271: Chapter 271 Second Negotiation! The Resolute Lei Jun

Lei Jun didn't sleep all night.

Even at 3:00 AM, he was still pacing back and forth in his hotel room.

It wasn't because the view outside the window was beautiful, but because he was thinking about a question: if he didn't cooperate with Anthony, how long would it take for Xiaomi to open up the market in India?

The answer filled him with despair.

At least three years, and he would still have to face the siege and interception from these people. For example, software throttling.

In three years, to what extent would Transsion develop in India? Xiaomi couldn't wait, and it couldn't afford to wait.

But if he cooperated with Anthony, he had to prepare preventive measures; otherwise, he might very well have his core technology taken away by the other party, only to be kicked out afterward.

This risk had to be controlled; it was a very difficult decision to make.

At 7:00 AM, Lin Bin knocked and came in. He held two documents in his hand, his eyes dark, clearly having not slept well either.

"Old Lei, I organized Anthony's proposal and listed a few risk points. Take a look."

This made Lei Jun smile slightly; he really was the person who understood him best. Although he didn't quite agree, he still helped him consider the risks.

First was the risk of technology leakage. The joint venture would possess Xiaomi's technology authorization and could produce and sell in India.

If Anthony leaked the technology to a third party, Xiaomi would have no means of restraint.

The best solution would be to manufacture the technology authorization, and then have the system adapted and developed domestically.

The second point was the risk of brand dilution.

Whether it was called Reliance Xiaomi or Xiaomi India, it wouldn't be a pure Xiaomi brand.

Over time, consumers would think Xiaomi was an Indian brand, and Xiaomi's global brand value would be damaged.

The other party proposed contributing 60% of the capital but demanded a 50-50 split in equity.

But the other party was the local faction; in management appointments and major decisions, they would definitely have the final say.

In the end, Xiaomi would definitely have only 40% of the shares but limited say.

Finally, and most importantly, once the joint venture's own R&D team matured, Anil could propose capital increases and share expansion at any time to dilute Xiaomi's shares and eventually kick Xiaomi out.

Lei Jun finished reading and put down the documents.

"Old Lin, I know everything you've said. I already figured it out last night."

"Then what are we negotiating for?" Lin Bin looked at him. "Isn't this a trap?"

"It is a trap." Lei Jun stood up, walked to the window, lit a cigarette, and turned his back to Lin Bin. At this moment, his face looked very worried. "Just like what was said yesterday, we have to jump."

Lin Bin opened his mouth, but ultimately closed it. After a long while, when Lei Jun finished smoking, Lin Bin finally spoke,

"Old Lei, I just want to remind you that although the domestic market is not easy to do, with our marketing methods, it shouldn't be a problem to be a small or medium-sized manufacturer. This time, I'm also a little suspicious about whether Transsion's so-called office is a pit, specifically set up to force us into the Indian market."

But Lei Jun shook his head: "For the Indian market, Transsion absolutely must enter."

And if he was going to make phones, he had to make it to the Top 3!

"Old Lin, let's not talk about this topic anymore. A factory manager without ambition will only head toward destruction."

Lin Bin nodded silently, but if a manufacturer agreed to the conditions of capital for the sake of development, the result would definitely not be particularly good either.

"But Anthony's conditions are too harsh..."

"That's why we need to negotiate." Lei Jun sat back down. "He wants technology, fine, but it can only be licensed for use, not transferred. He wants the Reliance brand, but it must retain Xiaomi. As for control, absolutely not; Xiaomi must hold the majority stake."

Lin Bin looked at him and asked a key question: "Do you think Anthony will agree?"

Lei Jun finally smiled with relief.

"Old Lin, you've walked into a misconception. He doesn't have to choose; it's just a choice that came up on its own. If he doesn't agree, then we won't cooperate! The Indian market has more than one operator; Bharti China Telecom, Vodafone, IDEA, they are all alternatives. Anthony wants Xiaomi's technology and brand; he is not without competitors."

Lin Bin thought about it, and it was indeed so.

If Lei Jun hadn't lost his head, then it was indeed worth negotiating; the benefits of cooperating with an operator were definitely greater than the disadvantages.

"Then what is our bottom line?"

Lei Jun picked up a pen and wrote a few lines on paper.

The brand name "Xiaomi" must hold a dominant position in the equity structure, and it must account for at least 60%, with Reliance holding at most 40%. This would also prevent him from increasing capital to take control.

In this way, at most, Anthony would set up his own shop elsewhere, but he absolutely couldn't kick them out, so they wouldn't lose too much face.

Lin Bin nodded after reading it.

"This proposal is negotiable."

"Then let's prepare," Lei Jun made his decision. "I will go see Anil again tomorrow."

"Boss Lei, aren't you afraid he'll flip the table?"

"If he flips the table, so be it." Lei Jun looked at him. "Old Lin, you have to remember, we are here to negotiate a partnership, not to keep begging. Xiaomi's technology and brand are worth this price. At worst, we'll just go to the South American market."

That afternoon, Lei Jun had Lin Bin book a flight back to the country for the day after tomorrow, and then he called Anthony.

"Mr. Anthony, regarding the cooperation, I have a preliminary proposal. Can we talk again tomorrow morning?"

"Of course. 10:00 AM tomorrow, I'll be in the office."

...

At 9:45 AM, Lei Jun arrived at Anthony's office.

This was a 32-story building, the headquarters of Reliance in New Delhi. Although it couldn't compare to the one in Mumbai, Anthony had an office here too.

The view was also unbelievably good.

Anthony was already waiting for someone; there were even two lawyers in the office. Clearly, he had anticipated that Lei Jun would definitely keep this appointment.

"Boss Lei, please sit," Anthony's secretary said, and even thoughtfully poured him a cup of hot tea.

"Mr. Anthony, this is Xiaomi's cooperation proposal."

Anthony flipped to the first page, and the expression on his face was already not so pleasant.

After reading the last page, he looked up at Lei Jun.

"Boss Lei, 63%, you are too greedy."

Lei Jun looked at him without backing down. Although Reliance Group's business was larger than his, he was a newcomer in the mobile phone market.

Being a newcomer meant recognizing reality.

"Mr. Anthony, Xiaomi's technology is worth this price. And we will contribute capital in proportion."

Anthony smiled. Very few people were this confident in front of him.

He crossed his hands on the table, then looked at Lei Jun with a smile, clearly appreciating his confident demeanor.

"Boss Lei, do you know how many cities Reliance Communications' channels cover?"

"I know, 2,000 cities, 200 million users. You already told me this yesterday."

"Then do you know how much money Reliance invested to build this channel?"

"I don't know. But I know this is a massive infrastructure project. To reach this scale, it must have cost at least tens of billions of dollars. But this doesn't have much to do with today's matter."