Silicon Valley

Chapter 16: West Germany and Netscape went public successively

   On April 10, 1987, West German Publishing House finally went public after several months of preparations and roadshows.

   Before that, Henry and Edward Joe speculated how much the stock price would rise this time.

   Edward Joe believes that the market value of the average medium-sized publishing house will reach eighty to nine million US dollars, but the West German publishing house will definitely exceed 100 million.

   Henry smiled. He didn't know the final market value of West German Publishing House.

  He came to Wall Street with Edward Joe, always paying attention to the changes in the daily limit.

   Although the West German Publishing House is only a medium-sized publishing house in the United States, it has good performance and Henry's shareholding has won investors' pursuit. The stock price rose very well, and the closing price of the day reached 25 US dollars per share. The price shocked Edward Joe, which surprised Henry. It seemed that his fame did play a significant role.

   This IPO (initial public offering) of West German Publishing House issued a total of 2 million shares, which is almost 20% of the shares. After today, it means that the market value of West German Publishing House has risen to 250 million U.S. dollars, which is more than 150 million U.S. dollars more than Edward Joe's market value. By the next day, the stock price fluctuated slightly, but it did not change much.

   The whole West German publishing house is in a kind of excitement!

   In the original IPO, Henry's shares were to be diluted, and then Henry took advantage of the West German publishing house to cash out some of the shares, and finally only 23.5% remained. But Henry had an extra twelve million dollars in his hands. In the end, he was still playing finance to make money, but Henry didn't dare to trade stocks casually. The stocks were not sure. Under the influence of Henry this butterfly, it was impossible to guarantee that there would be no change. For example, the Internet bubble in 2000 must be advanced.

   But there are some things that Henry is great, but I am afraid that he cannot change it. For example, the disintegration of the Soviet Union or something. If Henry crosses over, the Soviet Union will not disintegrate. Even Henry himself has to wonder if he is overpowering!

   Henry cashed out 12 million U.S. dollars, so he has no worries about funding for the time being.

   As of April this year, the number of Internet users in the United States has reached 100,000. One Internet company performed very well, and even Henry couldn't help being slightly shocked after hearing its name.

   This company is called "AOL", and the name is famous. In the early days of the Internet, it existed on a par with Yahoo, and later merged with Warner Pictures, with a market value of more than 300 billion US dollars. Henry did not dare to underestimate this company, and immediately ordered his staff to inquire about this company.

   The next day, Henry got AOL information.

   AOL’s predecessor was called Quantum Computer Corporation, which was founded by Steve Case in 1985. At that time, they had begun to provide online information services for computer users. This company is not slower than Nicholas Bookstore, but the development speed is not as fast as Nicholas Bookstore!

   Steve Case believes that the Internet has a lot to do, and bankruptcies must also develop online information services. This kind of behavior seemed very stupid in the eyes of others, because the network environment at the time was still very severe. Henry had money to burn, but Steve Case was not as rich as Henry.

   He dared to do this, and it was really admirable.

   In 1986, they made a service system, and then they ran to Apple every day without stopping. Finally, Apple was impressed by his perseverance and agreed to install their online service system. Steve Case's company barely survived. With the development of the Internet, this company has become more and more interesting, and even its reputation has reached Henry's ears.

  Henry frowned slightly while holding this information.

   AOL is not terrible, but the information shows that Sequoia Capital has already contacted AOL. This is the biggest headache for Henry!

   Sequoia Capital’s investment in AOL undoubtedly added a huge trouble to Henry.

   Past life, the glorious history of AOL, Henry is relatively clear that the first acquisition of Netscape Netscape, the second acquisition of ICQ, and the third acquisition of Warner Pictures. If such a powerful company were to get investment from Sequoia Capital, Henry had to take certain actions to suppress it.

Henry didn’t know how Sequoia Capital and AOL talked about it. Steve Case was an individual talent. Henry thought it would be best to use it for his own use. Case approached to see if he could acquire his company. Henry appointed Nicholas Bookstore CEO Gilli Hutt to talk in person on the same day. Geely Hutt's reputation and status on the Internet can be regarded as a giant. Let him talk about it, which is enough to give Steve Case's face.

  Henry means that it is best to acquire wholly-owned assets, and get a controlling stake if it doesn't help.

   But the day after Geely Hurt went there, he called Henry back, saying that Steve Case was determined and rejected his purchase request.

   Henry was not surprised when he received the news. Steve Case is an ambitious and talented person, otherwise, AOL would not grow in his hands.

   It didn't take long for Ford Brook, the executive director of Sequoia Capital, to call, and Henry heard a trace of pride in his tone.

   "Henry, how are you, I heard you talk to Steve Case to buy his company?"

   "Hehe, Mr. Brook, are you well informed?" Henry sneered.

   "Hehe, nothing. Sequoia Capital is also optimistic about this company and is negotiating with Steve. And he told us about your plan to acquire AOL!"

   "Oh, isn't it? It seems that this guy is clever, telling you this on purpose, so that it can be sold."

"Haha, nothing. Originally, we at Sequoia Capital could not be fully convinced of AOL's development prospects, but even Henry, the company you like, must be right! The board of directors has decided to invest 15 million US dollars in the United States. Online. Steve Case also agreed to our company’s financing plan. Just now, we have signed the contract!"

