Chapter 689: Chapter 690: Won''t Give Up


    ?


    [Chapter 690: Won''t Give Up]


    When Eric''s question was posed, Irwin Jacobs found himself momentarily at a loss for words.


    Quam had always been generous with licensing its CDMA technology, but to date, there had yet to be a singlerge-scale CDMA device manufacturer globally. Against the backdrop where GSM device manufacturers flourished everywhere, even Nokia, which had a strong technical foundation, nearly faced a supply chain copse due to the rapidly expanding market demand. Quam, on the other hand, had almost no experience in device production.


    In reality, Quam did have its own telmunications equipment and mobile phone factory, but most of the equipment produced was only intended to meet testing requirements for CDMA technology. While Nokia had its own supply chain to "copse," Quam''s factory didn''t even have apleteponents supply chain. Typically, it only conducted limited procurement ofponents based on demand. This state of affairs couldn''t supportrge-scale production of CDMA devices.


    It was easy to foresee that if the situation persisted, even if major telmunications operators intended to select CDMA as their mobilemunication technology standard, they would definitely shift back to the GSM camp due to theck of sufficient CDMA equipment to build mobilemunicationworks.


    Seeing that Irwin Jacobs remained silent, Andrew Viterbi, who sat nearby, eagerly stepped in to exin, "Eric, the main difficulty in manufacturingmunications equipment lies in the design and development of core chips. Quam already had very mature products in this area. As long as CDMA technology can be promoted, Quam can quickly establish factories for equipment production and also outsource manufacturing to other telmunications equipment manufacturers."


    Eric merely smiled and nodded without voicing any objections. The primary reason for his earlier remark was to prompt Andrew Viterbi''s response now.


    It was true that technical R&D consumed a massive amount of funds, but the construction and operation of manufacturing facilities consumed even more. Nokia had initially acquired $420 million from Firefly for this purpose, and its profits over the past two years had been funneled into the expansion of its factories.


    Over a decadeter, Quam''s main business did not include manufacturing telmunications equipment and mobile phones; it primarily focused on patent licensing and chip R&D. Eric was well aware of this, but guiding Quam toward this route did not align with Firefly''s interests because if Quam did not engage in product manufacturing, it would not requirerge-scale equity and debt financing, making it difficult for Firefly to leverage its capital advantage to acquire a significant stake in Quam.


    Through their discussion at the table, both parties roughly rified their intentions.


    ...


    After lunch, Eric, Chris, and Kelly took Irwin Jacobs and Andrew Viterbi to the study, where they formallyid everything on the table.


    Eric handed over a stock document to Irwin Jacobs and Andrew Viterbi, stating, "I have been keeping an eye on Quam sincest year and believe strongly in CDMA technology. Recently, Firefly has gradually umted 2.1 million shares of Quam stock. We will report this to the SEC and the Quam board soon, and I wanted to inform you both as a gesture of cooperation from Firefly."


    Irwin Jacobs and Andrew Viterbi only nced at the document symbolically before exchanging looks of disappointment that they both could sense in one another''s eyes. Quam had long recognized the unusual fluctuations in its stock price recently, realizing that someone had been buying shares in bulk. The board and management initially spected that someone had insider information that CDMA technology was about to be confirmed as a standard by major telmunications operators, which encouraged this person to make a move for potentialrge profits once the rted facts were publicly announced. Quam had only issued 30% of its shares to the public, so the board wasn''t concerned about losing control over thepany and was instead quite excited about these spections, preparing for what was toe.


    They never imagined that the reality would soon unveil itself, showing that these spections had nothing to do with the situation -- CDMA had not been "internally appointed" by any telmunications operators, and the disappointment felt by the two was palpable.


    However, after a brief moment of disappointment, Irwin Jacobs and Andrew Viterbi recalled Eric''s identity and their moods lifted. At the very least, the one covertly buying Quam stock was not a spective trader but a billionaire like Eric, who was genuinely interested in Quam. As long as he utilized his capital and influence to promote CDMA technology, Quam had a significant chance of oveing its current plight.


    Of course, although he had focused solely on technological development, Irwin Jacobs wouldn''t naively believe that Firefly''s 2.1 million shares would suffice for their appetite. This equity only ounted for 10.5% of Quam''s total shares. He stated, "Eric, since Firefly has already made so many preparations, I assume you must have a detailed n in mind?" Eric nodded and said, "Up to now, no major telmunications operator is willing to adopt CDMA technology as the standard for their mobilemunicationwork, which is Quam''s primary dilemma. Firefly can leverage its connections, media channels, and capital advantages to assist Quam in promoting CDMA technology.


    However, at the same time, Quam needs to immediately resolve its inability to mass- produce CDMA equipment issues. I don''t want to see Firefly bending over backwards to get operators to ept CDMA technology only for them to switch back to GSM due to ack of timely supply of CDMA equipment. Therefore, I suggest Quam start setting up telmunications equipment and mobile phone factories right now."


