Chapter 795: 799

This year's Lunar New Year is January 31. Chen Qing and her two daughters didn't return to North America until the end of February. Instead of being lazy, they have been busy. They are responsible for several projects. The most important thing is the newly established Bubugao. However, in this process, Chen Qing found another big business opportunity. It is mainly the inspiration of Bubugao team in the process of researching and analyzing VCD.

Here I have to talk about the origin of VCD.

In 1992, the founder of China Anhui Wanyan group participated in a technology Expo. Inspired by the video decoding chip products displayed by scupper company, an American video decoding chip manufacturer, he came up with the idea of developing VCD.

Wanyan group was subsequently established.

In September 1993, after burning a huge sum of 140 million yuan, Wanyan group successfully completed its first VCD product and launched it to the market in 1994. It should have been the first player product with independent intellectual property rights in China. However, for various reasons, a series of core patents of VCD have been snapped up by major overseas manufacturers, and machine patents have become open technical standards because of missing the application opportunity.

This is a great pity.

For the downstream manufacturers of the industrial chain, the loss of patents is equivalent to the loss of the right to speak, and they can only be slaughtered in the procurement of components and other aspects.

Midtown Manhattan, Rockefeller Center.

Simon is located in the office of the headquarters of westero company. Chen Qing is introducing her idea: "I have contacted scupper company, but I have not been able to get specific information. However, with the help of Miss C in Silicon Valley, I have roughly confirmed that the current production cost of the latest video decoder chip developed by scopper based on the MP4 video format launched by westero company is no more than $10. However, the price scopper sells to downstream manufacturers, even Wanyan group, which has a close cooperation, is $80 per chip, with a gross profit of $20 Up to 700%. The gross profit of other core components such as laser reading head and system control chip is several times of the production cost. In comparison, Wanyan group's VCD products, which are currently sold at US $500, only have a manufacturing cost of more than US $350 and a gross profit margin of only 40%. Therefore, if China's VCD industry can really break out as we predicted, I think controlling the upstream component manufacturers is the best investment. In this way, we can even lead the whole China's VCD industry and maximize the benefits. "

Simon listened to Chen Qing finish, nodded slightly, did not immediately open his mouth, but looked at the opposite sofa drooping head and brow, seems to be very focused on reading the knee file Lin su.

Noticing that the surrounding area was quiet, Lin Su raised her head and just looked at Simon. Her eyes flickered slightly and soon turned into doubts.

Simon looked at the woman's delicate pretty face and suddenly asked, "does it feel like being in the enemy camp?"

Lin Su's eyes flashed again, not denying, but not affirming.

Simon changed a more relaxed posture and leaned back on the sofa in the reception area. He continued to say in Chinese: "this is actually very normal. It shows that you have a correct outlook on life after growing up under the red flag for so many years. However, you should also remember that you owe nothing to others or to your own country. I heard that you donated most of your salary one year in advance when you went back this time. Hope project is a very good project. So, you've done well enough. Now, you are mine, and all you have to do is remain absolutely loyal to me. "

Lin Su finally said, "I'm not yours. I'm just working for you."

Simon didn't mean to argue with women at all. Instead, he said: "Chen Qing's idea is very good. For this matter, we only need to consider it from a purely commercial perspective. Everyone is within the rules and there is nothing to blame. Moreover, I always believe that the sympathy and compassion of others can never make a person really strong. Only constant attacks and setbacks can make this happen. The same is true for a country. I believe that after this incident, the Chinese side will certainly reflect on it and learn from it. This is a bumpy experience that many countries will inevitably encounter in the process of development. "

Lin Su pause, want to retort, after all, just slightly nodded.

Simon smiles and says, "but I still remember Hegel once said that the only lesson history has taught us is that we never learn from it. So I believe there will be a second, a third and even a fourth time for this kind of thing. "

Lin Su's mood just dropped a little. When Simon said that, he suddenly realized that some guy had started to tease himself again. He could only stare at him with no lethality.

