Reinventing the Millennium

Related party transactions, falsely reporting profits, whitewashing financial reports, and selling assets.

Even so, Mr. Stringer remains the man in charge of Sony's direction.

Even though the old knight was suffering internally and was in a bad situation, Fang Zhuo still respected him very much and did not flatter him.

On the contrary, he wished he could flatter others and suppress others.

Sony's sensor business is indeed a good thing.

Bingxin and Sony cooperated in building a factory in Shanghai because Fang Zhuo had gone to Tokyo to attend the board of directors and found people from China to conduct evaluations. Only then did he feel that there was potential to be tapped in this area, and then they entered into technical cooperation.

At that time, domestic talents in this field were extremely scarce. Even the evaluation team searched hard to find an associate professor in Tsinghua University, and then poached people from companies in related fields in the United States. This is how the Yike Sensor Team came to be.

Sony sensors + Yike mobile phone related teams + ice core process technology advancements. The integration of the three has created Yike mobile phone’s leadership in shooting hardware.

Sony, a wholly-owned subsidiary, is not only a mobile phone sensor, but also one of the best sensor solutions in the camera market. Considering that it can be linked to vehicle sensors in the future, it is simply a gold mine that has revealed its gold.

But having said that, gold mines and non-gold mines must have a price tag. Although its prospects are good, it still has shortcomings such as high R\u0026D investment and strong competitors.

Oh, yes, the biggest drawback is that the head of Sony is short of money.

Fang Zhuo and Stringer were drinking and chatting happily, but did not talk about the valuation of Sony Sensor Company. This required the team below to connect. When a number was obtained, he would communicate with the old jazz to negotiate the price.

Friendship is friendship, and when it's time to bargain, you still have to bargain.

Fang Zhuo is not a cold-blooded person.

He could just put himself in his shoes. If he needed to sell assets and the old Jazz had money, would he bargain at a lower price?

If the old Jazz wants to bargain, then he will bargain too.

When you think about it this way, it becomes clear how to deal with it.

The investment department of Yike acted urgently and can now obtain evaluation data from IDC, making similar work much more convenient.

After the private reception, as a sign of cooperation between the two companies, Fang Zhuo and Stringer inspected the Third Ice Core Factory in Zhangjiang and delivered speeches to the employees respectively.

That afternoon, a group of Japanese employees heard the statements of the Chinese and British bosses and were very moved.

Fang Zhuo had a meeting in the evening, and also arranged for the president of Yike Huaxia to continue entertaining the Sony team and introduce them to some of the current status of Yike mobile phones and the development of the domestic market.

This satisfied Stringer.

However, it was Liu Qiangdong who showed up the next day. He didn't get to see Mr. Fang himself, which... made him feel a little unhappy and even a little nervous.

Stringer does know some of the drinking culture here. When we were drinking, we were buddies. Now we don't drink. Could it be that there are other considerations?

He felt that this time there was a win-win situation with Mr. Fang.

On the third day after arriving in Shanghai, Stringer continued to see Mr. Fang and expressed his dissatisfaction tactfully and tactfully.

When my brother came to see you, why did he wait for a whole day?

Faced with this aggrieved inquiry, Fang Zhuo immediately stated the situation: "Sir, I am considering our upcoming cooperation and how to enhance our competitiveness."

"Yesterday I called Steve Jobs and asked him about his interest in Sony sensors and the status of some exclusive agreements."

"Apple's iPhone 4 this year has great merits. Its screen effect is excellent, but the supplier LG signed an exclusive contract, which is very frowned upon."

"Yesterday I was thinking about Sony's situation in the consumer electronics market. Smartphones will still see huge growth in the next ten years. Sony now wants to switch to Android and must launch a mobile phone that can be used."

"Open Android, Yike's photography, and Apple's screen, wouldn't it be a great combination?"

Fang Zhuo is very considerate of his old friends.

Of course, it would be even better if Yike can be paired with an LG screen.

If Apple is unwilling to give up this exclusive contract, Sony Sensors can only form an exclusive agreement with Apple.

Stringer immediately felt relieved after hearing Mr. Fang's explanation, and had no choice but to let go.

He thanked: "Mr. Fang, this is why I came to you. You are the director of Sony."

"No need to say more polite words, Sir, you are also a director of our Yike." Fang Zhuo said with a smile, "Actually, I think Sony mobile phones are very suitable to compete with the current Samsung. The two companies have a lot in common."

Stringer is a foreign director of Yike, and Schmidt, who has resigned from Google, is also a foreign director of Yike.

"Indeed, Samsung has something we can learn from. Sony mobile phones must learn from the advantages of each company in order to rise again in this wave of smart phones." Stringer said with emotion.

