Hollywood Hunter

Chapter 806 Scooper Tax

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In San Francisco, Scooper’s headquarters is not around the popular Stanford University, but Milpitas on the other side of the bay, bordering northwest San Jose, is already considered a suburb of Silicon Valley.

Geographical location seems to imply the embarrassing situation of this semiconductor company.

Scooper was established in 1988. It is self-positioned as a semiconductor company. It should be more accurate. It should be a semiconductor design company. Such a start-up company is obviously impossible to have its own new film production capacity. It can only be owned by its early investor Texas Instruments. OEM products.

In the early days of its founding, Scobo's development direction was image decoding chips. It was not until 1991 that the first video decoding chip was launched.

However, although the technology is very novel, Scooper has not been able to find an accurate application direction for its products. Over the years, Scooper has tried to apply its own chips to TVs, game consoles, printers, etc. success.

Even if it was the VCD launched by Wan Yan two years ago, it did not let Scotiaber see too bright dawn. The sales volume of less than 20,000 units of VCD in China in the past year also proves this. It is in the open-minded Silicon Valley. The management of Gaobo can see that VCD is really not competitive with DVD.

Last year’s IPO was Scooper’s last blow. In addition, Sequoia Capital and several other investors have spent money for so many years and want to take advantage of the wave of new technology to make money, otherwise the past few years Large shareholders will not quietly cash out more than 10% of the stock, and continue to sell when the stock suddenly surged recently, which eventually led to Chen Qing’s team absorbing up to 21% of the company’s stocks in the short term.

According to the ideas of Scooper's board of directors and management, after the funds raised by the IPO are spent, if the company has not yet found its own precise positioning, then basically there will be nothing later.

There are too many failure cases like Silicon Valley, and it's not too disappointing.

All of this until a sudden showdown by an oriental girl.

Only the capital background of the Westeros system has made Sequoia Capital and other major shareholders make a majority of their cooperation decisions. The Chen Qing team’s plan to start the VCD industry in China and once it is rejected The threat of funds and programs to cooperate with other manufacturers makes them completely compromised.

After all, even if the rapid growth of China's VCD shipments in the first quarter is exciting, but after all, with the big mountain of DVDs, no one can guarantee that once manufacturers such as Sony officially launch DVD players, will VCD be in a blink of an eye? Was eliminated.

Moreover, in the final decision, the two major shareholders of Scooper, Sequoia Capital and Texas Instruments, have their own considerations.

Sequoia Capital is a venture capital company. Although it does not mind holding a company’s stock for a long time, according to the operating rules of the venture capital, timely cash out for investors to achieve stable income and develop the next batch of business is their primary task. This is why Sequoia Capital was an early investor in many technology giants such as Apple and Oracle, but later it was not among the major shareholders of these companies.

As a venture capital company, the most important thing is to control risk, because their investment goals are not only successful cases such as Apple and Oracle, but also a large number of failed investments that eventually hit the water. The reason why Sequoia Capital has always been popular The key is that it has successfully cashed out and exited before many investment companies went bankrupt.

This may make them miss some super dark horses that ultimately return hundreds of times to thousands of times, but in fact also avoid more bloodlessness.

As for Texas Instruments, affected by the rapid development of the mobile communications industry and the wave of new technologies, Texas Instruments' revenue in the past fiscal year exceeded 13 billion US dollars, and its current market value is as high as more than 20 billion US dollars.Therefore, this true world-class semiconductor giant would not care too much about a small company such as Scopper, whose annual revenue has just exceeded $20 million.

Moreover, the Chen Qing team also used other contacts in the Westeros system to lobby the seniors of Texas Instruments. In fact, it was just a phone call.You should know that Texas Instruments is the main supplier of Nokia mobile phone baseband chips. With Nokia becoming the world's largest mobile phone manufacturer, this customer is of great importance to Texas Instruments.

Things were finally settled.

Only half of the remaining 33% of the shares in the hands of the transfer, Sequoia Capital has recovered all the previous investment in Scotiaber and achieved a considerable profit. The remaining half of the shares is enough for Sequoia Capital to enjoy the Chen Qing team’s plan once it succeeds After the generous dividend.

While Texas Instruments cashed in profits, it also made its own demands.

All future chip orders for Scobel must be exclusively contracted by Texas Instruments Semiconductor Factory.

