Video Game Empire

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On Monday, November 14, 1983, Dongfang Electronics officially issued a cash tender offer to the company. The price per share is $45, a premium of about 10 percent to the stock's current market price of $40.8.

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But the company thought the offer was too low, and they responded with a price of $55 per share. Dongfang Electronics was naturally unwilling to accept such a high price, so the negotiators of the two sides had a heated debate in the conference room of the Waldorf Astoria Hotel.

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Li Xuan's original plan was to start the acquisition next year, but the progress in all aspects was much smoother than he had expected. The think-tanks in Li Xuan's team also reminded him that next year is a four-yearly election year in the United States.

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In order to attract the attention of voters, many politicians will try their best to make some troubles. And large-scale mergers and acquisitions of American companies by foreign companies, such as the acquisition of Dongfang Electronics, are easy targets for politicians to attack.

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Therefore, Li Xuan decisively decided to start the acquisition ahead of schedule. For this plan, Orient Group has prepared USD 1.6 billion in cash, and a syndicate consisting of Citibank, HSBC, Haifeng Bank and Standard Chartered Bank has provided credit endorsement for Orient Electronics, with a total loan amount of USD 4 billion.

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The first media to expose this news was naturally the company's own TV station, the TV station. As soon as the news of the acquisition of the company by Hong Kong Oriental Electronics Co., Ltd. was exposed, it immediately caused quite a stir on Wall Street. This merger may be the largest merger in the history of the US capital market, except for the oil field. Moreover, it is also the acquisition of American companies by foreign capital, which has touched the sensitive nerves of the market.

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"Mr. Xuan Li, what is the reason that prompted you to make the decision to acquire the company?" the host Bill Luomen asked.

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This is the second time Li Xuan has accepted in a short period of time, an exclusive interview on TV's morning talk show "Meet the Media". Li Xuan had had in-depth exchanges with Grant Tinker, president of the broadcasting company, and the two sides reached some tacit understanding.

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Li Xuan promised that after Dongfang Electronics acquired the company, it would give the broadcaster greater independence and autonomy. And Grant. Turk expressed support for the company's overall acquisition plan of Oriental Electronics. The TV station will take a friendly stance in its coverage of the incident.

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"The company is a large electronics manufacturing group with a market value of US$4 billion. For this acquisition, Dongfang Group has conducted preliminary research for more than a year! In fact, Dongfang Electronics Co., Ltd. first intersected with the company in 1980. At that time, the company It is one of the picture tube suppliers of arcade products under the Oriental Group.

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Later in 1981, Dongfang Group established a new Dongfang Semiconductor Company for the production of semiconductor chips. At that time, the company intended to gradually reduce the production scale of the semiconductor division, so Dongfang Semiconductor purchased a wafer factory and a chip packaging and testing factory from its hands.

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Later, Dongfang Group acquired the company's LCD project division, and the two parties also jointly established a large-scale picture tube manufacturing plant in Asia. In the more and more in-depth cooperation and exchanges, the management of Dongfang Group and I gradually discovered some complementary points between the company and Dongfang Electronics.

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For example, in the field of semiconductors, the strength of our Oriental Group lies in the field of digital chips, while the strength of the company lies in the field of analog chips. In the field of electronic manufacturing, the products of our Oriental Group are mainly concentrated in emerging electronic industries such as game consoles and computers, while the company has strong strength in the fields of traditional home appliances such as televisions, radios, and video recorders.

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Our Oriental Group has strong confidence in the fields of technological innovation and R&D investment. And the company has profound strength in marketing, brand building and other fields!

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It is precisely because these two companies have so many complementary aspects that I believe that the strong alliance between the two will definitely bring out the effect of 1+1"2! "

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Don't look at Li Xuan talking eloquently there, but in fact, the reasons he said before were somewhat vague and reluctant.

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"Let me change the way of asking questions. Mr. Li, what do you think is the most interesting part of the company's assets?" Bill Luoman was obviously not satisfied with Li Xuan's answer just now.

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“A $4-5 billion acquisition is not one or two attractive things that will make me make a M&A decision easily. Knowing that raising billions of dollars in cash will definitely make the entire Eastern Group in the next few years. Carrying a lot of financial pressure!

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Actually, I am interested in many things about the company! One of the most attractive to me is the company's deep channel influence in the US consumer electronics market. It has been less than five years since my Dongfang Electronics Co., Ltd. was founded, and the US market has always been the largest and most important overseas market of Dongfang Company.

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After an initial period of brutal growth, Dongfang Electronics Corporation has now entered a period of adjustment and consolidation. We need to use the company's marketing, brand promotion and other channels to consolidate the market influence of Dongfang Electronics in the United States.

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In fact, Dongfang Group has been focusing on the two fields of game consoles and personal computers before. Now that we have established considerable advantages in these two fields, it is time to further diversify the industry and find new profit points for the group.

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And I think the field of home appliances is a good breakthrough direction, among which the color TV industry is the largest segment of the home appliance market. The company is precisely one of the most popular brands in the US color TV market.

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However, the company's color TV business is also facing a big crisis. The price war of Japanese companies has made most color TV manufacturers, including GE, Westinghouse, etc., into a dilemma of difficulty in making profits.

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The Oriental Group is located in Asia, where manufacturing costs are lower. Through the new division of labor model of "R&D in the United States and Made in Asia", it can offset the advantages of Japanese companies in terms of manufacturing costs, thereby reshaping the TV industry to its former glory! "Li Xuan took this opportunity to constantly sell his views to the audience in front of the TV.

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"Mr. Li, I don't know if you have noticed that a very important piece of the company's assets is the broadcasting company. If a foreign company controls the largest public television network in the United States by acquiring its parent company, will it make people suspect that there is something wrong with it? Human purpose?" Bill Roman's question finally became sharp.

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"! For me, this is just a pure business investment! My team conducted a detailed asset evaluation for the company before. We believe that out of the company's total market value of $4 billion, the broadcaster is worth at least $2.5 billion. It is the best asset in the whole company!

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The U.S. TV advertising market has maintained rapid growth, with double-digit growth rates even during the recessions of 1981 and 1982. If it is in other fields, such as the personal computer market, in the face of such a thriving market situation, there will definitely be a large number of companies that can't wait to come in and get a share!

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Take the personal computer industry as an example. In addition to competing with old-fashioned personal computer factories such as Apple and Kemodo, my subsidiary Aikang also has to compete fiercely with new influx of electronic giants such as IBM, Hewlett-Packard, and Texas Instruments. fight.

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But in the TV field, this special industry is different~www.readwn.com~ For decades, the competitors have always only been NBS and these two. Although it is still facing competition from pay TV stations such as TBS and CNN, it is far from the others, where dozens or even hundreds of companies are fighting together fiercely.

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Therefore, in my opinion, the TV industry is a golden project that can avoid fierce competition and have stable profits. The company is also an important reason for my willingness, it is a quality industry worth holding for the long term.

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And although U.S. law does not allow foreigners to own both newspapers and television stations, it does not prohibit foreign companies from acquiring U.S. television stations. I think those who feel that I have ulterior motives are typical sufferers of persecution paranoia.

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In order to dispel the fears of these people, after the successful acquisition of the company, the Oriental Group is willing to separate and list the broadcasting company separately, making it a public company subject to market supervision. The special nature of the industry has given media companies, information dissemination and public opinion supervision functions.

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The media industry is also an important force for American society to maintain fairness and justice and expose ugly sins. In order to prevent these rights from being abused by foreign capital like me, I am willing to let the company go public and let all shareholders supervise its operations! "Li Xuan said very calmly. R1152