Reborn Entrepreneurial Giant.

Chapter 464 Before the Acquisition

Qu Li discussed a lot of things with them in Jumei. Jumei's focus this year is logistics. In order to better serve customers, Tongda Network Company is located in Shanghai.

This is because the proportion of e-commerce retail sales in Jiangsu, Zhejiang and Shanghai is very high, followed by Guangdong Province. Now Jumei Logistics has settled in Yangcheng. This strategic center of the city is also another talent center in the country. It cannot be lost, right?

There are many benefits to having "Tongda Network" in close contact with "four connections and one connection", but the disadvantage is that it increases the difficulty of management. Qu Li is relieved when he thinks that he is not the one to worry about anyway.ByteDance can have no “headquarters”, so why can’t Jumei spread its company across the country?

Although there were still many things to do, Qu Li stayed in Yangcheng for a few days and then flew to Beijin to convene the Honor Board of Directors and complete the final internal procedures for this acquisition.

The "Vest" company invested 125 billion US dollars to acquire Motorola and was responsible for the aftermath of layoffs. Honor invested 45 billion US dollars to obtain 3000 Motorola Mobility patents, retaining the company as a whole including about 30 billion US dollars in cash and debt; Google invested 80 billion US dollars to acquire the remaining 1.4 patents. Patent and set-top box business.Patents held by both parties will authorize each other, and the thousands of patents that are still under approval will be distributed according to the proportion of investment...

Although this acquisition is important, the US$45 billion is less than 5% of Honor's market value, so it does not require the approval of the shareholders' meeting. Moreover, such conditions are not bad at all, and the board of directors is quite satisfied with it.

The main reason is that Qu Li is satisfied. In the media, it may be that Honor only spent 15 billion US dollars to acquire Motorola and 3000 patents. Google also suffered no loss. You must know that in the previous life, professional media evaluated this acquisition and Google spent 95 billion US dollars to acquire patents. , Motorola is only worth $30 billion.After all, this is a loss-making company with a lot of debt, and subsequent layoffs will cost hundreds of millions of dollars.

The flow of billions of dollars of funds and the handling of Motorola's 1.9 employees required Qu Li and Lei Jun to come forward and sign, so they quickly flew to the United States.

Unlike certain acquisitions, which focus on the acquired company, Honor's acquisitions must be "focused on me" and can only insist on "focused on me".As for whether the original management should be retained, Qu Li has not yet made a final decision.

Sanjay Jia, the current CEO of Motorola, is an old acquaintance of his. It can be said that he was the one who promoted the cooperation between Qualcomm, Google, and Honor. After Motorola poached him, it began to move towards Android. This decision cannot be said to be wrong, but he Underestimating internal resistance.Motorola understands hardware but not software. It is not as willing to gamble as Honor and is unwilling to hand over its fate to Qualcomm. It has chosen more distant suppliers, including Spreadtrum's baseband.

Hardware is the foundation, and software determines user experience. Therefore, Motorola’s sales of 100 million units in three months is their best-selling model. Except for Honor, which only has 100 million units of Magic, several other models seem to have exceeded 1000 million units.

Qu Li met with Sanjay Jia and asked him about his views on the acquisition and discussed Motorola's future development strategy and internal adjustments.Qu Li would not dare to trust them without undergoing a major change of blood and eliminating those old employees who were clinging to their old responsibilities.

Sanjay Jha is an Indian, and many people from his ethnic group have become CEOs of high-tech companies in the United States. Some domestic self-media say that India has a "culture of obedience," so...

It cannot be said that it is unreasonable, but to be able to climb to the position of CEO in a world-renowned "big factory", is there any lack of personal comprehensive ability?One-sided emphasis on the so-called "obedience culture" cannot be proven true or false, but it is actually just self-comfort.

The most typical example is Nadella, the next CEO of Microsoft, who pushed this "monopoly" into cloud computing and mobile Internet, successfully invested in OpenAI, and launched Newbing, which may subvert Google search.How many CEOs of this level are there in the country?

The ability of Indian CEOs is not bad. Judging from public reports, Sanjay Jha’s various decisions were all right. Why did Motorola still fail?

"The current lazy work style must be changed..." Sanjay Jia, "But I want to know whether Honor wants Motorola to take the premium route or continue the machine-to-sea tactics?"

"Of course it's a machine-sea tactic. I hope to cover all price ranges." Qu Li

Google doesn’t know how to build mobile phones, and thinks that both Apple and Honor can succeed through high-quality strategies. This is the basic rule of the game in the smartphone industry. However, the success of Samsung and Huami OV relies on the tactics of sea of ​​machines.

According to normal logical analysis, iPhone only produces a few mobile phones a year, but their number of programmers and engineers is no less than that of Huami OV. In other words, on one product, Apple invests far more human and logistics time and energy than Huami OV. Peers, if Huami OV Samsung can surpass it, it can only be said that a miracle has happened.

Therefore, we can only compete with differentiation. If the comprehensive experience cannot catch up, then we must surpass the iPhone in some aspects, such as the signal of Chrysanthemum Factory, the screen of Samsung, and the cost-effectiveness of coarse grains.

Billions of people around the world have too many personalized needs. Even if they want to be "different", some people buy mobile phones of other brands.Qu Li's approach is to use multiple brands. Honor makes high-quality mobile phones, while Motorola adopts the mobile phone strategy and focuses on the expansion of offline channels.

Sanjay Jia, Lei Jun, Qu Li and others discussed a lot. For example, in order to reduce costs, supply chain procurement must be integrated. The factories in Tianjing and Brazil can be retained, but Honor will be deeply involved in their management, including Digital transformation.

These business measures are easy to explain, but the most critical ones are profit distribution, how to ensure the management's salary and benefits, how to streamline the team, how to lay off employees, and how to improve efficiency.

Honor's salary level exceeds that of Chrysanthemum Factory in China. Lei Jun's equity incentive received exceeds one billion US dollars, far exceeding that of Sanjay Jia. This does not mean that the average salary level of management exceeds that of Motorola. For example, if Sanjay Jia wants to leave, Will receive compensation of more than 5000 million US dollars.

"We will adopt a high-wage, low-benefits model to increase the proportion of flexible income and risk income..." Honor doesn't own a private jet, so how can it possibly equip Motorola's management with various enjoyable benefits?It is impossible for Motorola to suffer long-term losses, and the management's income is more than Honor.However, it is certain that Sanjay Jia’s income level will exceed that of Glory in the short term, and sometimes this difference must be accepted.

Several people discussed it for several days, and the guiding ideology was "benefit sharing" and "risk sharing", which is in line with the "asymmetric risk" idea that Qu Li said in his first New Year's Eve speech.

Unexpectedly, this screened out some people. Those who were willing to take risks would naturally continue to discuss Honor's transformation of Motorola. Based on their discussion, they were given time to make plans and determine who would take the lead.This is the case in large companies. Although Sanjay Jia is the CEO, he is not of the same mind.

Simple and direct, returning to the essence of business, Qu Li's persistence has won the recognition of many veterans. In other words, this group of "losers" will never find a better opportunity after leaving Motorola. Therefore, Qu Li, who has repeatedly created miracles, Li and Guangrong put their hopes in it.

Talking with Sanjay Jia and other Motorola executives, as well as with Google, Qu Li couldn't understand the previous cooperation framework, including various details such as patent allocation, and could only trust the strength of the team.

In this month, the sales volume of Honor mateX is less than 100 million units, which can be considered a failure. Google Android has become less wary of the Windows Phone system.The relationship between the two parties became harmonious again because of their respective concessions.

Thanks to Brother Mo who gave me the reward