America: My Time

Chapter 285 Universal Benefit
Chapter 285 Universal Benefit

The next morning, John returned to New York with four beautiful women. His time was extremely tight; Morgan and the old fogies like Rockefeller were eagerly awaiting his decision. John had also gained a detailed understanding of the two major airlines' situations, and his think tank quickly provided an assessment—everything was in order.

Just after returning to New York, John received a call from Morgan and had to go to Morgan's place again. Seeing those old guys didn't surprise John; it was normal for them to be anxious. If they weren't anxious at all, that would be a problem, and that would be something to worry about.

"John, we have no problem with the acquisition of Hughes Aircraft. We'll have a result soon if you're willing. We also have a small idea this time, and we hope you'll agree!"

"What, you all want to exchange shares again? That won't do. My companies don't have that many shares to offer you. Hughes Aircraft is worth billions of dollars!"

"No, John, that's not what we meant. We wanted to sell Pratt & Whitney to you. You know we're all having a tough time right now, and Pratt & Whitney isn't doing well either. Otherwise, Sikorsky wouldn't have sold it to you so easily. Now that we've thought it over carefully, we've decided to sell Pratt & Whitney. Are you interested?"

"Hiss! Are you guys crazy? That's Pratt & Whitney! One of the most important aircraft engine manufacturers in the US! You're just going to sell it like that? You guys really are insane, capable of doing something like this!" John was also shocked by the old guys' audacity. Pratt & Whitney's importance in aviation was unimaginable, but now these old guys actually intended to sell it. How could John not be shocked?

"It's not that we've gone crazy, but that none of us have enough funds to invest in research and development. Everyone thinks the military industry is very profitable, but the investment in research and development is actually staggering, and failure in research and development means huge losses. Most importantly, we need to put our funds into more important areas now. And what good is universal benefit if it doesn't generate much profit? In fact, it's not even as profitable as the game industry. How can you expect us to continue making large-scale investments?"

Upon hearing this, John frowned. These old guys were too cunning; they were clearly manipulating him. Perhaps this wasn't just Rockefeller's idea, but also Morgan's. Morgan had previously tested him with McDonnell Douglas, and after being rejected, Morgan had made this audacious move. John didn't believe there was no ulterior motive. These old guys simply wanted to deplete his funds and use high-end manufacturing to limit his development.

“I am also very tempted by such a great company as Pratt & Whitney, but I am powerless to do so. After acquiring Hughes, I simply do not have enough funds to acquire Pratt & Whitney. Even you gentlemen cannot afford such a high investment in research and development, how can I, with my meager arms and legs, possibly afford it!” At this point, John couldn’t help but sigh, his face full of regret, as if he was reluctant to miss such a great opportunity.

“John, actually, you’re different from us. You’re young, with unlimited potential, while we’re old, our thinking can’t keep up with the times, and we can’t come up with good solutions. Like Bell Labs, it was a headache for everyone in our hands, and no one wanted to take it over. But in your hands, it quickly generated such huge profits. So you have a better research and development mind than us!” Goodness, Rockefeller and his ilk actually said things like that! If it were an ordinary young person, they wouldn’t have thought twice and would have agreed to the proposal immediately!

"You all overestimate my abilities. This is the aviation industry. No matter how many ideas I have, it's useless. Although the United States has relaxed restrictions on the aviation industry, it won't be long before more airlines go bankrupt. Those guys only see the opportunity, but they don't see the hidden dangers behind it. Even Pan Am and West Air are heavily indebted. You can imagine what will happen to the new airlines that enter the market. Soon, a price war will begin, and I don't know how many airlines will eventually go bankrupt. When these airlines go bankrupt, you can imagine the demand for aircraft!"

“John, there’s no rush. Go back and think it over more. We also need time to prepare. The sale of Pratt & Whitney also requires more discussion, as such a sale involves many issues. Now, we want to know when you can acquire Hughes Aircraft Company. We need to resolve this matter quickly. You know we’ve both paid a considerable price this time, so you need to make a decision on this matter quickly!”

