Chapter 806 (1/2)

In San Francisco, scober's headquarters are not around the popular Stanford University, but Milpitas city on the other side of the Bay, bordering Northwest San Jose, which is already a suburb of Silicon Valley.

The location seems to suggest the embarrassment of the semiconductor company.

Scupper company was founded in 1988. Its self positioning is a semiconductor company. More accurately, it should be a semiconductor design company. It is obviously impossible for such a start-up enterprise to have independent new film production capacity. It can only be OEM by its early investor Texas Instruments.

In its early days, scupper's development direction was image decoding chip. It was not until 1991 that the first video decoding chip was launched.

However, although the technology is very novel, scopper has not been able to find an accurate application direction for its own products. In recent years, scopper has tried to apply its own chips to TV sets, game machines, printers and other fields without success.

Even the VCD launched by Wanyan two years ago didn't make scupper see a bright future. The sales volume of less than 20000 VCDs in China in the past year also proves this. In Silicon Valley with a broad vision, scupper's management can see that VCD is not competitive with DVD.

Last year's IPO was the last fight for scupper. In addition, several investors, such as Sequoia Capital, have spent so many years trying to cash back the capital by taking advantage of the tide of new technology. Otherwise, in the past year, several major shareholders would not have cashed out more than 10% of the shares quietly, and they would continue to sell when the shares suddenly rose, eventually leading to Chen Qing's team's short-term interest Up to 21% of the company's shares were accepted.

According to the board of directors and management of scupper, after the IPO funds are spent, if the company has not found its accurate positioning, then there is basically no future.

There are so many failures in Silicon Valley that it's not too disappointing.

All this, until some oriental girl's sudden showdown.

Just the capital background of westero system has made Sequoia Capital and other major shareholders make up their minds to cooperate. Chen Qing's team's plan to create a VCD industry in China and the threat of cooperating with other manufacturers with the funds and plans in hand once rejected have made them completely compromise.

After all, even if the high-speed growth of China's VCD shipments in the first quarter is exciting, there is still a big mountain ahead of DVD. No one can guarantee that once Sony and other manufacturers officially launch DVD players, VCDs will be eliminated in the twinkling of an eye.

Moreover, to make the final decision, the two major shareholders of scupper, Sequoia Capital and Texas Instruments, have their own considerations.

Sequoia Capital is a venture capital company. Although it doesn't mind holding a company's stock for a long time, according to the operation rules of venture capital, it's their first task to cash out in time to realize stable income for investors and develop the next batch of business. This is also why Sequoia Capital was an early investor of many technology giants such as apple and Oracle, but later it was not here The reason why some enterprises are big shareholders.

As a venture capital company, the most important thing is to control the risk, because their investment goal is not only apple and Oracle, but also a large number of failed investments. The reason why Sequoia Capital has been popular is that it has successfully cashed out before many investment enterprises went bankrupt.

This may make them miss some super black horses with a final return of hundreds of times and thousands of times, but it also avoids more losses.

As for Texas Instruments, affected by the rapid development of mobile communication industry and the wave of new technology, its revenue in the past fiscal year exceeded 13 billion US dollars, and its current market value is as high as more than 20 billion US dollars. Therefore, the real world-class semiconductor giant will not care too much about a small company with annual revenue just exceeding $20 million.

Moreover, Chen Qing's team also used other contacts of westero system to lobby the top management of Texas Instruments. In fact, it was a matter of telephone. You know, Ti is the main supplier of baseband chips for Nokia mobile phones. With Nokia becoming the world's largest mobile phone manufacturer, the importance of this customer to Ti is self-evident.

It was finally settled.

Only by transferring half of the remaining 33% of the shares in hand, Sequoia Capital will recover all the previous investment in scupper and realize considerable profits. The remaining half of the shares is enough for Sequoia Capital to enjoy the huge dividends once Chen Qing's plan is successful.

At the same time, Texas Instruments also put forward their own requirements.

All future chip orders from scupper must be made exclusively by Ti semiconductor.

Since TSMC founded the wafer foundry mode and became more and more successful, many old semiconductor manufacturers have found business opportunities and opened up related businesses. With the rapid expansion of the wafer foundry market, they pay more and more attention to it.

Scupper's current order is dispensable to Ti.

However, if Chen Qing's team's plan is really successful, only scupper's chip OEM order will be a very considerable revenue.With the agreement of the two major shareholders and the 21% shares already held by Chen Qing's team, other shareholders and scupper's management have no room for resistance.

The final plan was approved by Simon. At nine o'clock in the morning, Chen Qing's team and all shareholders' representatives formally signed an equity transfer agreement and a new personnel appointment at the scober headquarters in Milpitas.

Chen Qing cleverly didn't take over the company in person. Instead, she let Emmanuel Brandt, a team member she just recruited some time ago, succeed don Valentine as the chairman of scupper. She clearly controlled the overall situation. At the same time, she didn't replace bill omera, CEO of scupper, who was responsible for the specific operation of the enterprise.

After the contract was finalized, all parties held a small press conference in the humble two-story office building of scober, and then the relevant press release appeared at the igritte portal for the first time.

Scopper's recent stock price surge has attracted many people's attention.

With the announcement of the news, the capital market reacted quickly, and another ”westero concept stock” was born.

There is no lack of blindness in the capital market.

although the public release only disclosed little information about the follow up business plan, the core of the main rendering is also the gimmick of the ”Weiss Trojan stock”. Moreover, with the market capitalization of $200 million on Friday's close, the company's P / E ratio is close to 80 times the bubble level, but many investors can not help but start to subconsciously. buy in.

Today, April 24, Monday.

The release of the igritte portal was around 10 a.m. on the west coast, and 1 p.m. on the east coast, three hours before the close.

However, just in these three hours, as a new technology enterprise that has attracted market attention and has been disclosed as a new ”westero concept stock”, scopper's share price, which was originally relatively flat, went straight out of a steep upward curve. At 4 p.m., the North American stock market closed, and scopper's share price rose by 43% in a single day, compared with 206 million at the opening of the morning The market value of US $has reached 293 million.

It can be said that, basically just three hours before the closing, the book profit of shares held by shareholders of scupper is as high as $97 million.

Both the former shareholders and the management of SGB have nothing to say in the face of the crazy reaction of the market.

Not to mention the $20 million five-year loan from Citibank through the relationship of westero system, Chen Qing's team invested about $94 million before and after the loan, and obtained 53% shares of SGB. When the east coast stock market closed on Monday, the total book value of the shares also reached $156 million.

After three weeks of busyness, the book profit was $62 million.

We can see why the financial industry has become a pillar industry in the United States and why so many elites all over the world flock to Wall Street.