Reborn since 1993

Chapter 1016 Hymn
Ed Fries breathed a sigh of relief when he heard that Li Dongling agreed to Microsoft's conditions.

As a giant company, Microsoft certainly has to save its reputation. If word gets out that Microsoft hardware actually needs to rely on Dongling Hi-Tech, it would be a disgrace. Where would Emperor Bill Gates put his face?

Even if the hardware project that Microsoft cooperates with Dongling Hi-Tech has components that are indeed provided by Dongling Hi-Tech, when promoting it to the outside world, Microsoft’s name must be used as the main focus.

The reputation of a giant company is sometimes very valuable. If the outside world gets the impression that Microsoft's hardware strength is not strong enough, that would be fatal.

"The second condition is that Microsoft wants to invest in Torch Group's new product project!"

Ed Fries's words changed the expressions of the Dongling Hi-Tech people in the conference room, and they couldn't help but look towards Mr. Li.

Li Dongling frowned, but he was just doing it for Ed to see.

Mr. Li has no objection to Microsoft's investment, but how much the investment should be is worth discussing.

Tapping his fingers on the table, Mr. Li said, "For Torch Group's new project, we can agree to let Microsoft invest, but the agreement must be completed before Torch Group's new product goes online next year. The specific agreement needs to be discussed at that time!"

"Of course!"

Ed did not object. Ruyan e-cigarettes are not a small project. Microsoft also needs to evaluate this product to determine its potential and the resources Microsoft will invest in it in the future.

"Dongling Hi-Tech also has a "small" request!" Li Dongling said after Ed finished speaking.

"Please say!"

"Dongling Hi-Tech hopes that when Microsoft releases a new generation of systems in the mainland in the future, Jiangmin Antivirus will become one of the built-in software of the Microsoft system. Of course, the profits of Jiangmin Antivirus will also be shared with Microsoft!"

This condition was what Li Dongling had promised to Jiang Min’s anti-virus agent Wang Jiangmin in Yanjing.

Because of its relationship with Dongling Hi-Tech, Jiangmin Antivirus was excluded by the Mainland Computer Developers Association. Computer brands such as Lianxiang and Great Wall chose Rising Antivirus as their partner.

If they do it on the first day, then it’s no wonder that Mr. Li is doing it on the fifteenth. If his subordinates are bullied, the big brother must seek revenge, otherwise how can he lead the team in the future?
Hearing this request, Ed breathed a sigh of relief. "This matter needs to be decided by Microsoft Mainland. However, I think there is a chance for Microsoft and Jiangmin Antivirus to cooperate!"

The mainland market is a regulated market for Microsoft systems. It is very important, but due to piracy, it is difficult to make huge profits here.

So Microsoft simply allowed pirated operating systems to flood the mainland market. It didn't matter if Microsoft couldn't make money here. The most important thing was to prevent a competitor that threatened Microsoft from emerging in the mainland software market. This was enough for Microsoft!
Therefore, for Microsoft, cooperating with Jiangmin Anti-Virus Software is nothing. Why not cooperate with any anti-virus software?
After the two sides have completed the negotiation, all that remains is to formulate a cooperation agreement. This cooperation agreement includes many projects.

"Microsoft plans to acquire Stargazing Video Recorders with a combination of stock and cash!"

"Of that, $300 million will be paid in cash, and the remaining $1.8 billion will be paid in Microsoft stock!"

Microsoft holds a 40% stake in Stargazing and will need to pay an additional $60 billion to acquire the remaining 21%.

Ed said that using stocks to acquire companies is the correct way to open up American giant companies. After all, with billions of dollars in cash flow, giant companies generally do not reserve that much cash.

As for the previous acquisition of PHS by Dongling Hi-Tech to Nippon Telephone and Telegraph Company, it was actually abnormal to ask for so much cash.

This is a different time. Previously, in order to cope with the Southeast Asian economic crisis, Li Dongling asked Dongling Hi-Tech to reserve a large amount of cash.

Now that the Southeast Asian economic crisis has passed, the next two to three years will be a feast for the Internet, with plenty of opportunities to cash out. Dongling Hi-Tech does not need to reserve so much cash flow.

Moreover, Microsoft's stock price and market value will double in the future. Even if its hardware business did not develop in the past, Microsoft's market value has exceeded 600 billion US dollars.

If Microsoft's hardware business is successful now, how high will Microsoft's market value be?
Therefore, Mr. Li did not reject Ed's proposal. When the $1.8 billion worth of Microsoft stock was cashed out, it would become $36, which would double in value.

"Dongling Hi-Tech agrees to Microsoft's acquisition terms!"

Hearing Mr. Li's straightforward answer, Ed, as well as Ren Yuefeng and other senior executives of Dongling Hi-Tech, were a little surprised. Mr. Li's performance today was different from his previous style.

In fact, Ed was ready to talk a lot and even increase the cash. He knew that Dongling Hi-Tech's previous style was always to like cash.

But this time, he agreed so readily that Ed was stunned for a moment. He prepared a lot of reasons, but in the end, he didn't use a single word.