   "Congratulations, another gold mine was discovered." Henry said coldly, and Ford Brooke's words were obviously demonstrating.

   "Hehe...where and where." Ford Brook smiled triumphantly.

   "I am very curious, how many shares did you take?"

   "Uh..." Ford Brook smiled awkwardly, and said, "25%, this guy Steve is very difficult, you know, hehe..."

   "Only 25%? Oh, it seems that if I hadn't sent someone over, you wouldn't have spent so much, hehe, I'm really sorry, I'm adding a blockage to you!"

   Ford Brook's face was stunned, and he smirked, "Hehe, nothing, nothing."

   Henry hung up the phone, his face was not pretty. After a long silence, he called Geely Hutt and told him to pay attention to the development of AOL at all times. Subsequently, Henry began to consider future development plans. He only had 22 million US dollars in his hands. As everyone knows, the Internet burns money very early in the early stage, and Henry has to find a way to raise money. Now Henry has four holding companies, Nicholas Bookstore, Cisco, Pixar, and Noah's Ark. Of these four companies, Cisco alone has made money, but for the sake of development, there is basically no dividend. As for the other three, they are all scams.

   Henry thought for a long time, and finally decided to split the Netscape browser on the market, and then collect money. The importance of the browser is self-evident, but compared to others, it is not so important. If Henry makes billions of dollars or more through the Netscape browser, he won't have to worry about funds at all. Then create a variety of Internet companies that will make money in the future, if one day they run out of money, then they will split a certain company to go public and continue to collect money!

   IPO financing is the kingly way! !

   Henry thought for a long time, and finally came to this conclusion!

   Then Henry returned to the Nicholas Bookstore and had a good conversation with Geely Hutt for an afternoon.

   The next day, Nicholas Bookstore announced an important event.

   "The board of directors has decided that Netscape browser will soon be split for listing and financing, and the board of directors has decided to start an equity incentive plan. The company's employees can subscribe for the corresponding shares in accordance with the company's upcoming contribution standards!"

   Geely Hutt announced the completion, and the whole company cheered.

   On June 1, Nicholas Bookstore officially split Netscape Browser, established a separate subsidiary, and held a press conference.

  At the press conference, Geely Hutt announced the plan of Netscape browser to be listed on the Nasdaq.

   As soon as the news came out, the media became a sensation. This will be the first Internet company to go public since its rise!

   Newspapers, television, radio and many other media have reported.

   Sequoia Capital heard the news and quickly called Henry.

   "Henry, I heard that Netscape browser is going to launch a listing plan?" Ford Brook asked.

   "Yes, we have submitted a listing application to Nasdaq." Henry responded.

   "You know, Sequoia Capital is very optimistic about your Netscape browser. Can you subscribe for some shares before listing?" Ford asked.

   "It's not impossible to subscribe for some shares. Let's exchange Apple shares." If Sequoia Capital did not invest in AOL, it would not be impossible for them to subscribe for some shares, but Henry does not want them to take advantage now.

   Ford's tone was stagnant, and he paused before saying, "I have to discuss with the board of directors."

   Sequoia Capital still believes that holding Apple shares is more valuable than Netscape browser. Henry didn't say much, they will regret it after the Netscape browser is on the market.

After a while, Geely Hutt was busy. He held several positions, both the CEO of Nicholas Bookstore and the CEO of Netscape Browser. He was also busy with roadshows and running all over the country. But the hard work was given to Henry. With his 2% of the Netscape browser shares, after the listing, Henry Hutt is painful and happy, not to mention a million dollars.

   In September, Netscape browser was officially listed on the market.

   This one shocked the entire United States.

   Netscape browser IPO, UU Kanshu www.uukanshu.com issued 2.5 million shares, accounting for 20% of the total share capital. As soon as the Netscape browser stock was listed, it went up quickly, just like riding a rocket, but it frightened people. The rate of increase is not slower than that of Microsoft. The issue price was US$2 per share, but after one morning, the stock price soared to US$18, a nine-fold increase. In the afternoon, the stock price rose unabated. At the close of the day, Netscape's share price soared to $40, performing a miracle on the Nasdaq.

   That night, the national media was crazy, and the global media were crazy too. They rushed to report the legend of Netscape browser launch! !

   Netscape went public this time, and its final market value was 500 million US dollars!

   The New York Times stated: "Netscape has achieved great success in its listing, and Internet companies will flourish!!"

   The Washington Post reported: "A company that was split up and had less than 10 employees had a market value of US$500 million. It's crazy, investors are crazy!!!"

  ...

   Regardless of whether the media praised it or questioned it, Netscape’s stock price continued to rise on the second day, but the gain was not as pronounced as on the first day. The stock price rose by only $2.

   The successful listing of Netscape stimulated a large number of people, and many investors began to invest money in Internet companies. Sequoia Capital is one of them. In addition to investing in AOL, they are also actively looking for new targets.

   Through this listing, Nicholas Bookstore raised 100 million US dollars.

   Next, it's time to start big moves. (vote…)

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