Chapter 835 Broadong
At this time, Zhang Junning had left China and went to Lijiapo.
She has just completed a new round of financing for Xiaomi on behalf of Rich23 Capital.
In early July this year, in the last round of financing participated by Rich23 Capital, they invested US$25 million in Xiaomi and obtained 10% of Xiaomi’s shares.
After only half a year, Xiaomi’s financing this time, their valuation has soared from US$250 million half a year ago to US$1 billion - even though Xiaomi was only releasing MI1 at this time After the mobile phone was launched, it received an order for 340,000 mobile phones, but the deliveries have not yet been completed.
But anyone with a discerning eye can see that with Xiaomi's attitude, their chances of success are already very high.
The most important thing is that Lei Jun, who has already had successful experience, is also very popular with investors as an entrepreneur.
Therefore, Rich23 Capital also actively participated in Xiaomi’s financing this time. They invested US$50 million to participate in Xiaomi’s financing and once again obtained 5% of the company’s equity. Shares - At this time, Rich23 Capital already holds 14% of Xiaomi's shares (the proportion of shares obtained in the previous round of financing was diluted by the new round of financing).
After completing this round of financing from Xiaomi, Zhang Junning arrived in Lijiapo, where she met Hock.E.Tan, CEO of Avago Technologies.
Avago Technologies was originally established when Chen Fuyang led Rich23 Capital by acquiring Agilent Technologies, the semiconductor division spun off from HP.
After that, Chen Fuyang focused his main energy on the management of Avago Technologies.
In Barron's previous life, Chen Fuyang was called an M&A maniac because he led Avago through mergers and acquisitions to become the world's leading semiconductor giant.
Now with the funds provided by Barron's and the financing support of Standard Chartered Bank, Chen Fuyang has not stopped, but has accelerated his pace.
If the initial acquisition of Infineon Semiconductor's acoustic wave business for more than 20 million US dollars and the acquisition of CyOptics for 400 million US dollars were just a small test for Chen Fuyang.
Then he made a big move. In 2009, Chen Fuyang took advantage of the global economic downturn after the subprime mortgage crisis and acquired the memory chip manufacturer LSI for US$4.5 billion. to help Avago strengthen its position in the enterprise storage market and expand its product offerings.
Now after three years of development in Avago, Chen Fuyang can no longer hold back and is ready to make another acquisition.
This time, he first prepared to acquire Emulex.
Emulex, headquartered in Costa Mesa, California, is one of the world's leading enterprise server and storage suppliers.
Its widely acclaimed products include HBAs, intelligent storage platforms and specific storage products such as switches, bridges, routers and I/O controllers, providing users with reliable, scalable and high performance storage and server solutions.
Chen Fuyang hopes that through this acquisition, Avago will accelerate its strategic deployment in next-generation servers and storage racks. Although Zhang Junning is the president of Rich23 Capital, and Rich23 Capital wholly owns Avago.
But in the semiconductor field, Chen Fuyang still has the greatest say in Avago's mergers and acquisitions and development.
Therefore, Rich23 Capital will fully cooperate with Avago’s acquisition of Emulex this time.
The acquisition of Emulex is expected to cost approximately US$600 million, which is not a particularly significant acquisition for Avago.
But Chen Fuyang’s plan goes beyond that. After the acquisition of Emulex is completed, he also has a big target-Broadcom.
Broadcom is different from the companies that Avago has acquired before. This is really a giant in the field of communication chips - Broadcom is famous for its broadband and WIFI chips, the most famous of which is the earliest cable modem on the market. At the same time, this product It has also expanded into the network processor and Ethernet switch chip markets.
Broadcom's strongest response in the SDxContral world is undoubtedly switches, because its chips are used in the design of new switches, including most white-box switches with current waveforms.
At the same time, Broadcom also produces chips for about half of the world's tablets and smartphones and is one of Qualcomm's main competitors.
The current market value of Broadcom is around US$30 billion, but there is no doubt that if this acquisition is to be carried out, it will inevitably require a premium acquisition - so for Avago, this can also be called a It is a significant acquisition.
“The products of Avago and Broadcom have very little overlap, and we have successfully entered the storage market through the acquisition of LSI and other companies before. However, if we can acquire Broadcom, we will definitely be able to stabilize our presence in this market. share, reaching the top level in the world..."
Although Zhang Junning is too young compared to Chen Fuyang, in Chen Fuyang's eyes, she is actually more important as a representative of Barron, so at this time, he has a very good grasp of Zhang Junning's attitude towards Zhang Junning , patiently explained to her:
"Although Avago and Qualcomm target applications in a wide range of consumer electronics and commercial markets, Avago's current strengths are analog products for optical and wireless communication applications, while Qualcomm is good at smart homes, data centers and other applications. Digital SoC, our two companies Our companies have many overlapping customers. If a merger can be reached, it will be good news for chip buyers who hope to simplify their supplier lists. Moreover, the revenue and profits of our two companies have always shown stable growth. synergy, I have very positive View. ”
In fact, it is also what Chen Fuyang believes. Although as the president of Rich23 Capital, Zhang Junning can independently make investments in Xiaomi, and even Avago’s acquisition of Emulex. She can also make decisions.
But like the acquisition of Qualcomm, a very large merger involving tens of billions of dollars, she still needs to report the details to Barron and listen to the other party's opinions.
So on this matter, she mainly needed to do a good job of conveying it, so she listened carefully to what Chen Fuyang mentioned.
Finally, she said to Chen Fuyang:
"Mr. Chen, I will fully convey the information involved and your views to His Highness the Duke, and will also address your acquisition. Conduct a detailed assessment and I believe that His Highness the Duke will make the right judgment. As for the acquisition of Emulex, Rich23 Capital will give you the support you need, and this work may begin now.”
(This chapter. End)