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Chapter 443 Military Industry Entry Ticket

On August 24, Google and Alexa simultaneously announced that Google Search had acquired Alexa for $2.15 million, making it a wholly owned subsidiary, and announced that it would begin integrating Alexa's personnel and business.

The acquisition has garnered considerable attention, but the company that initiated it is now turning its attention elsewhere.

On a cliff in Malibu, California, Ernst and Massim stood on the edge of the precipice, listening to the sound of the waves on the beach below.

The Marib region is home to the Chumash people, and the name Marib itself originates from the Chumash word humal i wo, meaning "loud waves".

Just like how the two of them felt at that moment, it was as if the ocean had been equipped with a natural loudspeaker, amplifying the sound of the waves crashing against the shore.

Ernst raised his hand to signal behind him, and not far away, Leon Chandler, dressed in a dark suit and holding a notebook, immediately understood the intention. Ignoring the potential safety hazards posed by the uneven rocky road under his feet, he quickly jogged to Ernst's side.

He originally wanted to be serious, but his inner joy was too great, and he couldn't help but smile, so he just let loose and grinned like a child.

As the other party approached, Ernst pointed to the cliff at his feet and the beach below and said, "Here, build me a tide-watching area with its own bar, lounge and entertainment area, build steps on both sides leading down to the private beach, and build a dock for yachts to dock."

After glancing at the height of the cliff, he thought for a moment and added, "If possible, I would like to carve a recess into the main structure of the cliff to install a private elevator that goes directly to the beach, to improve the convenience and comfort of getting in and out."

Leon quickly jotted down notes in his notebook. Seeing that Ernst had no other requests, he glanced around the area and said, "This area is shallow water. If we want to dock large yachts, the pier needs to extend at least fifty meters out to sea to ensure that the water depth in the berth area meets the draft requirements of large yachts."

"There's also the construction of the elevator and the tide-watching area. Since the main structure of the cliff is rock, there is a certain risk of geological instability. A comprehensive geological survey of the entire cliff area must be carried out first, followed by reinforcement work. As for the cost..."

"That's not something you should be concerned about," Ernst interrupted Leon, responding domineeringly. "You just need to develop the highest quality, highest standard construction plan according to my requirements."

Standing to the side, Massim overheard their conversation and his eyes revealed obvious envy. He looked at Ernst and said, half-jokingly, "You're not thinking of building your own Buckingham Palace here, are you?"

Ernst smiled slightly, revealing a composed expression. "We spend a third of our lives sleeping, so no matter how well we build our sleeping quarters, I think it's all worthwhile."

The mansion in Woodside is under construction, while for his Los Angeles mansion, Ernst has chosen Malibu.

The family bought a plot of land spanning over 60 acres, stretching from the flat plains at the interior all the way to the cliffs below and the beach below, all within the boundaries of their new estate.

If Woodside is like a Chinese garden, closer to nature, then this Malibu mansion is modern in style, focusing more on enjoyment.

The entire estate consists of a main building and several auxiliary buildings. The west wing of the main building is a building used for indoor entertainment, such as a bowling alley, indoor gym, indoor swimming pool, indoor stadium, concert hall, and private cinema.

The east wing houses a private museum and a private hospital, as well as a large banquet hall used for hosting parties and events.

In addition to the main building area, the entire estate also includes an organic vegetable growing area, a greenhouse fruit growing area, a resort-style outdoor swimming pool, a comprehensive car and helicopter maintenance area, a helicopter landing area, a sports field, a golf course, and more.

However, the most expensive part is the landscaping. More than three-quarters of the entire estate is covered in greenery, including maze gardens, oxygen bar running tracks, and international gardens. It's practically a world flower exhibition.

Based on Ernst's requirements and construction methods, Massim estimated that the construction cost alone would exceed two hundred million US dollars, while the annual maintenance costs would be the bulk of the expenses.

It's normal for such a large estate to need two or three hundred employees to maintain it; the labor costs alone would be tens of millions a year.

The interior decoration is even more extravagant, especially since Ernst plans to build his own private museum, which could cost billions or even tens of billions.