"Ed, do you have any objections to this deal?" Li Dongling asked him with a smile.

Ed reacted, shook his head, looked at Li Dongling and said, "It's just that this is a little beyond my expectations. I thought Dongling Hi-Tech wanted more..."

"More cash?"

Li Dongling looked at Ed and suddenly became serious. "Microsoft is different from other companies. Microsoft is an ally of Dongling Hi-Tech. Other companies need to pay more cash flow to acquire Dongling Hi-Tech's industries. But Microsoft is different. Dongling Hi-Tech is willing to give the greatest support to its allies, especially you, Ed!"

Hearing these "true feelings", even the most hard-hearted person would probably be moved.

In the business world full of intrigue and deception, an ally like Dongling Hi-Tech is almost impossible to come by!

Ed was also touched, but that was all. If he set his eyes on any product of Dongling Hi-Tech in the future, he would definitely acquire it, but the price he gave would be more "reasonable".

Delaney, who was standing aside, looked at Mr. Li who was expressing his true feelings. He did not believe a word of this talk, but he could not find any fault with it. Mr. Li really considered the buyer this time.

“Cheers to Microsoft!”

"Here's to Tanglin Hi-Tech!"

"Cheers to Mr. Bill Gates!"

After the agreement was signed, bottles of champagne were delivered to the conference room, and then golden champagne rain began to fall in the conference room.

Li Dongling praised Bill Gates loudly. It was sincere praise. He spent billions of dollars, so shouldn’t he be praised?
……

"There is news that Microsoft, the American technology giant and the world's largest company by market value, may reach a new cooperation agreement with Dongling Hi-Tech, the largest technology giant in the inland!"

In the domestic technology industry, news suddenly spread that Dongling Hi-Tech was going to have a new partnership with Microsoft, and it became a hot topic for a while.

It is almost the end of the year in China. The technology industry has been hurt this year, and the end of the year is the time to rest and recuperate. However, I didn’t expect that Dongling Hi-Tech could still make some moves.

“Microsoft sent a sizeable team to Pingyang!”

"Sources close to Tanglin Hi-Tech revealed that this time Tanglin Hi-Tech and Microsoft may reach a new century deal!"

Various news began to be released, and the media in Hanxi began to get agitated and kept going to Pingyang to inquire about various news.

As the news came out, the A-share concept stocks of Dongling Hi-Tech also started to jump along with the stock price.

Although Dongling Hi-Tech is not listed on the A-share market, more than a dozen A-share listed companies, represented by Sichuan Rong Electronics, have become Dongling Hi-Tech concept stocks because they have taken orders from Dongling Hi-Tech.

Just when the A-share market was in a frenzy and countless people were trying to find out the news, it was Nasdaq that first broke the news.

Microsoft, the largest company by market value on the Nasdaq, announced that it will announce important news after the market closes.

In fact, before Microsoft announced the news, well-informed Wall Street institutions had already begun scrambling to buy Microsoft shares, causing Microsoft's stock price to start rising.

"Microsoft announced that it has officially reached an acquisition agreement with mainland technology company Dongling Hi-Tech, and has completed the acquisition of Dongling Hi-Tech's Stargazing Digital TV Recorder in the form of cash and stock at a price of US$3.5 billion!"

Immediately after the market closed, Microsoft announced a major move in the hardware industry. As soon as the news came out, the American technology industry was in an uproar.

The American technology industry also knows that Microsoft has always been willing to spend money in the hardware industry, but no one expected that it would spend so much money!
Along with this announcement, there was also news that Microsoft would release a batch of new shares to acquire Stargazing Recorders.

However, in response to Microsoft's announcement, various investment institutions on Wall Street not only did not look down on the acquisition, but instead sang praises for Microsoft.

Microsoft's current market value is $2800 billion, and it is a stock that is completely managed by major shareholders and Wall Street institutions.

Only if Microsoft's stock continues to rise can the Wall Street institutions, 401K pension funds, and teachers' pension funds, fire pension funds, truck drivers' pension funds, etc. that buy Microsoft's stock make a profit.

But if you want the stock price to go up, you have to find a reason, right? You can't just not put on any show.

"Microsoft's acquisition of Stargazer, the number one TV recorder brand in the United States, is one of the most important decisions ever made in the hardware industry.

Stargazing video recorders are becoming standard equipment for middle-class families in America, and TV video recorder equipment will grow at a rate of more than 30% per year in the future. This will become Microsoft's iconic product in the hardware field!" The Wall Street Journal cheered for Microsoft.

"This is an important step for Microsoft in the hardware industry. Microsoft may continue to make big moves in the hardware field in the future!" The New York Times is also optimistic about Microsoft.

Merrill Lynch, a Wall Street institution, also announced that it would raise its stock price forecast for Microsoft. "Merrill Lynch analysts announced that they would adjust their Microsoft stock price forecast from $26.7 to $28.2. Microsoft's market value may exceed $2956 billion!"

Salomon Brothers and Pratt & Whitney Securities, which are more aggressive than Merrill Lynch, have even predicted Microsoft's stock price to reach $30!
(End of this chapter)