American Fortune Life

"I'm not a semiconductor person, but I know how to make money and operate."

"For all listed chip companies, after all, they still have to explain to shareholders and investors, not only revenue, but also performance such as profit and earnings per share. These are what shareholders and investors care about. . .”

"You ask me how the board of directors of Qualcomm is doing now? Hehe, look at the several institutional shareholders present selling Qualcomm shares, and you can understand the attitudes and opinions of the shareholders..."

"... From a structural point of view, in the 1980s, small start-ups entered the semiconductor industry. In the 1990s, there was a wave of listing and small mergers and acquisitions. By 2000, horizontal mergers appeared, large transactions appeared, and the development speed of the semiconductor industry has slowed down. down.

As I emphasized before, I am not a semiconductor person, but I know how to make money and operate. In the next decade, the trend of mergers and acquisitions in the semiconductor industry will shift from horizontal mergers to vertical integration of upstream and downstream. The future semiconductor ecosystem will become more and more important.

For Qualcomm's current board of directors, I don't think they can lead Qualcomm to meet future challenges. I am very disappointed with their behavior of completely ignoring the interests of shareholders and investors and going their own way during this period of time. . . "

In the conference room of Qualcomm’s headquarters in San Diego, California, members of the board of directors looked at the LCD TV with ugly faces. In the middle, Andy Smith faced many reporters. Press conference-like interview.

silence!

The collective silence made the atmosphere in the meeting room extremely dignified!

In order to protect their property from hostile takeovers, it can be said that the members of Qualcomm's board of directors, who have tried all kinds of tricks, can only be silent and frustrated at the moment.

They postponed the shareholder meeting for one month, and they originally wanted to trade time for space. Seeing the shareholders of the six major institutions standing with Andy Smith, everything seemed so ridiculous!

The overall hostile takeover plan of the "overlord's hard bow" turned out to be just a feint. Now they know that Andy Smith has no overall takeover plan from the very beginning. His real intention is to target the board of directors and subvert the board of directors. To achieve the final result of controlling Qualcomm.

Qualcomm's shareholder meeting is coming soon, whose fate will be rewritten?

Now it seems that there is no suspense in all this! Andy Smith has already received the support of Qualcomm's top six institutional shareholders, plus his own shares, overturning the board of directors is a breeze.

Leaving such an important "counterattack" to the juncture of less than a week before the shareholders' meeting, Andy Smith obviously does not intend to give Qualcomm's board of directors time to react.

Thinking about it now, what Andy Smith said is indeed correct, Qualcomm shareholders are the real helm!

Perhaps all of this, in the face of a hostile takeover, the board of directors decided to fight back, and it has already fallen into a trap.

Andy Smith's hostile takeover and Qualcomm's board of directors' counterattack have different purposes, and the results are naturally tens of thousands of times different.

Andy Smith has been making acquisitions for the purpose of benefiting from investment from the very beginning. In order to get the widest support, he will naturally not consider Qualcomm's long-term strategy, but will make promises to shareholders, draw big pies, and even use short-term revenue growth and cut expenditures. And layoffs and other means to make the company's performance more beautiful, so that shareholders can obtain short-term gains as bargaining chips.

On the other hand, the board of directors, based on technological innovation and aiming at business coordinated development, starts from the long-term business development strategy and faces future industrial trends. The return may be slow, but it will last longer, and there is still potential for continuous explosion.

To put it more bluntly, it is the difference between short-term interests and long-term interests.

Thinking about it now, Andy Smith's choice of time to acquire Qualcomm should also be a well-thought-out choice.

Sufficient short-term profit plans are prepared to convince those institutional shareholders caught in the quagmire of the financial crisis.

When Qualcomm's board of directors is desperately trying to keep its seat on the board of directors and use funds to buy back shares,

When acquiring other companies, spending money desperately, increasing Qualcomm's assets, and preventing Andy Smith's hostile takeover.

Andy Smith is shouting with institutional major shareholders, "Qualcomm shareholders, you should agree to this acquisition, because you can directly obtain the benefits of Hongguoguo. Qualcomm's board of directors can give you benefits, but too little, or Follow me for more!"

The management of every listed company hopes that capital should be less intervened, and shareholders should take a longer-term view.

However, capital tends to profit, this is the essence that no one can change!

At the same time, capital is also sensitive, which is especially prominent under the cloud of economic crisis at this time.

The members of Qualcomm's board of directors in the conference room are in mixed moods at the moment. Don't want to lose the board seat, but can't do anything about it, the day when the big shareholders convene is the day they are kicked out.

"Boom——"

Everyone in the gloomy meeting room heard the knock on the door, and they all looked at the person who came in at the door.

"Chairman, the company's stock price has plummeted to $35. With the emergence of panic selling, US stocks have plummeted across the board..."

Wow——

Hearing the report, everyone in the conference room immediately went into an uproar, whispering to each other with ugly faces. They had no better way to deal with today's plunge. After all, today's U.S. stocks plummeted across the board.

Boom!

"Everyone be quiet!" The independent director, John, who was elected as the interim chairman, tapped his fingers on the table helplessly and shouted softly.

When everyone quieted down with ugly faces, their eyes focused on the face of interim chairman John.

"Can the account for the large sell-off be traced?"

"..." The person who came was silent at first, and under the pressure of the directors' gaze in the entire conference room, he smiled helplessly and said, "It is our top 20 major shareholders who are reducing their holdings..."

As soon as the words fell, everyone in the conference room turned their attention to the LCD TV that was already on the side again. Andy Smith's sunny smiling face and that handsome face with a bright smile made everyone present feel a chill. chill.

They know that the effect and influence of Andy Smith's move has begun, and this time Qualcomm's stock price seems to be really going back to its original form!

At the same time, even uglier than the members of Qualcomm's board of directors are the heads of the "white knights" who are willing to attack Andy Smith's hostile takeover, mainly General Electric. Qualcomm's stock price around $35, from laughing and showing off, to being completely panicked, and started shipping to stop losses, hoping to reduce losses, and in the worst case, just start a low-cost accumulation chip.

The idea is very good, but it's a pity, how could they have guessed that a series of big meals prepared by Andy Smith were delivered to them one after another.

After an economic forum program on NBC TV about the future of the financial crisis, several bigwigs in the field of economics publicly questioned the necessity of "bad banks" with great dissatisfaction.

Immediately afterwards, before the market closed in the afternoon, there were rumors in the market and rumors in Washington that the future of the government's plan to establish a "bad bank" was worrying, so the market fell again driven by financial stocks.

By the close, the Dow was down 2.82%. The Nasdaq Composite fell 3.08%. The S\u0026P 500 fell 2.28%. . .

Seeing that Qualcomm's stock price has fallen back to a price of around US$34, whether it is Qualcomm or a few "white knights", at this time, it is conceivable that their faces are pale, and they are trying to sell the stock. Unfortunately, , when many institutional shareholders were selling, there was a panic stampede, and they were all selling, and Qualcomm's stock price was completely suppressed!

"Hehe...don't worry, the fun is yet to come!"

In the lobby of Liberty City Investment Company, Andy looked at Qualcomm's stock curve and current stock price displayed on the big screen of US stock data, his eyes flickered, and he laughed happily.