When Lin Qingya met Tim Cook, Apple executives had already set a minimum price for selling Apple.
Since they cannot cash out by reducing their holdings on a large scale in the stock market, let alone solve the huge dilemma faced by the iPod business, and Apple itself cannot find any way to break out, it will be a long night and a dream, so they have significantly lowered their quotations and reserve prices. .
The quotation is based on the signing of the intention agreement based entirely on the current market value. If Apple's market value is US$3 billion on the day the intention agreement is signed, then Makino Technology will use this market value as the benchmark to pay the corresponding funds to Apple shareholders.
The base price is based on signing an intention agreement based on 80% of the current market value. It is also the actual market value of 3 billion. Makino Technology only needs to pay based on 2.4 billion as a benchmark.
Regardless of the quotation or the minimum transaction price, Makino Technology must complete the privatization of Apple while acquiring the shares from Apple's major shareholders. In other words, it must help Apple solve the mess for its shareholders.
Previously, Microsoft wanted to buy the two major sectors of MacOS and complete computers for US$1.5 billion, and then leave the iPod business to Apple and let them wipe their own butts. This also means that Apple shareholders get the 1.5 billion. After that, we have to use part of it to solve the iPod business.
When a listed company sells major assets, the funds obtained cannot directly go into the pockets of these shareholders. If they want to finally be safe, they must privatize the company, and then they must give current shareholders and investors an overall Satisfactory explanation, this is equivalent to taking another part of the 1.5 billion to subsidize shareholders, and the remaining money is not enough to fill the gap between the teeth.
If Makino Technology can help Apple solve the problems of its shareholders and complete Apple's delisting, then these shareholders can cash out and leave safely.
Lin Qingya was originally prepared for a tug-of-war with Tim Cook, but what she didn't expect was that Tim Cook's offer on behalf of Apple was even lower than the base price Li Mu had expected.
Li Mu originally believed that the ideal price was to sign an agreement with Apple's shareholders at a price of about 120% of the market value, and then subsidize shareholders at a price of about 150% of the market value, forcing Apple to complete delisting. However, he did not expect that the price offered by the other party was higher than his own. Expect the base price to be even lower.
Li Mu failed to fully grasp the current anxiety of Apple's shareholders, and Apple also failed to fully grasp Li Mu's true intentions for Apple. One felt that the other party might not want to buy Apple, and the other felt that the other party might not want to sell it, so this came about. Such actual differences.
As for Apple, they really don’t dare to scare away potential buyers like Li Mu. This is no longer the time when Apple is a rare commodity. Now Apple has become a mess that no one is willing to take over. If they can meet someone who takes the initiative to inquire about the price, it will be a good idea. It is already very rare for Apple. If you want to take advantage of it again, you will really kill yourself.
Apple's quotation was somewhat unexpected for Lin Qingya, but she still gave full play to her professional qualities and expressed her position to Tim Cook on behalf of Li Mu: Makino Technology's desire to buy Apple is not high. There are two main reasons for interested in acquiring Apple. One is the interest in combining Apple’s foundation in computer operating system and machine design and manufacturing with Shenzhou, a company in which Makino Technology has a stake, so that it can compete with Microsoft in the future; the other is , is to further eliminate competitors on the development path of Mango-ME.
Lin Qingya even told Tim Cook that according to Li Mu's intention, if Makino Technology finally acquires Apple, he will directly abolish the iPod product line, including but not limited to terminating R&D and production, terminating sales through various channels, and even destroying it. Or dismantle the entire iPod inventory.
This means that Makino Technology has to bear all the costs of abolishing the iPod business. But now it seems that the iPod business is on the verge of death. Makino Technology has no choice but to not abolish this business personally and let it die in the hands of Apple. In this way It's no different from Microsoft's current attitude.
After saying this, Lin Qingya changed the subject and said to Tim Cook: "However, we, Mr. Li, respect Apple very much. He feels that if certain prerequisites are met, Makino Technology can help Apple. bear all the costs of the iPod business."
Tim Cook nodded and asked her: "I wonder what Mr. Li's prerequisites are?"
Lin Qingya said: "The first prerequisite is that Apple must ensure that more than 90% of the core team members will not stay for three years. That is to say, including Mr. Cook and you, Apple's senior management, core position leaders, and core position employees Employees must continue to work for the Apple company acquired by Makino Technology in the next three years. In order to increase the binding force, everyone must sign an agreement with Makino Technology separately. If you want to leave within the next three years, you must pay at least a personal three-year contract salary. Three times as compensation, plus a three-year non-competition agreement.”
The core team will remain unchanged for three years, exit early with triple compensation and a three-year non-compete agreement. This is the "333" plan Li Mu formulated for Apple's core team.
Take Cook, for example, if his current annual salary is US$5 million, Makino Technology will sign a three-year agreement with him for a total price of US$15 million. If he works for three years, he will receive at least US$1,500. Ten thousand US dollars is no problem, but if he wants to exit early, even one day in advance, he must compensate Makino Technology for US$45 million and promise not to engage in any industry that overlaps with Makino Technology's business for three years after his withdrawal.
