I am Hollywood

Chapter 689: Chapter 690: Won't Give Up

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.

Qualcomm had always been generous with licensing its CDMA technology, but to date, there had yet to be a single large-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 collapse due to the rapidly expanding market demand. Qualcomm, on the other hand, had almost no experience in device production.

In reality, Qualcomm did have its own telecommunications 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 "collapse," Qualcomm's factory didn't even have a complete components supply chain. Typically, it only conducted limited procurement of components based on demand. This state of affairs couldn't support large-scale production of CDMA devices.

It was easy to foresee that if the situation persisted, even if major telecommunications operators intended to select CDMA as their mobile communication technology standard, they would definitely shift back to the GSM camp due to the lack of sufficient CDMA equipment to build mobile communication networks.

Seeing that Irwin Jacobs remained silent, Andrew Viterbi, who sat nearby, eagerly stepped in to explain, "Eric, the main difficulty in manufacturing communications equipment lies in the design and development of core chips. Qualcomm already had very mature products in this area. As long as CDMA technology can be promoted, Qualcomm can quickly establish factories for equipment production and also outsource manufacturing to other telecommunications 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 decade later, Qualcomm's main business did not include manufacturing telecommunications equipment and mobile phones; it primarily focused on patent licensing and chip R&D. Eric was well aware of this, but guiding Qualcomm toward this route did not align with Firefly's interests because if Qualcomm did not engage in product manufacturing, it would not require large-scale equity and debt financing, making it difficult for Firefly to leverage its capital advantage to acquire a significant stake in Qualcomm.

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

...

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

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

Irwin Jacobs and Andrew Viterbi only glanced at the document symbolically before exchanging looks of disappointment that they both could sense in one another's eyes. Qualcomm 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 speculated that someone had insider information that CDMA technology was about to be confirmed as a standard by major telecommunications operators, which encouraged this person to make a move for potential large profits once the related facts were publicly announced. Qualcomm had only issued 30% of its shares to the public, so the board wasn't concerned about losing control over the company and was instead quite excited about these speculations, preparing for what was to come.

They never imagined that the reality would soon unveil itself, showing that these speculations had nothing to do with the situation -- CDMA had not been "internally appointed" by any telecommunications 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 Qualcomm stock was not a speculative trader but a billionaire like Eric, who was genuinely interested in Qualcomm. As long as he utilized his capital and influence to promote CDMA technology, Qualcomm had a significant chance of overcoming 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 accounted for 10.5% of Qualcomm's total shares. He stated, "Eric, since Firefly has already made so many preparations, I assume you must have a detailed plan in mind?" Eric nodded and said, "Up to now, no major telecommunications operator is willing to adopt CDMA technology as the standard for their mobile communication network, which is Qualcomm's primary dilemma. Firefly can leverage its connections, media channels, and capital advantages to assist Qualcomm in promoting CDMA technology.

However, at the same time, Qualcomm 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 accept CDMA technology only for them to switch back to GSM due to a lack of timely supply of CDMA equipment. Therefore, I suggest Qualcomm start setting up telecommunications 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 Qualcomm. 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 re

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

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

Chris didn't answer and simply looked at Emily.

Emily explained, "Victoria's Secret has been filming ads in Los Angeles lately, 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 Oscar committee for all five of them to take the stage together. Between the Golden Globes and the Oscars, we would obviously choose the latter. 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 villa. 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 sun completely 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 placed it in the living room's cabinet."

"Send it to the study after dinner."

"Understood."

*****

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