While chatting with Zhang Ruiqiang, Feng Yu's phone rang. It was Ralph.
"Boss, we failed to acquire arm shares from other companies, but I have reached an agreement with arm company and will invest in shares in the names of AMD Semiconductor, Yingweida, Kingston and other companies. And I contacted Liu, and then included Several companies such as Lianxiang Group, Fengyu Electronics, Aihua Electronics, and Taihua Crystal Silicon will also invest in the company."
"These companies have spent a total of one billion US dollars in exchange for 20% of the shares, and the voting shares are also 20%. I am still negotiating with Liu on the specific details, but ARM has no problem. Mr. Kirilenko has already obtained more than 60% of the voting shares. After dilution by our shareholding, he will probably still account for about 51%."
As a result, Kirilenko and Feng Yu's subsidiaries control more than two-thirds of the voting shares, and they already have absolute say in the company's board of directors.
"Well done. Remember, when it comes to company matters, if I don't give instructions, then I will fully support Kirilenko's decision." Feng Yu ordered.
"I understand, boss. If it weren't for Mr. Kirilenko's help, we wouldn't have been able to successfully acquire shares. Although there is a premium, we have evaluated the potential of this company and it is comparable to many companies under our Fengyu Holdings Group and Taihua Holdings Group. Companies can complement each other's strengths and we will never lose money."
When Ralph was first asked by Feng Yu to go to ARM to negotiate to acquire some of the voting shares from other shareholders, or to invest in shares, he asked the company to do an evaluation.
At the beginning, he thought that this company's technology overlapped with that of Chaowei, both of which were processors.
But Chaowei said that the two sides are actually very different. Chaowei mainly produces processors for computers and servers, while ARM mainly produces microprocessors, which are used in mobile phones, PDAs, set-top boxes, and some CNC machines and electrical appliances.
In this regard, arm is not only mature in technology, but also the most powerful. Even Intel has purchased some patent licenses from arm.
And he also learned that this arm actually has shares in so many large companies, but has less than 2,000 employees. Its main income is from patent licensing.
ARM cannot produce it itself, but Chaowei, or Taihua Crystal Silicon, etc. have strong production capabilities. This combination will definitely make more money.
Although the premium is quite high, relying on the strong brand effects of Fengyu Holdings Group and Taihua Holdings Group, their path to becoming a shareholder is not that difficult.
If you were to acquire other people's shares like Kirilenko did, the money you would have to spend would definitely be more.
Moreover, arm not only has a lot of patented technologies now, but also has many pending applications. Although it is not as good as those big old companies, they often have tens of thousands of patents.
But their patents are very new and very practical.
Ralph heard Feng Yu say that the market for microprocessors will definitely get bigger and bigger in the future, such as smartphones, tablets, smart home appliances, etc., all of which will need this.
Although it seems that the smartphone market is far inferior to that of feature phones now, it has also developed rapidly in recent years. Especially the laboratory samples, they are really no less than the PDAs of previous years.
So Feng Yu said that smartphones will dominate the mobile phone market in the future, and Ralph believed it.
There is also the tablet computer. Although the finished product has not yet been produced in the laboratory, and many technologies have not yet met the requirements, Ralph also believes in Feng Yu, because Feng Yu’s predictions have never been missed!
Smart home appliances are being developed by home appliance companies all over the world. Among them, European and Asian products are in the leading position, while the United States is very weak.
European companies such as Ximenzi, Philips, Thomson, etc. are all leaders in home appliances. There are even more in Asia, including a group of island countries, two South Koreans, and many in China.
Even many Chinese home appliance brands are already number one in the world. For example, Galanz's microwave ovens, Gerry's air conditioners, Hier's washing machines, refrigerators, Evergreen TVs, etc., are all famous in the world.
Even now, China's brand called Hier has been able to compete with Thomson in the North American market. China is really a country that is good at creating miracles.
Since so many companies are likely to become Arm's customers in the future, this investment will definitely not be a loss.
What's more, after this equity replacement, when ARM's stock resumes trading, the stock price will definitely rise. At least on paper, they will not lose money.
"Remember, we need to find more customers for arm and license arm's patents to more companies."
Ralph asked in surprise: "Boss, Arm has many patents and they are very good. Shouldn't we suggest a technology blockade?"
"No, there is no patent that is completely irreplaceable. It is just a matter of time. If we license it to other companies, then they will produce according to our ideas. In this case, they will lag behind us for a long time. time."
"To put it simply, the more companies we license to, the more profits we will make. And when a certain number of companies are authorized by us, we will become the only standard in the microprocessor industry!"
When other companies adopt Arm's patented technology and follow Arm's product architecture, the original architecture of these companies will slowly be replaced, and in the end it is very likely that they will be inseparable from Arm's patent authorization.
In this way, even if they make some changes, they are changes made on this basis and still have to pay patent fees. Arm can continue to make profits and remain in the leading position.
The implementation of any standard requires more corporate support. No industry has a unique standard. Whose standard is more recognized mainly depends on the support of peers.
"Boss, I understand. I see that Philip is also a shareholder of Arm, so we will not participate in Europe. We will fight for more customers in America."
"Okay, let's leave Asia to Taihua Holdings Group. You don't have to worry too much. There will definitely be more companies taking the initiative to join our camp by then!"
After hanging up the phone from Ralph, Feng Yu saw Zhang Ruiqiang smoking out of boredom.
"Lao Zhang, don't you understand English?" Feng Yu asked proudly.
Zhang Ruiqiang pouted: "English is just a skill, that's what you said. I don't understand English, but I know other skills."
"That's right. Leaders like you always bring a translator with you when you go out. You don't need to be able to understand yourself."
"Whatever translation is needed, Xiao Zhao is proficient in English."
"Okay, okay, your secretary is great, right? By the way, I have another good thing to offer you. Do you want to hear it?"
… (To be continued.)