Silicon Valley
Chapter 69
In order to make it easier for the marketing team of firefly game company to establish distribution channels, Henry asked global online and Isearch to sign a cooperation agreement with firefly. The content of the agreement is that global online and Isearch will carry out all kinds of publicity on the games released by firefly!
In this way, firefly release of the game exposure is very high!
Well, firefly takes this agreement to talk about cooperation. Both game companies and the lowest level channels are willing to cooperate with firefly game companies!
In addition, Nicholas shopping network will also open a special sale of game CD classification of goods, and focus on this publicity!
Online and offline, sales at the same time, for game companies, the attraction is quite strong!
Online, just a word from Henry, it''s done!
Offline, is firefly game company need to spend a lot of effort to do!
1989 passed, not long after the new year. Just when firefly game company''s work is in full swing, the ocean going survey ship has sent back the message that it has found a submarine optical fiber line with the shortest distance, safety and easy laying. Then worldnet made a budget for this line. The length and bandwidth will be the decisive factors for the price of this submarine optical fiber.
However, France only requires 950gbps bandwidth and 39000km line length this time. CommScope, a worldnet subsidiary, finally offered us $1.5 billion! After the price was quoted, Robert Rowan, director of the telecommunications industry administration of the United States, and French ambassador Clark came to Cisco again. The purpose of this visit was to bargain!
In fact, Cisco can make more than 500 million yuan in this business, and it doesn''t matter to reduce it by 120 million yuan.
950gbps bandwidth is not enough for the whole Europe. European countries must establish their own submarine optical fiber!
The main investor of this submarine optical fiber is France. Therefore, Rowan basically does not speak. The main reason is that Clark always wants Cisco to reduce its price!
John chambers has long been inspired by Henry, he said: "price reduction is OK, but France must introduce more business to Cisco. Cisco hopes that France will hold a grand ceremony after the completion of submarine optical fiber, and then invite European government officials to attend. Finally, introduce Cisco to them! It''s such a simple thing. If France agrees, Cisco is willing to reduce the price by 200 million dollars! "
"300 million is the deal!" Clarke said in a loud voice.
"250 million, if we reduce the price again, Cisco will lose money!" John Chambers put on a very painful look on his face and said very firmly.
"All right." Clark said with a smile, "however, although France promised to hold a ceremony and introduce key officials of various governments to you, it doesn''t matter whether it will succeed or not in the end, it doesn''t matter what happened in France!"
"Of course!"
Finally, they signed the agreement on the spot. After signing the agreement, John Chambers smiles and reaches out to shake hands with Clark and rowan
"Happy cooperation!"
……
The next day, Cisco held a press conference and announced: "Cisco''s worldnet will undertake the construction of submarine optical network between the United States and France!"!!! This is the largest submarine optical fiber since the formation of the Internet. Once the submarine optical fiber construction between the United States and France is completed, the Internet will connect with Europe, thus greatly promoting the development of Internet globalization
The news shocked the world. Countries all over the world have been inspired. The rapid development of the Internet in the United States is obvious to all. Now France is taking the lead. Other countries are also considering whether to build submarine optical fiber and connect the Internet!
For a time, many countries called Cisco to ask about the situation.
Then on the third day, Cisco announced that worldnet would be listed on NASDAQ on February 1, 1990!
News after news, almost all the front pages of American newspapers are worldnet.
CommScope, a worldnet subsidiary, has its own cable boat and excavator. It has set sail the day after Cisco signed the agreement with Rowan and Clark! The cable ship runs on the sea, and the excavator digs, lays and buries the cable on the seabed! The project date is expected to be more than three months!
With the news that worldnet will be launched soon, Cisco has more and more frequent contact with MCI. The major shareholders of MCI company weigh the pros and cons, in order to let MCI jump out of the mire and merge with worldnet, it is a good choice. The only argument is, after the merger, how many shares can I get!
This kind of thing, for a while and a half, did not come to an agreement, but the intention of cooperation has been very obvious. Cisco is dragging them for a while. When worldnet comes, the bargaining chip will be even bigger!
As time goes by, February 1st, will come soon.
Worldnet has been sought after by many investment companies. Some people are waving cheques outside wall street, claiming that they can''t wait to get the cheques ready. After worldnet goes public, buy all its stocks!
On February 1, worldnet launched an IPO, offering 200 million shares at $5 each, accounting for 20% of the total share capital. Due to too many stocks issued, the rise was slow, but the share price rose to $9.1 on the same day, and the market value of worldnet exceeded $9 billion! The next day, worldnet''s stock price was still rising, and finally stabilized at $9.50! In other words, the market value of worldnet is 9.5 billion dollars!
Cisco takes this market value chip and then negotiates with MCI. It thinks that MCI has serious internal financial and management problems. It deliberately underestimates MCI''s market value and thinks that 10 billion is appropriate!
In the following week, Cisco and MCI negotiated almost once a day!
As the shares of MCI are relatively dispersed, Cisco secretly bought some of the shareholders'' shares at a high price, and then asked them to help Cisco in the negotiation. As a result, the victory gradually tilted to Cisco side! In the following rounds of negotiations, Cisco''s conditions were increasingly recognized. When Cisco said it could value MCI at 11 billion yuan, it finally completed the merger plan!!!
Worldnet merged with MCI. In addition, Cisco took out US $2 billion, holding 51% of the shares, gaining absolute control of the new company, and renamed the new company Cisco MCI.
After the signing of the agreement, Cisco and MCI jointly held a news conference and announced: "worldnet and MCI of Cisco have officially completed the merger plan of more than 20 billion US dollars, and the new company is named Cisco MCI. Cisco will hold 51% of the shares and former MCI shareholders will hold 49%! "
The news of the press conference shocked the United States.
MCI and worldnet are both giants in the industry. The merger of the two giants gives people a sense of a big Mac!
The major media reported one after another and made various speculations about the future of the new company. Think that the future Internet backbone network will form a Cisco MCI side dominant situation!
It is of great significance for Cisco to win MCI. No one can match Cisco in Internet access. It has laid a solid foundation for Henry''s career and is basically invincible! In addition, it also creates opportunities for Henry to enter the communication industry( The recommendation ticket is too suck. Please come first. In addition, book group: 424930141, welcome to join