"Price? I need a reasonable price. I wonder what kind of price you all can offer me? I can't afford anything too high, and you all know the true state of Gulfstream right now!"

"John, $50 billion, I believe that price is reasonable!"

When Morgan finished speaking, John's expression hardened. It was indeed a very reasonable price. In 84, Hughes helicopters were worth $5 million; in 85, General Motors acquired Hughes for $52 billion. This price in 83 was acceptable to John, and he was quite satisfied. At least these old guys hadn't ripped him off. John nodded and said, "Okay, I accept. However, I need some time to raise the funds. I'll give you all a definite answer in seven days at most. I believe you can accept this timeframe. I'm sure you won't have to wait too long. The banks in Japan won't refuse my loan!"

“No problem, we can wait seven days. But are you ready to take over the acquisition of the two airlines?” Rockefeller looked at John calmly, but there was a hint of urgency in his eyes. He was worried that John, the little fox, would refuse, since Hughes Aircraft Company had already made its decision.

“Sure, I have no reason to refuse. It’s simpler than acquiring Hughes. I have enough time to prepare the funds, and I’ll be under less pressure. After all, I can use shares of the game world as the deal.”

John's words brought a faint smile to the faces of the old men, Rockefeller and his ilk. Their plan had succeeded. As long as John agreed, everything would be fine. This would tie down a lot of John's energy and require more funds.

In the minds of these old guys, if John were to develop in the aviation industry, whether it be aircraft manufacturing or airlines, it would consume a huge amount of money. To revive the two companies, he would inevitably have to pay a considerable price to purchase more new aircraft, which would inevitably affect John's subsequent expansion.

These old guys are overthinking things. How could John not know their thoughts, how could he not understand their schemes, and how could he be so easily fooled? These old guys have their ideas, and John has his own. The airline isn't really without a future. As long as we find the right direction, it will no longer be a problem!

Of course, compared to other industries, the aviation industry is far less profitable. However, John now needs to consider more issues. If he continues to make rapid progress in high technology and expand wildly, those old guys will definitely cause trouble. Giving them a chance to put their minds at ease is a good thing, at least it can reduce a lot of unnecessary trouble for him and prevent him from being constantly schemed against by these old guys.

It was precisely because of these considerations that John so readily agreed to the acquisition of the two major airlines, chose to enter the aviation industry, and even had more ambitious development plans, all to put those old guys at ease and allow himself more time to focus on developing his own business.

Before these old guys could even celebrate for long, John spoke up again: "Gentlemen, I also have a small request, though it's insignificant to you. I need to acquire two oil refineries, one on the East Coast and one on the West Coast. If airlines want to revive quickly and compete with those constantly flooding the market, they inevitably have to engage in price wars. Owning their own refineries is the only way to ensure that airlines' profits are not affected by external forces or oil prices."

As soon as John finished speaking, everyone's eyes turned to Rockefeller, waiting for his answer. The two oil refineries were not a big deal for Rockefeller, so they naturally had no reason to refuse. Moreover, in their view, this arrangement proved that John, the little fox, was really interested in making more progress in the aviation industry.

"No problem, we can still provide two medium-sized refineries, and we will definitely give you a satisfactory price. If possible, we still don't want cash, we want shares, how about another 1%?"

“I have no problem. As long as Morgan agrees, everything can be done according to your opinion!” At this moment, John did not think there was anything wrong with the other party’s idea, nor did he think their request was unreasonable. Since it was a transaction, both parties had to agree. Moreover, such a request would not affect him. The release date of the game world was basically confirmed. Under these circumstances, he had no reason to refuse Rockefeller. It was a win-win situation.

Of course, John could acquire refineries from other companies, but that would be far more expensive. It's better to directly demand them from old fogies like Rockefeller. After all, the title of oil tycoon isn't given lightly. Such a deal would be advantageous to him and would also lower these old men's guard. Why wouldn't he take it? There's no gain without pain; now is the time to pay the price, and also the time for him to expand in the United States!
(End of this chapter)