Becoming a Movie Star, System Only Finished Loading After Ten Years-Chapter 441 - 430: Spending Money Like Water (Part 2)

Two months after the merger and acquisition, Lianxiang achieved a profit turnaround.

This year, Lianxiang's global market share surpassed 16.7%, historically overtaking HP.

But at what cost?

Clearly, the key lies in the investment from the Miguo consortium.

Without the investment from the Miguo consortium, acquiring IBM's PC business smoothly would have been a mere dream.

Any antitrust or other investigation could have killed the project, turning the massive early investment into a total loss.

Therefore, Qi Hao was not optimistic about Zhang Nan's intention to acquire VAIO.

VAIO once brought countless successes and glory to Sony, but due to the rise of smartphones and tablets, Sony's PC business has been in a slump, so Sect Leader Kaz Hirai's decision to abandon the VAIO PC business was already determined.

However, Qi Hao was not opposed to Zhang Nan and his team giving it a try.

Currently, compared to when Lianxiang acquired IBM, there are still quite a few differences.

Back then, ThinkPad was absolutely the king in the PC field, with countless fans.

It was known as the Nokia of the laptop world, where two people could stand on it without it breaking.

Now, with the shrinkage of the PC industry, the average selling price of Windows PCs has dropped below 4,000 yuan, while sales of low-priced tablets have surged, and the high-end computer market is primarily dominated by Apple.

Furthermore, in the "laptop satisfaction survey" by the foreign tech media PCWorld, Sony's ratings have been declining for years, dropping to second-to-last place in 2012, far behind competitors like HP.

In such a market environment, selling the VAIO personal computer business, which has lower profitability, at a high price is becoming increasingly difficult for Sony.

If no one takes over, then naturally the restrictions are fewer.

Besides, having already acquired IBM through Lianxiang before, the next time will face much less resistance. It seems a bit controversial to say, but that's just how it is.

Moreover, Lianxiang also bought the PC business of another Neon giant, NEC, in 2011.

If NEC can be sold, why not VAIO?

And any acquisition depends on the offer; as long as the money is in place, Sony might even jump at the chance themselves.

Back when IBM's PC business was up for grabs, Lianxiang wasn't the only bidder; Texas Pacific Group (TPG) was one of them too, even though they were determined to win.

As Lianxiang's bidding opponent, TPG eventually raised their final offer to $1 billion, but was unable to go higher, allowing Lianxiang Group to acquire IBM's PC business for $1.25 billion.

Once the money is in, Sony could even willingly help solve the problem.

According to estimates by Zhang Nan and the team, the acquisition price would be controlled between 40 billion yen and 50 billion yen, which means it can be kept within $500 million.

R&D, NVIDIA, VAIO, together amounting to an investment scale of over $2 billion.

Damn rich.

All of this thanks to Lei Jun.

Donghao Venture Capital's investment in Xiaomi returned with astonishing gains, monopolizing the entertainment and financial media charts for a while.

Qi Hao's personal wealth was reassessed, ushering Donghao Venture Capital into its most affluent days.

More than a billion dollars left.

Such a huge amount of money naturally couldn't be used to repay loans; instead, it initiated a new round of frenzied expansion.

For example, Bilibili and novel, comic websites, which promoted with full force while purchasing various copyrights on a large scale.

Promotions reached every seat of the train so their ads were visible everywhere.

Additionally, they improved the treatment for creators.

Regarding the animated movie related to Qi Hao's main quest, it goes without saying.

Projects needed investment, talent needed to be discovered.

They even established scholarships in many universities under the name of the National Animation Development Alliance.

Besides the research scholarship, the animation scholarship was the first to be proposed.

And as for the Crystal smartphone, that goes without saying.

With the money received from Xiaomi, how could they not compete with Xiaomi?

The Crystal smartphone could not only replicate Xiaomi's current marketing model but also future marketing strategies.

In no time, money was spent like water.

In comparison, the film "Grandma's Grandson," which Qi Hao made for ten million, seemed rather insignificant.

Just like a toy of a big boss.

Maybe they offered too much, perhaps Sony couldn't wait to offload the VAIO burden, or perhaps Zhang Nan devised some other strategies, but in any case, acquiring VAIO by Beihou Technology wasn't as difficult as Qi Hao imagined.