    In contrast to Irwin Jacobs, who focused on R&D, Andrew Viterbi poured more of his energy into the management of Quam. Upon hearing Eric''s first half of the statement, he felt a surge of excitement, but became troubled thereafter and interjected, "Eric, we have indeed considered this and conducted thorough research. ording to our initial findings, just building a factory capable of producing 1 million CDMA phones a year requires an investment of $80 million, which we simply cannot... um..."


    Upon reaching this point, Andrew Viterbi noticed Eric was smiling at him and instantly understood something, stopping his speech and offering an awkward smile.


    Eric didn''t mind the interruption and continued with his unwavering smile, "I know Quam surely cannot raise the funds to build the manufacturing nt, but Firefly can cover this expense. Frankly speaking, Firefly''s assistance in promoting CDMA technology is also aimed at obtaining sufficient returns; therefore, I hope to increase Firefly''s stake in Quam through an investment."


    Irwin Jacobs had already suspected as much and asked, "Eric, how much does Firefly n to inject into Quam?"


    Eric replied casually, "Following what Andrew just said, with an investment of $80 million for a phone factory, Quam will surely also need to build a CDMA base station equipment factory. Let''s count that as another $80 million, totaling $160 million. Solely these two factories'' investments are likely insufficient, as Quam also needs to establishponents procurement and product marketing systems. So let''s just round that expenditure to $200 million, and at current stock prices, Quam would typically need to issue about 10 million shares of stock to Firefly."


    Irwin Jacobs estimated that with the issuance of 10 million new shares, Quam''s total shares would expand to 30 million. Firefly''s existing 2.1 million shares would then amplify its ownership to 40%. While this wouldn''t secure controlling interest, Firefly would leap to be Quam''srgest and most significant shareholder.


    In the beginning, whenunching Quam, Irwin Jacobs had invested almost his entire fortune, but after several rounds of financing and the IPO in 1992, his stake in Quam had dwindled to less than 1%. As long as he could ensure Quam''s survival, he didn''t particrly care about the shifts in personal equity. He understood that for Firefly to assist Quam wholeheartedly in promoting CDMA technology, they needed sufficient equity. After contemting for a moment, he nodded, "Eric, I don''t oppose your proposal, but stock issuance must be decided by the Quam board."


    AT&T''s announcement to join the GSM camp had already cost Quam more than half of its potential North American market. If Verizon and Sprint also chose GSM next, bankruptcy would be the only path left for Quam. Firefly betting $200 million at such a time was a risky venture; if it failed, that money would be down the drain.


    Eric believed that Quam''s board should understand that Firefly''s actions were equivalent to a signal that the entire Firefly system would wholeheartedly promote Quam''s CDMA technology. While the final injection scheme would likely undergo adjustments, the possibility of Quam''s board rejecting Firefly''s investment was incredibly low. After ncing at his watch, Eric stated, "So, Irwin, Chris and Kelly will take charge of the specific affairs moving forward. I hope to hear good news from Quam soon." Just as Irwin Jacobs was about to say something, he felt a light kick on his shoe from Andrew Viterbi, reminding him of the proposal they discussed the day before. He said, "Eric, Andrew and I have another proposal we''d like you to take a look at."


    Eric nodded and epted the document Irwin Jacobs pulled from his briefcase, reading it carefully before passing it to Chris and Kelly beside him.


    Irwin Jacobs and Andrew Viterbi watched anxiously, concerned Eric would outright reject their


    proposal.


    After a moment, both Chris and Kelly finished reviewing the materials and simply looked to Eric without offering any suggestions. With a $4 billion n on the line, the final decision


    ultimately rested on Eric.


    After mulling it over, Eric remarked, "I think this proposal leans a bit too idealistic."


    Hearing Eric''s words, Irwin Jacobs and Andrew Viterbi both felt a wave of relief; at least Eric hadn''t categorically rejected the proposal.


    Eric didn''t know what the two were thinking and continued, "You are surely aware of the


    lawsuit regarding the C-band licenses. The grounds for thewsuit are utterly absurd, yet it can still prolong the auction of C-band licenses for a long time. This alone shows that the legacy telmunications operators would never allow those small and medium telpanies to thrive. Even if we acquired all the C-band licenses, the ultimate leasing users would still likely be AT&T and a couple of other tel giants. Perhaps before the C-band licenses are auctioned, these mainstream tel operators might already finalize the technical standards. Therefore, this proposal holds little significance for promoting CDMA." Irwin Jacobs and Andrew Viterbi realized that Eric hadn''t entirely dismissed the idea, patiently waiting for him to continue.


    Eric also didn''t tease them further: "However, this proposal could serve as ourst resort. If major tel operators fail to choose CDMA technology, Firefly can activate this n, acquire all the C-band licenses, and then acquire a telmunications operator to independently build a CDMAmunicationwork." At this point, Eric looked at the two with a smile, adding, "Of course, all of this hinges on our coboration''s smooth progress; otherwise, Firefly won''t waste funds on promoting CDMA technology." Andrew Viterbi, suppressing his emotions, asked, "Eric, are you saying that as long as Quam epts Firefly''s investment, you''ll agree to execute this n?"


