Chapter 508: Persuasion to merge

"Yang, after the merger of the two companies, Zhiduoxing Group will become the major shareholder, and the number of voting rights will be similar to mine, still on Jason? Huang, so what role do you have to play in the new company?" Jie Ray Sanders couldn't help asking.
"Jerry, I showed my attitude when investing in Chaowei Semiconductor. I have been tired of managing Zhiduoxing Group, and I have no intention to manage more companies."
"And for the business of computer hardware, I'm not as skilled as you, or even as good as some of your company's executives, why should I intervene in management?"
"I also said just now that after the merged company, I recommend you to serve as chairman and Jason Huang as director and ceo, or even vice chairman and ceo."
"You always have to retire, do not retire at the age of seventy, and do not retire at the age of eighty? Before this year, Chaowei Semiconductor has always been in deficit. Before I invested, you have seen many investors. Who can give me such good conditions?"
"During this time, you have also seen that Chaowei is developing rapidly. I also helped invest and build factories in China. The preferential conditions are better than those of our Zhiduoxing Group."
"Last year, Intel's market value was US$500 billion. How much was Chaowei? After experiencing the Internet bubble this year, the market value of many related companies has plummeted, and Intel's market value has fallen to more than US$300 billion, and it continues to fall. "
"But this year Intel's estimated revenue can exceed 25 billion U.S. dollars, and Chaowei's maximum is 6 billion U.S. dollars. This is still a historical record, and even half of it was not reached before."
"You love Chaowei Semiconductor, which you created, devoted your whole life to it, so what about Jason Huang? Isn't the Eagle Weida that he founded not developed well?"
"Each year's related grand prize, Eagle Weida took it all, although the overall strength is slightly inferior to aTI, but the upward momentum is obvious. These are all led by Jason Huang."
"I also contributed to the construction of Eagle Weida in China, and the factories of your two companies are still in an industrial park, just across the wall."
"To be frank, if I want to annex Eagle Weida, is there really no chance? Jason? Huang doesn't sell shares to me, what about others? Does Chidoxing Group have enough funds?"
"The Zhiduoxing Group alone in the gaming industry and educational electronic products, this year's net profit can reach about 1.5 billion US dollars!"
"This time the Internet bubble, the stocks of many companies have plummeted, and the market value has plummeted, but the stock of Zhiduoxing Group has only fallen slightly, and has stabilized at 20 billion US dollars."
"The company that previously did not even have a product and claimed to be able to produce cPu, Transmeta, once had a market value soaring to tens of billions of dollars, but now there is only more than 10 billion dollars left?
"Chaowei and Eagle Weida both received capital injection from Zhiduoxing Group before stabilizing the market value."
In previous years, Chaowei did not invest and developed by itself. In 2002, the market value fell by only 5 billion US dollars, and the company was still making profits.
Under normal circumstances, the market value of general companies is higher than revenue, and may even be several times. At that time, Chaowei's annual revenue exceeded 5 billion US dollars, and its market value was not as good as revenue.
Because the profit of Chaowei is far less than that of Intel, many investors feel that Chaowei will soon decline and even go bankrupt.
In fact, before Zhang Yang's rebirth, Chaowei was also very unhappy, with a low market value and low revenue and profitability. To put it bluntly, investors believe that Chaowei has no money to pay them dividends or dividends, and sooner or later they will be bankrupted by Intel.
"My opinion is the merger of the two parties. If you are really unwilling, then you can maintain cooperation. I will still help you to maintain cooperation with SanDisk, the two sides jointly implement some interface standards, and also help you cooperate with Lianxiang Group. Increase sales and occupy the Chinese market."
Now that the negotiations are at a deadlock, to put it bluntly, neither side is willing to decentralize. Jerry Sanders hopes to acquire, but he also knows that this is unlikely, because at this time the funds raised by the issuance of stocks are at a loss, it is likely that the company’s stock price will continue to fall, and other shareholders will not agree.
Merger is also acceptable, but he hopes that Eagle Weida will be merged into Chaowei, rather than the merger of the two parties. Anyway, Chaowei's market value at this time is also much higher than that of Eagle Weida.
Jason Huang actually holds an affirmative attitude towards the merger. Eagle Weida is now developing rapidly, but it is still not as good as aTI. They also lack funds, and if they go a little wrong, they may make the company in trouble.
If you can merge with a stronger company at this time, it will also be of great benefit to their business development. After all, the graphics card market at this time is still respected by integrated graphics, and independent graphics cards are at a disadvantage.
The most fundamental reason is that Intel and this company, they are the leader of integrated graphics, so in terms of some standards and system algorithms, they are more inclined to their own integrated graphics.
But many manufacturers and consumers also see the advantages of independent graphics cards, strong performance, low dependence on cPu, and easy to upgrade.
Nowadays, the replacement speed of computer hardware is too fast, and cPu upgrade is relatively expensive. However, if other hardware can be upgraded to improve the performance of the computer, many people will also be very happy.
At this time, a graphics card that can be disassembled at any time and easily installed, and it does not need to upgrade cPu too much, is particularly important.
In this regard, the same is true of memory, hard disk, etc.
Many semiconductor manufacturers who tried to challenge Intel's status before failed. Chaowei has also been suppressed miserably, only to start making money this year. Many of the funds previously injected by Zhiduoxing have been used to repay debts.
"Yang, do you know what the biggest problem is the merger of our two enterprises? Is it the Chistar Group!" Jerry Sanders said suddenly.
Zhang Yang looked at Sanders: "What do you mean? What I said just now is clear, I am not interested in managing this enterprise, this is just my company's investment."
"Yang~EbookFREE.me~ Does your country's political axe have any restrictions on the holding of foreign investment by domestic companies?"
Zhang Yang realized this, and was worried about the protection of the United States' political axe. Many people think that only poor countries will do this. In fact, the United States has always done this.
Some important products, especially the leading industries, will never be allowed to be sold to foreign capital, and the political axe will stop.
"However, after the merger, we will not be the controlling party, but only the majority shareholder. You still have the most voting rights."
"Yang, this requires some complicated operations. I also remind you that you cannot continue to hold more shares. I will discuss with Jason about the merger, and we both understand what you mean. "
"If you can merge, do you still only need one supervisor seat?"
"No, I will also appoint an independent director and a vice president."
"Okay, I don't have any opinion. Seeing Jason's meaning, I don't have any opinion. That's how it is today. I invite two of you to have a meal at home."