Fang Zhuo didn't know how far the old knight's emotion could be realized.

He felt that at least on the surface, Sony's mobile phones could be compared with Samsung's. However, due to performance difficulties, effective directions had to be put forward.

Unfortunately, in the evening, after considering it, Jobs called and was unwilling to let go of the exclusive agreement for the retina screen.

Fang Zhuo expressed regret for this.

It also means that Stringer and Sony also expressed regret for this.

This year’s iPhone 4’s Retina screen is indeed very good, but both Sharp and Samsung are stepping up investment in R\u0026D, so the distance in this regard will soon be narrowed. Considering Samsung’s strength in this aspect, I’m afraid it will have to deal with it in the future in terms of screens.

Then, Sony sensors probably need to have an agreement to rank the best and not the best.

Although Fang Zhuo has not yet bought shares in Sony Sensors, he is already planning the company's future development. The CMOS sensor market still needs to develop, and a lot of investment is still needed to determine a more leading position.

On October 8, the Yike team began formal negotiations on the valuation of Sony sensors.

First, it raised a question that shocked Stringer: Can the sensor company sell it all?

If you sell them all, the price can be higher.

Stringer flatly rejected this unreasonable request.

Just kidding, even if he is short of money, he still has a bottom line. Selling high-quality assets requires a steady flow. If he sold out this time, what will he do next time?

Besides, it was 100% sold at once, and the group really couldn’t explain it.

This time, he only hopes to obtain part of the funds in the name of capital increase and share expansion, up to 30%. The sensor’s valuation is US$3 billion, and the target is OmniVision Technology, a listed company in the United States.

OmniVision Technology now ranks first in the global market share of CMOS sensors.

However, Sony's high-end solutions demonstrated by Yike have impacted OmniVision's stock price. Since the release of Mars 4 and Selfy 2, its stock price has continued to fall.

It is generally believed that Sony can make a difference in the field of high-end sensors for smartphones.

The one-day meeting between Sony and Yike only discussed these contents. Sony vetoed the wholly-owned acquisition, and Yike vetoed Sony's valuation.

The valuation given by Yike is US$1.5 billion, a full 50% reduction. The reason given is very painful to Stringer. Increasing sensor production capacity will inevitably require a large amount of investment. Sony's performance is not good, and subsequent development is likely to be affected. Sensor business.

Although the sensor is developed by a subsidiary, and although the goal is to be independently listed, this initial and expansion stage requires a lot of funds.

You estimate it at US$3 billion now. Are you aiming for US$30 billion in the future?

Do you have this ability?

Oh, it may be true, but you are short of money now.

You are not short of money, so why are you selling your shares in the name of financing?

Needless to say, Fang Zhuo said, the people in Yike's investment team discovered a small difference. Sony said that the subsidiary was financing for development, but in fact it wanted to sell its shares, so that the money fell to Sony instead of Sony sensors. in hands.

On October 9, Yike continued to talk with Sony, but Fang Zhuo informed Stringer that he needed to go to Luzhou to deal with the financing situation of the ice core, which was an appointment with the No. 10 board of directors in advance.

For two days in a row, Fang Zhuo did not attend the negotiation meeting between Yike and Sony. As soon as the news was given, he was busy. He had to go to Luzhou and go to the board of directors of Bingxin.

Why is it such a coincidence? Why are you going when Sony comes?

Stringer sighed inwardly, thinking that this was an invisible price reduction from Mr. Fang, a personal relationship was a personal relationship, and this business strategy was a one-size-fits-all approach.

He met Mr. Fang again in the evening and spoke very straightforwardly.

"Mr. Fang, I know what you want to do. Now that I'm here to come to you, we can communicate more smoothly." Stringer said this with a sigh.

Seeing the dull expression on Mr. Fang's face, he felt that the words were a bit offensive, so he immediately went back and said, "Mr. Fang, we have a common future. You give in, and I give in. Let's move forward with this matter." Wouldn’t it be quick?”

Fang Zhuo suddenly missed the grace of the old jazz when he first met him. At that time, the old jazz seemed to be just the head of Sony America. Alas, it was not easy. It was all for the company.

"Jazz, it's not that serious. I really have a chance. I don't want to leave Sony here. Who do you think I am?"

Stringer smiled: "It's okay if it's not. I am indeed a little worried about Sony's current situation."

No wonder!

Mr. Fang, I know who you are!

The fluctuations in Stringer's heart did not affect his smile: "But we really need to push this matter away as soon as possible."

