Chapter 831
Chapter 831
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May 76st, 78: 55 PM.
The video conference between Dream Entertainment and AMD had lasted for more than one and a half hours. Mu Shuang had won over all seven shareholders of AMD.
Dirk Mayer, the current CEO of AMD, sighed and said, "Madam Mu Shuang, your words are like a sky full of stars. It's too much for our eyes to take in. Our bottom line is that we control 65% of the shares. If Dream Entertainment doesn't even agree to our basic request of 65%, I'm afraid we won't be able to reach an agreement. "
Shi Lei, who was standing at the side, heard Dirk Mayer's words and felt a little nervous. 'It seems that the biggest compromise of the seven shareholders of AMD is 65% of the shares. Dream Entertainment will control 45% of the shares. This is not a bad outcome.'
"Mr. Dirk, AMD is currently in a state of loss. What benefits can the shares in your hands bring? Once Dream Entertainment takes over AMD, we can immediately generate huge profits. Even if the shares in your hands are diluted to a certain extent, the dividends you can receive will be considerable. "Mu Shuang analyzed AMD's current situation.
AMD had not received any dividends for seven years in a row because AMD had been incurring losses year after year. How could there be any profits for dividends?
Dirk Mayer did not say anything. Mu Shuang was telling the truth.
"Mr. Dirk, AMD owes almost one billion USD to the major upstream manufacturers. Dream Entertainment will take full responsibility for this debt. You don't need to pay any debt, and neither do AMD. When Dream Entertainment officially takes over AMD, this debt will be transferred to Dream Entertainment's account," Mu Shuang said again.
If the debt was distributed according to the proportion of shares, the seven shareholders of AMD would bear 70% of the debt, which was about 705 million USD.
The seven shareholders of AMD voluntarily gave up 60% of their shares. According to Dream Entertainment's current purchase price, which was 8 USD per share, the value was about 870.3 million USD. It was slightly more than the amount of the debt.
However, this concession was in consideration of AMD's rapid turnaround after Dream Entertainment took over. The 65% of shares held by AMD's senior management would receive a certain amount of dividends.
According to AMD's senior management's analysis, after Dream Entertainment took over AMD, the first year's profits would exceed one billion USD. Therefore, their 65% of shares would receive at least one hundred million USD in dividends.
If the first year's dividends were included, their profits would exceed the value of their 60% shares. Not only that, their 65% shares would not only be distributed once, but they would also receive dividends in the future!
The seven shareholders of AMD had their wishful thinking. However, how could Mu Shuang be so easily fooled?
After analyzing AMD's debt assets, Mu Shuang continued, "After Dream Entertainment takes over AMD, we will integrate the personal game server project into AMD's system. Dream Entertainment's personal game server will be produced by AMD. Just this project alone will allow AMD to make profits directly. Moreover, with the help of the personal game server project, AMD will gain recognition from gamers all over the world. This will further drive the sales of the CPU and GPU in the personal computer market. In the future, AMD will no longer suffer losses every year. Instead, it will become better and better every year! "
The seven shareholders of AMD fell silent after hearing Mu Shuang's outline of the future. They were thinking about AMD's future. The combination of AMD and Dream Entertainment was indeed as Mu Shuang had said. They would have an incomparably bright future.
The CEO, Dirk Mayer, sighed deeply. "Madam Mu Shuang, how many shares do you intend to reserve for us?"
Mu Shuang raised her right hand. She opened her fair fingers slightly. "Five percent!"
"That's impossible!" Dirk Mayer retorted loudly.
Senior Vice President, Tom Clusi, objected as well. "Madam Mu Shuang, five percent is too little. We won't be able to get much of the profits."
A faint smile appeared on Mu Shuang's lips. "Then let's change the proposal. We'll split up and reorganize AMD and form AMD Group. We'll set up AMD CPU company, GPU graphics card company, Imageon mobile handheld device image processing company, and a new low-power mobile device CPU central processing company. Your ten percent shares will only be effective in the CPU company and graphics card company. "
Mu Shuang made a new suggestion. She paused for a moment before continuing, "If you choose the previous proposal and obtain 0% of AMD's shares, Dream Entertainment will have an additional condition. You won't get any dividends for the first three years of the shares you obtain. Furthermore, you're only allowed to keep your shares and not sell them. If you leave AMD, your shares will automatically belong to Dream Entertainment. If you reach retirement age, your shares will automatically belong to your designated family members and will be passed down. "
This condition was quite harsh. It was equivalent to the shares of AMD's seven shareholders. They only had the right to receive dividends and no other rights.
"Madam Mu Shuang, isn't this request too unreasonable?" Dirk Mayer said unhappily.
