Reinventing the Millennium

Chen Fuyang's visit to Shanghai was extremely low-key this time, and he was accompanied only by a secretary he trusted very much.

Although in theory it would not attract much attention, he still wanted to cautiously reach some kind of cooperation with Mr. Fang that was not suitable to be announced.

As Mr. Fang said, it was the European PE companies who came to him, not what Mr. Fang wanted. At most, he would have some off-site cooperation, and would not really act as the mastermind behind the scenes, nor would he really want to dominate Qualcomm. incident.

This kind of reputation that can play a certain role is exactly what Avago needs.

Regardless of public opinion or within Qualcomm, no one likes a hostile acquirer, and Avago needs to win any votes that may appear next, so it naturally has to put on an understandable coat.

This is not a hostile takeover, but a different view of Qualcomm's future development vision.

There are even different views on the future development of chips.

As an atypical semiconductor person, Chen Fuyang actually has some different views from what Qualcomm promotes. He believes that the future of mobile phone chips is incremental and it is difficult to have revolutionary innovations.

This means that it is difficult for IC companies like Qualcomm to achieve rapid growth in stock prices. Such signals are crucial to shareholders' judgment and will also be a key factor in their measurement of acquisition prices.

Chen Fuyang was in a high mood after meeting Mr. Fang. He wanted to communicate with him more during dinner, but he didn't expect Mr. Fang to go back to spend time with his family, so... he had no choice but to accept the hospitality of Mr. Kong of the MIGA Fund.

This is not aggrieved, after all, Mr. Kong is also well-known in the circle.

Except for Yi Ke's appearance during the second short squeeze, this person has always seemed quite mysterious. However, it is said that he has been quite active in the European financial market in recent years and is a popular guest on Wall Street.

Chen Fuyang didn't know much about the financial market. He just felt that it was groundless and might not be without reason. But now that there was such a person walking by, he, the "little Fang Zhuo", suddenly experienced the happiness of a "real Fang Zhuo".

There was no one else at the small dinner in the evening. After two glasses of wine, Chen Fuyang naturally started talking about the acquisition of Qualcomm and asked Mr. Kong his opinion on this matter.

"It's difficult to acquire Qualcomm." Kong Yu set the premise bluntly without any politeness. One sentence made the head of Avago have a smile on his face.

But he immediately gave his second sentence: "However, if you really want to acquire it, this period is probably the best opportunity."

The antitrust investigation in China, one of Qualcomm's most important markets, has not yet ended. Yike has made a breakthrough in the field of baseband chips. A group of mobile phone manufacturers have united to resist Qualcomm's hegemony. The confidence of the secondary market has been shaken...

It is this moment of internal and external turbulence that is easiest to take advantage of. Once Qualcomm is allowed to slow down, the difficulty will increase sharply.

Kong Yu said frankly: "Let's take it one step at a time. It would be good if Anhua Gao could take over Qualcomm. Even if it just forces Jacobs to retreat, this would be a very good situation for us."

Chen Fuyang's frown relaxed after hearing this, and he couldn't help but smile: "Mr. Kong, you really tell the truth."

"There is nothing that cannot be said. The objective facts are this. If Avago can successfully acquire Qualcomm, it will still have to face the impact of Yike. However, the situation at that time may be different from now. This is how everyone plays the game." Kong Yu Said bluntly.

Chen Fuyang nodded slightly, liking Mr. Kong's style of putting his words on the table.

Yike and Qualcomm are engaged in a complex competition over products, technologies, and patents, and Avago is also spying on chip companies like Qualcomm. Since its establishment, Chen Fuyang has adopted the method of wielding capital weapons. Now he can be like this. He was excited to the core of his being.

As for the future game of interests, we must first consider the "later".

"The situation faced by Qualcomm is not easy to solve. It has been dragged into a long battle by us and Apple and other companies." Kong Yu said lightly, "Its shareholders are very dissatisfied with the current situation, and Qualcomm shares The control is relatively concentrated, which is conducive to the acquisition of Avago."

The top 25 shareholders of Qualcomm hold a total of 49.2% of the company's shares, and as chairman and CEO, Jacob, the second generation of the family, only holds 0.13%.

Jacob took over the reins from his father, the founder of the company. Perhaps shareholders will respect the Jacob family who founded Qualcomm, but what matters more is whether they can continue to lead the company forward. The former has no inertia. The doubtful will give way to the reality of the latter.

