The Millennium Semiconductor Survival Guide.

Chapter 259 Revolving Door

"Newman, Goldman Sachs has always been your most powerful supporter, whether it is the acquisition of Quora or the listing of Riot Games, Goldman Sachs has participated in almost every major capital operation of yours.

I think there is enough mutual trust between us. You understand what Goldman Sachs can bring to you, and Goldman Sachs also understands what an excellent partner you are. I think our past cooperation experience is enough to prove the importance of each other to both parties and reliability. "

Goldman Sachs very much hoped to cooperate with Zhou Xin. In order to show sincerity, Henry Paulson, the president of Goldman Sachs, chatted with Zhou Xin in person. It was three years before he left Washington to become the 74th Secretary of the Treasury of American.

Zhou Xin nodded frequently when he heard it. In the top institutions such as Morgan Sachs, Goldman Sachs, Citigroup, and Merrill Lynch, everyone offered similar chips. There is indeed a basis for cooperation with Goldman Sachs, and the basis for cooperation is very important.

"I have been in American for a long time, and because of my work, I have a lot of dealings with Wall Street practitioners. I have always heard about the close relationship between Goldman Sachs and Washington.

I heard that many officials in Washington came from Goldman Sachs, and many officials left to work for Goldman Sachs. The two sides formed a close cooperative relationship. This close cooperative relationship is why I chose Goldman Sachs when NewPay accepted external financing.

Because Goldman Sachs can bring first-hand news from Washington to NewPay at the first time, from the Ministry of Finance to the Federal Reserve, and then to the Federal Trade Commission, the participation of Goldman Sachs can always help us avoid wrong choices. " Zhou Xin said.

The more you go up, the more you can realize how wide the influence of Goldman Sachs is. Bill Gates' suggestion to Zhou Xin is also to give priority to Goldman Sachs.

"Compared with Goldman Sachs, both JPMorgan Chase and Morgan Stanley are too biased towards the elephant party between the donkey and the elephant, and it is difficult for their sphere of influence to break through the restrictions between the two parties.

But Goldman Sachs is different. Whoever controls Washington must rely on Goldman Sachs. "This is the original words when Bill Gates explained.

Paulson laughed: "Yes, from Sidney Weinberg to Henry Fowler to Robert Rubin, there are many Goldman Sachs who served as Washington's Treasury secretary."

Henry Fowler has worked at Goldman Sachs for more than 30 years. After leaving Goldman Sachs, he led the establishment of the Bretton Woods system during his tenure as American Treasury Secretary. That famous saying came from his mouth:

"The planets revolve around the sun, and the currencies of various countries revolve around the dollar."

Paulson continued: "Newman, the biggest advantage of choosing Goldman Sachs is that Goldman Sachs has a wide enough network in Washington. We not only have enough contacts in finance, commercial and trade-related departments, but also in other fields. .

Goldman Sachs can help you achieve what you want, also help you think of what you didn't think of, and help you do what you didn't think of but you need.

For example, X.com has been lobbying in Washington, believing that NewPay has monopolized the offline electronic payment market with QR codes. They have lobbied a large number of congressmen, hoping to force NewPay to open the QR code patent.

Goldman Sachs easily fended off the matter. "

If this series of complex clauses were replaced by someone else, Zhou Xin could still accurately capture the meaning of his words.

Goldman Sachs refuted X.com's statement with two points, namely, electronic payment does not have a monopoly, and X.com also occupies a large market; offline payment is not only through QR codes, but also through NFC Technology realizes offline payment.

In fact, Zhou Xin would like to ask if Goldman Sachs can help him to open up the restrictions of the Wassenaar Agreement. It doesn’t take much, just remove the restrictions related to integrated circuits in the Wassenaar Agreement.

Zhou Xin was still wondering if this request would be too sensitive.

"I am well aware of Goldman Sachs' strength, and I want to hear Goldman Sachs' valuation of Matrix." Zhou Xin changed the subject.

Paulson said: "We estimate that Matrix's annual revenue should be around US$70 billion, and its profit should be around US$20 billion. According to the PE of 20 times, that is a valuation of US$400 billion.

We think this valuation is relatively reasonable.

Considering that the smartphone market is in a period of rapid growth, and Matrix does have a certain advantage in the field of smartphones, we can still rise appropriately.

