Video Game Empire

Chapter 225: The situation of wintel (below)

IBM has a big family business, and paying some compensation for settlement is not even a drizzle for it. [First Release] This is not the case with Microsoft. The Digital Research Company has proposed a $1 million indemnity request for it, which will cost Bill Gates the old life.

Although the final settlement agreement between the two companies was not announced to the public, Li Xuan judged based on the information collected subsequently that Microsoft was severely damaged this time. Most of the employees who expanded after Microsoft took over IBM's operating system research and development tasks have been laid off. Although the 86- has not stopped sales, the sales of the 86-machine are still sluggish, and the follow-up models of ibm are likely to support the east-system of Oriental Software. If it weren't for another language, Microsoft Corp. estimated and would soon be in bankruptcy. But Microsoft, without system support, is no longer a threat to Li Xuan.

As for Intel, its main business is still memory rather than processors. Recently, it is teaming up with other American memory manufacturing companies to engage in a tragic price war with Japanese semiconductor companies.

But Intel has not given up on the processor market. On February 1 this year, the 80286 processor was officially launched. It's a pity that it came too late, ibm company gave up the x86 architecture as early as two months ago because of the bad sales of the machine, and turned to the erm-1 chip of the east company to develop the next personal computer product.

Although the 80286 processor is still a 16-bit processor, the total number of transistors integrated has reached 135,000, and the performance is much better than the previous 8086. The new 80286 chip may not be as fast as the erm-1, but the overall performance is only slightly inferior. If IBM continues to use 80286. The new computer may not have the strength to compete with -3.

It is a pity that Li Xuan had long anticipated the time when 80286 was listed, so he controlled the pace of negotiation with ibm very well. In time for the advent of 80286, the IBM company was successfully pulled into its own camp.

The 80286 processor loses the ibm platform, and its excellent performance naturally cannot be displayed. More importantly, the 80286 processor is cost-effective. Can't compete with the erm-1 chip at all. It costs about the same as the s-100, but the s-100 processor beats it by a few streets in performance.

After rival Motorola developed a 32-bit chip, Intel felt no small threat and began to develop 8086 follow-up products.

But at that time Intel had always positioned itself as a memory manufacturing company. Most of the scientific research funds are invested in the research and development of memory chips, which directly leads to the slow progress of the 80286 project. If there is no butterfly Li Xuan, the 8086 processor can still be popular for several years by the ibm company.

But the emergence of Li Xuan suddenly pushed personal computers from 8/16-bit to the 32-bit era, and Intel couldn't keep up with the rhythm. The newly listed 80286 processor. It has also become an embarrassing product. In terms of performance, it may be half as good as the erm-1, but it cannot compete with it in terms of price. Compared with the s-100, which is at the same level in terms of price, its performance is far inferior.

Intel's x86 series processors are still an architecture, and the design difficulty is much more complicated than the architecture. Even if Intel immediately starts working on a 32-bit 80386 processor, it will be a year or two before the product actually comes out. At that time, the new erm-2 and s-200 processors were estimated to have come out.

The alliance that crushed the entire industry in the previous life put too much pressure on Li Xuan. In fact, Microsoft is still a small company with only a few dozen employees. Even the larger Intel Corporation has a total market capitalization of less than $1.5 billion on the New York Stock Exchange. It is far from being the mega-corporation with a total market value of over $150 billion.

The share price of Li Xuan's Aikang company has exceeded 20 pounds. Although the pound has been depreciating recently, the total market value of Ikon, converted into US dollars, is as high as 4.3 billion US dollars, which is nearly three times the market value of Intel.

The appearance of Li Xuan left the original to Intel. There is still a window period of three to five years for the transition period, which was completely closed in advance. Even if Intel immediately began to transform into a processor manufacturer, under the strong resistance of erm and the two major architectures. It is almost impossible for the x86 architecture to achieve the brilliant achievements of another time and space.

And Intel's executives still seem to be putting most of their energy into it. On the memory market competition, which is destined to have no advantage. Li Xuan is even considering waiting for another year or two before Intel is strangled by the harsh price war of Japanese memory companies. After the overall decline in performance, is it possible to directly acquire it?

Regardless of the current situation of Microsoft and Intel, after Dongfang Electronics reached a settlement agreement with ibm at the beginning of the year, the two sides quickly changed from an initial hostile relationship to a cooperative relationship. As the old saying goes, there are no permanent enemies but only permanent interests.

ibm's chairman Frank. Cary also hinted to Li Xuan many times, asking whether ibm has the possibility of a comprehensive acquisition of Oriental Electronics. Li Xuan didn't even think about it and refused directly. This is the cause he strives for.