    Eric shook his head and said with a smile, "I just mentioned that this would be Firefly''sst


    resort. If Firefly bes Quam''s major shareholder, it will first choose to promote CDMA technology to old-school tel operators like Verizon. Only if these mainstream operators reject CDMA will Firefly activate this proposal."


    Upon hearing Eric''s words, Irwin Jacobs felt far more excitement than Andrew Viterbi. CDMA was the culmination of his decade-long efforts; he strongly hoped for its survival instead of fading into oblivion against technologies like GSM. "Eric, can I interpret this as you absolutely will not give up on CDMA technology as long as Firefly bes Quam''s major shareholder?"


    Without hesitation, Eric nodded. Even if GSM truly dominated the market, technology would eventually see upgrades; the world of WCDMA, TD-CDMA, and other 3Gmunication technologies couldn''t bypass the CDMA standard. Hence, even if CDMA temporarily faltered during this industry upgrade, acquiring Quam with its extensive CDMA patents would


    still be advantageous.


    Yet Irwin Jacobs remained slightly concerned and asked, "Eric, could Quam obtain a written endorsement from Firefly regarding thismitment?"


    "Absolutely," Eric affirmed once more.


    "Well then," Irwin Jacobs stood up, extending his hand toward Eric, who simrly rose, and


    said, "I will get back to you with good news soon."


    ...


    After saying goodbye to Irwin Jacobs and the others, evening had set in.


    Eric and the rest returned to the vi, seated near the ss curtain wall, taking in the


    magnificent sunset view over the ocean. Chris inquired, "Eric, are you really nning to spend $4 billion to acquire all the C-band licenses?"


    Eric epted the freshly brewed coffee from Kelly and smiled, "I''ve already said this is a n


    ofst resort. Rather than buying the C-band licenses, I would prefer to invest that $4 billion in shares of either Verizon or Sprint."


    Hearing Eric bring up the topic they were discussing earlier, Chris replied, "About that, it may not be so easy. Legacy tel operators prefer debt financing over high-cost equity financing. However, these twopanies currently have massive capital needs, so your idea is not entirely impossible. If you are determined to move forward, I will expedite this


    process."


    Eric decisively nodded, "Let''s negotiate on an investment cap of $4 billion. As long as I can acquire shares of bothpanies, I wouldn''t mind taking a bit of a loss on the price." Chris chuckled, "$4 billion is going to be tough; it would be great if they epted Firefly''s investment of $2 billion."


    $4 billion would equate to a 40% stake in Sprint, and even for Verizon, which was double the


    size of Sprint, $4 billion could secure a 20% stake. Eric was well aware of the difficulty in this,


    saying, "Just do your best."


    ...


    While they were talking, Drew and Emily walked in bearing a plethora of shopping bags, with


    the twins behind them also carrying a bunch of items, clearly having gone shopping in the


    afternoon.


    As they breezed in, Emily noticed the astonished look on her boyfriend''s face and set down


    the convenience bag in her hands, exining, "All of these are Drew''s things! I only bought a few items, and they''re all in the car."


    The little girl grinned, instantly exposing her friend''s lie, "Yeah, just a few items, but they might be a bitrge -- they filled up the trunk and the back seat!"


    After teasing each other a bit, Chris, along with Emily, nned to take their leave.


    Eric didn''t hold them back but escorted them to the door, and when they reached the car, he


    asked, "When do you n to head back to New York?"


    Chris didn''t answer and simply looked at Emily.


    Emily exined, "Victoria''s Secret has been filming ads in Los Angelestely, and also, Cindy


    will be attending the Golden Globe Awards. We''re probably going to wait until after the


    Golden Globes to leave."


    Eric said, "How could the Golden Globes invite only Cindy Crawford?"


    "The Golden Globes initially hoped that all five of them would present the Best Original Score


    award together. But then we received an invitation from the Oscarmittee for all five of them to take the stage together. Between the Golden Globes and the Oscars, we would obviously choose thetter. The Golden Globes had to settle for just inviting Cindy after that."


    As Emily spoke, she climbed into the car, then popped her head out to add, "Oh, Eric, if you


    have free time over the next few days, could you help me check out the effect of the Victoria''s Secret advertisement we''re doing post-production on at Firefly Studios?"


    "No problem, I''ll be over there most of the time for the next few days. You can contact me


    anytime."


    ...


    After sending Chris and Emily off, Kelly also took her leave, returning to the vi. The little girl rushed into her room to inspect her purchases from the day. Eric settled onto the sofa


    beside the curtain wall, meticulously sorting through everything that had transpired today in his mind.


    The sunpletely set below the horizon, leaving the light gradually dimming. After an unknown amount of time, Eric felt a tall, slender figure quietly walk over. He looked


    up at Natasha''s delicate face and signaled her to turn on the nearby lights. Natasha walked quietly to the wall and switched on the lights, softly saying, "Dinner is ready,


    Master."


    Eric nodded, and just as he stood up, he suddenly recalled something and asked, "What about


    the package Chris brought me this morning?" Natasha replied, "I ced it in the living room''s cab."


    "Send it to the study after dinner."n/?/vel/b//jn dot c//om


    "Understood."


    *****


    https://.patreon/Sayonara816.