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Chapter 112: Is There an Oriole Behind?

~10 min read 1,987 words

Makoto Yamashina stared at the plan in Li Dongling's hand. He really wanted to say that with Wan Dai's strength, after taking over the electronic pet machine project, they didn't need other companies to point fingers!

But his throat moved, and Makoto Yamashina still said to Li Dongling, "Thank you for your care!"

As soon as these words came out, it was basically agreeing to this transaction. The conference room suddenly erupted in applause.

Makoto Yamashina looked at Li Dongling. In the final analysis, electronic pet machines were too important to Wan Dai. Electronic pet machines were attracting a large number of new users to Wan Dai stores. Every time an electronic pet machine was sold in a store, what Wan Dai got was far more than just the money for one machine!

For Wan Dai, electronic pet machines were like internet companies spending money to attract new users in his previous life. It was also like a city constantly promoting tourism to attract small golden beans to travel. You have to know that when people go there, they don't just look at the scenery; they also need to eat, live, travel, and bring income to various industries such as hotels, restaurants, taxis, and shopping malls. In a few days, they could earn billions!

Electronic pet machines were also helping Wan Dai attract new users to consume in stores. Once in the store, users had the opportunity to buy Wan Dai's other comics, games, toys, figures, etc. If they didn't go to the store, they wouldn't have the opportunity to sell them at all.

Since electronic pet machines were launched in Japan, Wan Dai's revenue had ushered in explosive growth. Among them, the direct income brought to Wan Dai by electronic pet machines wasn't too high, but other products were selling well. This was the real reason Wan Dai was reluctant to part with electronic pet machines—it could continuously bring new users to Wan Dai!

When the acquisition price was reached, the rest were all side issues. But Li Dongling still said to Makoto Yamashina, "President Makoto Yamashina, there are two more things I hope Wan Dai can agree to!"

"The first thing, the OEM production of electronic pet machines will still be the responsibility of Dongling High-Tech!

The second thing, in the Southeast Asian region, excluding the Japanese market, the remaining markets will still be acted as agents by Ning's Trading Company!"

Li Dongling glanced at Ning Wenge and said to Makoto Yamashina. Continuing OEM production of electronic pet machines meant that although Dongling High-Tech earned less, it was a steady income, and they could still earn foreign exchange from electronic pet machines!

As for the agency rights in Southeast Asia, Ning Wenge and Ning's Trading Company stood on Dongling High-Tech's side. Li Dongling couldn't possibly pit her.

Makoto Yamashina heard this, glanced at Li Dongling, and then looked at Ning Wenge. A look of "I understand" suddenly appeared on his face, "Of course, no problem!"

Seeing Makoto Yamashina's "I understand" look, Ning Wenge showed some unnaturalness on her face. Turning to see Li Dongling, her earlobes felt somewhat hot.

Among the younger generation in Hong Kong, although there were many so-called young talents, including the children of those industry kings, who had made quite a name for themselves, they were basically hanging around in the stock market, earning money by speculating on stocks. Like Li Dongling, who started from scratch and fought his way to the top, there were almost none among the younger generation in Hong Kong, or even in Southeast Asia, including Japan, South Korea, and Taiwan!

When one side was the second generation of a wealthy family, relying on their father or family money to speculate on stocks to earn money or squander it, and at most entering real estate to build houses, there was basically no other achievement.

The other side was starting from scratch, and in just two years, built a company that vaguely had the shadow of an emerging tech giant. Even for the Hong Kong media, their praise for Li Dongling and a group of domestic wealthy people was different from that for Hong Kong wealthy people.

Not to mention, Li Dongling also helped Ning's Trading Company get rid of the bankruptcy crisis. In Ning Wenge's eyes, Li Dongling was completely different from those second-generation wealthy people in Hong Kong.

Just as Ning Wenge was thinking, she heard Makoto Yamashina say again, "Wan Dai hopes to complete this acquisition in the form of stock plus cash. Wan Dai will pay 100 million USD in cash, and the rest will be paid to Dongling High-Tech in the form of stock transfer!"

Even Wan Dai couldn't say they could come up with 200 or 300 million USD in cash in one go. Never mind Wan Dai, even current giants like Microsoft, IBM, and Sony were the same. Current giant companies hadn't stumbled yet, unlike the group of giant companies in his previous life, where each one had higher cash reserves than the other, fearing that they would suddenly collapse one day, and also to facilitate the appearance of new tracks and industries, so they could have money to go all-in at the first time.

Like Apple, which had always been "very troubled" by the 100 or 200 billion USD in cash reserves it held, buying back stocks and paying dividends when it had nothing to do. In ten years, through stock buybacks and dividends, it returned 732 billion USD in revenue to investors, making the stock price go crazy…

For Wan Dai's acquisition of electronic pet machines in the form of stock plus cash, Li Dongling wasn't surprised. Acquisitions were all played like this now; no company could come up with such a large amount of cash.

"Based on Wan Dai's current market value, Dongling High-Tech is expected to get about 2.6% of Wan Dai's equity!"

Hu Zi whispered to Li Dongling, "Of course, we can also request that Wan Dai pay this acquisition fee in installments!"