The level of luxury was so extravagant that even a scion of a top-tier aristocratic family like him couldn't help but gasp in amazement.

"You didn't ask me out today just to show off, did you?"

Massim didn't want to stay any longer; he was afraid his heart couldn't take it, and it was too disheartening.

"Am I really that boring?"

Massim watched as the other person tried to suppress the smirk on their face, feeling that the other person was just that boring.

"The reason I called you here today is to ask you if your Boston consortium has any interest in Cass Defense?"

Ernst was very interested in Chrysler's defense business, which Massim had mentioned to him a few days earlier, and intended to acquire it.

"You're really something, actually naming it after a girl."

Ernst gave a tender smile. When Wenger helped him register the company and asked for a name, he was holding Kathy in his arms, saying his final goodbye, so that's how he came up with the name.

"A name is just a label. What difference does it make what you're called? Will being called a bitch affect your status?" Ernst didn't think there was anything wrong with having such a feminine name.

"You're the bitch!" Massim punched Ernst on the shoulder, venting his frustration.

Ernst shrugged. "What I'm trying to say is that ability is the key to determining status."

Massim said it was fine as long as you were willing, but after thinking about Ernst's suggestion, Massim asked, "What's in it for us?"

Ernst seemed to have anticipated Massim's question, and he readily offered his terms: "If the Boston consortium is willing to participate, I can transfer 30% of Case Defense's shares to you free of charge. How about that, not bad, right?"

"Not so good." Massim rolled his eyes, showing no joy at receiving shares in a company for free. "It's completely disproportionate to the price we have to pay."

Ernst's desire to acquire Chrysler's defense business was an attempt to penetrate the U.S. military-industrial complex.

However, entering the military-industrial complex is not something that can be decided simply by acquiring a company, even if you have orders from the Ministry of National Defense.

Why is the American military-industrial complex the biggest of all the vampires in the United States? It's because of the unique military-industrial system in the United States.

You think these defense companies make money from selling weapons? That's not much money at all.

Take Raytheon, a subsidiary of the Boston Consortium, for example. As a globally renowned defense contractor, its annual revenue is only a few hundred billion dollars. How much profit can it make?

What truly brings it huge profits is the massive annual research and development budget of the U.S. Department of Defense.

This year, the United States' total defense budget is $2685 billion, of which 20% is used to pay the salaries and benefits of military personnel, 40% is used for the maintenance, upkeep and upgrading of existing weapons and equipment, and the remaining 40% is specifically used for scientific research and technological development in the defense field.

Arms dealers don't develop weapons with their own money; they use money from the U.S. Department of Defense.

The weapons developed will not only be sold to you at a high price, but you will also receive a steady stream of revenue from the Ministry of National Defense every year by providing maintenance, upgrades and parts replacement services for these equipment.

This model, where the government pays for research and development and profits from both sales and maintenance, means that 80% of the U.S. Department of Defense's annual budget ends up in the pockets of these military-industrial complexes, making them a continuous source of cash for defense contractors.

For Case Defense to become one of these entities and receive free funding every year, it's simply impossible without connections within the military.

Ernst couldn't do that, but if Raytheon invested in Case Defense, it could leverage Raytheon's connections to take advantage of the Department of Defense.

That's why Ernst gave away shares for free, while Massim didn't want them, feeling the return on investment was disproportionate.

He didn't think Case Defense could generate much revenue each year, and that revenue had to be shared equally among all the internal factions.

Ernst knew that even if he gave away Cass Defense, let alone 30% of the shares, they wouldn't be willing to take it.

Otherwise, how could Chrysler's defense business have ended up in our hands?

He secured this business simply to buy a ticket to the game.

Once he's in the game, things will be much easier for him.

"We need to take a long-term view. Don't forget, I'm a major shareholder of Blackwater, and Bell Labs also has laser technology."

With that one sentence, Massim's eyes lit up instantly: "Are you planning to scam funding?"

Ernst turned and continued facing the sea. "You can't say that. I just think America's weaponry should be upgraded. As for whether that's possible, who knows?"