Mu Shuang smiled. "Mr. Dirk, Dream Entertainment's internal audit department has made an estimate of AMD's annual profit margin. In the first five years, AMD's annual profit margin should be maintained at about two billion USD. After that, the annual profit margin will increase. You can keep five percent of the shares and receive about one hundred million USD in dividends every year. Do you still think our request is unreasonable? "
"Madam Mu Shuang, we need to discuss this!" Dirk Mayer explained to Mu Shuang that the seven shareholders of AMD had cut off the video conference. They were all in AMD's conference room, discussing what kind of plan they should choose.
Tom Cruise suggested, "I suggest that we choose five percent of the shares of the whole company instead of ten percent of the shares of two companies after the restructuring."
Chief Technical Engineer Atwood Elvin rejected, "Tom, I suggest that we take ten percent of the shares of the CPU project and the graphics card project. These two projects are currently AMD's strong suit. As for the mobile graphics processor and the low-power CPU, AMD is not specialized in them. If we want five percent of the shares of the whole company, it's hard to guarantee that Dream Entertainment won't set up another mobile graphics processor and low-power CPU company and leave an empty shell in AMD. "
"Old Elvin is right. If Dream Entertainment uses this move, they can easily swallow up 0% of our shares!" Dirk Mayer agreed from the side.
The other four shareholders of AMD also agreed with Old Elvin. They were afraid that Dream Entertainment would take another five percent of their shares. Just the CPU and graphics processor alone, and ten percent of the shares of the two companies, they could receive about two hundred million USD in dividends every year.
Even if Dream Entertainment focused on R&D and invested a large amount of R&D funds, they could still receive about a hundred million USD in dividends every year.
Tom Cruise sighed. "Alright, I hope that we won't regret it one day!"
Dirk Mayer coughed to attract the attention of the other shareholders. He said, "Since we've made a decision, let's discuss the issue of share distribution. We can get a total of ten percent of the shares from Dream Entertainment. According to our previous agreement, I can get three percent of the shares."
The other six did not have any objections to Dirk Mayer's statement for the time being. Dirk Mayer continued, "Senior Vice President Tom Clusi and Chief Technical Engineer Old Alvin will receive 6.0% of the shares. As for the other four brothers, each of them will get one percent of the shares. Do any of you have any objections to this distribution plan? "
The distribution plan of the shares was based on AMD's previous shares. Dirk Mayer held the most shares, so of course, he would get more.
"No!" Tom Cruise was the first to express his opinion. Although he was the Senior Vice President of AMD, other than his low annual salary, he did not receive any dividends. He was not rich. Even if he only got one and a half percent of the shares of the new company, according to the two billion USD annual dividends, he could get thirty million USD.
This dividend was more than ten times higher than his annual salary!
Old Elvin was also very satisfied. As the Chief Technical Engineer of AMD, Old Elvin's annual salary was only two million USD. Old Elvin was also quite satisfied with 6.0 percent of the shares.
As for the other four shareholders, their annual salaries were even lower. It was a tragedy to hold on to AMD's annual salary!
The seven shareholders of AMD were happy with the distribution of shares. As the former CEO of AMD, Dirk Mayer got three percent of the shares. This was a huge amount of wealth. The only thing that made Dirk Mayer feel slightly regretful was that AMD would fall into the hands of Dream Entertainment. He would no longer be the CEO of AMD.
However, the position of a CEO could not be compared to money!
"Brothers, let's reconnect to the online video conference!" Dirk Mayer said. The seven shareholders of AMD reconnected to the online video conference address.
Mu Shuang asked confidently, "Mr. Dirk, how did your discussion go?"
Shi Lei looked at Dirk Mayer nervously. He prayed silently in his heart that nothing would go wrong. AMD was related to too many things in the future. If AMD was successfully taken over, it would be very important for the future development!
For example, The First Light's computing module. Currently, The First Light used network computing, which was an external supercomputer, to help process the computing data. If he owned AMD, Shi Lei could develop a miniaturized microcomputer with enhanced computing performance to meet the needs of The First Light.
The First Light's current computing plan had quite a few flaws. It relied on external supercomputers to provide computing support. To put it more seriously, this was a fatal flaw. If the enemy interfered with the network and cut off the communication, The First Light would become a live target. If The First Light had a powerful microcomputer inside, it would no longer need external supercomputers to provide support. The First Light would be able to face any complicated electronic environment!
"Madam Mu Shuang, we accept the second proposal. Dream Entertainment will reorganize AMD. We only need 65% of the shares of the CPU subsidiary and the GPU subsidiary," Dirk Mayer replied.
Mu Shuang nodded in agreement. "No problem! Then, Mr. Dirk, please come to Xia Xia as soon as possible to sign the contract. Dream Entertainment will take over AMD as soon as possible and launch the cooperation plan for personal game servers. "
Shi Lei, who was beside them, could not suppress his excitement. He had finally obtained AMD. Dream Entertainment had finally taken the first step in the chip manufacturing industry and embarked on the great path of ruling the world!
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