Reborn since 1993
Chapter 1429 At this moment, art has been created.
Chapter 1429 At this moment, art has been created.
Li's words were like big pancakes, reaching Andrew's lips, making him unable to resist swallowing.
In short, Li Dongling's words can be summarized in one sentence: He asked Andrew if he wanted to be the boss of the American tobacco industry.
Do you want to be dominated by Morris Tobacco Company for life, or do you want to rise to prominence and make a name for yourself with e-cigarettes?
Losing is fine, but if they win, Reynolds will surpass Morris and become the most valuable company in the traditional tobacco industry!
Furthermore, as Li Dongling said, tobacco companies are indeed undergoing transformation, and Morrison, with its deep pockets, is aggressively acquiring food and beverage companies.
There are even rumors that Morris Tobacco Company may change its name, possibly by changing its name to claim that it is no longer a tobacco company, but a genuine food company that only sells health and happiness!
The tobacco business was just a minor part of the new company, although it made far more money than the other businesses, but that was something they could just deny.
Thus, the Morris Company was able to enter an era of quietly making a fortune, and the past had nothing to do with the new Morris Company, completely whitewashing its past.
Morris can do that because he has deep pockets, but Reynolds can't do that. And if Reynolds follows Morris's lead in transformation, can he compete with Morris?
Those investors are probably even less optimistic about Reynolds now.
But going against the grain and transforming into e-cigarettes, these are no longer problems!
Yes, switching to e-cigarettes is tantamount to betraying the American Tobacco Alliance, and Andrew will probably be condemned by the entire industry. But so what?
Those colleagues might at most hurl a few insults at Andrew, but what can they do to him?
But once Reynolds transitions to e-cigarettes, the outside world will shower him with praise, hailing him as someone who has abandoned the dark side and embraced the light.
As for abandoning traditional tobacco, Reynolds is just making empty promises. Globally, traditional tobacco sales are continuously declining, and Reynolds can then use that decline to his advantage. If he can't even handle this, then Andrew should retire early.
After partnering with Ruyan e-cigarettes, Reynolds was able to transform itself, touting itself as an e-cigarette company that had completed its transformation, and from then on, representing the "righteous" side, irreconcilably opposed to the unhealthy stuff like traditional tobacco!
At that time, Reynolds will have both traditional tobacco and e-cigarettes in its hands, but it won't have to bear the stigma of traditional tobacco. It can also subtly advertise Reynolds' tobacco brand through e-cigarettes.
This is killing multiple birds with one stone, they've won so badly they're practically ecstatic. Andrew doesn't even dare to speculate on how high Reynolds' stock price will rise.
Having figured all this out, Andrew's gaze toward Li Dongling began to change. The key was that these operations were entirely feasible and didn't even need to be complicated. All it would take was shouting slogans and hiring a public relations company to promote them a few times!
At that time, Reynolds will no longer regard Ruyan as an opponent; they will be closer than Reynolds' own brother!
Everyone in the conference room could clearly see the change in Andrew's gaze as he looked at Li Dongling. Wei Jiaxuan, Cornell, and the others understood that yet another giant company had bowed down to the philanthropist Li.
It is widely rumored that Steve Jobs of Apple had the ability to distort reality, making people inexplicably agree with his ideas.
It's hard to say how true this rumor is; it's more likely that it originated from within Apple.
However, Li Dongling has a proven track record. From Microsoft to IBM, from Japan Telephone and Telegraph to SVG, and even Goldman Sachs, these companies were once Dongke's rivals or people who were dissatisfied with Dongke, but now they have all become Dongke's allies!
And now, Reynolds has joined the fray. As a competitor of Ruyan e-cigarettes, it is now "abandoning the darkness and embracing the light" and surrendering to Ruyan e-cigarettes. Who could have imagined this before today?
Andrew suppressed his excitement, knowing that there's no such thing as a free lunch.
Especially with Ruyan, which suddenly licensed its e-cigarette patents to Reynolds and was willing to provide key components, Andrew knew that these were definitely not free gifts to Reynolds.
"What does Ruyan e-cigarette want?" Andrew asked in a deep voice.
Upon hearing Andrew's words, Li Dongling knew that he already had the idea of "abandoning darkness and embracing light".
"What Ruyan needs is to become an ally of Reynolds and usher in a new era for the tobacco industry!"
"Of course, it would be even better if Reynolds were willing to provide some 'small' assistance to Ruyan Company!"
Li Dongling spoke up, saying that he had agreed to license the patent for Ruyan electronic cigarettes to Reynolds and provide Reynolds with components, but he hadn't said that these would be free, right?
If Reynolds wants to use its patents and components, then it has to... pay up. Not a penny less. No matter how many times it sells e-cigarettes, it has to honestly "pay taxes" to Ruyan e-cigarettes. In the future, the e-cigarette industry may also see the emergence of a "Ruyan tax"!
"Ruyan hopes that Reynolds can open up its sales channels to Ruyan e-cigarettes. Reynolds also has overseas sales channels in America, allowing Ruyan e-cigarettes to enter the market. Of course, Ruyan e-cigarettes will continue to pay the channel fees as usual!"