500 billion US dollars, this is the psychological price of Goldman Sachs. "

500 billion US dollars, this valuation is already twice that of Apple. Apple has survived the crisis of broken capital flow and has become the world's top consumer electronics company relying on ipods, with a market value of only 200 billion US dollars.

Zhou Xin has been in Silicon Valley for many years, and he knows that the price is quite reasonable. After all, no one knows that smartphones can develop so fast, and the PE of 25 times already counts Newman's name in it.

When Microsoft went public that year, the PE was around 17. At that time, Microsoft's position in the operating system was similar to Matrix's current position in the smartphone field. They were both emerging, but there were still a lot of competitors.

Zhou Xin said: "The price is no problem. I plan to raise 20.00% of the shares this time. It is also no problem for Goldman Sachs to participate, but I will choose a few more financial institutions.

One question I have is whether Goldman Sachs can help me lift some of the Wassenaar Agreement restrictions on integrated circuits. "

Zhou Xin still didn't hold back, and expressed his desire to lift the restrictions on the chip field.

The Wassenaar Agreement is an agreement led by American and participated by a large number of developed countries. Of course, there are also underdeveloped countries such as the northern powers.

Among them, the lead is naturally American, and the specific jurisdiction falls on American's Ministry of Commerce.

Goldman Sachs has extensive contacts and deep interest entanglements in all financial and business-related departments in Washington. Zhou Xin believes that even if Goldman Sachs can't do it, it knows who to turn to.

In order to avoid misunderstanding, Zhou Xin continued: "Mphone2 needs to use the most advanced chip production technology, and Huaguo's most advanced chip production technology is two generations behind the technology used by Mphone2.

We can only put chip manufacturers in Lion City, Wanwan, Korea or even American, which greatly increases the cost of Mphone2.

If we can directly produce the chips needed for Mphone2 in Huaguo, the profit margin of Mphone will not be 20%, but 35%. "

The reason for looking for a high-sounding sound is very simple. Zhou Xin felt that this was not sufficient, and continued: "Intel, Motorola, Texas Instruments and other traditional chip companies have built factories locally, but they are all subject to the Wassenaar Agreement. Make the most of it.”

Paulson was noncommittal about Zhou Xin's remarks.

"Newman, I completely understand what you mean, but there is a problem, that is, Goldman Sachs can convince the Ministry of Commerce, but it cannot convince other parties involved in the Wassenaar Agreement.

At least for Goryeo and Neon, they are unacceptable.

Goldman Sachs can try it, but there is no guarantee, you know, it's not a good job, and no one can do it except Goldman Sachs. "

Zhou Xin didn't expect Goldman Sachs to agree. Originally, this was just a gimmick. It would be best if he would agree, and it doesn't matter if he doesn't agree.

After the launch of Mphone2, Matrix reached a financing agreement with three top financial institutions before the second quarter, Goldman Sachs, Morgan Stanley and Merrill Lynch.

So far, Matrix and American's old money have carried out deep interest bundling, and also ushered in the first Mphone developer conference after the release of Mphone2 in this form.

Since the first Mphone Developer Conference, every developer conference has been a grand meeting for small and medium-sized enterprises in Silicon Valley. Everyone wants to know the latest developments of Mphone and the whole industry from the Mphone Developer Conference.

Mphone2 has achieved the achievement of Mphone1 for a whole year in three months, and the global sales volume has exceeded 500 million units. This figure shocked everyone.

You should know that the price of Matrix is ​​US$749, not US$349. Other mobile phone manufacturers cannot sell 500 smartphones priced below US$50.

Mphone2 can sell 500 million units in a quarter.

"Smartphone sales topping 500 million units is a terrifying achievement.

Although the global mobile phone market basically sells more than 4000 million units per month, the stock market and incremental market are two different things.

Matrix is ​​the pioneer and leader in the field of smartphones. Looking at it now, we seem to have no opponents for the time being.

In just one quarter, the sales volume exceeded 500 million units, which is still the case with such a high price.

This achievement also fully proves the necessity of smartphones. It not only has entertainment attributes, but it can be said that the attributes of applications endow smartphones with corresponding attributes.

Just like when the personal PC was born, the function of the personal PC depends on the software, and the function of the smart phone also depends on the application.