In addition, 12 of the top 25 shareholders of Qualcomm also hold more or less shares in Avago, which is also a favorable factor that facilitates the acquisition.

Kong Yu calmly analyzed the situation of the two companies, and then pointed out one point with a hint of compliment: "Once Avago launches the acquisition, I believe everyone will notice the growth and changes that Mr. Chen has brought to Avago, which is amazing. With his leadership skills, I believe he will be more suitable for Qualcomm than Jacobs."

Chen Fuyang has been listening to Mr. Kong's professional analysis. After hearing this, he smiled slightly and said: "If we can really acquire Qualcomm, we will no longer use the name 'Avago' and directly use the name 'Qualcomm', which is more resounding." A global brand.”

Kong Yu was surprised, and suddenly a flash of inspiration flashed through his mind.

He frowned, trying to grasp the glimmer of inspiration.

When Chen Fuyang saw Mr. Kong frowning, he thought he didn't understand what he was doing, so he explained with a smile: "The brand name Qualcomm is far more famous than Avago. It itself has high intangible value, but if it remains independently operated, That is difficult to integrate. We can abandon the name of Avago and directly create a 'New Qualcomm' to vacate the cage and change the bird."

Kong Yu felt that that glimmer of inspiration was very important, but he couldn't grasp it for a moment. He lowered his head and took a sip of the soup and fell into silence.

Chen Fuyang didn't know what Mr. Kong was thinking. Seeing that the conversation seemed to disappear all of a sudden, he looked for a topic and asked: "Mr. Kong, the MIGA fund is very famous in the United States. I wonder if it is in the Chinese stock market?" Preparations for launching a business?”

Kong Yu was startled. Hearing this, he didn’t even catch the inspiration. He denied it directly: "No, there is no preparation. We hardly do business in China. We only have an office in Xiangjiang. We have done a little bit before, no. There will be new plans.”

Chen Fuyang said "uh", but he didn't expect to see Mr. Kong, who had the most emotional fluctuations in this topic.

He asked, somewhat dumbfounded: "Mr. Kong avoids the domestic stock market?"

"Well, how should I put it?" Kong Yu thought about the wording and replied, "I can't smell the faint fragrance of the bull market."

He shrugged: "I'm busy enough with my current work. Let's talk about the future."

Chen Fuyang nodded, realizing that Mr. Kong's "future" might be far away.

He was already full, so he drank tea and got acquainted with each other.

Kong Yu chatted about one thing or another, and it sounded like he was very interested in his boss. Well, what Mr. Chen said in the office before was true. His style of using capital means is really famous. Bandit number.

After the small dinner party ended, Kong Yu was still thinking about the missing inspiration in his mind after he separated from "Little Fangzhuo". However, he gained nothing this night.

The next day, Kong Yu went to Yike 23. He saw that Mr. Fang was reviewing the information of Qualcomm and Avago, so he mentioned the exchange with Chen Fuyang last night.

"Mr. Chen has experience in company development." Fang Zhuoxian commented, and then said with a smile, "A very important inspiration? It's nothing more than how to launch an offensive against Qualcomm. What did Mr. Chen say last night?"

Gasoline Man is reliable in his work, and since he feels important for some reason, it might actually be beneficial to things.

Kong Yu thought carefully and restored the conversation scene and Chen Fuyang's original words as much as possible.

"Well... instead of using the name 'Avago', he wants to create a 'New Qualcomm'." Fang Zhuo put down the document and walked slowly from behind the desk to the floor-to-ceiling window. While looking at the scenery downstairs, he considered two things. People communicate with each other, and the information of Qualcomm and Avago is also lived in their hearts.

Avago, the new Qualcomm.

Empty the cage and change the bird.

Overlapping shareholders.

Chen Fuyang, Jacob.

Fang Zhuo stood at Yike 23, thinking about his competitors and the opponents he had fought against in the past, and said slowly: "Mr. Kong, I don't know what your inspiration is, but now I have an idea about these two companies. Inspiration, you come and take a closer look.”

Kong Yu was refreshed. Mr. Fang's reputation was all based on his efforts. His inspiration was mixed with black and white, and he always went to the opponent's vital points!

"Chen Fuyang's statement of 'emptying the cage and changing the bird' is interesting. It is very difficult for Avago to acquire Qualcomm. We did not expect it to succeed in the acquisition, as long as it brings further pressure to Qualcomm." Fang Zhuo said his actual plan.

