Video Game Empire
Chapter 107: Acquisition 3rd
William Millard was not handsome. His forehead was broad and high, slightly bald, and his cheekbones were raised, giving him a dull look when he was not smiling. But don't be fooled by his appearance. Anyone who knows Millard knows that he is actually a very shrewd businessman.
"Computer Field" is the result of Millard's third venture. For the first time, he started a company called Power Systems in 1971, which sold communications terminals compatible with IBM's products, but folded the following year.
After three years of dormancy, Millard rekindled his ambition in 1975 and founded Information Management Technology (IMS), a venture far more successful than the first. At that time, the Altair personal computer of MITS Company was in short supply. William Millard keenly seized the opportunity and cloned his own microcomputer by imitating the Altair computer, named IMS-8080. The IMS-8080 was introduced to the market and quickly gained popularity among customers who could not buy Altair computers. So in the personal computer market in 1976, IMS also occupied an important place.
However, with the advent of Apple's personal computer, the competition in the microcomputer market became more and more fierce, and many early microcomputer manufacturers were unable to support their strength and closed down one after another. Millard's IMS company also lost ground in this fierce competition, filing for bankruptcy in 1978.
But as early as 1976, when IMS was in full swing, Millard set up another personal computer sales store called "Computer Corner". The sales strategy of "Computer Corner" is very flexible. It does not only sell IMS's own microcomputers, but other competitors' products are also placed on the counter for customers to choose from.
Relying on the supply support of IMS, Millard authorized the "Computer Garden" brand by means of chain operation. As long as he paid an authorization fee of US$75,000, he could become a "Computer Garden" franchise store.
The computer garden sales company began to expand rapidly. When IMS Corporation declared bankruptcy in 1978, Computer Garden Corporation began to prosper, with more than 50 chain stores.
Under the painstaking management of Millard, the expansion of the computer field has become faster and faster. By 1980, the total number of branches has reached 170, not only all over the United States, but also expanding the market to Australia and Canada.
"Mr. Millard, the quotation of 30 million US dollars is the value obtained by our Dongfang Electronics Co., Ltd. inviting a professional asset appraisal company to evaluate the computer garden! We have given this brand based on the development potential of the 'computer garden'. A suitable premium!" Li Xuan said with a serious look.
"NO! I think Dongfang Electronics Co.'s offer still underestimates the value of my company. To be honest, I'm not short of money now, it's not that I have to sell it!" Millard shook his head and said.
"Really? Mr. Millard, but as far as we know, the bankruptcy dispute case of IMS Company seems to have reached the final critical juncture, and the current situation of this case does not seem to be very favorable to you!" Han Peng, who participated in the negotiation together, said: He spoke in a hurry.
"What do you mean?" Millard seemed to be caught in pain, his face suddenly gloomy.
Han Peng ignored Millard's unhappy expression and continued: "Once you lose this case, it seems that you will pay the defendant a large sum of money! Do you have so much cash on hand? If not, you can only sell it Some of the shares of the computer park company will survive the crisis. But at that time, do you think there will be people who are willing to give a reasonable valuation to the computer park company like we are now? "
Seeing Millard's hesitant expression, Li Xuan and Han Peng looked at each other and smiled. This is the plan that the two have already made, one person sings the red face, the other sings the white face.
"Mr. Millard, we, Dongfang Electronics, can take a step forward and increase the purchase price to 33 million US dollars, but this is already our bottom line!" Li Xuan saw that the other party was engaged in a fierce ideological struggle, and immediately spoke out to the already inclined Add a weight to your balance.
"35 million, if you guys can accept this price, I can sell my company to you!" Millard gritted his teeth and finally said it.
A smile flashed in Li Xuan's eyes, but he deliberately lowered his head and pretended to be contemplative. After a while, Millard became impatient and impatient, and he finally raised his head: "Okay, 33 million, I can use it and make a deal! But there is one small condition, you are closing the IMS company's deal. After the lawsuit, transfer that shell company to me too!"
Millard was a little puzzled. Just as you said that IMS is an empty shell without any value, what's the use of the other party taking it over? But he didn't ask any further, nodding in agreement.
In fact, what Li Xuan needs is the in-depth licensing agreement for the CP/M operating system signed by IMS and DRI. Four or five years ago, the DRI company was not as arrogant as it is now. At that time, the CP/M operating system had just come out, and the IMS company only spent 25,000 US dollars to obtain the authorization of the CP/M operating system.
The two shook hands, and Dongfang Electronics successfully acquired Computer Park Company. Millard has an absolute controlling stake in the Computer Park Company, accounting for 90% of the shares. The remaining ten percent is in the hands of another partner named John Martin.
John Martin was originally reluctant to give up his shares, but Dongfang Electronics put the computer garden company's investment plan for the next three years in front of him, and he obediently chose to quit.
The plan that John Martin saw clearly stated that the Computer Garden Company will not only pay dividends in the next three years, but will continue to invest 20 million US dollars in ten major cities such as New York, San Francisco and Los Angeles, respectively. Build a large computer store.
So even if Martin doesn't quit, not only will he not get a penny in the next few years, but if he doesn't make additional investments in proportion, the original shares in his hands will be continuously diluted. So he wisely chose to take the money and leave.
This is the third acquisition completed by Dongfang Electronics within a month. The first acquisition of Aikang Company allowed Dongfang Electronics to immediately have a mature microcomputer product~www.readwn.com~ On this basis, a slight modification can be made to quickly launch the first personal computer. At the same time, Dongfang Electronics has obtained a fulcrum in the British market, laying a good foundation for the rapid development of the European market in the next step.
The second acquisition of Dan Bricklin's "visual computing" reporting software was designed to undermine the competitiveness of Apple's personal computers. Before IBM's PC goes on the market, Apple is undoubtedly the main competitor that Dongfang Electronics will face.
As for the third acquisition of the computer field sales company, it will pave the way for Dongfang Electronics' next first personal computer ABC (puter) to go public. For other consumer electronics, such as washing machines and air conditioners, the buttons are very simple, and consumers can learn it as soon as they learn it.
But the personal computer is a little different. This is a newly emerging market, and the professional requirements are very high. Except for some computer enthusiasts, most of the customers, such as the mother and son Li Xuan met in Jamie's store before, didn't know much about computers, and they completely depended on the sales of shopping guides to make choices.
Therefore, the sales force of computer stores is particularly important for the rapid opening of the market after new computers are launched. Otherwise, the fragrance of wine is also afraid of deep alleys, because most of the customers are people who can't taste wine at all.
Computer Garden is actually one of the most important resellers of Apple's Apple machines. After Li Xuan acquired it, although he would not be stupid enough to directly remove Apple's products from the shelves, he would definitely use a series of means to promote his company's products.
PS: In order to better promote this book, the title of the book has just been changed, no need to be surprised, it will still be written according to the original outline!
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