Wan Dai's stock price had been crazy this year, once breaking through a market value of 6 billion USD at its peak, and now it had fallen back to around 5.5 billion USD. According to the current market value, 150 million USD could be exchanged for about 2.7% of Wan Dai's equity, making Dongling High-Tech one of Wan Dai's shareholders, enough to enter Wan Dai's board of directors!

In these years, Wan Dai's equity had been quite dispersed, basically occupied by major Japanese financial groups and overseas investors. Even the Yamashina family's equity in Wan Dai was only less than 10%.

Previously, because Wan Dai's revenue suffered losses due to game consoles and the stock price plummeted, Makoto Yamashina had already prepared to be kicked out of Wan Dai, but he was saved by the electronic pet machine.

This time, pulling Dongling High-Tech into Wan Dai's board of directors, Makoto Yamashina actually had some of his own thoughts. Once Dongling High-Tech entered Wan Dai's board of directors, it would naturally be an ally of the Yamashina family. Wan Dai equity held by the Yamashina family, plus Dongling High-Tech's Wan Dai equity, would reach about 13%. As long as he acquired another 2% of Wan Dai equity, the Wan Dai stock price held by the Yamashina family could reach 15%!

15% of Wan Dai equity, in the dispersed Wan Dai Company, was basically considered a major shareholder. Makoto Yamashina's right to speak on Wan Dai's board of directors would greatly increase. Not to say his word was final, but no one could easily kick him out again!

Whether to take Wan Dai's equity or let Wan Dai pay the 250 million USD in installments over a few years was decided by Li Dongling.

"Dongling High-Tech agrees to this transaction: 100 million USD in cash, plus 2.7% of Wan Dai equity. The cash must be paid within one month of the transaction!"

Li Dongling said. Getting Wan Dai Company's equity would definitely be valuable in the future. "A wall of Wan Dai, a house in Yanjing"—this wasn't just talk. Men are boys until they die. No matter how people scold Wan Dai for changing the skin but not the medicine, its figures could still be sold, and the more expensive they were, the more people bought them. Every year, they could sell over 7 or 8 billion USD worth of goods.

This equity of Dongling High-Tech, whether it was dividends or cashing out in the future, was absolutely not a loss.

Makoto Yamashina, who was looking at the follow-up plan for the electronic pet machine, looked up and said to Li Dongling, "Dongling High-Tech has made a wise choice. This equity might be Dongling High-Tech's most valuable asset in the future!"

Hearing this boasting, Li Dongling didn't care to argue. Makoto Yamashina's personality was like this, perhaps related to his background. He wanted to prove that he was stronger than his father, the previous generation Yamashina, showing arrogance and stubbornness. Now that the agreement had been signed, Li Dongling didn't want to argue anymore.

"I hope so!" Li Dongling looked at Makoto Yamashina and said.

Makoto Yamashina put down the plan in his hand. Although he didn't want to admit it, the follow-up plan for the electronic pet machine formulated by Dongling High-Tech did indeed somewhat exceed his expectations.

Besides changing to a color screen and adding new functions and playability, the other most important thing was the online battle function for two machines, which made Makoto Yamashina's eyes light up. If this function were launched, it would further increase the playability and social function of the electronic pet machine. Maybe it could sell well again.

Raising the plan in his hand, Makoto Yamashina said to Li Dongling, "As a 'friend' in the future, I will also give Dongling High-Tech a kind reminder. This time it's free!"

Looking at Makoto Yamashina with a proud look on his face, Li Dongling felt a sense of unease in his heart, but still made a gesture of invitation, stood up, and came to the lounge next to the conference room with Makoto Yamashina.

The two talked for a short time, less than ten minutes, but when they returned to the conference room, Makoto Yamashina was full of smiles, while Li Dongling's expression wasn't very good.

After signing the agreement, Makoto Yamashina had people collect the contract and then said with a smile, "Next, Dongling High-Tech will probably be very busy, so I won't disturb you!"

Makoto Yamashina, in a great mood, led Miao Chize and a group of Wan Dai executives out one after another. Ren Yuefeng, Hu Zi, and others all looked toward Li Dongling. They didn't know what the two had talked about that would make Li Dongling show this expression.

"I still have things to deal with, first…" Ning Wenge knew that Dongling High-Tech had things to discuss and wanted to leave, but was stopped by Li Dongling.

"Ning Zong doesn't need to avoid suspicion. Whether what Makoto Yamashina said is true or not, this news will spread soon!"

"Makoto Yamashina said that there is news from Japan that Toshiba, Xia Pu, and Sanyo will jointly increase the price of parts for Shenzhou telephones!"

"Wow!"

As soon as these words came out, the expressions of the group from Dongling High-Tech changed drastically, and Ning Wenge's expression also changed somewhat.

Now they knew why Makoto Yamashina showed that proud look when he left just now. The cash cow of electronic pet machines had been bought by Wan Dai. If Shenzhou telephones had problems again, Dongling High-Tech might really be in trouble.

Shenzhou telephones, including machines from Coolpad and Simon, had their main parts—including chip motherboards, batteries, and backlight screens—provided by Toshiba, Sanyo, and Xia Pu in Japan. Raising prices at this time was clearly wanting to slaughter Dongling High-Tech.

(End of chapter) ===== CHAPTER 113 =====

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