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Text Chapter 1616 Taking advantage of chaos to acquire

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    Time has entered 2008, and the subprime mortgage crisis in the United States has not only not weakened, but has even intensified.

    "Many real estate-related companies are in trouble. This is not the most important thing. The most serious thing is that many Wall Street related companies have also been seriously dragged down.

    Everyone knows that Wall Street has relied on the rapid development of the real estate market in the United States over the years to package those mortgage-backed bonds with BB or BBB- credit records into gorgeous financial derivative bonds with "high investment returns" and "low risk"  , sold to people around the world who wanted to own U.S. bonds.

    When the U.S. economy is developing well, these bonds don¡¯t matter. They have a fixed value and will receive generous interest returns every year, which makes everyone feel good.

    But once the U.S. economy stagnates, those with poor credit records, without their own stable source of income, will simply default on their mortgage payments and leave, leaving only the house for the various bonds.  The mortgage company comes to collect.

    The bond mortgage company has to collect repayments as its own income and pay interest to the people who own the bonds. Now they have nothing but an empty house. They also have no way to pay everyone the bond holders.  Interest.

    If there is no way to pay interest, then the bond holders will just quit and directly apply for bond redemption. This is a huge disaster for any bond mortgage company.

    Therefore, many bond mortgage companies and financial loan companies fell into the huge wave of redemptions.

    In the previous life, Bear Stearns managed to survive until March 2008, when it was finally on the verge of bankruptcy and was finally rescued and acquired by JPMorgan Chase.

    But this life is different, Xiao Qi appears.  Let Fannie Mae and Freddie Mac transfer the large amount of bond funds prepared for Bear Stearns to take back more than 3,000 bonds of Fannie and Freddie from China's China Investment Corporation.

    This result directly resulted in Bear Stearns not receiving an injection of liquidity. On January 4, it was revealed that it held a large amount of junk bonds and was converted into a large amount of cash by investors.  The cash in hand was almost zero, which immediately caused a strong shock in the American financial community!

    You know, Bear Stearns is one of the five major investment banks in the United States, with a history of more than 80 years. If this investment bank fails, it will have a negative impact on the entire U.S. bond market.  Even the entire Wall Street financial community was a heavy blow.

    Therefore, the Federal Reserve immediately reached an agreement with JPMorgan Chase. Through the Fed's commitment to lend to JPMorgan Chase, JPMorgan Chase announced the acquisition of Bear Stearns' shares, which slightly stabilized investors.

    After all, the Morgan Group is a symbol of the American financial community. Although they don¡¯t show many fangs now, they are actually in the American financial and banking community.  They are still absolutely worthy of being the boss.

    The extremely serious financial crisis in the United States in the 1930s was not only possible through the efforts of the Morgan Group, but also took advantage of the Second World War to crush the European economy in one fell swoop, laying the foundation for the United States to be the strongest economy today.  national status?

    So seeing JPMorgan Chase coming forward, consumers are no longer so panicked.  However, everyone also knows that if we do not continue to take strong actions, the U.S. economy will definitely suffer a more serious blow.

    The financial industry is not terribly affected. The most terrifying thing is the chain reaction, which spreads to the entire country's basic industries and daily life businesses. This is completely a precursor to the collapse of a country.

    Naturally, the United States cannot want to experience another financial crisis in the 1930s, so with the lessons learned from Bear Stearns this time, the Federal Reserve has become significantly more active and continues to speak out, claiming that the Federal Reserve will have the strength to cope with this crisis.  .  And we are well prepared.

    But it is obvious that Americans have been lax for too long, and some things cannot be achieved just by talking.

    For example, the current stock market in the United States is in mourning, including extremely popular companies such as Apple and GOOGLE.  All have suffered huge declines of more than 3% or 5%, not to mention other companies that have made huge mistakes in recent years.

    Xiao Qi has long valued some companies and planned to acquire them during the financial crisis. Now it seems that negotiations to acquire one of them should be started.

    It is Nortel Networks, which was so prosperous ten years ago.

    Xiao Qi bought all the personnel and patents of the WCDMA department from Nortel Networks, giving him a head start in the 3G network era.

    At the same time, the exclusive buyout of the optical fiber technology in China made Xiao Qi earn countless money, and he used this to enter China's Dentsu communications industry.

    From the looks of it now, the two acquisitions have been praised by all market experts, saying that every acquisition by Xiao Qi is full of praise.Future imagination.

    On the contrary, Nortel Networks is a bit miserable. They did not get many benefits in the 3G era. Now they are focusing on developing 4G, Ethernet, semiconductors, etc., and they do not get much benefit for a while. On the contrary,  Projects that require continuous investment of large sums of money have already overwhelmed them.

