Top of the Great Era

Chapter 1897 Nortel Patents

Zhou Buqi did not go north for the time being.

The wind in the capital in April is too windy, far less comfortable than staying in the south.In addition, there are some work matters, Zhou Shaoning came from Canada.

The trend of platform computers has risen, and Asda intends to launch its own brand of tablet computers.

In addition, there is another very important thing, that is, the government intends to promote Asda to cooperate with China Mobile, China Unicom, Huawei, and ZTE, and try to cooperate in the international patent bidding market.

Huawei and ZTE are the two major communication giants in Pengcheng, and they are sworn enemies. It is very important for these two companies to put aside their differences and cooperate.

Zhou Shaoning hurried over, "Now it's clear that Google's interest in Motorola lies in their patents rather than Motorola's mobile phone business."

Zhou Buqi smiled, "No surprise, the cooperation has been reached?"

"No."

"Ok?"

"Google wants to buy Motorola, but there are still big internal divisions. They don't just have Motorola as an option, they also have Nortel."

"What?"

Zhou Buqi was slightly taken aback.

Subconsciously, I thought of the pretty girls in Nortel School.

Zhou Shaoning explained: "Nortel Technology is a communication equipment manufacturer in Canada with a history of more than 100 years. At that time, our country's technology industry had zero foundation, and the first step to go out was Nixon's visit to China. In addition, those in Canada During the year, the country continued to provide free food aid to the country, and the country approved Nortel Technology of Canada to come to the country to conduct business and helped us build a communication system. Later in China, Datang, Panda, Telecom, China Mobile, China Unicom, and ZTE Companies such as Huawei and Huawei have continued to develop from Beike Technology's system."

Zhou Buqi had never heard of it before, "Oh! That's amazing!"

Zhou Shaoning said: "Yes, this company used to be a giant in the industry. However, in the past 20 years, the management has become worse and worse, and many major scientific research projects have chosen the wrong direction. A lot of research funds have been spent, but the wrong direction has been chosen. Later, it was surpassed by companies such as Nokia, Motorola, and Ericsson, and the market was gradually eroded, and it declared bankruptcy two years ago."

Zhou Buqi was slightly surprised, "Bankrupt?"

Zhou Shaoning said: "Well, the times have changed, and they can't keep up with the development of the Internet era. Motorola's end today is because it failed to keep up with the mobile Internet and fell in the era of smartphones. Nortel is even worse. They don't even have PCs. The Internet age has not kept up."

Zhou Buqi tried to analyze, "So now Google is rushing to carve up the assets of Nortel Technology? Patents?"

"Yes." Zhou Shaoning smiled, "This has already happened. Two years ago, Ericsson bought Nortel's CDMA assets for US$11 billion, and Avaya bought the enterprise network assets for US$9 million. sector. Now, the remaining core assets of Nortel are mainly 6000 core patent portfolios.”

Zhou Buqi asked: "It's been two years, what happened to Google?"

Zhou Shaoning said: "Because the value of these patents is very high, network equipment vendors, mobile operators and mobile phone manufacturers around the world are interested, including technology giants such as Apple, Google, Huawei, ZTE, Motorola, and Ericsson."

"very competative?"

"Yes, if we want to auction fake horses, the price will only get higher and higher."

"What is a fake horse auction?"

Zhou Buqi was a little embarrassed. His knowledge covered a wide range, but he couldn't explain some relatively professional terms to him, so he couldn't understand it.

Zhou Shaoning said: "It is a method of auctioning assets of bankrupt companies. Bankrupt companies propose a minimum price, and then bidders can only continue to increase the price. They cannot negotiate or lower the price. This method can often lead to sky-high prices. Ericsson bought it at the beginning. Nortel’s CDMA assets had a starting price of only US$4.3 million, and Ericsson’s bid was the highest at US$11 billion.”

Zhou Buqi nodded, "So how much are these patent assets in Nortel's hands worth?"

Zhou Shaoning said: "The starting price is only 10 billion US dollars, but the competition is too fierce. The bidding has been postponed several times to further ferment the market and cause competition among various technology giants. It is said... It is said that Google has prepared 40 billion US dollars. Dollar."

"It costs $40 billion to buy a patent worth $10 billion?"

Zhou Buqi has seen the courage and determination of overseas technology giants in the field of technology precipitation.

Zhou Shaoning said in a deep voice: "That's right, Google has an urgent need for patents, which will affect the life and death of the Android system in the future. If Google can do this, Google won't buy Motorola. If it doesn't With Google's participation, without Google's mastery, Asda would never have been able to buy the Motorola label."

In front of "Motorola", the "Astar" brand is a younger brother.

If Asda wants to acquire Motorola's mobile phone business, it must follow Google's buttocks, and Google will take the lead and control the transaction.

Google got the core patents that Google wanted, and left the rest of the business to Asda.The eldest brother eats meat, while the younger brother drinks soup.Even eating soup is very satisfying for Asda.