In addition, it is hoped that Reynolds can reach an agreement with British Tobacco to allow Ruyan e-cigarettes to also enter British Tobacco's sales channels.
Ruyan e-cigarettes can transfer 10% of its shares to Reynolds to forge an alliance, ensuring that Ruyan e-cigarettes will stand with Reynolds in the future!
Andrew hesitated when he heard the terms.
He could tell what Ruyan e-cigarettes was trying to do: they were planning to use Reynolds and British Tobacco's global sales channels to sell Ruyan e-cigarettes worldwide.
Once the deal is finalized, Ruyan e-cigarettes will transform into a legitimate player. With Reynolds' tobacco distribution channels and Ruyan e-cigarettes' high commissions, tobacco distributors around the world will likely be working tirelessly to promote Ruyan e-cigarettes, leading to an epic sales surge! Previously, Wall Street estimated that Ruyan e-cigarettes' sales would only reach three to five years.
But now, with the help of Reynolds' channels, it won't take three years; perhaps next year, this performance target can be exceeded!
Regardless of sales figures, the news alone has likely sent Wall Street institutions into a frenzy. Is a valuation of $10 billion for Ruyan e-cigarettes really that expensive? Where is it expensive? Did those institutions take advantage of the situation before?
A company that may have annual revenue exceeding 3 billion and a profit margin of over 70%, crushing the less than 10% profit margin of traditional tobacco companies—is such a company worth 10 billion US dollars?
Is it worth Wall Street institutions hyping it up so wildly and using it to fleece investors? Ruyan e-cigarettes are simply a chosen weapon for Wall Street to fleece investors, attracting investors from all over the world and harvesting them repeatedly. It's probably not an exaggeration to say that it's like the Nvidia of the tobacco industry!
Wei Jiaxuan and Cornell also looked intently at Andrew. The organizations behind them had already made a heavy bet on Ruyan e-cigarettes and would never let go.
Facing the gazes of everyone in the meeting room, Andrew also felt a bit of pressure.
After much deliberation, Andrew finally spoke up, "I agree with Ruyan e-cigarettes' proposal."
“But Reynolds is in a special situation now. This matter requires a vote from the Reynolds board of directors, and also the approval of British Tobacco!”
Andrew wasn't lying to anyone in the meeting room; this matter was too big for even Andrew to handle alone.
This decision could very well determine the future of Reynolds, and it will certainly require a vote by the Reynolds board of directors.
Li Dongling wasn't aggressive. "I look forward to good news from President Andrew, and I'm sure it won't disappoint everyone!"
"However, I also hope that the Reynolds board of directors can make a decision as soon as possible. After all, Ruyan e-cigarettes are about to be launched, and time is of the essence. If Reynolds is unwilling to cooperate with Ruyan, then..."
Li Dongling didn't finish his sentence, but his meaning was clear: Reynolds would not accept the olive branch offered by Ruyan e-cigarettes.
Then Ruyan e-cigarettes will have to find other partners, such as Lori Lard, the third largest tobacco giant in America. Ruyan e-cigarettes will not put all its eggs in one basket with Reynolds!
Li Dongling had no intention of threatening anyone; he was simply telling Andrew that Ruyan e-cigarettes were not without alternatives, but rather giving Reynolds a chance.
When choosing Reynolds e-cigarettes, there are two main objectives.
The first objective was to get Reynolds to switch sides. Once he did, the traditional tobacco industry would be like a window pierced through.
Once Reynolds has changed and reaped the benefits, it's only a matter of time before other traditional tobacco companies follow suit.
The second objective was to utilize the sales channels of traditional tobacco giants like Reynolds, which have their own agents, distributors, stores, and so on all over the world.
With the help of these channels, Ruyan e-cigarettes will soon be able to complete global distribution, at which point sales will enter a period of explosive growth.
Of course, sales volume is one thing, but if you want to fleece consumers, and even fleece all the consumers who have been using e-cigarettes for the past twenty years, then relying solely on sales volume is completely useless; it's too slow.
It still depends on the stock price. They'll drive the stock price of Ruyan e-cigarettes sky high, then fleece the investors. The profits they make from these fleeced investors are equivalent to the profits Ruyan e-cigarettes has painstakingly earned over ten years!
After Andrew left, Cornell said to Li Dongling and Zhang Xiaocheng, "Reynolds will agree to this deal!"
Cornell was very confident in this, or rather, he was confident in Goldman Sachs. Despite Goldman Sachs’ seemingly “gentle and refined” demeanor, like that of a virtuous gentleman, after arriving in Asia.
But it is only in America that you will know Goldman Sachs's methods. In North America, if anyone gets in Goldman Sachs's way of making money, Goldman Sachs will either plant them in the ground like cotton or build them directly on a concrete foundation.
Do not believe?
Look at the fate of the leaders of the Occupy Wall Street movement in the past. Don't think that only in the era of big trusts did those giants dare to take action. Wall Street is also capable of killing people.
When Zhang Xiaocheng met Cornell's fiery and crazy gaze, he couldn't help but frown. As a former soldier, he wasn't afraid of Cornell, but he didn't know how crazy the launch of Ruyan e-cigarettes would be!
(End of this chapter)
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