Since TSMC established the foundry model and become more and more successful, many veteran semiconductor manufacturers have discovered business opportunities and also opened up related businesses, and are paying more and more attention to the rapid expansion of the foundry market.

Scooper's current order is optional for Texas Instruments.

However, if the Chen Qing team's plan can really succeed, only the chip manufacturing orders of Scooper will be a very substantial income.

The two major shareholders agree that, together with the 21% shares already held by Chen Qing's team, the other shareholders and the Scotsberg management will have no room for resistance.

The final plan was approved by Simon. At nine o'clock in the morning, the Chen Qing team and all shareholder representatives formally signed an equity transfer agreement at the Scorpion headquarters in Milpitas, as well as a new personnel appointment.

Chen Qing was smart enough not to take over the company in person, but to let Emmanuel Brandt, a team member who had just been recruited some time ago, succeed Don Valentin as chairman of Scopper, clearly controlling Overall, at the same time, Bill Omera, the CEO of Scoba, who is responsible for the specific operation of the enterprise, has not been replaced.

After finalizing the contract, the parties held a small press conference together in the two-story office building of Scobb, and then the relevant news release appeared on the Igrid portal for the first time.

Scooper's recent stock price surge has attracted the attention of many people.

With the announcement of the news, the capital market quickly reacted, and another'Westero concept stock' was born.

The capital market has never lacked a blind side.

Although the public manuscript only revealed little information about Scooper’s follow-up business plan, the core of the main rendering is also just a gimmick of the “Westeros concept stock”, and, with the close of Scooper on Friday 'S market value has exceeded $200 million, and the company's price-earnings ratio is close to a bubble level of 80 times, but many investors can't help but start subconsciously buying.

Today, April 24, Monday.

The Igreat Portal’s draft is published around 10 am West Coast time, and the East Coast is at 1 pm, three hours before the close.

However, in these three hours, as a new technology company that has previously attracted market attention and was disclosed as a new'Westero concept stock', Scotsberg's otherwise flat stock price has directly walked out of a fairly steep The rising curve of North America's stock market closed at 4 o'clock in the afternoon, and the share price of Scooper's stock rose 43% in a single day. Compared with the market value of $206 million at the opening of the morning, the closing market value has reached as high as $293 million.

It can be said that basically just three hours before the close, the book profit of Scotia stockholders' stocks is as high as 97 million US dollars.

No matter whether it is the original shareholder or the management of Scooper, in the face of the crazy response of the market, there is nothing to say.

Not counting the US$20 million 5-year loan received from Citibank through the Westeros system relationship. Chen Qing’s team invested approximately US$94 million in total and obtained 53% of Scotch.When the East Coast stock market closed on Monday, the total book value of these shares also reached 156 million US dollars.

After three weeks of busyness, the book profit was $62 million.

This is why the financial industry will become the pillar industry in the United States, and why so many elites in the world are rushing to Wall Street.

After completing a series of handovers, Chen Qing was not immersed in the success he had just achieved.

The girl understood that everything had just begun.

After the representatives of several other shareholders left, Chen Qing immediately summoned the management of Scopper and began a meeting that lasted for a day. The members of the Chen Qing team who did not participate in the meeting were not idle, and began to review the company's financial files and technology Documents and employee resumes for further detailed review.

Even, a job information that has been prepared in advance involving various technical positions is also directly posted on the 58list platform of Igreat this morning.

Because the detailed plan has already been finalized.

Next, Scooper will immediately stop all other non-core businesses, and will not renew the contract after the original order is completed.While continuing to increase the research and development of video decoding chips used in VCD, Scotiaber will also start the development of a full set of VCD technical solutions. Further upgrade based on the technology.

Chen Qing's team insisted on acquiring Scotiaber instead of cooperating with other manufacturers to develop another VCD video decoding chip at a lower cost. This is the key.

In the end is still fighting for time.

If the product developed by Wan Yan is regarded as VCD-1.0, the team of Chen Qing intends to develop a whole new set of VCD-2.0 standard on the technology of VCD-1.0 within one year.

This is also the plan that Simon gave the Chen Qing team according to the idea of ​​the super VCD in memory.

The capacity of the VCD disc is dead, and it is destined not to surpass the DVD.

