America: My Time

Chapter 269 Hughes Aircraft

Chapter 269 Hughes Aircraft
“Jimmy, if I refuse, will your Morgan team also choose to stand by my side and not cooperate with those old guys, let alone stand up to help them persuade me?” At this moment, a faint smile appeared on John’s face. He was not going to be deceived by this guy Jimmy. Don’t be fooled by this guy’s claims that he is on his side. If something really happens, Morgan might change his mind instantly.

John no longer trusts Morgan. Morgan might change his mind when faced with profit. With the rapid development of Dreamworld and Nvidia, John doesn't believe Morgan has no ulterior motives. At this time, Morgan sent Jimmy to tell him these things, probably because Morgan himself has his own calculations and ideas.

“John, that’s natural. But you should understand that once the White House gets involved, everyone has to give them face. You can’t just leave without any response. The Jeep incident and the relocation of Motorola Semiconductor are understandable, but you can’t move all of the manufacturing out of the United States. The United States needs jobs!”

"Okay, you've convinced me. I'll decide based on the situation. Whether I accept the two airlines is still hard to say, but one thing is certain: if the White House really gets involved, those old guys will have to compromise. I can't put all my investments overseas. I know what those old guys are up to. They just want to put my investments in the US, right under their noses. I know exactly what they're up to. Whether I accept them or not depends on my mood!"

When John spoke frankly, a hint of embarrassment flashed across Jimmy's face. This time, Morgan wasn't unaware of the situation, but he kept quiet for his own benefit.

“John, if you need to give the White House face, Morgan has a good idea, McDougall!”

"McDonnell Douglas, Jimmy, are you crazy, or is Morgan crazy? Do you think I can acquire this? You know what McDonnell Douglas is like now. It's the second largest aircraft manufacturer in the United States. I don't have the strength to acquire it. This is not my cup of tea. My funds can't even make a ripple in the aviation manufacturing industry!"

“John, you’ve misunderstood me. We want to help you separate a portion of production from McDonnell Douglas, not acquire it directly as you think. You’ve already taken over Gulfstream, right? If you can also get a portion of aircraft manufacturing from McDonnell Douglas, wouldn’t that complete the research and development and manufacturing of large aircraft? As long as you have the idea, Morgan can help you achieve it. Separating the production and manufacturing of the DC-9 is not difficult, and it’s the most suitable option for you.”

Tempted? John was naturally very tempted. This was the manufacturing of a large aircraft. Although the DC-9 had ceased production last year, the related technology still had considerable value. However, John quickly shook his head and said, "Jimmy, I appreciate Morgan's kindness, but if the R&D team is willing to leave McDonnell Douglas, I'd be willing to take over. As for the production of the DC-9, let's forget about it. An aircraft that has already ceased production isn't of much use."

Jimmy was dumbfounded when he heard John's answer. This was not the result he wanted. How could John ignore such a temptation? Could it be that the boss was wrong? Did John have no interest in developing in the field of aircraft manufacturing? Was Gulfstream just his hobby?

Just as Jimmy was wondering, John said again, "Jimmy, compared to developing in large aircraft manufacturing, I prefer specialization. Now that I have Sikorsky, I'd rather take over Hughes Aircraft Company. It's more suitable for me and Gulfstream's development in aircraft than McDonnell Douglas!"

"Hiss!" Jimmy gasped. He never expected John to say something like that, actually setting his sights on Hughes Aircraft Company. This was no ordinary acquisition; it was a multi-billion dollar acquisition that would greatly benefit Morgan once completed.

"John, you're not mistaken, are you? You want to acquire Hughes Aircraft Company?"

“That’s right. If we really need to give the White House face and get their approval, I prefer professional development. Large aircraft are not something Gulfstream can develop right now, but there’s no such problem with helicopters. Of course, it depends on whether you, Morgan, can do all of this. I believe funding won’t be a big issue either; the Japanese banks can provide sufficient assistance!” As he said this, John calmly looked at Jimmy. He couldn’t let these guys lead him by the nose. If he had to give a satisfactory explanation to all parties in the United States, acquiring Hughes Aircraft Company was the most suitable option for him.