Fang Zhuo said "hmm" and calculated the information given by the team. Prospects are prospects, and unverified values ​​only have a certain value. The valuation of Sony sensors is slightly higher, probably because they want to have room for bargaining.

The valuation range given internally by Yike is US$2.0-2.5 billion, and Sony's estimate is probably US$2.5-2.8 billion.

This is still based on the valuation of OmniVision Technology in the US stock market.

Calculating it based on 2.5 billion, 25*0.3=750 million US dollars.

The old Jazz said before that the loss was more than 3 billion US dollars, which is still a big gap.

Fang Zhuo heard the head of Sony mention his entertainment shares in the United States two days ago, but Yike really has no interest in this and is unwilling to make up more funds here.

"Well, Sir, Sony has a headquarters building in New York. I quite like it there. I am willing to buy 40% of it personally. For Sony sensors, Bingxin + Yike + I will jointly buy 35% of the shares. .”

"The New York headquarters' assessment asked them to calculate it. It could be for reasons such as not being optimistic about the recovery of the U.S. real estate market. I estimate it is only US$900-1 billion."

"The sensor here is estimated at US$2.5 billion. How can such a financial report alleviate the situation."

As long as there is cash flow, financial reports may be able to continue to be whitewashed. As for next year...

Let’s talk next year.

Stringer's heart skipped a beat. Sony's New York headquarters building... It has a bad reputation for selling buildings. Sony's first half financial report still made a profit of US$800 million, but it turned around and sold the building...

However, precisely because there was a profit of 800 million in the first half of the year, this property sale is not to make money, but just not optimistic about the U.S. real estate market.

10*0.4+25*0.35=1.275 billion US dollars.

If these two transactions can be completed, Sony's deficit will be covered by nearly half. Rounding it off means there is no deficit, and it can even continue to report profits.

Stringer was thinking in his mind, with a look of embarrassment on his face. Both of these transactions exceeded the bottom line, the share ratio of the sensor and the New York building...

Fang Zhuo took a sip of tea and snapped his fingers at the secretary next to him, Liu Zonghong.

Liu Zonghong walked closer.

"Is the flight to Luzhou okay tomorrow? Have Lao Xiong and the others arrived in Luzhou?" Fang Zhuo asked about the itinerary in English.

Liu Zonghong immediately reported the itinerary of the ice core shareholders. Almost all of them had arrived in Luzhou and were probably visiting the ice core production line.

Fang Zhuo nodded slightly and motioned to the secretary to continue organizing the documents.

Stringer heard the conversation between the two and asked, "Mr. Fang is really going to Luzhou tomorrow to hold an ice core board meeting?"

Fang Zhuo glanced at the old knight and shook his head.

Stringer was surprised. He had just heard that the itinerary and affairs had been arranged.

"No, Sir, this is not about the board of directors, this time we are really bargaining." Fang Zhuo smiled slightly.

Stringer: "..."

You really have to leave tomorrow, right? If you don’t wait until the expiration date, right? If you negotiate next time, it won’t be this price, right? Just nodding your head today can solve most of Sony’s problems, right?

Fang Zhuo gave a clue: "Sir, the sensor is priced at 2.55 billion US dollars, but we still need to add Shenzhen Zhen's R\u0026D capabilities."

He advised: "After the two transactions are completed, Sony can concentrate on business development. Sir, sell early and enjoy early."

Enjoy early sales and no discounts for late sales.

It has been raised to 50 million.

"The valuation at the New York headquarters..." Stringer said slowly. He felt that Mr. Fang's words made sense. If he finished it as soon as possible, he would be able to start business recovery with ease.

"It depends on the evaluation in the United States. All I can say is to give as high a price as possible. This is not spending the company's money, but my own money." Fang Zhuo said with a smile.

Stringer frowned and said: "How can there be one billion US dollars?"

"You can find someone to estimate, and I will also find someone to estimate. I will try my best to give you a price when the time comes. If $1 billion is appropriate, then use this number." Fang Zhuo gave a certain promise.

Stringer sighed and took the initiative to extend his right hand. Let's leave the general intention as it is, and let others discuss the specific details.

Fang Zhuo shook hands with the old knight and sent him out politely.

"Have someone in New York find someone to evaluate the Sony building, and the estimated figure will be reduced by $50 million." Fang Zhuo gave the secretary an order.

Liu Zonghong was about to open his mouth but stopped his surprise, Boss, you...

Fang Zhuo noticed a hint of emotion and said matter-of-factly: "You should always save some money. There is no way to buy a house without bargaining."

Liu Zonghong nodded in agreement. Stringer was really lucky to have a friend like his boss. Without a boss, how would the old Jazz mend Sony's hole?