IBM is most interested in the Oriental Research Institute, followed by Aikang Computer Company. But these two companies are absolutely controlled by Li Xuan, without his nod, IBM has no chance to launch an acquisition.

Icon Computer, in particular, was one of the best-performing companies listed on the London Stock Exchange last year. A number of investment institutions have given the highest rating of a strong buy to Aikang's stock rating. Since the company's stock listing, the stock price has doubled in just half a year, but the turnover rate has continued to decline.

Shareholders who hold a large number of Aikang's shares choose to hold the company's shares for a long time, so that there are fewer and fewer shares in the market. Icon's board of directors has recently been considering a stock split to improve the liquidity of the company's stock.

For such a company with a good upward momentum, Li Xuan would not choose to sell it cheaply as long as he was not a fool. In addition to the Oriental Research Institute and Aikang, ibm is not very interested in the most profitable Oriental game company, but is more interested in the Oriental software company.

The role of a series of software developed by Dongfang Software Company on the sales of a series of computers is clear to anyone in the industry. In another time and space, the total market value of Microsoft at its peak exceeded 600 billion US dollars. Even after the burst of the Internet bubble, it is still a giant company with a market value of more than 3,500.

According to the current development momentum, Orient Software is likely to dominate the PC operating system market like Microsoft. Moreover, Li Xuan's ambitions for the enterprise-level operating system market and database software market are also not small. If everything develops smoothly according to the steps he designed, then the future value of Dongfang Software Company will be more terrifying than Microsoft in another time and space.

But the premise of all this is that Eastern Software Company can really grow up. Li Xuan is not afraid of market competition. With the Dongfeng of the series of computers, Dongfang Software has already surpassed the cp/m system in the prestige of the operating system software. A large number of third-party software companies have started to apply for the relevant technical information of the east-system from Eastern Software Company, and develop various application software on the east-system.

What Li Xuan is really worried about is some competitive factors outside the market, such as Dongfang Software's status as a foreign company, and the possible antitrust investigation by the US Department of Justice. Later generations in government software procurement have always had doubts about Microsoft due to the consideration of information security.

The obsessive paranoia of the US government is by no means smaller than that of China, not to mention that in addition to the White House, the US has a more difficult parliament. As long as a competitor randomly lobby a few congressmen to initiate a proposal, and then the media follows up and stirs it up, it may become a hot issue concerning the security of the entire United States. In later generations, domestic companies such as Huawei and ZTE have suffered such losses when they entered the US market.

Therefore, Li Xuan has long planned to let Dongfang Software Company go public in the United States, and may even move the first headquarters of Dongfang Software Company to Silicon Valley in the future. But this is not enough. If there are giants like ibm among the major shareholders of Dongfang Software, its ability to resist wind and waves will undoubtedly be much higher immediately.

Therefore, although the current Dongfang Software Company has not really shown its value, it is actually a loss to give up the shares prematurely, but Li Xuan still agrees to IBM's request for a shareholding. Of course, even if it is a cheap sale~www.wuxiaspot.com~ Li Xuan must sell at a good price.

A 10 percent stake is asking $200 million, a 20 percent stake is $500 million, and a 25 percent stake is $650 million. This is Li Xuan's offer to IBM. The higher the stake, the higher the premium. Of course, the maximum share that Li Xuan allows the other party to invest in is only 25%. The real power of Dongfang Software Company must be firmly in his own hands.

But for ibm, too little stake doesn't make any sense at all. At present, there are 5 seats on the board of directors of Oriental Software Company, and at least 20% of the shares are held. Only then will Li Xuan agree to ibm to obtain a board seat.

The valuation given by ibm to Oriental Software is only 1 billion US dollars. Their initial plan was to acquire 25% of the equity of Oriental Software in the form of stock exchange. IBM and Dongfang Software are not companies of the same order at all, and it is impossible for Li Xuan to exchange enough shares in IBM to give him a voice in IBM. So he directly rejected the other party's share swap plan.

After that, ibm proposed that it was willing to use 250 million US dollars in cash to acquire a 25% stake in Dongfang Software. This price is very different from the $650 million price quoted by Li Xuan, so the two sides have been negotiating and wrangling since the beginning of the year. (To be continued..)

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