Extraordinary Genius

“Von, there's a semiconductor company in the UK, and my team says it's good, and I'm going to buy it. ”

Semiconductor company?

“Oh? What is the company, what is the main product, what is the sale price?” Feng Yu asked casually.

Obviously, Ki was hesitating to ask his opinion. Feng Yu's opinion was generally that he had heard of a very good company in his previous life, so he advised Ki Brother to acquire it. If he had not heard of it in his previous life, then he would naturally not recommend acquiring it unless the price was very low.

“is a company that designs electronic semiconductor microprocessors called Advanced Streamlined Instruction Set Processors, or ARMs. ”

At first, Feng Yu looked like he didn't care, but when he heard the abbreviation ARM, he sat up straight.

What, this company? This company is British?

Simply put, the core of the tablets and smartphones of previous generations, 95 percent, all use ARM architecture, embedded controls, multimedia digital and so on, they also have a dominant position.

They have designed a large number of cost-effective, low-energy processors, the most relevant patented technologies such as owners, and even software.

This is a company with very high technology and potential that Feng Yu never remembered.

However, there are no real tablets yet. Smartphones sell far less than functional machines, and there is competition from other semiconductor companies in terms of embedded controls, multimedia digits, etc. But even so, the cell phone core of their technology is huge.

But the most interesting thing about this company is that they don't make processors at all, and they only do technology licensing to make profits from patent fees.

“The company has a complex stake, with shares in several of the world's top semiconductor companies, but their major shareholder is Acorn Computer, which has the UK status of a fruit company in the US. ”

“Fruit companies, supermassive integrated circuit companies, industrial technology companies, Texas Instruments, Qualcomm, etc. all have shares therein, none of which are controlling parties. ”

“Listed in London and Nasdaq, the company currently has a market value of around £2.6 billion and annual profits of less than £200 million. My team contacted the acorn computer, and they agreed to sell it to us, but asked us for a premium of 30 percent. ”

“Companies such as Texas Instruments, which demand a premium of 33 percent, and even fruit companies, intend to acquire it, but the price given by fruit companies is almost flat, so it was rejected directly. ”

“Von, you say 30% premium, is that a good deal? The profit is too low, 200 million pounds a year. But my team told me that I could make my own processor core and sell money, like Intel and Super Wei, I'm sure I could make money. ”

When Kirilenko saw Feng Yu acquire the semiconductor companies and so on, the premium was not low, and ultimately, Feng Yu made a rich profit.

But when Feng Yu acquired those companies, most of them were unlisted companies. The market value of this listed company is obviously high.

Feng himself said that in two years, the stock price of many listed companies will dive again, and next year is the peak market value of many companies. Would there be a loss if I bought it at this time?

“Brother Ki, my advice is to become a major shareholder in this company, but not to expel all other companies, to maintain cooperation and to facilitate the technical authorization of the company. I can make sure that you have complete control of the company by allowing companies like Superway to acquire a few shares as well. ”

This is ARM, not only is the current phone processor starting to explode, but also the STB, future smart TV, tablet and many other products, ARM is the absolute boss.

By patenting technology alone, they can already be guaranteed a lot of profits. Like Ericsson, it was the top mobile phone manufacturer, but now slowly, it's slowly falling out of production, isn't it?

Ericsson specializes in communications technology research and development in the future, and then with patent licensing, it can make a lot of profits, and it's even more secure, and the risk is extremely low.

“Feng, why don't you just be the controlling shareholder?” Kirilenko is somewhat dissatisfied, even if he can't be a sole proprietor, it should be a takeover to become a controlling shareholder, right?

The power to hold more than two-thirds of the shares and more than fifty percent of the shares is completely different.

“Brother Ki, you need to know that ARM's business model is completely different from that of Intel, Super Wei, etc. He doesn't produce the processor himself, he just does the core design, he makes money from patent licensing. ”

“How can more companies be authorized? That can't be boycotted by other companies, so ARM needs more allies. ”

“That way your patents can be licensed to more businesses and adopted by more. The more companies buy patent licenses for ARM, the higher the profit. ”

“And the cost of running this company is going to be very low, and I guess it's less than 2,000 employees now? Think about it, Intel. How many employees? ”

“One of the great advantages of a small number of people is that they are very risk-resistant, whether it's the price of materials or any other risk factor, as long as people still use electronic products such as cell phones, your patents won't be profitable. ”

“And this profitability is still a rising trend, and the more patents you have, the more profits you can make, or is it long running water, not a hammer deal. ”

“My share offer is to help you have the same say in absolute control, and if you're not satisfied, these shares can be transferred to you at a fair price in two years. ”

Kirilenko immediately said, "Feng, what do you mean? So many of the good projects you've discovered, you've invested with me. How can I object if you want to invest in this company together? Now that you say it's more reasonable, I'm sure I believe you. ”

“So, I'll talk to the acorn computer, and then we'll buy some of the equity in the other companies. Finally, companies such as Superway can be invested directly in equities, thus expanding our camp. ”

“Feng, if Shimakuni and other companies come to buy our patented technology, will they sell it? ”

“Sell it, why not!” Feng Yu said immediately, "Anyway, we are authorized, not a one-off sale. In the future, they will follow our architectural standards to produce products like processors, and whether they make money or not, we can make money. ”

“And in this way, they will slowly rely on our product architecture, thus losing their ability to develop independently, so that their lifeblood is in our hands. ”

“Brother Ki, the market value of this company could double in a few years. Buy it now, absolutely no loss! ”

……