Rebirth of the Military Industrial Overlord

For Chris Galvin in early 1999, if a beautiful ancient Chinese poem must be used to describe his mood, then this poem must be:

"Spring breeze is proud of horseshoe disease."

Since reaching an agreement with the rich Chinese man Eric Tan, Motorola’s development can be described as "thousands of miles in a day", because that young Chinese man has amazing energy, especially in China, his connections and influence Power is almost unmatched. Under his impetus, Motorola has successfully entered China’s wireless communications market. It has achieved great success in the two major industries of pager systems and terminals, wireless communications base stations, and handheld devices. "Motorola" has almost become synonymous with wireless pager systems in Chinese cities. In the field of 2G wireless communication base stations and mobile phones, even if there are strong challenges from the three major European competitors Ericsson, Alcatel and Nokia, they still firmly occupy China has the largest market share in the market. With the deepening of China’s reform, the people’s living standards have improved. Mobile phones are no longer exclusive to the rich. A large number of urban middle-income people have become the main purchasers. Think about the huge population base of Huaxia, the future of this market is full of huge room for imagination!

It is precisely because of its success in the China market that Motorola has become the world's first communications equipment company!

Of course, behind this boom, there are still some bad things.

For example, from fierce competition within the communications industry.

Among them, the most dangerous competitor that gives Chris Galvin the most headache is not the top three in Europe Ericsson, Alcatel and Nokia, but a new company from the country-Cisco.

Cisco's development path is very different from Motorola. Motorola started by manufacturing walkie-talkies and is considered the most traditional supplier of voice communication equipment, while Cisco started from network communication equipment and is an emerging supplier of digital communication equipment.

It stands to reason that there is a clear industry separation between the two. However, with the development of technology and the popularization of the global Internet in these years, the distinction between the two has become increasingly blurred. In recent years, optical fiber communication has broken through technology and cost. The two major bottlenecks, after the start of large-scale applications, this distinction has been blurred to almost indistinguishable, and it is likely to be completely integrated in the next few years-the simultaneous transmission of voice and data can be achieved with a single fiber, and the To provide several times or even dozens of times the transmission bandwidth, why do we need to lay two copper cables?

The keen-eyed Cisco was aware of this trend early on and actively introduced related equipment-a new generation of routers and switches that integrate voice and data communications to replace traditional telephone program-controlled switches, data routers, and data Switches and many other equipment, traditional data service equipment coupled with emerging voice and data fusion services, injected great momentum into the development of Cisco. This company quickly grew into an emerging giant in the international communications industry. In 1994 After being listed on NASDAQ, the stock price has soared. Now, it has developed into a super multinational company with a global business, annual revenue of 20 billion US dollars and a market value of 150 billion US dollars!

Chris Galvin is very aware of the major threat that Cisco poses to Motorola’s traditional business. He believes that in addition to consolidating the company’s original advantages in the field of wireless communications, it is also necessary to strengthen the company’s shortcomings in the field of data communications. The future communication market will inevitably be a combination of wired and wireless, and data and voice. Only when these are organically integrated, can we face the aggressive offensive and take the lead in future competition.

To reinforce Motorola’s shortcomings in the field of data communications, the fastest and most convenient way is to find a company with a certain ability and market foundation in this field to acquire it, so as to acquire technology, talent and market in one fell swoop. The most important resource-this is also the most commonly used method by American companies, which saves much time and effort than the hard work of their own companies to invest in research and development from scratch.

Good luck always favors those who are prepared. Just when Chris Galvin set out to find such a company around the world, a Chinese company called "Huawei" broke into his sight. Although the appearance at CES is not particularly amazing, the products displayed fully reflect its strength. This is a very promising company and has a solid user base in China and some third world countries. With revenue of more than 1.2 billion US dollars, the scale is not big or small, it is the best acquisition target!

Even better, Huawei’s appearance at CES has attracted great attention from Cisco. After discovering that this company has the potential to threaten its dominance in the future, Cisco launched a very insidious blow to it, attempting to use it. A series of legal actions dragged the company into a quagmire.

Presumably, Huawei at this time is in a state of desperation?

At this time, it is also the best time to buy Huawei!

Chris Galvin immediately launched an action, established contact with Huawei through some channels, and put forward a takeover offer. He has even made an offer to the other party, and the amount of the first offer is as high as 5 billion US dollars!

5 billion U.S. dollars is a huge wealth for anyone in 1999. After receiving this money, Huawei’s founding shareholders will achieve complete personal financial freedom. For the wealthy Chinese people, it should be attractive enough, right?

They were obviously tempted, because Chris Galvin received a call from Mr. Ren, the founder of that company, and he wanted to talk in person.

On August 13, 1999, Chris Galvin embarrassedly boarded the flight to China. Prior to this, he had made adequate preparations for the content of the interview and persuaded the board of directors to acquire Huawei. After making the final decision, he even prepared ample bargaining chips-this kind of merger involving billions of dollars, the seller will inevitably have some bargaining, and the budget he won from the board of directors is-7.5 billion US dollars !

Of course, my readers all know that the mere US$7.5 billion of Huawei later was probably only a fraction of its true value, but in 1999, for the generally relatively weak Chinese private enterprises, this valuation was already sky-high. .

Therefore, Chris Galvin is full of confidence in this trip to China.

But what he didn't know was that he had a pair of eyes that had been watching his every move in secret, and when he boarded the flight to China, the owner of these eyes turned around and showed his companions. He gave an unclear smile and said softly: "Let's get started."

Guo Zhaode rubbed his hands in excitement and said, "This game, which has been played for 13 years, should have a result. Today it happens to be the number 13 again. 13, Ha, really a good number."

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