Top of the Great Era

Chapter 2342 Market demand determines technological development

"Well, a landmark event."

From Jin Fanxiu's words, Zhou Buqi affirmed the important value of Yahoo Korea.

It's not just a simple benefit.

Just like Ziweixing International's acquisition of Yahoo, this transaction does contain huge potential value.Among other things, the shares held by Ali alone will be worth 1500 billion U.S. dollars in the future.

However, the benefits are only one aspect.

More important is the political value.

This will be a landmark event, a political marriage, which will allow Ziweixing International to gain a firm foothold in the European and American markets from the perspective of international policy.

Just like TikTok is very popular in North America.

The U.S. authorities keep doing things to block this product... In fact, it is not to block TikTok, but to make TikTok a public product.

It needs to be listed, it needs to be open, it needs to be transparent, it needs to disclose the information of the audit draft, and it needs to marry with the local technology giants in the United States.

Otherwise, if all Americans use TikTok and all their information is collected, they will be a potential threat.

Zhou Buqi came up and settled the matter.

For Kakao Group, there is no such political factor in the acquisition of Yahoo Korea, but there are great national sentiment factors.South Korea's patriotism is extremely strong, basically comparable to that of Israel.

As a local Internet company in South Korea, if it completes the feat of "acquiring Yahoo", it will undoubtedly become a major event in South Korean society.

Countless Koreans will have that kind of strong sense of pride.

This is the will of the people, the opinions of the people, and the sentiments of the people.

Kakao's industry status is as stable as Mount Tai.

For chaebols, there is even greater value.Public sentiment and public sentiment represent votes, and votes can determine the Blue House's preference. This is an important strategy for the chaebol to compete with the Blue House.

Jin Fanxiu didn't quite know what Boss Zhou was thinking about, but he could tell that his attitude was ambiguous, as if he didn't want Yahoo Korea to sell to Kakao.

Zhou Buqi did not hide anything, and said frankly: "In the past six or seven years, Yahoo and Samsung Electronics have maintained a relatively in-depth strategic cooperation. Many Internet services and software services of Samsung Electronics are provided by Yahoo. Technical support is provided by Samsung Electronics. Taking over Yahoo Korea is a seamless technical transition."

"Samsung..."

Jin Fanxiu vaguely guessed something.

Kakao is in the modern camp.

If Yahoo Korea is sold to Samsung... Boss Zhou will not be offended by either side, he will be caught by both hands.

Zhou Buqi laughed and said, "It's mainly because of money. Ziweixing International is currently short of cash flow, and Yahoo Korea is best able to trade in cash. Can Kakao pay such a large amount of money?"

Jin Fanxiu walked down the steps and said with a smile, "I really can't get it out. Kakao can only operate in the form of mergers and acquisitions, and it can only be a stock exchange."

Zhou Buqi said: "It's better to use cash! I'm short of money!"

Jin Beom-soo pondered and said, "If Kakao came to buy it, maybe the price of 5 million US dollars would be about the same. But if it's sold to Samsung Electronics, maybe we can ask for a higher price."

"Oh?" Zhou Buqi became very interested, "How do you say?"

Kim Bum-soo said: “Because Kakao doesn’t need it, but Samsung needs it more. Yahoo Korea’s business is no longer doing well. At the beginning of 2000, Yahoo once occupied more than 80% of the Korean market. But later, local Internet companies in Korea developed. I learned the mode of doing Internet business from Yahoo, and gradually surpassed it.”

Zhou Buqi nodded. He had read the relevant data, "Before 07, Yahoo Korea had always had good profits. After the subprime mortgage crisis broke out, it fell into a loss. This has been going on for five years."

Jin Fanxiu said: "Yes, in terms of business, Yahoo Korea has been completely replaced by local Korean Internet companies. But in terms of technology, Yahoo Korea is still second to none. Many local Internet companies encounter technical bottlenecks, often Go to Yahoo, or Google, or Microsoft to poach people.”

Zhou Buqi wanted to laugh a little.

The development patterns of the Internet in China and South Korea are almost exactly the same.

Jin Fanxiu went on to say: "Kakao has the support of Ziweixing, so we have never encountered technical troubles, which makes Kakao's development very smooth. But as far as the entire industry is concerned, the technical content is not high."

Zhou Buqi said: "Well, it's not surprising."

South Korea is strong in the high-tech field, but not outstanding in the field of Internet technology, which is mainly related to market demand.Only when there is a demand, will active R&D be carried out; if there is no demand, no one will be idle to do research.

Just like in Japan, many websites still use front-end technology from 20 years ago.

In fact, it was similar in China in previous years.

There is absolutely no technical content in this industry.

It is enough for the technology giants in Silicon Valley to come over and give alms.

But it hasn't been the case for a few years.

Domestic Internet companies have increased their investment in research and development, and the technical level has begun to develop rapidly.As far as the current technology in this field is concerned, the United States is first, and China is definitely second.

In fact, it is the technological development driven by market demand.

There are too many netizens in the country.

More users means larger scale.

Many outdated technologies can still be applied on a small scale, but the entire website structure will collapse when the scale is large.This forces domestic Internet companies to only increase investment in technology research and development, and those who do not invest will be eliminated by the market.

Unless there is a monopoly like train tickets.

Just buy it here.

The technology is poor, and the webpage crashes every day, and thousands of consumers can only endure it.

South Korea, by contrast, has no such scale concerns.

There are only so few people in the whole country.

This means that those Internet companies in South Korea do not need to invest heavily in research and development. A little technology is enough, which means that the technology level of the entire industry is low.

But Samsung Electronics cannot.

Samsung's hardware devices such as mobile phones, TVs, and tablet computers are sold all over the world. With a large number of users and a large scale, the demand for Internet technology is high.

This leads to the fact that when Samsung Electronics is looking for partners, it would rather go to Baidu, but it is difficult to find suitable partners in South Korea.

In this way, the advantage of Yahoo Korea has come, and it is already very good for the Korean market. This is a very rich technical treasure house.

Kim Bum-soo said: "Market demand determines technological development. Samsung Electronics, which has a global market, obviously has a greater demand in the field of Internet technology. This is not available in the Korean local market. The acquisition of Yahoo Korea is an entry point for them. Opportunities for self-development of Internet services and software businesses.”

"Yes."

These words are completely in line with Zhou Buqi's thinking. This is how he designed this transaction.

Kim Beom-soo said with a smile: "If Samsung really wants to take over, the price may be higher, maybe... maybe it can sell for 10 billion US dollars."

(End of this chapter)