is not difficult, and we cannot achieve monopoly at all."

Chen Qing shook her head and said, "Time, boss, this is our biggest advantage. Just like video decoding chips, Scooper has developed a very mature MP4 format video decoding chip. Because of the lack of attention to VCD products, other manufacturers have not invested much energy in this field. Even electronics giants like Sony will take at least a year to catch up with Scooper. In this year, Scooper will not stop moving forward, and there will definitely be more advanced products."

"But you seem to be missing one thing," Simon continued: "The DVD standard has been formed. VCD is only a replacement product developed on CD. One has a fixed capacity of 4.7G and the other has only 700M. This is something that VCD cannot surpass even if it works hard, because it is a product that is more than one generation apart. So, Chen, I have to remind you that you also need to remind Duan them. For us, VCD is just making a quick money. At most five years, you must consider the transformation, otherwise it will only be replaced by DVDs and even be completely eliminated."

"I know this, boss," Chen Qing said without any blow, "In my opinion, DVDs will indeed replace VCDs, but it will take a long time for various manufacturers to promote DVDs due to content. During this time, we can accumulate enough technology to get a share of the larger DVD industry in the future."

"Crown, how huge do you think it is?"

"At least it will not be much worse than the video recorder, because DVDs have obvious cost advantages compared to them. Although the core patent has been controlled by manufacturers such as Sony, it does not mean that there is no opportunity for us."

Simon looked at Chen Qing for a moment: "I have to say, your thinking is very good."

Chen Qing looked forward to it: "Did the boss agree?"

Simon shook his head: "I'm sorry, I still disagree."

"Why?"

“Do you use the Internet often now?”

"Yes."

Simon said: "When you go back and study it carefully, you will find that some download websites for pirated music and movies have begun to appear on the Internet now. Chen, this is the trend. Whether it is genuine or pirated, it will only be the world of the Internet in the future. The globalization of the Internet will completely destroy the traditional player industry. Without the Internet, I would definitely approve your plan and make a large investment. Now, this is impossible."

"Boss, you just said that the capacity of a DVD disc is 4.7G. The picture quality experience of such a movie is absolutely incomparable to the Internet at this stage."

"It's not comparable at this stage. In five years, it's probably about the same."

"But... the West is not China, copyright protection is very strict, and DVD survival should be easy. In China, the Internet is just starting out, and DVDs have at least ten years of survival."

"You obviously haven't seen through the openness of the Internet. This is something that neither East nor West can stop. Getting something for nothing is a kind of human nature, and no one can stop it." Simon said this, prevented Chen Qing from continuing to argue with himself, but said: "In short, this is the case. Whether it is VCD or DVD, in my opinion, they will only be eliminated by the Internet. What's more, many of the core patents of the two have been controlled by manufacturers such as Sony, Hitachi, Philips, etc. We spent a lot of money to join, and finally missed the richest profit, and it is difficult to determine when this part of the profit will completely disappear, so this is making a quick money."

Simon said this, Chen Qing knew that there was no room for change, so she had to say, "What the boss meant, we will only acquire one Scooper?"

Simon nodded: "I have read the information of this company. It was listed at the beginning of last year. Its revenue in fiscal year 1994 was only US$21 million. The market value was relatively high due to the new technology wave. It is currently 120 million. Even if it is a malicious acquisition, I think it can be acquired within US$200 million. This is a very cost-effective business. As the only supplier of VCD video decoding chips at this stage, when the VCD industry in China explodes, it will be acquired by US$200 million. It will take the opportunity to cash out in about five years. We may be able to recover 10 times of the profit, which is very cost-effective."

Scooper was founded in 1988 and is a peripheral company incubated by Texas Instruments. It is similar to small companies such as Intel, which were surrounded by IBM, and is mainly engaged in the research and development of video decoding chips. Because VCD sold only tens of thousands of units in China last year, no one has realized the potential of this company.

This is the opportunity for the Westeros system.

Interestingly speaking, in addition to the shareholder of Texas Instruments, Scooper is also a project that Sequoia Capital focuses on investment. Don Valentine, the founder of Sequoia Capital, is currently the chairman himself.

With the venture capital nature of Sequoia Capital, if the Westeros system initiates an acquisition, as long as the price is appropriate, the other party will be happy to cash out. As Nokia's most important baseband chip supplier, for the sake of maintaining a good cooperative relationship between the two parties, it will not care too much about transferring such a small company with obvious bubble components.

Perhaps there are people who have the idea that companies that the Westeros system is interested in must be held in their hands. At worst, malicious acquisitions are just that.

When Chen Qing heard Simon say this, she showed hope in her eyes: "So, boss, can you leave this to me?"

Simon nodded: "If it is something else, it will definitely not work. If you plan the entire player industry according to your suggestions, I will definitely not leave it to you. However, since it is just a small company like Scope, it is also related to the layout of China's VCD industry, so it is nothing to let you do. This is also a test. Chen, once China's VCD industry begins to explode, as the only supplier of video decoding chips at this stage, you need to balance the supply distribution issues between China's BBK and other VCD manufacturers. If this is done well, we can control China's VCD industry to the greatest extent. If it is not done well, it may drive other manufacturers to the competitors."

Chen Qing nodded solemnly: "I understand, boss," and hesitated for a moment and asked, "Boss, can I still have the share of Lin and I this time?"

Simon nodded with a smile: "It's still 5% per person. Your position is on Apollo Management. Let's start this acquisition in the name of Apollo Management. However, you have to think clearly that according to the acquisition budget of US$200 million, each of you two will owe me $10 million."

Chen Qing blinked her eyes, and her face became more charming: "Boss, if you lose, we will compensate you."

Lin Su, who had just been silent, glared at Chen Qing and finally said, "Don't count me."

Chen Qing glared at me unwillingly: "If you don't want it, I'll get 10%."

Lin Su opened her mouth and looked at Simon again. Seeing the man with a hateful expression of watching the fun, she still didn't refuse.

After the matter was finished, Simon closed the folder in his hand, raised his legs relaxedly, and smiled and said, "Okay, that's it. You guys go back and prepare first. Well, I will have someone pick you up tonight and have dinner together."

After dinner...

Lin Su's face suddenly showed some unnatural blush. Do you have to ask two people to be together every time?

Chen Qing looked forward to it, but did not get up, but asked: "Boss, do you really not consider the invitation to visit from China? Just treat it as another trip. Now it is April, which happens to be the real "Apricot blossoms, spring rain, Jiangnan" season."

Simon shook his head and said, "Let's talk about it if you have time, I'm not available lately."

Today is April 2. Next, Simon will fly to Australia tomorrow and stay there for less than a week. Universal Studios Osaka will open on April 6. In order to avoid causing the "Westero effect" again, Simon does not plan to go to Japan, but still needs to pay attention to this matter.

Also, on April 7, the first anniversary of the Rwandan Massacre, the US officials naturally took over most of the credits because of last year's incident. This time, Clinton will attend the first anniversary event, and Simon will also take the opportunity to go to Africa.

Further back.

In short, you can't find time at all in the short term.

Moreover, Simon's private itinerary last year has attracted too much attention after it was exposed. If he contacted the Chinese official directly, he still needs to weigh many things in his current identity.
Chapter completed!