Rebirth of America, this is my era

Chapter 211 Taking advantage of the situation
The two firms reached a consensus in very short order after Morgan Stanley was unwilling to provide additional protection for the transaction between Commodore and Allen Bradley.

Since both parties were in the process of a takeover, all transactions conducted during this period would be closely monitored by the American Securities and Exchange Commission, so they could only find a roundabout way to save the situation.

The day after receiving the threat, Allen Bradley and Commodore commissioned a private equity fund on Wall Street to make an acquisition offer to Ethan Jones. According to Ethan Jones, they were willing to purchase all of Ethan Jones' shares in Chuck Pete Chip Company for US$8 million and bear all capital gains taxes generated by the transaction.

At the same time, they also made an offer to Nintendo Kyoto Chip Manufacturing Company, willing to buy the production license of 6502 chips in notebooks for two million US dollars, and promised that even if they obtained the production license of 6502 notebooks, they would not produce 6502 chips in notebooks in the next five years.

The former transaction made Ethan Jones very satisfied.

He signed without hesitation, and that afternoon, these people transferred the money to his bank account.

The latter transaction was delayed by two days due to the time difference.

When Yamauchi Hiroshi received this inexplicable acquisition contract at Nintendo's headquarters in Kyoto, he laughed and signed it immediately after reading the contents. Since Ethan Jones had already communicated with Arakawa Minoru, this scene was also seen by Arakawa Minoru who was rushed back to his notebook.

Looking at the extremely happy old father-in-law, Arakawa Minoru pursed his lips with mixed feelings.

At this moment, he found that what his father-in-law said was quite right. When a ferocious beast encounters an attack from the outside world for the first time, it will definitely fight bravely and tear the enemy to pieces with its fangs and claws, because only in this way can it protect its own interests.

But there was one thing he couldn't understand.

"Commodor and Alan Bradley just lost like that?"

"Aren't they too... too... too disappointing?"

"They have considerable power and an extraordinary background. They even brought Morgan Stanley in for the deal, but now..."

"Ethan Jones just threatened them, and they gave in?"

Arakawa looked at his father-in-law in surprise.

Hearing this, Yamauchi Hiroshi also put down the contract in his hand. Two million US dollars was nothing to him, but the act of making a profit made him feel very comfortable.

Staring at his son-in-law who seemed a little incredulous, the old man who had been working in the business for many years smiled with emotion, "Arakawa, this is actually the weakness of professional managers."

"Do you know why my family, your family, or even many big families in our country would rather recruit a son-in-law than hire a professional manager for the family business?"

"It's not because the professional managers in our country are incompetent, but because they always lack courage. Their power is given by shareholders, and shareholders pursue the greatest benefits. In order to keep their positions, professional managers will attach great importance to things like financial reports."

"But oftentimes, the development of a company is not just about financial reports. If the person in power is a madman that everyone fears, and everyone thinks that the guy who infringes on his business will be retaliated against, and this retaliation may come in the next second without waiting for years, then this company will definitely develop better than other normal companies."

“And this kind of madness can only occur when those in power can truly call the shots.”

Having said this, Yamauchi Hiroshi stopped, bent down and wanted to make himself a cup of tea.

Hirofumi Imanishi was quicker and took decisive action when he saw that the boss wanted to drink tea.

This situation made Yamauchi Hiroshi smile and nodded at the other party.

He picked up the teacup, blew on it twice, and then drank it all in one gulp.

The sudden heat made him squint his eyes instantly, and the bitterness that filled his mouth made him smile and shake his head.

After taking a sip, he put down the teacup in his hand and said to his son-in-law who was still in a daze: "Where is the document that Ethan Jones asked you to bring? Let me see it."

These words brought Arakawa Minoru back to his senses. After he handed the document to his father-in-law, the word "authorization" that came into his sight made Yamauchi Hiroshi nod his head.

I opened it and saw that it said -

On August 15, 1978, West Design officially authorized the Nintendo Kyoto Chip Manufacturing Company to be the distributor of the 8-bit CPU in Japan. Starting from August 16, 1978, Nintendo Kyoto Chip Manufacturing Company can independently produce and sell our company's 8-bit CPU in Japan. In principle, our company does not interfere with the entire production and operation process of the chip in Japan, but Nintendo Kyoto Chip Manufacturing Company is not allowed to sell the chip to other regions outside Japan by direct export, and is not allowed to sell the chip to America in any way.

