Reborn Xiangjiang as a Tycoon

Chapter 372 Apple Board of Directors

January 5th.

Lin Baicheng came to Apple with his secretary Qin Lan and bodyguards to attend Apple's board meeting held today.

Apple's board of directors is very simple, with only five people. In addition to Lin Baicheng and Jobs, there are also Steve Gary Wozniak, the founder of the company, and Mike Markkula, the earliest investor.

The last one is the company’s executives.

Apple was first founded by three people. The other one was Ronald Gerald Wayne. However, Ronald withdrew from Apple when Mike Markkula invested in it and took control of it.

Some 10% of the shares were sold to Steve Jobs.

It's not that Ronald couldn't accept Apple being invested in. It was a good thing that the company was being paid attention to and invested in. What he couldn't accept was that the company had to borrow money from banks. He was afraid of failure and chose to quit. Of course, the reason for quitting was definitely not that.

He said it was because of his health that he couldn't accept crazy work.

Therefore, Ronald, the founder of the company, Lin Baicheng, has never been seen, because when he joined Apple, this person had already quit Apple.

Those who should be polite had already been polite before the meeting started, so after the board meeting, the five people went straight to the topic.

Among the five people, only Lin Baicheng, the director, does not work at Apple. Although financial personnel are stationed, the financial personnel do not interfere in the daily management of the company. Therefore, this time the board of directors mainly consists of Jobs and others explaining to Lin Baicheng.

"Alan, the whole company has now decided to reject IBM's acquisition of the company and decided to raise funds."

"We have been in contact with many investors recently, and many investors are optimistic about us. However, the three companies with the best conditions are Goldman Sachs, Citigroup and Elephant Capital."

"All three of them have valued the company at US$90 million. Given IBM's intention to enter the personal computer market, this valuation is not low."

"Today we are going to discuss whether to accept financing from one company, or whether to accept financing from all three companies and let them each contribute different proportions."

The three institutions Jobs mentioned, Goldman Sachs and Citigroup, are well-known in the United States. It is difficult for Lin Baicheng not to know about them. He has never heard of Elephant Capital, but this is normal. After all, there are so many investment institutions in the United States, and it is impossible for him to know them all.

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Lin Baicheng tapped his fingers on the table and said, "Don't you think the valuation of US$90 million is a bit low?"

Jobs explained: "Alan, this is their initial price. The specific price can be discussed later. But the most important thing for us now is to get the financing funds as early as possible, and then use the funds to accelerate development. In IBM

Strengthen yourself before entering the market, we don’t have time to talk slowly.”

"What you said is not unreasonable."

Lin Baicheng did not object when he heard this, and continued: "Regarding the proportion of financing and the specific method of financing, what are your plans?"

Jobs said: "This time we decided to take out 20% of the shares for financing."

Lin Baicheng frowned slightly: "Didn't you say you raised 10% to 15% of the shares last time?"

"Alan, IBM is an industry giant. Without a large amount of funds, it is impossible to defeat IBM. So we should strengthen ourselves as much as possible before IBM enters the market, and give up more shares to obtain more

Only in this way can we try not to lose in the subsequent competition with IBM. If we cannot compete with IBM, it will be meaningless no matter how many shares we hold now."

This time it was Steve who spoke up to explain.

Jobs also said: "Yes, IBM is a big mountain, and we must go all out to do it."

"Okay, let's raise 20% of the shares."

Lin Baicheng pondered for a moment, but agreed. Because of his participation, IBM may enter the personal computer market earlier, and Lin Baicheng is not sure whether Apple can still be as successful as it was before its rebirth. Therefore, although more shares will be diluted,

It's a bit heartbreaking, but what Steve and others said is not unreasonable. Surviving and growing is the most important thing at the moment.

Jobs continued: "Mike will sell 5% of the shares, and Allen will reduce the 6% of your shares by 3% in proportion to your financing, and the remaining 3% of the shares will be replenished with cash according to the financing market value. Except for Mike

In addition, neither Steve nor I will sell the stock, so the company can obtain 17% of the cash from this financing to develop the company."

"Before financing, the company's shareholding ratio is that I hold 32.725% of the shares, Steve holds 26.775% of the shares, Mike holds 10.5% of the shares, and Alan holds 30% of the company's shares."

"After financing, I personally hold 26.18% of the company's shares, Steve holds 21.42% of the company's shares, Mike holds 5.4% of the company's shares, Alan holds 27% of the company's shares, and the financier holds 20% of the company's shares.

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"No matter how many financing parties there are this time, the company will add two new director seats. If there are no less than two institutions participating in the financing, and each holds no less than 5% of the shares, then these two board seats will belong to

Financing party. If there is only one financing institution, or if only one financing institution holds more than 5% of the shares, then the remaining director position will be replaced by the company's management."

Before financing, Apple's largest shareholder was Jobs. The reason why Jobs was still Apple's largest shareholder after two dilutions was because when Ronald withdrew from Apple, 10% of his shares were acquired by Jobs.

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When Apple was first founded, Jobs and Steve each held 45% of Apple's shares, and Ronald held 10%. After Mike Markkula invested and obtained 30% of the shares, Jobs and Steve

Tiff's shareholdings became 38.5% and 31.5% respectively.

When Lin Baicheng invested in Apple, 15% of the shares were purchased from Mike Markkula, and the remaining 15% was financed from Apple, so Mike Markkula had the least remaining shares.

It's the same this time. Not only does Mike Markkula have to dilute some of his shares through financing, he also has to sell some of his shares, so naturally he doesn't have many remaining shares.

However, the first sale of 15% of the shares allowed Mike Markkula to recover all the principal invested in Apple and make a huge profit. This time, the sale of 5% of the shares will only make more than

It was higher last time because Apple's current market value is more than ten times that of last time.

At this board meeting, Apple decided to raise 20% of its shares to fund development and add two more directors. As for negotiations with investment institutions, it will be carried out by Jobs and others. Lin Baicheng only needs to send someone to supervise and ensure his interests.

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(End of chapter)