Avago's revenue last year was US$6.1 billion, while Qualcomm's revenue last year was US$22 billion. The size of the two is very different, so the difficulty of such an acquisition is quite high.

But when Avago digests the LSI acquired last year, its size will increase significantly.

Based on this situation, there is indeed a possibility that Avago and PE companies will be very difficult to implement, but Fang Zhuo does not rely on this possibility to become a reality. He just wants to put more pressure and trouble on Qualcomm.

"However, from 2005 to this year, Chen Fuyang has built Avago to its current scale. His talents are indeed dazzling. If Avago is used to promote the acquisition of Qualcomm first, and then the same shareholders in the two companies are encouraged to give up Qualcomm will counterattack by acquiring Avago. Once the counterattack and acquisition is successful, they will change the cage and vote for Chen Fuyang to replace Jacobs, or vote for a new board of directors to gain a majority." Fang Zhuo said slowly based on his own experience. Inspired by this, he turned to look at the Gasoline Man and asked, "What do you think?"

Kong Yu was quite stunned when he heard what his boss said, and several pieces of relevant information ran through his mind.

Chen Fuyang was previously the president of ICS, which was acquired by the American semiconductor company IDT. He then joined IDT and became the chairman of the board of directors of IDT.

Isn't this a crude version of vacating the cage and changing the bird?

And if Qualcomm is angry and acquires Avago, acquisitions of this level are often accompanied by board seats. If coupled with directors who are originally inclined and dissatisfied with the status quo on the board of directors... Jacobs may not be able to be voted out directly.

This is an acquisition, but it also actively implants a Trojan horse!

As for Qualcomm’s motivation for acquiring Avago…

The crisis that Qualcomm encountered this time was precisely its dependence on a single business. Its chips and patent licenses were bundled together through forced buying and selling. Once it was hit hard, it lost 30 billion in just a few months. Dollar!

If Qualcomm uses the acquisition of Avago to expand its business boundaries, it seems to alleviate unhealthy dependence to a certain extent!

Another point is that Avago just acquired LSI last year, and the dividends from this acquisition have not yet been fully reflected in the secondary market. Qualcomm's acquisition of Avago at its current or slightly higher market value is almost a guaranteed profit.

Also, are Avago shareholders happy to be acquired?

The two companies have a group of common shareholders. KKR and Silver Lake Capital, which previously facilitated the establishment of Avago, are also happy to see the company frequently using capital means, and have great trust in Chen Fuyang's ability. Otherwise, they would not have hired him as CEO and supported such a move. For many years, once it is acquired, you can exchange cash for shares and continue to hold the shares of "New Qualcomm", which still has growth potential.

Kong Yu followed his boss's ideas and mentally reviewed the information of the two companies and the feasibility of each link, and found that this was much less difficult than driving Avago to acquire Qualcomm.

Once Qualcomm really acquires Avago, will the smug Jacob think that the most deadly dagger is hidden in the loot?

Is this a case of vacating the cage for a bird? Is this hiding something from the truth? Is this a plank road built openly and secretly? Is this a new Trojan horse?

Kong Yu was thinking a lot and stayed on the spot.

"Huh?" Fang Zhuo asked in a nasal tone.

"Ah, Mr. Fang, this, you..." Kong Yu said half a sentence, rehearsing the new attack method in his mind, and suddenly said, "Once Qualcomm acquires Avago, we will face the 'new Qualcomm' 'will be stronger."

No matter what happens to the other side, Yike will always have a competitive relationship. Will the ‘New Qualcomm’ give up its inherent interests?

"Well, personnel changes will have adverse effects. We need to have a unified understanding with Chen Fuyang. Only by changing can Qualcomm have the chance to become a giant. That is a higher growth space. We still need to win the patent battle with Qualcomm. Litigation." Fang Zhuo hesitated, "Take Chen Fuyang to the United States. No matter what happens this time, we need to lobby for the support of our friends."

He returned to his desk and sat down, picked up the tea cup, and took a sip of tea: "Perhaps, we can give it a try. At the very least, it is difficult for Qualcomm, which has experienced turmoil, to launch a comprehensive counterattack, and domestic antitrust can also be delayed. , to find better opportunities, the muddier the water, the more opportunities and benefits there will be, and the MIGA Fund may also be able to make profits from it."

Kong Yu had to raise his voice and said: "It's worth trying!"

He looked at Mr. Fang, who had a dull expression, and felt that the past turmoil, experience, and current resources and mentality were blending together, making the old devil in front of him gradually reach the state of transformation, almost complete.