However, if Google successfully bids for the 6000 patent portfolios held by Nortel Technology and spends such a large sum of money, it will definitely close the deal with Motorola.

At that time, Asda will get nothing.

Zhou Buqi had a foresight, he knew that Google finally succeeded in acquiring Motorola Mobility, that is to say...Google failed in the Nortel patent matter, so he chose Motorola as the next best thing.

It does not matter.

The important thing is that he is now very interested in Nortel's 6000 patent portfolio.

What kind of patent is it, so valuable?

With the strength of Google, the premium was several times higher to bid, but it failed?So who bought this part of the patent?
Zhou Buqi asked, "What exactly are Nortel's patents?"

"Uh……"

Zhou Shaoning looked at Boss Zhou with complicated eyes.

How do you say this?
You don't understand!

Zhou Buqi said angrily: "What is the general direction? Is it related to the mobile Internet?"

Zhou Shaoning said: "There are many, such as... By the way, the core competitors are two companies, one is Apple and the other is Google. Both parties should be actively planning for the next era!"

"The next era?"

"Yes, 4G network."

"In the patent of Nortel Technology, is it 4G?"

Zhou Buqi opened his eyes wide.

Zhou Shaoning said: "These are the core patents. Nortel is the global leader in this field. Their 4G patent portfolio is the best and has the highest technical content. Whoever gets this part of the patent will replace the 4G network with the 3G network next." In this era, it will have a greater advantage.”

Although Zhou Buqi is not an expert in this field, he basically has a general judgment based on his foresight experience.

Google bought Motorola.

Then this Nortel Technology should be in the pocket of Apple.Then, Apple has gained a first-hand advantage in the 4G field, and can conduct research and development of 4G mobile phones earlier at the technical level.

At the same time, there are cost advantages.

If the patent is in the hands of Apple, the patent fee paid by the iPhone will be reduced, and the cost will be reduced; if Android has to pay a large amount of 4G patent fee, the cost will increase greatly, and the competitiveness will decrease.

This gave Zhou Buqi a headache.

You have to obey even if you don't accept it!

In terms of hard power, competition is nothing but competition.Even if he wants Asda to rush to grab the patent, it's not at that level.

Even Google is not Apple's opponent, and Estar is even more impossible.

Zhou Shaoning's thinking is not the same as that of Zhou Daboss. What he values ​​most is Motorola's mobile phone business.Technology serves products, and there are too many factions of technology, all kinds and varieties.

The choice of technical route should be reflected according to the market performance of the product.

It is not whoever has the best technology is the best, but whoever has the best products is the best.

Just like Sony, which is gradually eliminated by the times, in the past few years, too many products with top technology have been developed, all because the products are not recognized by the market, and the high-tech technology behind them is also abandoned.

In contrast, relatively low-end products such as smart phones, because they are more recognized by the public and the market, a series of patent portfolios surrounding smart phones can be sold at sky-high prices.

In this regard, Zhou Shaoning has a richer understanding of the industry, so what he is most worried about now is that once Google wins the bidding for Nortel's patents, it will be miserable.

Asda's layout plan for mid-to-low-end phones will fall through.

Zhou Shaoning said solemnly: "In two months, Nortel's patent auction will start. No matter what, we must prevent Google from winning! Let Google make up their minds and reach an agreement with Motorola!"

Zhou Buqi raised his eyebrows, "What do you want to do?"

Zhou Shaoning said, "Support Apple."

"What?" Zhou Buqi was amused, "Support Apple? How?"

Zhou Shaoning said: "The auction is a cash transaction, and it is very difficult for big companies like Apple and Google to use billions of dollars in cash at one time. The reason why Google intends to start the deal with Motorola is because behind this deal It is mainly for equity transactions, without using cash. The cash in the accounts of these American giants is stored in offshore companies."

The United States adopts a global tax law, which means that American companies have made money in other countries. If they transfer this part of the profits back to the United States, they will have to pay income tax again.

This is too pitiful.

Therefore, the large international companies in the United States basically spend the money they earn overseas, and if they can’t spend it, it is stored in the account of the offshore company.

Even for Apple, it is difficult to withdraw billions of dollars at one time in the account of the local headquarters.

Therefore, Google can only pay a maximum of US$40 billion in the bidding for Nortel patents, because it will not be able to pay any more.Turning around, it was able to acquire Motorola Mobility for US$125 billion, because this transaction does not require too much cash, and Google's stock can be used to replace the transaction.

Zhou Buqi suddenly realized, "So Apple is short of money?"

Zhou Shaoning said: "Yes, there are many companies bidding for Nortel's patents. Domestic mobile, telecom, Huawei, and ZTE have also participated, but they have no chance. The real most competitive are the two major forces. One is Google, an anti-Google coalition led by Apple. I mean, Asda is going to join the anti-Google coalition!"

(End of this chapter)