Video Game Empire

In 1983, Li Xuan spent nearly $5 billion in cash to complete the acquisition of ra. This shocking acquisition case has long been written into the ba course of Harvard University as a classic case.

Don't look at the total assets of RA company at the beginning. It is far inferior to the Oriental Group, but as a century-old store, it has a heritage far beyond what a nouveau riche like the Oriental Group can match. Just the transfer of ra's TV production capacity has made the deep-sea special zone the largest electronics industry base in China.

The accumulation of ra company in the fields of liquid crystal and other technologies has laid a good foundation for the Oriental Group to catch up with Japanese enterprises in the fields of liquid crystal and digital in recent years. And ra company is like Doraemon, it has far more good things in its pocket.

ra company also has strong strength in the field of satellite technology, and has always been an important contractor of the US Department of Defense and Space Agency. The current SUSTech President, Professor Zhao Weiming, and other members of the team developed a microprocessor called ra1802 when he was working in ra company.

This 8-bit ra1802 processor is not only the originator of the rs (reduced instruction set) architecture, but also the world's first chip that can meet the harsh environment of high radiation in outer space. This ra∮dǐng∮ǎn∮小∮ said that the .2⊙3.◆o1802 chip was later used as the main chip on the Voyager 1 space probe launched by NASA in 1977.

However, in order to persuade the U.S. authorities to agree to its merger and acquisition plan, Orient Group offered to divest all sensitive businesses of ra. Therefore, RA's aerospace division was sold to Hughes a few years ago. But ra is selling most of its aerospace business at the same time. The commercial communication satellite R&D department is deliberately reserved.

ra is the first company in the world to develop dual-band communication satellites and the first to use all-solid-state communication satellites. The first communication satellite sa-1 developed by ra company. It was successfully launched into space and began commercial operations as early as 1975. After the Oriental Group completed the acquisition of ra, the company's global communications department. Has a global satellite communications network consisting of 7 satellites.

In the transaction between RA and Hughes, Li Xuan did not need cash, but directly replaced Hughes' communications satellite business with RA's aerospace department. After the completion of the transaction, the newly established Dongfang Satellite Communication Company has suddenly increased to 12 communication satellites, and is already one of the largest satellite communication service providers in the world.

The purpose of Li Xuan's flight to the United States this time is that it has a lot to do with Dongfang Satellite Communications Company. Under Bush's strong push, the "Information Superhighway Act" is progressing rapidly and is likely to be approved by Congress within the next year or two.

And Bush Sr. is the biggest favorite for the next US president. This has excited the industry across the United States. Even Silicon Valley, the traditional voting base of the Democratic Party, seems to have recently turned from blue to red. A lot of money from the tech industry began to flow into Bush Sr.'s campaign fundraising account.

If the "Information Superhighway" bill can be successfully approved by the US Congress, and at the same time Bush Sr. who promoted this bill can successfully enter the White House, then the development wave of the US information technology industry is bound to be unstoppable. The premise of realizing the grand plan of the information superhighway is the construction and upgrading of large-scale basic communication facilities.

The Eastern Group started negotiations with the nation's second-largest telecom operator, Communications Company, as early as last year. The telecommunications field in the United States has been monopolized by Bell for a long time, especially the long-distance telephone charges in the United States, which can be said to be not determined by the market. Rather, it was negotiated between Bell and the Federal Communications Commission (FCC).

Under such circumstances, the U.S. government finally resorted to the anti-monopoly magic weapon against Bell. Through a long lawsuit, the US government finally won the antitrust lawsuit in 1984 and successfully split the Bell company! This gives other small companies more room to grow. After several years of rapid expansion, it has grown into the second largest long-distance telephone operator in the United States after Bell.

In order to compete with Bell, it was established in cooperation with Lockheed as early as 1971. A new company called Satellite Corporation. Because satellites are used for long-distance signal transmission, a lot of cable laying costs can be saved. The Bell company is as early as 1962. It has already begun to use communication satellites for long-distance signal transmission.

It's just that building a satellite communication network also requires a lot of money. Under the suppression of Bell, the giant in the industry. Survival is very stressful. In order to raise the funds needed for its own expansion, it finally transferred all the equity in the satellite company to company b for $400 million.

But the company's pursuit of owning its own satellite communications network has never stopped, and Dongfang Satellite Communications is clearly an excellent acquisition target. Similarly, for Li Xuan, the company is also a piece of fat that he covets. Because he is very aware that the future users of mobile phones and computers will far exceed the current landline users, and this is a very large market in the field of telecommunications.

But the U.S. telecommunications sector is not a completely free and competitive market, and many aspects are restricted by the Federal Communications Commission (FCC). Therefore, the best way for Li Xuan to gain a share in this field is to control an existing telecommunications company, rather than start a new one.

The most ideal partner in Li Xuan's mind is naturally Bell. This company fell into decline after experiencing the glory of the 1990s, but it was still the largest telecom operator in the United States until Li Xuan left the United States. But the current Bell company is far from what Li Xuan can eat. In contrast, a much smaller company is a better choice.

In the 1990s, it once developed into the second largest telecommunications company in the United States, but it was later acquired by WorldCom, and then declined with WorldCom's fraud. But now it is a thriving and rapidly growing Chaoyang company.

It was the first company in the United States to deploy single-mode fiber optic cables, having built the Mid-Atlantic fiber optic system linking New York and Washington as early as 1984. Optical fiber is the mainstream of the next information transmission, which shows that the company's management is still very keen.

Since the two sides were in love with each other and wanted something from each other, the Oriental Group quickly and the management started to negotiate mergers and acquisitions. The term "information superhighway" is definitely one of the most popular tech words of the year. Because of the "Information Superhighway" Act, the field of communications is also rapidly becoming a new hot spot for capital. Therefore, under this favorable background, the company's negotiating attitude has gradually become tougher.

But the previous stock market crash helped Li Xuan a lot, and the company's stock price plummeted by more than 33% in two days. In the case of a sharp drop in the stock price, the company must also release some good news to stabilize the sentiment of investors~www.wuxiaspot.com~ Most listed companies have adopted the plan of repurchasing shares, but the company has taken advantage of its main competitors in recent years. Bell, with its chances of being crippled by a forced split, is doing all it can to expand, so it simply doesn't have enough cash to buy back its stock.

Under such circumstances, it is undoubtedly an excellent choice to complete an M&A that is beneficial to the future development of the company. So after the company's attitude softened, the two sides quickly reached a final agreement.

Li Xuan exchanged all the assets of Dongfang Satellite Communication Co., Ltd. and $350 million in cash in exchange for a 25% stake in the company. Before adding, taking advantage of the opportunity of the company's stock price plummeting, Li Xuan took the opportunity to inhale a large amount of stock.

Therefore, after completing the asset replacement, Li Xuan's actual shareholding in the company has reached 27.5%, making him the largest shareholder. The equity of US-listed companies is generally dispersed, and the same is true for companies. When the company's founders were first established, in order to raise enough development funds, they sold a large amount of equity to venture capital firms.

With the continuous allocation of new shares to raise funds after the listing, the equity of the company is further dispersed. Therefore, Li Xuan, who holds 27.5% of the shares, actually has the qualifications to propose re-election to the board of directors as a controlling shareholder! (To be continued.)