Venture Businessmen Become Millionaires

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Venture Businessmen Become Millionaires

Many venture businessmen became millionaires by raising the value of venture companies to high levels before selling them to other big companies. Lee Ka Hyung, the president of Appeal Telecom, which specializes in cellular phones and pagers, sold a 51% stake of his company to Motorola for 45 million dollars. Appeal Telecom was established only four years ago but sales last year totalled 54.1 billion won. Motorola bought the shares for 20 times the face value. Lee will still be in charge of day to day operations for the time being.
Inet, a leading Internet communications company was sold to the U.S.-based PSI Net for 35 million dollars. Heo Jin Ho, the president of Inet received three million dollars in the deal. Although Inet recorded a 3.4 billion won loss last year, PSI Net saw a bright future for the company. Heo will also continue to manage the company. PSI Net plans to appoint Heo as chief of the Asia region.
Business experts said, 'This phenomenon is natural. Venture companies containing excellent technology will be more competitive if they cooperate with companies with plenty of money.'
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