Extraordinary Genius

Feng Yu was looking at Ice City Machinery Manufacturing Group's financial statements, and Liu called.

“Old Liu, what is it?” Feng Yu asked casually.

At this time, the call must have been about Lenovo Group or Lenovo Silver Mountain. If it was about other subsidiaries, Liu Xianzhi and Zongqing could basically decide.

“President Feng, do you remember when I said I wanted to acquire IBM's PC business? ”

“Remember when they refused to sell? We're all going to pay with cash and stock, but the other party still doesn't agree. Why, do you still want to buy it? ”

With the acquisition of IBM, some good technology, brands such as THINK, along with sales channels and factories, Lenovo Group will soon be the world's top PC producer, earlier than in previous generations.

But the downside is that IBM doesn't have much profit or even a lot of debt in its PC business at this time. And even before the Group acquires, it will certainly take the opportunity to list some of its debts in the PC business to reduce IBM's overall debt ratio.

The focus of IBM's work has shifted from hardware to software. Their PC department sells them, but not the overall hardware. They'll go from PC production to design. This reduces a lot of costs, and you don't have to worry too much about the impact of lower PC prices on them.

At this point, the average PC sells the highest price is IBM and Fruit. Once the PC price drops again, it will severely affect their profits and possibly even lose money.

“President Feng, I really wanted to buy it, and this time they contacted me on their own initiative, which sounded sincere. And the initiative is in our hands, and it shouldn't hurt to talk about it. ”

Legendary Liu has always been very enthusiastic about IBM's PC business, and now the opportunity is in front of him, making it very difficult for him to give up. In his days, IBM was the leader of the world PC industry, or the leader of the entire IT industry.

It would be a great honor to acquire IBM, even if it was just a business.

Feng Yu cautioned, "Old Liu, have you always thought of IBM as the boss of the world PC industry? Imagine if we acquired their business, as if we had risen up and had a sense of ownership? ”

“Liu, it's not that you can't buy IBM's PC business, but let me remind you that IBM's PC business is not the boss anymore, even now they're not as good as we are. Their designs are old, guarding some patents, neither authorizing them to go out and make money, nor using them to stop other manufacturers. ”

“Their PC business is going downhill, you have to see that. Don't think IBM has a lot of orders at the moment, we'll make money once we take over. Think about it, many of IBM's orders are group orders from the U.S. Axe and big corporations. Do you recall that when we even wanted to make our own computers, our political axe purchased IBM computers? ”

“Isn't it impossible to have a backdoor program on your computer that monitors and steals information? Why does our country have to come up with a recap, not just for computer security? Wouldn't the US consider that? When IBM's PC business comes into our hands, do you think those axes will continue to place orders with us? ”

“When we acquire it, the order will shrink dramatically. And IBM's product design philosophy, unlike our Lenovo Group design, is that they focus on office and we focus on entertainment. Although they have been acquired to fill the technology gap in our office computers, how big can they be? ”

“The best value for money is buying the technology we love in IBM. As for their factories, we don't need them, their sales channels, we don't need them now, their brands, and we don't need them anymore. There are certain advantages to running multiple brands at the same time, but there are also certain disadvantages. ”

“Remember what I told you about sharing cars? They are just too many brands, too dispersed, resulting in their lack of focus and insufficient linkages between brands, so sales and profits are falling, and island companies and European companies are taking over the market. ”

“It's enough that we now differentiate product performance by series, targeting different user groups separately. Just buy new technology, upgrade our products, and launch a new collection, there's no need to run more brands at all, especially since IBM won't sell the whole brand to us, at most it's just licensed to use. ”

“We sell our products and help them promote the brand, so we don't even think of it as a surrogate? And IBM is no longer the IBM of the year, and although we haven't surpassed them in terms of assets, we haven't been less than them in terms of influence. ”

“And with this PC business dragging them, we can catch up and outrun them faster! So my suggestion is that instead of buying IBM's PC business, you can buy some of their patented technology. If you have to buy, then I do not agree to give IBM Lenovo Group's shares, and I think we have a greater appreciation potential. ”

After Feng Yu said this, Liu Zhizhi stunned for half a day. Yeah, why would he have to buy IBM's PC business? Is there a dream in there that was sneaking around? But what about IBM's PC business?

Some of the advanced technologies of IBM at heart can be purchased, or taken back, or licensed, which is a lot better than buying them as a whole.

We thought IBM still had a huge market in the US, but if we wanted to acquire it, it was really possible, as Feng Yu said, that the orders of Axe and the big companies were gone.

As for IBM's factory, it doesn't even look like it. Old factories have low production capacity, not to mention workers' salaries. Even if a factory had been built in Brazil, the Americas would be supplied entirely by the Brazilian factory.

That is, in IBM's view, a valuable PC business unit is of little use to Lenovo Group. If the acquisition comes, it's not very good value for money to distract Lenovo Group.

Liu Xianzhi understood at this moment that IBM was not selling at that time and felt that the profit was good. And now that you want to sell it, it has to be that the profit is not enough, and you might even lose it.

IBM is not an all-encompassing thought, it's a load to throw away, or a heavy load.

With all this in mind, Legend Liu told Feng Yu that he knew how to respond to IBM.

IBM's PC Business Leader receives a call from Liu Xianzhi with a smile on his mouth. After selling his PC business, he would be in charge of the server, and thanks to that, he might be able to raise his salary.

But when it came from the phone, it changed his face a lot.

“Miller, we think the group has decided to abandon the idea of acquiring IBM's PC business. ”

You don't even want to buy it?

……