Simon praised: "you look good when you're angry, beautiful woman. It's God's favorite."

Lin Su simply lowered his head again.

Simon didn't mind, but he said, "in fact, just like this donation, I think it's a very commendable thing. So keep it up. Also, work hard for me, so that you can get more and have more capital to give back to your motherland. "

Lin Su still hung his head and waited for a moment to confirm that someone was not teasing himself this time. Then he whispered, "thank you."Attention turned back to Chen Qing: "well, we two villains continue. I have seen the plan you submitted. I agree with you very much about the acquisition of scupper. However, the plan of establishing a leading core component industry chain in the VCD Market is not enough. It is true that China is unable to produce these core components at present. However, for European, American and Japanese electronics manufacturers, it is not difficult to develop VCD core components. We can not monopolize them at all. "

Chen Qing shook her head and said: "time, boss, this is our biggest advantage. Just like video decoder chip, scupper has developed a very mature MP4 format video decoder chip. Due to the neglect of VCD products, other manufacturers have not invested too much energy in this field. Even if a giant in the electronics industry like Sony wants to catch up with scupper, it will take at least a year. In this year's time, scupper will not stop, there will be more advanced products

"But you seem to have overlooked one thing," Simon said. "The DVD standard has taken shape. VCD is only an alternative product developed on the basis of CD, with a fixed capacity of 4.7G and a capacity of 700m. No matter how hard VCD works, it can't surpass it, because it is a product separated by more than one generation. So, Chen, I have to remind you, and I also need you to remind them, VCD for us, is just making a fast money, up to five years, you must consider the transformation of things, otherwise it will only be replaced by DVD, or even completely eliminated. "

"I know that, boss," Chen Qing said without being hit. "In my opinion, DVD will eventually replace VCD, but it will take a long time for manufacturers to promote DVD because of content. During this period of time, we can accumulate enough technology to take a share in the larger DVD industry in the future."

"Huge, how big do you think it is?"

"At least it's not much worse than the VCR, because DVD has a significant cost advantage. Although the core patent has been controlled by Sony and other manufacturers, it does not mean that there is no chance for us. "

Simon looked at Chen Qing for a moment: "I have to say, your idea is very good."

Chen Qing expected: "the boss agreed?"

Simon shook his head: "I'm sorry, I still don't agree."

"Why?"

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"Do you often use the Internet now?"

"Yes."

Simon said: "if you go back and study it carefully, you will find that there are some downloading websites for pirated music and movies on the Internet. Chen, this is the trend. Whether it's genuine or pirated, it can only be the world of the Internet in the future. The globalization of the Internet will completely destroy the traditional player industry. If there is no Internet, I will definitely approve your plan and invest a lot. Now, it's impossible. "

"Boss, you just said that the capacity of DVD is 4.7G. For a movie of this specification, the image quality experience is absolutely incomparable with that of the Internet at this stage."

"It can't be compared at the present stage. In five years, it will be almost the same."

"But The west is not China, copyright protection is very strict, DVD's survival should be easy. In China, the Internet has just started, and DVD has at least ten years to live. "

"You obviously haven't seen through the openness of the Internet. Neither the east nor the west can stop it. Getting something for nothing is a kind of human nature, and no one can stop it." Simon said that, preventing Chen Qing from continuing to argue with herself, but said: "in a word, that's what happened. In my opinion, VCD or DVD will only be eliminated by the Internet. What's more, many of the core patents of the two have been controlled by Sony, Hitachi, Philips and other manufacturers. We have spent a lot of money to join them. After all, we have missed the most lucrative profit, and it is difficult to determine when this part of profit will disappear completely. Therefore, we are making a quick profit. "

Simon said so, Chen Qing understood that there was no room to turn around, so she had to say: "what the boss means is that we only buy one Scomber?"