After three months of negotiations and handover, by November, Beihou Technology had fully taken over Sony's PC business.

Apart from production, R&D, technology, design, what truly delighted Beihou Technology was gaining a part of Sony's sales and after-sales network in Huaxia.

Additionally, a part could be shared within two years.

This was truly crucial for Beihou Technology, which was about to launch smartphone products.

It should be said that with this merger and acquisition, the sales channels and after-sales outlets of the Crystal smartphone immediately surpassed Xiaomi, which had already released its third generation.

The 48 billion yen acquisition price was within everyone's expectations.

Whether it's worth it depends on who you ask.

At least for Beihou Technology, VAIO was worth more than the price.

It saved a lot of expansion time.

On December 18th, on Qi Hao's birthday, he and An Feng together attended the Crystal smartphone's press conference.

The son was left with his grandma.

This was something Lei Jun had been dreaming of for the past two years.

Getting Qi Hao and An Feng to endorse Xiaomi!

Unfortunately, even when parting ways, he couldn't succeed.

This was also the first public appearance of An Feng after giving birth.

Bilibili broadcasted the entire event live.

On Qi Hao's birthday, releasing a phone named after An Feng's English name, the hype was full, turning the Crystal smartphone into a household name.

And its price of 1,888 overshadowed Xiaomi's 1,999.

Highlighting cost-effectiveness.

As for whether the competitors would die, that wasn't their concern.

Lei Jun seriously doubted whether there was any profit at all in this product.

Damn, he focused on cost-effectiveness to drive up valuation, while Beihou Technology's low price seemed like a mutual destruction strategy.

Whether I survive is irrelevant; anyway, I want you dead!

But in reality, Zhang Nan really had no such intentions; 1,888 yuan per unit could actually break even and even make a small profit.

After all, the manufacturing end was BYD.

Donghao Venture Capital is a shareholder of BYD, making Beihou Technology and BYD like brothers from different mothers.

Recently, BYD has used quite a few of Beihou Technology's patented technologies; both parties even signed a cooperation agreement to jointly develop some automotive technologies.

Crystal smartphones not only had lower manufacturing costs compared to Xiaomi phones, but it also had many self-developed technologies, further reducing technical costs.

Finally, there was a substantial difference in marketing costs as well.

Those in the internet may be better at boasting, but in playing marketing, Lei Jun truly couldn't compete with Qi Hao's side.

Qi Hao's side not only had their own marketing company but also cheaper channels from partners, as well as top-tier celebrities from the entertainment circle helping with the promotions.

Stars who regularly collaborate get a free device.

The savvy ones know how to help with promotion, they must subtly showcase the beautiful logo of the Crystal smartphone.

No need to pay endorsement fees.

While other companies talk about ecosystems, Qi Hao's side didn't much bother; his invested enterprises were diverse, and his business ventures appeared scattered.

No one expected the results to be so phenomenal.

A phone brand, from nothing to launch, on December 18th, could sell over 1 million units in just the remaining 14 days of December.

In contrast, Xiaomi's entire year of 2012 shipments was only 7.19 million units.

Don't underestimate the 111 yuan difference between 1,999 and 1,888.

It's enough to buy accessories.

The key point is that the parameters and functions of the Crystal S1 are even better than the Xiaomi 3.

Of course, this data is only to be compared with Xiaomi.

On June 8, 2010, Apple Inc. released the iPhone 4 to the public, and in 88 countries and regions, over 1.7 million units were sold in the first four days of release, with demand exceeding supply in the first few days.

People lined up in person to buy an iPhone, with lines reaching 1,000 people, setting up tents in front of Apple retail stores.

People even sacrificed their precious 'first time' for an iPhone.

The world saw its first case of selling kidneys to buy an iPhone.

But whatever the case, selling a million units in 14 days, less than half a month, made the Crystal phone instantly famous.

And its massive success defined by many as an entertainment company, the East Hao Group, on 18th December, when they released the phone with the gimmick of using An Feng's English name as part of the launch communication strategy, sponsored by Bilibili.

Due to the colossal sale of the Crystal smartphone, a company many considered to be mainly an entertainment company, East Hao Group, now gains recognition.

As a finishing touch, the phone named after An Feng with a price of 1,888 outshone Xiaomi's 1,999 model with its superior cost-effectiveness.

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