However, compared to Wanyan's first-generation product, the VCD player itself has much room for improvement.

Taking advantage of the year before the outbreak of China's VCD industry, Scooper thoroughly threw away other potential competitors by accumulating technologies and patents that were deployed in advance.At that time, even the old electronic giants with deeper technical background such as Sony and Philips can only lag behind step by step.

There is no possibility of catching up in the short term due to the differences in product technology between generations.

As for the longer term.

The golden age of VCD is only about 5 years.

Simon is also very happy that Sony and other manufacturers have invested a lot of manpower and resources to do this kind of result, which is destined to be an empty vain pursuit.

All in all, Scotiaber will use the next year to transform from a pure semiconductor design company at this stage into a comprehensive product technology supplier that provides VCD core components and a full set of solutions for downstream manufacturers, and it will inevitably It is a monopoly supplier with all-round advantages in technology and cost.

At that time, Chinese VCD companies only need to purchase a full set of core components and solutions from Scooper, and they can easily assemble the products and put them on the market.

As far as Scooper is concerned, as long as the product pricing is well controlled, but excessively squeezing downstream manufacturers leads other competitors to take advantage of it, then China's VCD market will be largely dominated by Scooper.

This is completely different from the fierce competition in the DVD field.

Because of the great success of the video tape industry, all major electronics manufacturers in the East and West have seen the broad market prospects contained in DVDs. Therefore, they have spared no effort to invest in research and development over the years. Due to the large number of manufacturers involved, the relevant technical standards are very confusing, and the patent distribution is also Quite scattered, no one has a full set of technical strength, and no one is willing to make compromises easily.If it weren't for these disputes, mature DVD players could be launched before 1995, instead of barely reaching technical standards until now, and really launching products and even popularizing them, at least waiting three to five years.

In comparison, VCD and DVD are actually equivalent to open source Linux and closed source Windows.

Because Wan Yan failed to apply for a complete VCD technology patent, the current VCD is equivalent to a free open source software that many manufacturers can plug in.Although it is not as advanced as a closed-source DVD, the patent restrictions are much smaller. As long as you are willing to do it, relevant manufacturers can develop and promote products at the lowest cost.

Moreover, open source does not mean that it cannot be monopolized.

Just like Google's Android system in Simon's memory, although it is based on the free and open source Linux system, it is still owned by Google. Other people want to use it, and they must obtain Google's consent.Not only that, after Google developed an increasingly mature Android based on Linux, it became very difficult for other competitors to make similar products.

Because the technology gap is too far, and the market has been occupied by Android.

Now, it is this kind of goal that Scobel has to achieve.

In Simon's view, this aspect is somewhat similar to the 2G and 3G standards for mobile communications at this stage.

With the popularization of digital communication technology, at present, major global communication manufacturers are fiercely competing for various patents of 2G technology, but they do not know that a company named Qualcomm has built an indestructible technology on the 3G standard. barrier.

Qualcomm's 3G is certainly not impossible to bypass.

However, until the industry upgrades, there is already such a set of extremely mature technical standards. Regardless of whether they are to save costs or fight for time, related companies can only use Qualcomm technology.

Thus, there is a Qualcomm tax.

If some companies do not believe in evil, they have to develop a set of standards to bypass Qualcomm, and do not say whether they will succeed in the end. Even if they are really successful, they may not be popularized. Other companies that have already taken advantage of the 3G field have already Running for the next generation of 4G.If you want to find another way, the result can only be eliminated.

Qualcomm walked ahead of everyone and built its own toll station on the road that other companies must pass, blocking the road to collect money.Scooper, however, quietly fell behind other people, circling mine veins that others could not have seen, and just digging.Of course, others can also go back and dig, and then found that the relatively richest mineral veins have been occupied by people, and they can only take a little bit of cold soup.

Qualcomm authorized its own 3G standard to everyone, and then charged Qualcomm tax.

You can also sell chips by the way.

Scotiaber will license its VCD solution to the VCD manufacturer in the future, and it may be called Scotber Tax.

It can also sell core components.

If they are the same, they will go the same way.

In the final analysis, in the business field, the core routines are actually just a few.Even if there are innovations, they will never change.As long as you see through and work hard to implement, perhaps adding some luck, there will be an excellent businessman in this world.