pertwk Chapter 96 Dell Wants to Invest
Chapter 96 Dell Wants to Invest
The sunlight gently bathed the green fairway. Ling Yun, dressed in casual sportswear, held the golf club in his hand, his movements not particularly skillful, but steady enough. Opposite him was Michael Dell, the founder and CEO of Dell Inc.
Dale's swing was fluid and precise; the white ball traced a beautiful arc and landed steadily on the fairway in the distance.
"Good shot," Ling Yun praised at the right moment.
"Just a bit of a feel for the game." Dale smiled, handed the club to the caddie beside him, and got into the golf cart with Lingyun, heading towards the next hitting spot. A gentle breeze blew by, creating a relaxed atmosphere.
The golf cart stopped near the tee box. Dell didn't immediately go to choose his clubs, but leaned against the cart, looking at the open course ahead, and casually remarked, "Ling, your press conferences with AMD and Sun were quite a big deal. There's been a lot of discussion about your new tools in the developer community lately."
"We have to do something, we can't just sit here and wait to die." Ling Yun stood beside him, his gaze also fixed on the distance.
"Indeed." Dell turned to look at Ling Yun, his tone becoming slightly more formal. "The core of the Dell model is efficiency and directness. Reducing intermediaries to provide customers with the most valuable products. So, I won't beat around the bush. Dell computers could consider offering the Starry Sky system on some consumer-grade models."
Ling Yun's heart skipped a beat, but he remained expressionless, simply listening quietly. This was the first time a hardware giant had explicitly expressed its intention to pre-install it, albeit as an "optional" option.
"Specifically," Dell continued, "we can offer a 'pre-installed Starry Sky system' option when customers place an order, while Windows remains the default. Additionally, we can include a Starry Sky system installation disc in every Dell computer package."
This condition went a step further than Lingyun had anticipated. It wasn't just an option; it meant directly delivering the physical media of the Star System to every Dell user. This was undoubtedly a huge breakthrough in distribution channels.
"What are the conditions?" Ling Yun asked directly. There's no such thing as a free lunch in the business world, especially not from a shrewd businessman like Michael Dale.
Dell wasn't surprised by Lingyun's directness. He smiled slightly and said, "Dell wants to invest in StarCraft. Not an acquisition, but a strategic investment. We need a closer alignment of interests."
As expected. Ling Yun pondered for a moment. The benefits of bringing in Dell as a strategic investor were obvious: not just funding, but also Dell's vast global PC distribution network and brand endorsement, which would greatly alleviate Xingchen's current isolation. However, the cost was equity dilution and potential impact on future decision-making.
"We can talk," Ling Yun replied affirmatively, but then changed the subject, "However, Michael, frankly speaking, the potential value of the Star System and the immediate assistance that Dell's channels can provide are not entirely equal in my opinion. An installation disc and an optional feature in exchange for Star System equity is not enough."
Dell raised an eyebrow, seemingly intrigued by Ling Yun's rebuttal: "Oh? Then what kind of bargaining chip do you think would be enough?"
Ling Yun turned around, looked directly at Dell, and said clearly, "Spark Technology's electronics factory in Jinan, China, has just completed a technology and process upgrade in the production of mouse and keyboard peripherals. Its product quality and cost control are fully capable of reaching international standards. I hope that Dell can entrust some of its OEM orders for desktop computer mice and keyboards to Spark Electronics Factory."
Dell was visibly taken aback. He had anticipated that Lingyun might haggle over the valuation of the investment, board seats, or details of the technology cooperation, but he hadn't expected them to steer the conversation directly to the seemingly unrelated topic of hardware manufacturing.
"Mouse and keyboard?" Dell repeated, seemingly to make sure he hadn't misheard. "Ling, I was talking to you about the operating system collaboration and your future. Why are you suddenly concerned about a mouse order that costs a few dollars?"
Ling Yun calmly explained, "Spark Electronics has several hundred workers and needs orders to keep it running and upgrade its production lines. Although peripheral manufacturing has low profit margins, the orders are stable and can support the long-term investment in the Starry Sky System."
He paused, then emphasized, "This proves that StarCraft is not just a company living in an ideal world; we also have a solid manufacturing foundation and profitability. This is crucial for boosting confidence."
Dale fell into thought. He paced slowly a few steps, his hands behind his back.
Dell didn't believe Lingyun's words. However, he didn't need to worry; outsourcing some peripheral orders to Lingyun's factory was a manageable risk for Dell.
China has a clear cost advantage in manufacturing, and as long as the quality meets the standards, this is a business that fits Dell's model.
More importantly, Dell also needed an opportunity to enter the Chinese market and build a factory there. A vast market, cheap wages, and qualified workers—for a capitalist like Dell, that was paradise.
Both Microsoft and IBM have a presence in China, where they have not only made a fortune but also gained many friends and acquaintances, which is a plus in the eyes of the US government.
Ling Yun's position made him a suitable intermediary for Dell's entry into China. This led him to further increase his assessment of the value of investing in Xingchen.
He stopped and looked at Ling Yun: "The order volume won't be too large; initially, it might only account for five to ten percent of our needs. Moreover, the price must be competitive enough, and the quality must meet Dell's stringent quality control standards."
"Of course, I will also take care of my friends and meet Dell's requirements in all aspects. The subsequent orders will increase, which will definitely make your electronics factory business boom."
"Then I'll thank Dell for their kindness. Spark Electronics will set up a dedicated project team to ensure that all of Dell's requirements are met," Ling Yun replied confidently.
“Well then,” Dell extended his hand, “in principle, I agree. Dell’s investment department will contact you as soon as possible to discuss the specific details and valuation of the investment in StarCraft. At the same time, our purchasing department will send people to inspect your electronics factory and assess its manufacturing qualifications. If everything goes smoothly, we can proceed simultaneously.”
Ling Yun grasped Dell's hand: "Very good. I will have my domestic team fully cooperate with the investigation. I look forward to in-depth cooperation with Dell."
The two men clasped hands, and a brief conversation on the golf course led to the initial formation of a complex transaction framework involving capital, hardware, and software channels.
Both of them knew that the specific negotiations had only just begun, and that the stake, valuation, and the specific prices and terms of the manufacturing orders would all be the subject of intense bargaining.