Silicon Valley

Chapter 31: Dell goes public

  Henry has high hopes for Isearch. He wants to be in line with Google, and he has to make all kinds of black technologies like it. It's super awesome and it's jaw-dropping! ! !

   In order to enhance the global online competitiveness, it is essential to get a search box.

   There are already many companies that have followed the same example to build portal websites online, because they found that doing this kind of website has a lot of traffic. The high traffic means that it will be favored by more advertisers and can make money. Although global online has a strong advantage, it has also been distributed a large part of the traffic!

   For example, AOL has also started to make portals!

   Due to the stagnant development of American Finance Network, Steve Case had to rethink and reposition AOL. By studying the development model of global online, Steve Case believed that the portal network will be a major trend of the Internet in the future, so he resolutely transformed the U.S. financial network. After some revisions, the AOL portal website was established, and the AOL website is just one of the sub-sites!

   Not only AOL does this, but there are four or five websites that Henry knows.

   But now only Global Online and AOL do the best. The global online market accounted for 76.5% of the market share, AOL accounted for 15% of the market share, and the remaining 8.5% of the market share was divided by other portals!

   In order to prevent websites like AOL from taking food from their mouths, Henry decided to use his assassin as soon as possible, so that they would come home unscathed, and even embezzle them!

   "Search box" this kind of artifact, it's time to appear!

   I search, you can know!

   The slogan "I will find it after a search", Henry made this slogan the most classic and familiar sentence on the Internet!

   Henry wants to make Isearch and global online go hand in hand, and both become Internet giants! ! !

   In the past life, Yahoo's decline was because it lost to Google in search. Portal alone has no core competitiveness. You can do it, and others can do it. But now with Henry, Global Online can not only achieve close cooperation with Isearch, but also develop more functions that can make people sticky, such as Twitter. With Twitter online, you can have an invincible place!

  Henry simply understands the affairs of other companies. He is now wholeheartedly devoted to the development of the search company!

   However, Henry must pay close attention to such a major event as Dell's going public anyway.

   On July 30th, Henry and Michael Dell rushed to Nasdaq. We talked for a long time that day, mainly about the development route of Dell after going public. Michael Dell intends to make a global layout, and Henry agrees with this. However, Michael Dell also revealed that he is planning to enter the server, which is painful for Henry. Isn't this about grabbing cakes from Noah's Ark?

   Noah’s Ark is not a listed company and does not need to explain anything to the outside world, including the company’s financial situation or shareholders. Naturally, Michael Dell didn't know that Henry was actually in control of Noah's Ark!

  In the past life, Dell was relatively successful in doing servers.

   Henry helplessly said to Michael Dell: "Michael, I am actually the majority shareholder of Noah's Ark! If Dell is to be a server, I think it would be better to buy shares in Noah's Ark. The cooperation between the two parties can produce the greatest value!"

   Michael Dell was very surprised. Henry could intervene wherever he felt related to the Internet. Michael Dell can only express his deep admiration. For Henry's suggestion, Dell thought about it, and finally agreed. Combining both benefits, Noah’s Ark has now developed application software servers, database servers, etc. in addition to web servers, and has become the dominant player in the server industry.

   Although IBM has also started to do server work, it is still a step behind Noah's Ark for the time being. However, IBM has a solid foundation, and it may not be impossible to catch up. If Dell were to build a server, it would have to start from scratch. It would be a delusion to compete with Noah's Ark within a few years! Now that you can buy shares in Noah's Ark, that's the best.

   However, although Noah's Ark is not listed, people in the industry are extremely optimistic and investors are also very popular. According to the evaluation of relevant professional evaluation agencies, the total market value of Noah's Ark is conservatively estimated to be 1 billion US dollars!

   It is impossible for Dell to spend money to buy shares in Noah's Ark. The only possible way is to exchange shares. Henry first reached a share swap agreement with Michael Dell, and the specific situation will be discussed after Dell's listing.

   On August 1, Dell went public!

   The speed of Dell's development is obvious to all. In three or four years, it has created fabulous sales performance, with a sales scale of hundreds of millions of dollars! In the prospectus, Dell is going to establish branches around the world, expand its scale, and then a bunch of slogans and development strategies that stimulate investors' excitement, such as building a huge processing plant. , Insisting on direct sales, reducing the profits of middlemen, insisting on the customer-oriented market strategy, and shouting to take "diversified" hardware development, anyway, it is all kinds of bragging, but these undoubtedly add a lot to Dell fraction!

  In the prospectus, Dell’s shareholder members actually still have the current Internet giant Nicholas Group, and this is the icing on the cake for Dell. It’s hard to think about it!

   After going public, Dell's stock price has soared, shocking Nasdaq!

   In this listing, Dell issued 10 million shares, accounting for 20% of the total share capital, at a price of four US dollars per share. At the end of the day, Dell's stock price had risen to $24 per share, a six-fold increase! Dell's market value reaches 1.2 billion US dollars! In the next few days, although the rising trend slowed down, it still increased slowly!