The authorization is for ten years.

The licensing fee is US$200,000 per year.

At the same time, for every chip produced by Nintendo's Kyoto chip production company, Western Design Company would charge 50 cents in patent fees. Starting from the fourth year, this figure would decrease by 5 cents each year. By the end of the tenth year, the patent fee for each chip would be 15 cents.

Although by then, the production of this chip will no longer be of much significance, it still has to be drawn.

When Yamauchi discovered that the chief engineer of Western Design was Bill Mensch...

He immediately closed the file and threw it on the coffee table.

"Bill Mensch is the circuit architect of 6502?" He glanced at Hiroshi Imanishi beside him.

"Yes." Nintendo General Manager Hiroshi Imanishi nodded immediately.

"Oh - Ethan Jones took action after resolving the chip crisis." Yamauchi Hiroshi saw through the entire process of the incident and said with a smile: "Okay - a very powerful little guy -"

Then he taught his son-in-law, "Arakawa, you can see and learn more since you are in North America."

If he had heard these words half a year ago, Arakawa would have definitely sneered.

But now, he nodded seriously.

At the same time, he was also curious, "Based on the current situation, Ethan Jones has won?"

Although Arakawa Minoru did not say out the other question in his mind, how could the two people present not know it?
"Arakawa, you're thinking too much."

Nintendo General Manager Hiroshi Imanishi shook his head and said, "This is at most just the first round of the contest. The capitalists in North America did not understand Ethan Jones's character, so they fell into a disadvantage."

"Once they understand Ethan Jones's vindictive style, their next attack will be more cautious and fierce, so..."

Hiroshi Imanishi stretched out his voice.

Yamauchi Hiroshi took over the conversation, "We still have a chance."

"Don't worry, Arakawa. Those people must be observing him carefully with a magnifying glass now..."

Just as Yamauchi Hiroshi guessed, Goldman Sachs, which had been keeping an eye on them, got the news soon after Allen Bradley and Commodore quietly came to Wall Street. When they learned that Ethan Jones was playing a very new game of buying shares willingly with Commodore and his people, John Weinberg and John Whitehead in the CEO's office of Goldman Sachs laughed out loud.

"See, I was right!"

"Laurence Rockefeller is not a good man!"

“Ethan Jones robbed Commodore with Morgan Stanley involved?”

"And the robbery was successful?"

"Oh - that's seriously the funniest joke I've heard this year!"

“Hahahaha—hiccup—”

Morgan Stanley's admission of weakness made John Whitehead almost laugh to tears.

And John Weinberg next to him...

He also kept banging on the table.

As the saying goes, competitors are enemies. Goldman Sachs and Morgan have been fighting for decades, but neither has defeated the other. In this case, watching the other eat shit is even more enjoyable than making money yourself!
After laughing, John Weinberg said: "So now..."

"I think the time is ripe for action." John Whitehead understood what the other party meant.

"Then..." John Weinberg rummaged through the folder and pulled out a stack of documents.

"Send it." John Whitehead took it with a smile and asked his secretary to come to work.

That afternoon, Goldman Sachs held a press conference at its headquarters.

The spokesperson held the speech and read it carefully to the media friends below.

"Recently, we at Goldman Sachs conducted a large-scale survey of the technology industry and found that there are major problems and hidden dangers in the current hot CPU industry..."

"Intel and Motorola have developed relatively slowly and have not gained much market share in the current hot personal computer industry. This situation may affect their market value in the long run. As for MOS Technology, the most famous company at present, their sales volume cannot support their market value..."

"According to our Goldman Sachs investigation, the cheapest CPU MOS 6502 currently has serious patent issues. So far, there are three companies that own the patents for this series of chips, namely MOS Technology, the current manufacturer of MOS 6502, Motorola, the patent owner of Motorola 6502, the research and development basis of MOS 6800, and Western Design, a new company founded by the main researchers of MOS 6502..."

"When the patent of a chip is owned by three companies, the current hot sales are just a good sign. Once Motorola and Western Design both go into production, MOS Technology will no longer be able to control the chip market through 6502. According to our estimates, by the end of this year, their market share may drop by %, and their total market value may fall by to percent..."

