Chapter 303 Li Yidao
“Donngling Hi-Tech and Silver Sable have always regarded Logitech as allies!”
Li Dongling looked at Daniel and said, “However, as allies, it should be fair. Only by cooperating in a fair way can such an alliance continue!"
Daniel took a deep breath. He knew that today he wanted Donglin Hi-Tech to obtain the patent authorization for the optical mouse without peeling off the skin. It can't be better.
“This is natural!” Daniel said with a forced smile, hoping that Li Dongling’s knife could cut more gently.
After Li Dongling and Ren Yuefeng looked at each other, they said to Daniel, "The patent for the Silver Sable Optical Mouse can be licensed to Logitech, but Logitech should also show corresponding sincerity!"
After that, Li Dongling will sing his praises. The role of the face was left to Ren Yuefeng, who was "livid" just now, and the latter said to Daniel.
“Donngling Hi-Tech can license all optical mouse patents and technologies, including optical engines, to Logitech.
But every time Logitech sells a model, it uses a set of Silver Sable patents. You have to pay a 7% patent fee for the mouse. In addition, the mouse, optical sensor, and digital signal processor must be purchased exclusively from Silver Sable!" Ren Yuefeng said the words of the lion without a blush or a heartbeat.
Hearing these words that clearly meant that Logitech was going to be cut off, even though he was mentally prepared and ready to be cut, Daniel almost couldn't help but jump up.
"This is impossible!"
"According to this profit sharing, what is left for Logitech?" Daniel shouted with a blushing face.
The Silver Sable optical mouse has been disassembled by Logitech a long time ago. You know what the most important part of an optical mouse is, which is the optical sensor. To the mouse, it is like a human Eye.
Whoever develops the most advanced optical sensor has a grip on the mouse industry. Whether this thing is easy to develop, Daniel doesn't know.
But now, in the global mouse industry, the only optical sensor that is commercially available is the optical sensor mounted on the Silver Sable optical mouse, which was developed by Silver Sable, Dongling High-Tech Department, Hanxi Joint Laboratory, and Dongling Core Semiconductor, jointly developed.
Even if there is a mouse sensor that can replace the Silver Sable, it will take time to develop.
An optical sensor that can be purchased from Silver Sable, and a sensor that can only be purchased from Silver Sable are completely different things.
Once the optical sensor can only be purchased from Silver Sable, Logitech will not be able to develop the optical sensor, the core component of the optical mouse, and will have to be controlled by Donglin Hi-Tech in the future.
In the previous life, only three companies in the world could produce mouse optical sensors, Agilent, Microsoft, and Logitech, but the ones with the best technology were Agilent, Microsoft, and Logitech. They could also produce them, but mainly For personal use, Agilent is a supplier and sells to mouse brands all over the world.
There is also the 7% patent fee, which is really scary. Logitech’s profit from selling a mouse is how much is left after excluding production, labor, transportation, publicity and other expenses!
Now we are not at the point where a high-end mouse can sell for thousands of dollars. At that time, the profits of mice were high, and the profit of some top-grade mice could reach 400%.
As for Logitech now, a mouse can only be sold for a dozen dollars at most, and the more expensive ones are dozens of dollars. Logitech’s profit is really not high. If it is exhausted, the price cannot exceed one hundred dollars, and the profit is 20% about.
Now Silver Sable takes 7%, plus the money spent to buy the optical sensor, Logitech’s work for Silver Sable is almost in vain.
Even in the previous life of Qualcomm, a mobile phone only cost 5% of the selling price of the whole machine. As a patent fee, a mobile phone worth 2,000 yuan would have to pay Qualcomm a patent fee of 100 yuan. Of course, This does not include the cost of the chip. If you purchase the chip from Qualcomm, the cost will be endless.
“It is impossible for Logitech to accept such conditions. No mouse manufacturer can accept such cooperation!” Daniel shook his head like a rattle.
Daniel's attitude was very determined. He knew that if he agreed to such conditions, Logitech would never be able to turn around again.
Li Dongling glanced at Daniel and said to him, "Actually, there are also America, Nippon and other places in Europe. The cooperation conditions proposed by those manufacturers coming to the mainland are compared with the conditions like Silver Sable. It’s much more demanding!”
Daniel was at a loss for words. Logitech was planning to build a factory in China and build a Logitech mouse production base in Suzhou, because the production costs in Europe were too high, and Logitech also had some burdens. Sorry.
Logitech has done research on the domestic market, and he also knows that what Li Dongling said is the truth. The conditions proposed by overseas companies when cooperating with domestic companies are almost ten times more harsh than this. , domestic manufacturers are doing nothing for them.
"Li, Logitech really cannot accept such conditions!" Daniel refused to let go.
When Li Dongling heard this, he looked like he had a headache, while Ren Yuefeng had a straight face. When Daniel arrived here, he had given up hope for this trip to Hanxi.
Daniel feels that Logitech has only two options next. Either it can bypass Silver Sable's optical mouse patent wall, or it can just copy it without hesitation, which will directly ruin Logitech's name. Just countless lawsuits with Silver Sable.
Both paths, no matter which one you choose, are not easy for Logitech. It also means that Logitech will undergo huge changes in the future, and even its listing may be affected!