    Moreover, the stock market is still entering a period of volatility. Nortel Networks¡¯ stock price has dropped to US$1.2, a drop of more than 60% compared to its peak.

    But Xiao Qi knew that this was not their bottom line. When their stock price was at its lowest, the stock price was only about US$0.3, which directly led them to file for bankruptcy protection.

    Although they sold more than 8,000 core patents in the communication field for a price of US$4.5 billion, which seemed very high at the time, in the following years, when the world entered the wireless era and the intelligent era, this  Patents can earn around 2 billion US dollars in annual royalties alone!

    " However, no one can explain the accounts clearly. After all, it is not easy to sell the patent for such a high price when everything is at the end.

    It is now just one year before they file for bankruptcy protection and sell more than 8,000 patents in their hands.

    Xiao Qi is now proposing to Nortel Networks to acquire their company patents. Although it is a little early, another advantage is that no one is competing with him.

    In the previous life, GOOGLE raised the price to acquire the patents of Nortel Networks for US$900 million, but was immediately attacked by Microsoft, Apple, Samsung and other companies who rushed to the news. As a result, the price increased all the way, and the alliance of Microsoft and Apple paid US$4.5 billion.  Take it away at a high price.

    Now, with the exception of Samsung, the rest of the European and American companies are panicking about the various upcoming crises. They are about to reduce their investment and prepare to survive the cold winter. They simply have no interest or energy to purchase Nortel Networks patents.

    Although Samsung has a more solid foundation than anyone else, they have been stimulated by Xiao Qi's DreamStars and are afraid of the Android Alliance's attack. Therefore, their only goal now is to make smart phones well, and they must not fall too far behind.  Otherwise, we will lag behind the entire era.

    American companies are very strange. Many of them are obviously on the verge of bankruptcy, but they still work very hard.

    Don¡¯t get me wrong, I¡¯m not talking about Nortel Networks here, although they are like that, Xiao Qi is talking about Citibank.

    Citibank is of course not as miserable as Merrill Lynch, but starting from the end of last year, they have had a difficult time in the next few years, and they were once the target of the Federal Reserve's rescue.

    But their daily work has not been affected in any way, and they work hard when they should work hard.

    In particular, Wade, the vice president of the New York branch, helped Xiao Qi get LinkedIn done some time ago, and then immediately rushed to Nortel Networks non-stop and started negotiating with Nortel Networks on more than 8,000 patents.  Extremely busy.

    Nortel Networks is now a down-and-out noble, worse than a commoner. Coupled with the debts owed by the company, it is very difficult to continue operating, let alone continue to develop and grow.

    "But Xiao Qi's appetite is too big. There are more than 8,000 patents, almost all of Nortel Networks, including the core patents of many projects they are currently studying. Naturally, Nortel Networks is unwilling to give them.

    But Xiao Qi is too rich. The initial offer was 1 billion US dollars. After being rejected, two or three months later, he slowly negotiated to 2.3 billion US dollars. For this price, the board of directors of Nortel Networks had already agreed.  Already very satisfied.

    But the management of Nortel Networks is not very happy, because this completely takes away the most valuable thing of Nortel Networks, leaving them useless managers and R&D personnel.

    So in the end they came up with a solution, which was to buy more than 6,000 patents for 2.3 billion, and the remaining 2,000 patents were shared by Nortel Networks and Fairy Company. Nortel Networks continued to develop, and based on the development results,  Finally, the two parties will negotiate the distribution of rights and interests.

    They have good ideas. Although it is jointly owned now, after the research and development is completed, they will definitely adjust the proportion of interests held by Nortel Networks to the highest level for various reasons. Xiao Qi has no rights at all in the joint ownership.

    Xiao Qi thought about it for a few days and finally agreed to their conditions.

    When Nortel Networks filed for bankruptcy protection in its previous life in January 2009, these technologies still had not achieved breakthroughs, such as 4G, Ethernet super-light speed connections, etc. These technologies will obviously not mature until 2012 or 2013. Nortel Networks  No matter how powerful the people are, there is no way they can develop them 3 or 4 years in advance.

    "However, Xiao Qi also added a right of priority to acquire more than 2,000 patents from Nortel Networks, and Nortel Networks agreed.

    Speaking of which, these are pitiful.Ah, even though it has so many core wireless, optical fiber and communication technologies, it inevitably fell into the hell of bankruptcy protection because of its pig-like management!

    But it doesn¡¯t matter. Not only will Xiao Qi accept their patents, but these R&D talents can also be recruited!

    PS: Thanks to brother CAKVINLIU for his correction, and also to my deputy brother Mumu for his tireless management reminders.  Brothers, if you have any comments or opinions, please send me a private message.
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