Such an agreement seems very harsh and unfair to individuals, but in fact it is legally binding as long as both parties agree to it. It is the same as the agency agreement signed between the agency and the celebrity. Be honest and obedient to ensure that you get rich. But if you dare to have second thoughts, we will first ask you to pay a large amount of compensation, and then restrict you from developing in other companies. If you dare to act like a gangster and a bachelor, you will definitely be sued and bankrupted.
Tim Cook feels that Li Mu’s conditions are too harsh. Three years is neither long nor short. If anything happens in the meantime, won’t he have to face a huge responsibility? Even if you agree, others may not agree.
At this time, Lin Qingya added: "Of course, we are not blindly restricting you. As long as you comply with our requirements, Makino Technology will also give you adequate financial compensation. For example, we will give 150% of all Apple core team members." We also promise to give you a considerable amount of Makino Technology’s original options. The IPO of Makino Technology at the end of this year or next year will be a good opportunity for you.”
Cook nodded slightly. In this case, he felt much better. Blind restrictions would give people a huge sense of oppression, but if other easing measures are given while restricting them, this sense of oppression can be neutralized. 150 % salary package, plus options from Makino Technology, with such good income conditions, most people will not refuse.
So Cook asked her: "Does Mr. Lin have any other prerequisites?"
"Yes." Lin Qingya said: "What I just said is that you must ensure that more than 90% of the core team members remain unchanged and more than 80% of the basic team members remain unchanged. So the second prerequisite is that the other 10%-20% may If team members who have changed are determined to leave Apple, they must sign a three-year non-competition agreement. During these three years, they are not allowed to engage in any occupation that overlaps with Makino Technology's business. In exchange, Makino Technology will also pay them an additional year's salary as a competitor. Compensation from the business agreement.”
Cook was confused.
Why does Li Mu impose so many restrictions on Apple’s core team? The more such restrictions in business, the more it shows the other party's fear, but what is Li Mu worried about Apple
Lin Qingya saw some of Cook's doubts and said calmly: "Mr. Cook, don't think too much. Our Mr. Li likes to eradicate the roots. Even if there is one ten thousandth risk, we should try to eliminate it as early as possible. And you have to be clear. We ask you to keep your team as stable as possible, which is far better than asking you to carry out large-scale layoffs. If it is the latter, you will have to pay an astronomical sum in compensation alone."
Cook suddenly felt a chill on his back.
Is this the secret of Li Mu's success? Cook has studied the development history of Li Mu. A lot of companies and products died at the hands of Li Mu, but none of them could persist in resisting Li Mu. Tengxun became history, and Alibaba also became history. At the same time, There are also a bunch of people entering the detention center, waiting for criminal trials. It can be said that these two opponents have been eradicated by Li Mu.
Now, Li Mu is targeting Apple.
Cook suddenly thought of Li Mu's general thoughts on the iPod business that Lin Qingya just talked about. Under normal circumstances, since Makino Technology has acquired Apple, it can dump the iPods in stock at a low price to recover some of the losses. If If an inventory iPod with a market value of US$100 million and a cost of US$60 million is sold for US$40 million, the overall actual loss will be around US$20 million, recovering 66.6% of the loss. This is also the case for most companies and entrepreneurs. Will choose the operation mode.
But what Li Mu wants is not to sell the inventory at a low price to realize cash and reduce losses, but to destroy all the iPods in stock so that the iPods can completely disappear from the market as soon as possible. This also reflects Li Mu's character of eradicating the weeds from a certain aspect. .
Cook felt frightened by Li Mu's tactics, but he still tried not to show it so obviously, and then asked Lin Qingya: "Mr. Lin, are there any more?"
Lin Qingya nodded and said: "The third prerequisite is also the last one: Mr. Jobs must rejoin Apple and then apply for the 333 program; if he does not rejoin Apple, he must sign a six-year non-compete agreement with Makino Technology."
Li Mu was unwilling to acquire Apple but let Jobs fiddle around outside. Li Mu had no doubts about Jobs' ability, creativity, and vision. He respected and admired Jobs, but now he had to lock him down too. Within his own system, otherwise Jobs is likely to become a huge hidden danger in the future development of Makino Technology.
Cook subconsciously said: "Mr. Lin, Mr. Steven Jobs has resigned from Apple. Strictly speaking, he is not an Apple employee now, and Apple has no binding force on him."
Lin Qingya said: "Mr. Cook, this is one of the conditions for Makino Technology to acquire Apple. If Apple wants to promote this acquisition, please work hard to implement these things. Similarly, we will also work hard to implement our commitments. In this way, your shareholders don’t have to spend extra money to subsidize shareholders, nor do you need to spend extra money to pay compensation to Apple employees. You can achieve multiple benefits with one stone, so you should try your best to persuade Mr. Jobs to accept this offer.”
(End of chapter)