The future development of Mphone2 and even smart phones will depend on every developer here. "

Zhou Xin presided over this developer conference. Apart from Silicon Valley, many companies present here are media reporters.

"Mphone1 is the only smart phone in the world with a sales volume exceeding 1000 million units. Looking at it now, Mphone2 seems to be the second model. In private, friends often ask me, what is the reason for the success of Mphone2?
I think it is technology, the application of a large number of cutting-edge technologies has brought an extraordinary experience.

After Matrix integrates the technology, the experience of using Mphone2 is improved to the extreme.

This is the victory of the product, but also the victory of technology. "

After a brief bragging, there is the cake, which is to increase the enthusiasm of Internet companies and let them contribute to the improvement of the MOS ecology.

"At the same time, I would like to report some data to everyone. At present, the background shows that more than 2000 companies around the world have developed applications for Mphone.

If individual developers are included, the number is [-], and more than [-] companies or individuals have registered MOS developer accounts to help develop applications for Mphone.

Half of them joined the Mphone family within the past six months.

There have been more than 1000 companies that have withdrawn cash from our background system, more than 10 companies with a cash withdrawal amount of more than 500 US dollars, more than 100 companies with a cash withdrawal amount of more than 100 million US dollars, and companies with a cash withdrawal amount of more than 1000 million US dollars There are 17.

Among them, the most amazing growth rate is the Flamingo game. Relying on the legendary performance of "Legend of Heroes", it has been online for three months and its revenue has exceeded 5000 million US dollars.

This is an astonishing figure. The purpose of my mention of these figures is to tell everyone that the potential of Mphone is unlimited, and the benefits that everyone can obtain through the platform of Mphone are unlimited.

In the past, we would think that games can only be made for stand-alone games, and they rely on buyouts to make money, and the number of users determines the upper limit of income.

For example, my game is priced at US$5, and there are only 1500 million users of Mphone, so there are at most 500 million users who are willing to pay, so my upper limit is US$2500 million.

The emergence of "Legend of Heroes" tells everyone that the game does not only have a buyout model, but the built-in payment method can break the upper limit you think.

Similarly, in addition to games, other service software can also adopt a similar approach. If you are confident enough in your application, you don't need to set a buyout at all, and you can set a monthly subscription model.

Everyone knows that I created Quora and launched the monthly subscription model of Quora Gold Selection. Similarly, why can't the applications on Mphone adopt this model?

In the past, it was not a good experience for users to use Quora on Mphone1 with half a screen. Except for the explosive growth of background downloads when Quora first entered the Mphone platform, the subsequent growth has been very slow.

But after entering Mphone2, the number of users of the mobile version of Quora is obviously increasing rapidly, and the number and amount of people who pay for Quora through the Mphone platform are also rapidly increasing.

The number of people who subscribe to Quora's gold selection through Mphone is also increasing rapidly.

For developers, it is necessary to think about which is more beneficial between continuous payment and one-time buyout.

In my opinion, even if it is a one-time buyout, the upper limit of fees can be increased through the opening of different permissions.

Just after entering Mphone2, the upper limit of profit in the MOS ecology has made a qualitative leap, and developers will have more potential users and greater possibilities. "

Because the Flamingo game is not on the market, the outside world does not know the turnover of "Legend of Heroes", and can only get a glimpse of it through its topping the paid list of the Mphone app store.

This time, Zhou Xin took it as a typical case at the developer conference, which satisfies everyone’s curiosity. Everyone knows that "Legend of Heroes" makes money, but how much money does it make? Two hundred million dollars.

All developers are excited, and the benefits are too high.

Take Blizzard’s Warcraft 3 as an example. The price on Riot Games is US$79.9, and the sales volume in the first week is 500 million sets, which is 4 million US dollars in revenue. This figure will continue to decline in the future, and the final estimate is 8 million US dollars. about.

But the problem is that compared with Warcraft 3, the development difficulty of "Legend of Heroes" is much lower, and the payment model of "Legend of Heroes" is continuous, and the annual revenue of 2 million US dollars in the first year will not be as high as Like the buyout game, there is a cliff-like decline.

Zhou Xin said: "The business content is almost the same, and the next is the technical level. There are also many differences between Mphone2 and Mphone1."

(End of this chapter)