Countercurrent 1982

Chapter 1882 Premium Acquisition
"Willing? What do you mean?" Duan Yun asked again.

"Our Victory Co., Ltd. is very interested in your company's VCD, which is also the most important purpose of my trip." Ichiro Ozawa said.

Speaking of this, Ichiro Ozawa's intentions have been clearly revealed, that is, his trip is indeed for VCD.

In fact, for companies like JVC, if they can get the patent authorization of Tianyin Group's VCD products, they can definitely get huge profits from it.

The main reason for this is that, like many high-tech companies in Japan, most of their overseas markets and profits come from the United States, especially JVC, where most of their products and main sources of profit come from the United States. It even accounts for 3/4 of the entire company's revenue. Because of this, JVC's emphasis on the US market is even higher than that of the domestic market, and as early as the 30s, it already had a certain sales network in the United States. It has been in business for more than half a century now.

As the maker of traditional VHS video recorder technology after defeating its competitor Sony, JVC’s video recorders have occupied most of the U.S. market for many years. This is also one of the main sources of revenue for JVC in the past 10 years.

It's just that no company can rely on one technology once and for all. Now jvc is also facing great competitive pressure. The appearance of laser disc players has seized the user share of JVC's traditional video recorders to a certain extent. With strong advantages, JVC's old-fashioned VCRs have at least maintained a relatively stable sales volume.

However, the VCD developed by Duanyun Company is obviously more competitive than the old-fashioned video recorders in terms of cost and function. At least this point has been fully reflected in the Chinese market.

In the current Chinese mainland market, VCDs have almost completely replaced old-fashioned video recorders, with cheaper prices and better sound and picture quality. Of course, the proliferation of pirated CDs in the country has fueled the flames, but the more reason is that the price of VCDs is lower than that of VCDs. VCRs are cheaper and do more.

Due to copyright and sales channels, Duan Yun’s VCD did not open the market in the United States, but this did arouse the vigilance of JVC. Through the technical analysis of the VCD product, the results also shocked the senior management of JVC They never imagined that China, which is so backward in microelectronics technology, would be able to develop such a powerful electronic product. If Tianyin Group really opens up the market in the United States, then JVC is most proud of it, and it is currently the best-selling video recorder product. It is very likely that the scene in mainland China will be repeated, the product will be replaced, the market will be quickly eroded, and the competition will eventually be eliminated. This is entirely possible.

Even if Tianyin Group is currently unable to promote VCD products in the United States, if other Japanese technology companies obtain this patent authorization, the consequences will be quite dire. At present, there are many companies in Japan that are as powerful as JVC, or even stronger than him. International technology companies, once they get the patent license before JVC, they can put huge competitive pressure on JVC in the shortest possible time. This is all foreseeable.

It is also because of this that JVC sent faxes to Tianyin Group several months ago, hoping to get Duan Yun's invitation to visit Shenzhen VCD production and patent transfer.

"VCD is a product developed by our Tianyin Group with a lot of human, financial and material resources. It is also the best-selling electronic product of our group company." Duan Yun paused, and then said: "I told you just now , this product can bring us tens of billions in sales a year, so do you think we will sell the patented technology?"

"Mr. Duan, here I want to explain to you that what we want to buy is the exclusive patent authorization in regions other than the Chinese market. You have any market competition in China." Ichiro Ozawa glanced at Duan Yun, and then said: "And in terms of price, our Victory Co., Ltd. is also very sincere, as long as you are willing to sell the relevant patent authorization, then we I will do my best to satisfy Duan Jun's offer..."

Obviously, JVC is aware of the current VCD sales situation in China, so if JVC wants to buy Tianyin VCD, then he must buy overseas product authorization, especially the production and sales patent authorization in the United States. As for the Chinese market, he He didn't intend to open up the market in China at all, and since Tianyin's VCD was selling so well in China, it was impossible for Duan Yun to sell the patent license in China to other companies.

In addition, for a technology company with an almost monopoly position in the industry, if it cannot rely on its own research and development strength to maintain its technological leadership, then directly spending money to purchase patents or acquire the other company is the most direct and effective means.

Not only JVC, but also many multinational giants often adopt the method of buying out patents or acquisitions in order to maintain an absolute advantage in competition, directly eliminating competitors in the bud.

This involves a business monopoly issue. When a company has the financial strength to crush its opponents, it will not spend too much effort to compete head-on with its opponents. There are many new technology companies in the United States and Japan every year. These emerging companies are dynamic and creative. However, many companies have been acquired or controlled by other industry giants before they have time to develop, and eventually die out.

In fact, these industry monopoly companies basically acquire these emerging technology companies at a premium, and in the future, they may not be able to recover their capital. However, in order to ensure the absolute right to speak in the industry and eliminate potential competitors, in the long run, the premium Acquisition is a very effective means.

The main purpose of JVC is to prevent this product from threatening their company’s monopoly position in the U.S. video recorder market as long as they can avoid VCDs from being launched in the United States in the future. From a commercial point of view, this acquisition is also very necessary.

"Your company is really rich and powerful." Hearing this, Duan Yun smiled slightly, and then said: "Since you want to obtain the patent right of VCD products so much, then I will quote you a price."

While speaking, Duan Yun pointed out a finger to Ichiro Ozawa.

"1 million dollars?" Ichiro Ozawa's eyes lit up when he saw this.

"It's 100 billion US dollars!" Duan Yun raised his eyebrows and said.

(End of this chapter)