McDonnell Douglas did hold a certain allure for him, but it wasn't essential. While the prospect of large aircraft was undeniable, the research and development investment was too enormous for him to afford. He also had other targets in the civilian aircraft sector: de Havilland in Canada and Fokker in the Netherlands were both promising, though their current situations weren't ideal for acquisition. Compared to these, McDonnell Douglas's allure paled in comparison. As for John, would there be any financial problems or pressure if he were to fully acquire Hughes Aircraft Company? Jimmy knew the pressure wouldn't be significant, as John had funds from the sale of his mines. With further financing, his capital would be even greater, but that wasn't a decision he could make himself.

“John, I need to report to the boss. You should understand that this kind of acquisition is not something I can decide on my own.”

"I understand. If Morgan can do it, I believe it will be a win-win situation! I will be in New York until the start of the semester, and I'll be waiting for your news!"

At this point, Jimmy had no desire to continue the conversation with John. He needed to get back to Morgan as soon as possible to tell his boss about John's outrageous idea. It had to be said that the acquisition proposed by his boss was far from matching John's ambition. Soon, Jimmy met with his boss and told him about John's acquisition plan!

Upon hearing these words, Morgan frowned. He realized he had truly underestimated John; his ambition was far more terrifying, and his audacity even greater than he had imagined. However, John was right about one thing: expertise was paramount. If John acquired Hughes Aircraft Company, the company would become more comprehensive in the helicopter industry, becoming the largest helicopter group in the United States. As for Hughes Aerospace and Communications, Morgan wasn't surprised; perhaps this madman John would simply break up Hughes Aircraft Company once the acquisition was successful.

"Jimmy, do you think we should help that little fox John complete this acquisition? Is he really thinking about it, or is he just testing us? Does the big plane really not tempt him at all? Can this guy really resist McDonnell Douglas's offer?" After thinking for a moment, Morgan turned his gaze to Jimmy.

"Boss, I think testing him is impossible. As for McDonnell Douglas's temptation, it might not mean much to him. After all, the investment in the research and development of large aircraft is too large, and there is no guarantee of a return. So I think this little fox is really interested in taking the helicopter field a step further!"

"In other words, we should give this kid a hand. But now that he's made this acquisition, do you think he can still take those two airlines from those old guys? We need to be prepared for that!"

"I don't know, I can't figure out what this little fox is really thinking, but if he wants to, he can do it. Funds are not a problem for him. Those guys in Japan won't refuse his loan request. No one in Japan doubts John's ability to repay, nor does anyone doubt his investment acumen. I know this very well. I have personally witnessed the trust that Japanese banks have in him, and the speed at which they disburse loans!"

"Yes, nobody doubts this kid's investment acumen. Not just those guys in Japan, but even in the US, few people doubt his judgment. He's turned around the assets he's acquired, like Bell Labs, Universal Pictures, and Southern Company. Now 7-Eleven is expanding like crazy in the US, becoming the number one convenience store chain, with astonishing revenue! Everyone thought his decision to cut back on those highway convenience stores was a mistake, but that wasn't the case. 7-Eleven has established a firm foothold in major cities, and the loans they got from Japan have put no pressure on them at all."

Morgan had been closely following John's investment. He was amazed by the rapid growth of the previously unremarkable Southern Company. Although he didn't know the situation in Japan or Taiwan, Morgan was very clear about the development of the United States. This frenzied expansion had not weakened the Southern Company's strength; on the contrary, it had increased the Southern Company's profits and shown the rise of a multinational giant.

Not only Southern Company, but Phoenix Media Group is also expanding rapidly, with remarkable development in retail, firmly controlling the downstream sales of the entertainment industry. It is precisely because of Phoenix Media Group's expansion that Warner and Disney have been under tremendous pressure, causing them to suffer heavy losses in the downstream industries of sales.

Channel dominance is key, and that's John's strategy for Phoenix Media. With the continuous expansion of VCDs, Phoenix Media's retail presence in the US is changing rapidly, gaining firm control over retail in major US cities and putting pressure on other Hollywood giants. Warner and Disney are currently suffering the most losses. It is precisely because of this aggressive expansion that Phoenix Media has secured its cash flow in the US, allowing it to focus on its loan operations.

(End of this chapter)