Simon nodded: "I've read the company's information. It went public at the beginning of last year, and its revenue in fiscal year 1994 was only 21 million US dollars. Its market value is relatively high due to the impact of the new technology wave. At present, it's 120 million US dollars. Even if it's a malicious acquisition, I think it can win within 200 million US dollars. It's a very cost-effective business. As the only supplier of VCD video decoder chips at this stage, I'll wait until now China's VCD industry broke out and won US $200 million. In five years or so, we may be able to recover 10 times of the revenue, which is very cost-effective. "

Scupper, founded in 1988, is a peripheral enterprise incubated by Texas Instruments. It is similar to Intel and other small companies around IBM long ago. It is mainly engaged in the research and development of video decoding chips. Because the sales volume of VCDs in China last year was only tens of thousands, no one has realized the potential of this company.

This is the opportunity for the westero system.

Interestingly enough, in addition to Texas Instruments, scober is also a key investment project of Sequoia Capital. Sequoia Capital founder don valentine is also the chairman of the board.With the nature of the venture capital of Sequoia Capital, if the vistle system is launched, if the price is right, the other side will be happy to cash in. TI, as the most important baseband chip supplier of NOKIA, is not too concerned about the transfer of such a small bubble company.

Perhaps some people will have the idea that the enterprises that the westero system likes should hold in their hands. In a big deal, malicious acquisition is.

Hearing Simon say this, Chen Qing looks forward to it: "well, boss, can I do this?"

Simon nodded: "if it's something else, it can't be. If it is in accordance with your proposal to layout the entire player industry, I will certainly not give it to you. However, since it's just a small company like scupper, it's also related to the layout of China's VCD industry. It's nothing for you to do. This is also a test. Chen, once China's VCD industry starts to break out, as the only supplier of video decoding chips at this stage, you need to balance the supply allocation between China's step-by-step and other VCD manufacturers. If this thing is done well, we can control China's VCD industry to the greatest extent. If it is not done well, other manufacturers may be driven to the competitors. ”

Chen Qing nodded solemnly: "I understand, boss," then hesitated a little and asked, "boss, can we still have the share of Lin and me this time?"

Simon nodded with a smile: "it's still 5% for each of you. Your position is attached to Apollo management company, so you can launch this acquisition in the name of Apollo management company. However, you have to think clearly that according to the acquisition budget of $200 million, each of you will owe me $10 million."

Chen Qing blinked her eyes, a little more charming on her face: "boss, if we lose, we will compensate ourselves for you."

Lin Su, who had just been silent, glared at Chen Qing and finally said, "don't count me in."

Chen Qing is unwilling to show weakness ground stares past: "if you don't want, I take 10% good."

Lin Su opened his mouth and looked at Simon again. Seeing the man's disgusting expression, he didn't refuse.

At the end of the discussion, Simon closed the folder in his hand, relaxed and cocked his legs, and said with a smile, "OK, that's it. You go back to prepare first. Well, I'll send someone to pick you up for dinner in the evening."

After dinner Well.

Lin Su's face suddenly suffused with some unnatural blush, this hateful guy, do you have to be two people together every time?

Chen Qing is looking forward, but did not get up, but asked: "boss, China's official invitation to visit, you really do not think about it? I think it's another trip. It's April, and it's just the time of "apricot blossom and spring rain in Jiangnan."

Simon shook his head and said, "let's talk about it when we have time. I haven't been free recently."

is April 2nd today. Next, Simon will fly to Australia tomorrow, and stay there for less than a week. In April 6th, Osaka Universal Studios opened. In order to avoid the "vistlo effect", Simon did not plan to go to Japan, but she still had to pay attention to this matter.

In addition, on April 7, the first anniversary of the Rwanda massacre, because of last year's events, the U.S. officials have naturally taken most of the credit. This time, Clinton will attend the first anniversary activities, and Simon will also take the opportunity to go to Africa.

And then again.

In a word, there is no time at all in the short term.

What's more, Simon's private trip last year has attracted too much attention since it was exposed. If he has direct contact with Chinese officials, he still needs to weigh a lot of things in his current status.

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