"This situation may have a huge impact on Komodor's acquisition. So far, Komodor's offer for MOS Technology is 33 million US dollars, which is nearly 40% lower than the 20 million we expected. So we urge investors to invest cautiously..."

"In addition, the 6502 patent issue may also have a certain impact on Rockwell, which wants to enter the computer industry, Apple Computer, which already occupies a leading position in the computer industry, and Tandy, which produces TRS-80. Since Apple Computer is not currently listed, the impact will not be directly reflected in the public market, but Rockwell and Tandy, which are already listed..."

“They all may be at risk of falling market value.”

"The personal computer industry and the chip industry are currently risky industries, please pay attention to prevention."

When major media outlets publicized Goldman Sachs' statements at the press conference...

Allen Bradley, Commodore, Rockwell and Tandy all started cursing instantly!
Because everyone understands that this is a short-selling report!
Goldman Sachs warns all investors that they are going to short computer-related companies!
This fact made Komodor and Alan Bradley's faces turn green with anger!
They just paid Ethan Jones $10 million to get him out of the company! And now, Goldman Sachs suddenly appeared and said that their market value could drop by half?
I'm gonna fuck your mother!
That evening, Komodor and MOS Technology directly issued a statement stating that the Goldman Sachs report was completely false, that their company had no risks, and that there was no possibility of a decline.

Rockwell, which was confused, and Tandy, which was puzzled, did not fall behind and issued announcements the next morning. The former stated that the core purpose of their acquisition of Allen Bradley was to consolidate their main business income, and the latter revealed their purchase price from Chuck Pete Chip Manufacturing Company, saying that the 6502 at twelve dollars a chip could withstand all risks.

But even so, the market reacted violently. After the stock market opened that day, MOS Technology took the lead and plunged thirteen points. Commodor also fell by nine percent. Tandy, which had nothing to do with the whole struggle but was known for its cheap personal computers, fell by seven percent. Even Rockwell, which had little to do with the entire industry, suffered some sell-offs and fell directly by five percent.

This fact made the computer companies that were severely affected cry for help, and Ethan Jones, who was far away in California... after listening to Steve Ballmer's report, he immediately smiled and shook his head.

'The mantis stalks the cicada, unaware of the oriole behind, right?'

'Wall Street guys are a bunch of old dime a dozen!'

In fact, when Ethan learned that Morgan Stanley was behind Commodore and Rockwell, he knew that Goldman Sachs would not be able to sit still.

Unfortunately, he never guessed what Goldman Sachs would do.

And now, everything is clear. Unlike Morgan Stanley's Black Knight robbery, Goldman Sachs is playing the short-selling trick. Making money in this way seems to be more risky than Morgan Stanley, but from the perspective of public opinion, ordinary people who don't know the reason can accept it more.

Because in the eyes of the public, Goldman Sachs only released some industry reports based on facts. The decline in stock prices of the companies involved in the reports was due to the evil deeds of those companies themselves and had nothing to do with Goldman Sachs.

Not only that, Goldman Sachs is also a good guy, helping people clear mines there.

Ethan had never believed in such overly embellished public opinion in his previous life, but he had to say...

These guys acted well.

"Anything else?" Ethan looked at Ballmer with a smile.

"No more." Ballmer shook his head.

"Okay, then go back to work. If there's anything urgent, let me know. If not... just let them handle it themselves."

Now that Goldman Sachs had robbed the company, Ethan felt that he could take a break.

The reason is simple. After Goldman Sachs took action, Commodore, Allen Bradley and Morgan Stanley had no intention of dealing with him.

In most cases, Goldman Sachs will not release a short report, but once they do, they will definitely leave after they have had their fill and burped.

The 13% of MOS Technology is just the beginning. The 5% of Rockwell is not enough at all. Goldman Sachs will definitely continue to attack it in the remaining time.

For the target companies, this period is a day of suffering, but for Ethan Jones... you can beat them as much as you want! The harder the better! Beat until the sky collapses and the earth cracks! Beat until the road is obliterated!

He doesn't care who wins or loses!
He just wanted to sleep peacefully for a while!

(End of this chapter)