Chapter 1175 – Exchange
Sanders looked at Feng Yu speechlessly. What are you trying to say? Owning 10% of the market share means it must be acquired? Even Intel doesn’t dare and cannot acquire AMD due to the Anti-trust laws.
AMD is not the same as that game console company!
“Feng, I had made myself very clear. You are free to invest in AMD, but I will never sell my shares. Although the share prices had fallen, and my net worth had shrunk a lot, I don’t care. I am still in charge of AMD!” Sanders replied firmly.
Feng Yu shook his head. “Is this really the case? Have you realized that AMD had been following Intel’s footsteps? Have you ever thought of going around the industry standards set by Intel? Have you ever thought of letting Intel be a follower behind AMD?”
Sanders laughed. “Of course, but do you think it is possible? Intel’s fund is several times more than ours, and their partners and clients will make them stronger. Intel is just like Microsoft in the software industry. No one can remove them from the throne!”
Feng Yu shook his head again. “No. IBM was the industry leader several years ago, but Microsoft had overtaken them. Within five years, Microsoft’s operating system, office software, etc., will be challenged. My plan is to double AMD’s market share within five years and double it again within the next five years. With 15 years, AMD can compete or even exceed Intel!”
Sanders looked at Feng Yu as if he is an idiot. “I believe you can double AMD’s market share within five years. But do you think AMD can double its market share again within the next five years?”
Sanders doesn’t believe AMD can stand up against Intel. If AMD is Intel, he will also not give AMD any opportunity to do so.
Also, what did Feng Yu say? Within five years, Microsoft operating system and software will be challenged? What a joke! Which company is capable of challenging Microsoft? IBM or Apple? Could it be a European company?
Sanders felt no companies can challenge Microsoft!
“Lenovo, a Chinese PC manufacturer, was once thought to be the worst PC brand. It was ranked the lowest even in China. But within five years, Lenovo had grown to be the number one PC brand in Asia and fifth globally. Five years later, it will become the best in the world!”
Sanders frowned. He knows Lenovo, as this company is one of AMD’s customers. He had to admit that Lenovo had grown rapidly, but isn’t this company could do so well because it had the Chinese Government’s support?
AMD only has the support of the State Government. Is Feng Yu trying to say that he can let Lenovo use AMD’s CPU in the future?
If this is true, it will be good news for AMD. But even so, Sanders will still maintain 51% shares of the company. At most, he will not purchase the voting shares from that shareholder!
“Sanders, let me ask you a simple question. What are the components of a PC?”
Sanders looked at Feng Yu puzzledly. What sort of question is this? Although AMD does not produce PC, how can he not know the answer to this question?
Feng Yu laughed and did not wait for Sanders to answer. He counted with his fingers. “Monitor. Wind and Rain Electronic and Philips had developed the LCD display, and it is selling very well. We own around 18% of the market share. Although the market share is not high, we are holding the biggest market share in the world.”
“Optical drive. Wind and Rain Electronics is also the founder of the DVD forum and owns the most DVD patents. We are setting the mainstream DVD standards. Hard disk. I had bought the hard disk drive business of a company and had transferred it to China. We can start the production of 160G hard disk and portable hard disk anytime.”
“GPU (graphics card). I am the biggest shareholder of Nvidia, and Nvidia’s graphics card owns the world’s biggest market share. Also, Nvidia’s APU technology is the most advanced in the world.”
“Sound card. Aiwa and Lenovo’s jointly developed sound card is currently second in terms of market share. We are not far away from taking the first position. Earphones. Aiwa has the biggest market share for earphones at around 29%.”
“Lenovo is also producing mouse and keyboards. Although they are third in the market share, it’s fine. What other important components are there? CPU and RAM memory.”
“Let me share a piece of news. We had just acquired the shares from one of Kingston’s shareholders and used Nvidia’s shares to exchange Kingston’s John Tu and David Sun’s shares. Now, I am the biggest shareholder in Kingston.”
“What I lack is CPU. Other than Intel and AMD, many companies in India, Taiwan, Japan, and Samsung, can produce CPU. But they are not as advanced as Intel and AMD. But if I can grow so many companies to catch up with the best in their respective industry, do you think I can lead another company that produces CPU to overtake AMD? If 100 million investment is not enough, how about 1 billion? 10 billion?”
Sanders is shocked. He did not expect Feng Yu to own companies that can manufacture all the PC components except for the operating system and CPU. But the operating system and CPU are the critical core of a PC.
But what Feng Yu said is true. It’s not only Intel and AMD that knows how to produce CPU.
After hearing about Kingston and Nvidia exchanging shares, Sanders got an idea. He had always wanted to enter the graphics card and RAM market, but the company cannot raise enough funds. It is tough for tech companies to raise funds during this crisis.
Sanders had thought of acquiring a graphics card company but felt it’s not worth it. The company’s value will depreciate immediately after it was acquired. He had been eyeing ATI Technologies for some time.
Since Nvidia can exchange shares with Kingston, why can’t AMD exchange shares with Kingston and Nvidia?
Ralph could tell what Sanders was thinking and took out a document. “Sanders, this is the latest offer from my Boss. Other than us, no one else can make this offer. If you still reject us… I know two or three Intel’s shareholders are thinking of selling their shares.”
This is implying that if you still don’t accept our offer, we will work with Intel. Although we will be a minor shareholder, Intel’s profitability is much higher than AMD.
Sanders read the document carefully. It stated the shares exchange details, and the shares used in this exchange include Nvidia and Kingston. Nvidia proportion is slightly higher than Kingston.
If this deal went through, Feng Yu would own more than 51% of these three companies’ shares. But the document also states that Sanders will still remain as the Chairman and CEO of AMD!
Sanders put down the document and looks up. “Feng, when can we sign the contract?”
