Silicon Valley

Chapter 60: Compete for MCI

   "Brook, what is going on? How did Cisco acquire MCI?!!!" Steve Case asked with a serious expression.

“MCI’s finances had a problem. The management made false accounts and misappropriated company funds to invest in stocks. The result was a loss of 250 million US dollars! As soon as the news came out, MCI’s stock price plummeted. Before I came, MCI’s market value It has fallen from US$15 billion to US$8 billion!!! Now, the US Bureau of Investigation has conducted a financial investigation of MCI, and the relevant persons involved in the case have been taken away by the police!!!" Ford Brook shook his head.

   "Grass!!!" Steve Case couldn't help yelling, "What a bunch of stupid things!!!"

   It's not a pity that MCI Company died, but don't hurt people! Steve Case's face was somber that almost dripped water. MCI is a very important partner of AOL. By renting MCI's network channel, AOL can provide users with Internet access services and promote its products! And once MCI was acquired by Cisco, the result can be imagined. AOL is like being cut off by someone! ! !

   Steve is very unwilling, he has a calm face and doesn't say a word!

   The atmosphere in the office was extremely quiet. Ford Brook knew that Steve was thinking and didn't dare to disturb him. He calmed down and was thinking about countermeasures!

   After a while, Steve Case said solemnly: "Such a big merger and acquisition case, it will definitely not be completed within a short time!"

"Yes, it takes a lot of time just to evaluate assets!" Ford Brook nodded, "Actually, MCI itself is developing well, but there is a problem with the internal management of the company. I think there is more than just interest in MCI. The Cisco family, there should be many companies interested in it!!! Cisco wants to acquire MCI, first of all, it must beat other competitors!"

   Steve Case was silent for a while, and suddenly said: "Brook, I decided to buy MCI!!!"

   Steve's words are not surprising, and Ford Brook is startled by what he said.

   "Steve, the total market value of AOL is only 9 billion US dollars, how to swallow MCI?!"

   "There is no need for a complete acquisition, just a controlling stake!"

   "However, it is not easy to control MCI. Although MCI's share price has plummeted, it still has a market value of more than seven billion..." Ford Brook shook his head.

   Steve Case said confidently: "We can join forces with other telecommunications companies, such as Sprint,..."

   "You mean the joint acquisition of MCI?"

"That's right!" Steve Case said, "In this way, we have a great possibility of acquiring MCI!!! Cisco has, and we have MCI on AOL, so it is not known who will die! Even if we are now in Downwind, but there are times when it comes back!"

   Ford Brook nodded.

At this time, the phone rang, and Steve’s **** secretary answered the phone. Immediately, her face changed and she panickedly attached to Steve’s ear and said, “Ceo, Cisco has just held a press conference and is preparing to bid 100 100 million US dollars to acquire MCI company!"

   "10 billion U.S. dollars? Where did they get so much money?!!!" Steve Case said incredulously.

"Citibank and Morgan Bank expressed their willingness to provide loans to Cisco, while Cisco uses 20% of its shares as collateral!" The secretary said, looking at Ford Brook with a different look. She knew that Sequoia Capital was originally also Cisco's major shareholder, but after several rounds of financing, Sequoia Capital's shares in Cisco have been diluted to 2.7%, and even a board seat is gone! And now, Cisco's market value has exceeded 50 billion, and based on the current situation, the stock price will continue to rise, Sequoia Capital may have regretted breaking its bowels! ! !

   Steve heard the words, frowning deeper and deeper, Cisco has already bid 10 billion, AOL wants to win MCI, it is bound to cooperate with other companies to bid higher than 10 billion! but……

   Steve suddenly felt very powerless and powerless. 10 billion is too much. Even if AOL is willing to make a desperate bet and pledge all the shares, other companies may not dare to take a trip to this muddy water! Steve's original plan was to cooperate with other companies to take the controlling stake in MCI, but Cisco immediately dumped 10 billion, and Steve was desperate!

   "Steve, don't be nervous, maybe Cisco is just bluffing and scaring away competitors!" Ford Brook comforted.

   "Regardless of whether Cisco is real guns or bluffs, we must unite more companies and twist them into a rope to fight against Cisco!!!" Steve Case was not so easy to admit defeat, and said firmly.

   "No problem. Sequoia Capital will do the work of collaborating with other companies. We are in contact with sprint and the company's senior management!"

   "Well, that's it!"

  ……

  ……

   The acquisition of MCI is the largest acquisition since Cisco was founded. Henry didn't want to acquire MCI so early, after all, the market value of MCI is too high! But now MCI has messed up itself, and there has been a bad incident of fraudulent accounts and misappropriating company funds for stock trading. Investors have extremely low confidence in it, and the stock price has plummeted.

  If you do evil in the sky, you can still violate it; if you do evil, you cannot live!

   At this time, if Cisco didn't eat MCI, it would be Cisco! ! ! !

   Under Henry's proposal, John Chambers and other company executives all approved it. Citibank and Morgan Bank also expressed their willingness to lend to Cisco!

   For MCI, this sweet potato ~ www.NovelMTL.com~ Cisco is bound to win! ! !

  MCI not only has the most extensive Internet backbone network in the United States, but also the second largest long-distance telephone company in the United States! With these two identities, it's impossible to take out either of them. If Cisco acquires MCI, Henry will not only further improve the strength of the Internet, but also will extend his tentacles to the telephone communication industry! ! !

   is the network backbone. Cisco’s Internet access services must also rent telephone lines from the telephone company. If MCI is acquired, the cost of Internet access fees will be minimized. Therefore, no matter which aspect is considered, Cisco's acquisition of MCI is an inevitable choice! ! !

   However, Cisco's acquisition of MCI was difficult. MCI's large and small shareholders are very scattered. The largest shareholder holds only 6.5% of the shares. If Cisco wants to get a controlling stake or even privatize it, it must work hard. Because Cisco has many competitors too!

   In addition to the AOL Alliance, there are also telecom giant AT&T who are also interested in MCI! ! !

   AOL is really great. It contacted more than a dozen telecommunications companies such as sprint, ANS, BBN, etc., to compete for MCI together!

   Compared with the three powers, Cisco is the weakest!

   Hum, bully, we didn’t bring a brother, right? Subsequently, the Nicholas Group stated that it would join hands with Cisco to acquire MCI.

   The combined market value of Nicholas Group and Cisco is close to 100 billion U.S. dollars, even for AT&T! As for the AOL, hehe, all add up to 60 billion at most! (I have something to do today, please update it in advance~www.NovelMTL.com~ Welcome to read it. The latest, fastest and hottest serial works are all at ~www.NovelMTL.com~ mobile phone users, please go to read it.

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