Video Game Empire

The Oriental Group's stake in the communication company is a business worth 1.5 billion US dollars, of which the valuation of Oriental Satellite Communications Company is as high as 1.15 billion US dollars. With such a big deal, Li Xuan naturally had to come to the United States to attend the final signing ceremony.

In order to increase the net worth of Dongfang Satellite Communications as much as possible in order to obtain as much equity as possible in the merger with the company, Dongfang Group divested hundreds of millions of dollars of debt before the transaction. You must know that the Oriental Group only spent 5 billion US dollars to acquire the entire ra company, and the eastern communication company is just a new company reorganized with a part of ra company's original aerospace business.

Therefore, this merger is definitely a very cost-effective transaction for the company. Because being able to control a satellite communication company plays a vital role in reducing its operating costs and expanding its business in the next step! What's more, this communication company is still a high-quality asset with less debt and stable cash flow.

The Oriental Group valued it at US$1.2 billion this time, injected another US$350 million in cash, and only obtained a 25% stake in the company. That is to say, the total valuation of the company's original assets is as high as 4.65 billion US dollars.

This valuation has basically reached the level before the stock market crash, and if the company's current share price is calculated at a small price, the company's total market value is only US$3.8 billion. Oriental Group's willingness to accept the company's high valuation is definitely a major positive news for investors. So what can be foreseen next, yes, the stock price will usher in a violent rise!

"Anti-monopoly did not cause fatal damage to a& company, but it was more like pruning the branches for this bloated giant! This time the US Department of Justice split is mainly aimed at the local telephone business. The telephony business was split into seven companies.

However, although the new a& was not allowed to operate the local telephone service, it completely inherited the long-distance telephone service of the old company. And most of Bell Labs' assets! The large number of communication technology patents owned by Bell Labs have made a& always one of the largest communication equipment suppliers in the world!

a& not only rely on a strong infrastructure network to suppress us. Also earn huge profits from our orders for a & equipment. This puts us at a very disadvantageous position in the competition with it! "The company's o Hyde Walker couldn't help frowning when he talked to Li Xuan about the company's biggest competitor.

The full name of a& is called the American Telegraph and Telephone Company, its predecessor is the Bell Telephone Company. The entire Bell Group developed to 1984, when it was forcibly dismantled according to the "Antitrust Law", it was already a large group with more than 20 subsidiaries. Dozens of companies in the entire Bell system monopolized the national telephone business for sixty years. And according to the final judgment of the US court. The disintegrated a≈ company can no longer use the name "Bell".

"Mr. Walker, I have a proposal, I don't know if it is feasible? We should reach a tacit agreement with companies in other industries such as sprn, and exclude a& from equipment procurement first. In this way, a& company's market share in the field of communication equipment will be rapid. decline.

Capital is always profit-seeking. In order to win our orders, investors on Wall Street will definitely ask A& Company to separate out its department responsible for equipment manufacturing.

And once the equipment manufacturing department is separated from a& company, the revenue of a& close to the long-distance telephone business cannot support the large-scale investment of Bell Labs, so Bell Labs is bound to split!

The entire Bell system has been able to monopolize the U.S. communications market for more than half a century. Mainly because it has formed the optimization of the entire industry chain from the most upstream technology research and development, to the midstream equipment manufacturing, and then to the downstream communication market competition! And once a& relies on the advantages of the whole industry chain collaboration no longer. Then its deterrent power will instantly drop several grades! "Li Xuan said lightly.

Bell Labs is the most successful private laboratory in the world, and has produced many Nobel Prize winners. Only the b lab in the United States can rival Bell Labs, which is also the core asset of the entire a & company.

And another time and space. A& Company started to go downhill, not because of the antitrust breakup of the US Department of Justice. Rather, it stems from its own division. In 1995, a& company voluntarily split into a& company responsible for telecommunications business, Lucent company responsible for equipment manufacturing, and nr company responsible for computer manufacturing.

The original Bell Labs was also torn apart. The half belonging to Lucent inherited the name of Bell Labs, while the other half belonging to A& Company was renamed Shannon Laboratories.

After the separation of Lucent, the operating performance did improve by leaps and bounds. But it was ultimately hit hard in the dotcom bubble of 2000. Before Li Xuan's rebirth, Lucent had already been acquired by France's Alcatel. At its peak, Bell Labs, which had more than 20,000 researchers, was almost left with an empty shelf~www.readwn.com~ After the split, the situation of a& company was slightly better than that of Lucent. After all, its core long-distance telephone The monopoly position in business is formed by relying on the huge and tireless investment in basic communication networks for decades, and other competitors are difficult to shake.

However, under the impact of the Internet wave in the future, the status of the telephone in information communication continues to decline. The later a & company is still one of the largest telecommunications operators in the United States, but it has long lost its strong position as the hegemon of the US telecommunications industry in the 1980s. Especially in the emerging field of mobile communications, a& companies even lost the top spot.

Li Xuan's suggestion made the company's o fall into thinking. Dongfang Group now holds 27.5% of the company's equity and has become the company's largest shareholder. Oriental Group will occupy three seats in the seven-member board of directors after the re-election, and will naturally participate in the company's future strategic decisions.

However, according to the previous commitments made by the Oriental Group, as a major shareholder, it will continue to give enough trust to the original management to avoid the company's operating turbulence caused by the change of equity.

But no matter what, Hyde Walker, as a professional manager, knows very well that the man in front of him is the key figure in determining whether he can continue to sit on the throne of the company in the future. (To be continued.)