   A week later, Dell's total market value reached 1.5 billion US dollars. Henry took Noah's Ark CEO Bob Gallagher and Nicholas Group CEO Geely Hutt and Cisco CEO John Chambers to Dell to discuss the issue of Noah's Ark and Dell's share swap with Michael Dell.

   When negotiating, there are so many people. Under the pressure of the three chief executives, Michael Dell will definitely make more concessions. If Henry talked to him alone, he would be a bit thin after all.

   The formal negotiation begins.

   Henry didn't speak much after he first announced his intention to cooperate between the two parties. There are very powerful subordinates, just sit and watch fishing as your own boss!

   Michael Dell is only 23 years old and young. How can he be able to compete with a skilled negotiator like John Chambers?

   Henry drank coffee at ease and smiled at the situation.

   At this moment, there is already a verbal battle on the negotiating table, so fierce!

   Although Michael Dell is not a person to wait, but his opponent is too strong and at a disadvantage!

"Although Noah's Ark is not listed, it is far stronger than the current Dell company based on its performance and reputation in the industry! What's more, among computer companies, Dell is at most medium-to-upper scale, and there are many others. The company is far stronger than Dell, such as IBM, Apple, Hewlett-Packard, Compaq, etc. Among the server companies, Noah's Ark is the overlord! And with the deployment of Noah's Ark sub-stations across the United States, server hosting performance is increasing day by day , There will be a steady flow of funds into Noah's Ark Company!" Bob Gallaher said loudly.

   "That's right! Since the speed of the National Science Foundation network has been accelerated, the Internet has developed rapidly, and the demand for servers is also increasing. The market value of Noah's Ark should rise!" Geely Hutt said.

John Chambers: "Noah's Ark has established authority in the server field and has a lot of patents and technologies. Noah's Ark is one step ahead, and even IBM is not its opponent. Generally speaking, some companies with great potential , If there is no shortage of money, basically it will not raise funds, let alone give up shares! And Noah's Ark is just such a company, and it is not short of money!!! Now it is extremely rare for Dell to take a stake in Noah's Ark. If it weren’t for Mr. Williams’s chance, Noah’s Ark would not choose to cooperate with Dell at all. We would have more and better choices, such as HP, Apple, Compaq, etc....Like IBM Big Blue once sent someone over and wanted to buy shares, but we didn’t agree! Therefore, if Dell wants to buy a stake in Noah’s Ark, it must make more surrenders!!!"

   Michael Dell was said to be very ugly. He retorted: "Dell is developing very fast. We have sold hundreds of millions in a few years, creating a sales myth. The future development prospects are very good..."

   John Chambers decisively interrupted: "What is the core technology of your Dell company? Don't tell us, your core technology is assembling computers. Even middle school students who have studied computers in their teens can..."

   Michael Dell's face suddenly blushed. At the beginning of Dell's development, the core technology of woolen yarn was to assemble computers by selling!

  Dell is taking the marketing route!

   But John Chambers doesn’t ask about marketing, but about technology. This is stumping Michael Dell!

   Then, although Michael Dell tried his best to explain his own way of running a company, in the high-tech innovation industry, technology is the most fundamental. Grasping this, Michael Dell was a complete mess. Michael Dell himself knew this, so after Dell went public, it vigorously developed hardware, and even put forward the idea of ​​developing servers ~ www.NovelMTL.com ~ Marketing is king, and technology is supplemented, which is the foundation for Dell's future success. !

   Relying on marketing alone, without technology, is equivalent to having no foundation, and it will collapse sooner or later! Can assembled computers sell for a lifetime? That is to say, ordinary people are not familiar with computers. You ask someone who knows computers to buy computers. Everyone buys parts and assembles them by themselves. You can assemble things like cpu, hard disk, power supply, etc., and you can assemble them after you buy them back. What do you want from Dell? !

   "In my opinion, it is most appropriate for Dell to exchange 30% of its shares for 15% of Noah's Ark." John Chambers said lightly.

   "What?! It's impossible!!!" Michael Dell yelled with excitement when he heard John Chambers' exchange method!

   Michael Dell was a little annoyed by the pressure, and at this time, it was finally Henry's turn.

"Michael, don’t get excited. 30% of Dell’s shares are exchanged for 15% of Noah’s Ark shares. It’s a bit unreasonable. Let’s say 30% of Dell’s shares are exchanged for 20% of Noah’s Ark shares. After all, Noah’s Ark is a leader in servers, and Dell can buy shares. It is indeed a huge opportunity, and it is normal to exchange shares at a premium! Besides, after Dell's shareholding in Noah's Ark, it will have an incomparable effect on Dell's future hardware development! As the saying goes, stand high and see far. Dell If the company can stand on the shoulders of Noah's Ark, the server giant, the future will be unlimited!!!"

   "I need to think about it!" Michael Dell said with a moment of silence. (Vote and vote~www.NovelMTL.com~ Book friends are welcome to visit and read. The latest, fastest and hottest serial works are all at ~www.NovelMTL.com~ For mobile phone users, please go to read.

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