You know, Daniel is planning to let Logitech be listed on the Swiss Exchange and the Nasdaq Exchange at the same time. But if there is a lawsuit, let alone listing in both places, will it still be listed? I'm afraid it's all unknown. When he thought that the cooked duck had flown away, and that the wealth and freedom that had been at his fingertips, including private jets, yachts, private islands, and mansions, were all gone, Daniel's heart felt like a needle pricking him and he couldn't stop hurting!
"President Daniel, Dongling Hi-Tech has another plan, you can consider it!"
Li Dongling suddenly spoke, making Daniel unable to recover for a while.
“For 20% of Logitech’s equity, Silver Sable will get 20% of Logitech’s equity!”
Li Dongling said directly, “Donngling Hi-Tech can use the optical mouse patent held by Silver Sable , technology, invest in Logitech. Once it becomes a shareholder, Silver Sable will no longer receive any royalties from Logitech. Logitech can use Silver Sable's mouse patent for free!
Of course, the optical engine, optical sensor, and Logitech must be purchased from Silver Sable. In addition, in the future, Silver Sable can establish a laboratory with Logitech to jointly develop new mice. , optical lenses, optical sensors and other products! ”
People often have the greatest expectations for even trivial hopes after experiencing disappointment.
If Li Dongling had been so bold from the beginning and said he wanted 20% of Logitech's equity, then Daniel would probably be unwilling and might as well just leave in shame.
But the negotiation was about to break down just now, and now that Li Dongling has thrown out this cooperation, Daniel suddenly feels that it is not that excessive...
"20% is impossible, now Pacosta and I , Marini, and their combined equity holdings in Logitech are less than 65%, so it is impossible to give Silver Sable such a high equity stake!" Daniel said after thinking for a while.
Logitech has given up a lot of equity to investment institutions and computer manufacturers over the years in order to attract orders. Although the two founders of Logitech, he and Marini, still hold the controlling stake in Logitech. But it will go public next, and a lot of equity will need to be dispersed to raise funds. At that time, the control of Logitech's board of directors will be a bit subtle.
"19%!"
"Up to 14%"
After another bargaining session between Li Dongling and Daniel, "18% of the equity. In addition, Silver Sable can ask Daniel, Pacosta, and Mali Daniel, I will pay an additional US$40 million, and the voting rights of this equity will be handed over to Daniel as your agent!
If Logitech does not agree to this condition, I don’t think any mouse manufacturer will refuse it! , if Logitech doesn’t agree, then Silver Sable will have no choice but to find other partners!”
After thinking about it, Daniel stood up and stretched out his hand to Li Dongling, “Deal!”
The conditions proposed by Li Dongling are of course not the best choice for Logitech, but they are not the worst either. Now Logitech needs to obtain the patent and technology of the optical mouse and quickly get the order, otherwise the market will be lost. Not to mention, there may still be trouble in going public.
For this reason, it is affordable for Logitech to pay a corresponding price. Is it more important to give the equity to Silver Sable or to lose orders worth hundreds of millions or billions of dollars? Or even Maybe the failure of listing will cause big losses?
Which was the lesser of two powers, Daniel made the best choice now, even if it seems later that the deal was a loss, but that was an afterthought. Now Daniel knows that doing so will be detrimental to He, and Logitech are the best!
For Donglin Hi-tech, 18% of Logitech's equity is definitely not safe, but when Logitech goes public in the future, the equity will be more dispersed. As long as Silver Sable can get about 25% of the equity, it will be able to control it. Logitech!
When the time comes, Logitech will also become one of the overseas vests of Silver Sable and Tanglin Hi-Tech. It is hard to say when this vest will be effective, but having this vest is crucial!
"If we can reach the same cooperation with other mouse manufacturers as Logitech, then in the next few years, Silver Sable will rely on its own shipments and its optical mouse patents to supply optical sensors to other mouse manufacturers. and other parts.
The annual income is expected to be more than 150 million US dollars, and it may even reach more than 200 million US dollars. Of course, this is an ideal situation. "
Ren Yuefeng said to Li Dongling, There was excitement in his words.
Silver Sable is the first project since the establishment of Tangling Hi-tech. For Ren Yuefeng and the first group of people who joined Tangling Hi-Tech, the Silver Sable project is a special existence.
Being able to earn more than 100 million US dollars a year from a relatively "niche" product project is beyond the reach of Silver Sable domestically and even overseas.
For Tangling Hi-tech and Silver Sable, this funding is enough for the research and development team of Tangling Hi-Tech Silver Sable Project to continuously develop higher-performance mice.
When Daniel walked out of the headquarters of Tanglin Hi-Tech, he felt that the big stone that was weighing on his heart had been lifted, making his steps feel a little lighter. In front of the headquarters of Tanglin Hi-Tech, Daniel and another The man passed by, and Daniel instinctively stopped and looked back. He smelled a similar scent from the other man. Daniel was sure that the other man was definitely a professional manager.
Just looking at the other party's hurried steps, Daniel shook his head. He didn't know whose leeks came from Dongling High-tech, and he was waiting to be stabbed. Anyway, Daniel had experienced it, Li Dongling This knife really hurts...
(End of Chapter)