Silicon Valley

Chapter 69: MCI

In order to make it easier for the marketing team of the Firefly Game Company to establish distribution channels, Henry made Global Online, and Isearch Company signed a paper cooperation agreement with Firefly. The content of the agreement is mainly that Global Online and Isearch Company will conduct various games on the games released by Firefly. Kind of publicity!

   In this way, the exposure rate of the game released by Firefly is very high!

   Then, Firefly takes this agreement to discuss cooperation, whether it is a game company or the lowest channel, they are very happy to cooperate with Firefly Game Company!

   In addition, Nicholas Shopping Network will also open a product category dedicated to selling game CDs, and focus on promoting this!

  Online and offline, simultaneous sales, for game companies, the attraction is quite strong!

  Online, just a word from Henry, and it's done!

   Offline, Firefly Game Company needs to spend a lot of effort to do it!

   1989 passed, and the New Year did not take long. Just as the work of the Firefly Game Company was in full swing, the ocean-going survey vessel had sent back news and found a submarine optical fiber line that was the shortest, safe, and easy to lay. Then, a budget was made for this line, and the length and bandwidth were reduced. It is the determining factor of the price of this submarine optical fiber.

   However, this time France only requires a bandwidth of 950Gbps, and the length of the line is 39000km. The subsidiary CommScope finally offered a price of US$1.5 billion! After the price was reported, US Telecommunications Industry Administration Director Rowan and French ambassador Clark came to Cisco again, this time for the purpose of bargaining!

   In fact, Cisco can make more than 500 million in this single business, and it doesn’t matter if it reduces by one or two billion.

  950Gbps bandwidth is not enough for the whole of Europe. European countries must build their own submarine optical fiber!

   The main investor of this submarine optical fiber is France, so Rowan basically doesn't say anything, mainly because Clark has always wanted Cisco to lower the price!

John Chambers has long been instructed by Henry. He said: "The price can be reduced, but France must introduce more business to Cisco. Cisco hopes that France will hold a grand ceremony after the completion of the submarine optical fiber, and then invite European countries Government officials attended. Finally, just introduce Cisco to them! It's that simple thing, if France agrees, Cisco is willing to reduce the price by 200 million US dollars!!!"

   "300 million will be sold!!!" Clark said loudly.

   "250 million, if we lower the price again, we at Cisco will have to lose money!" John Chambers pretended to be very painful on his face and said very firmly.

   "Okay." Clark laughed, "However, although France promised to hold ceremonies and introduce important government officials to you, it won't happen in the end, regardless of France!!!"

   "Of course!"

   Finally, everyone signed the agreement on the spot. After signing the agreement, John Chambers smiled and stretched out his hand to shake hands with Clark and Rowan, "Happy cooperation!!!"

   "Happy cooperation!"

  ……

The next day, Cisco held a press conference to announce: "Cisco will undertake the construction of the submarine network optical fiber 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 Europe, which greatly promotes the development of Internet globalization!!!"

   When the news came out, the world was shocked. Countries all over the world are enthusiastic about the rapid development of the Internet in the United States. It is obvious to all countries. Now France is one step ahead, and other countries are also considering whether to build submarine optical fiber to connect the Internet!

   For a while, many countries called Cisco to ask about the situation.

   On the third day, Cisco announced that it will be listed on NASDAQ on February 1, 1990!

   One news after another, almost on the front page of American newspapers.

   Subsidiary CommScope has its own fiber-optic cable boats and excavators. The day after Cisco signed an agreement with Rowan and Clark, it has set sail! The fiber optic cable ship is traveling at sea, and the excavator is digging, laying, and burying the wire on the seabed! The project date is expected to be more than three months!

   The news of the upcoming listing has been announced, and the contact between Cisco and MCI has become more and more frequent. The major shareholders of MCI weighed the pros and cons, in order to let MCI jump out of the quagmire and merge with it, it is a good choice. The only point of contention is how many shares you can get after the merger!

  This kind of thing, the talks were not reached for a while, but the intention of cooperation is already obvious. Cisco temporarily drags them, and after that, the bargaining chip will be even greater!

   As time passed, February 1st came soon.

   Received the pursuit of many investment companies, some people just waved the check outside Wall Street, claiming that they could not wait to prepare the check, and after the listing, they bought all its stocks!

   On February 1st, an IPO was carried out, and 200 million shares were issued at 5 US dollars per share, accounting for 20% of the total share capital. Due to the large number of issued shares, the increase was slow, but the stock price rose to 9.1 US dollars that day, and the market value exceeded 9 billion US dollars! The next day, the stock was still rising, and finally the stock price stabilized at $9.50! In other words, the market value is 9.5 billion U.S. dollars!

   Cisco took this market value bargaining chip and then negotiated with MCI, thinking that MCI's internal financial problems and management problems are serious, and deliberately underestimating the market value of MCI, thinking that 10 billion is appropriate!

   In the following week~www.NovelMTL.com~Cisco negotiated with MCI almost once a day!

   Because MCI's equity is relatively dispersed, Cisco secretly purchased the shares of some of these shareholders at a high price, and then asked them to help Cisco in the negotiation. As a result, victory gradually tilted to Cisco's side! In the following rounds of negotiations, more and more agreement with Cisco's conditions. When Cisco stated that it could value MCI at 11 billion, the merger plan was finally completed! ! !

   M&A with MCI. In addition, Cisco took out 2 billion US dollars and held 51% of the shares to obtain absolute controlling rights in the new company and renamed the new company Cisco MCI.

After signing the agreement, Cisco and MCI jointly held a press conference to announce: “Cisco’s subsidiary and MCI have formally completed a $20 billion merger and acquisition plan. The new company is named Cisco MCI. Cisco will hold 51% of the shares. MCI shareholders hold 49%!"

   The news of the press conference shocked the United States.

  MCI and MCI are both giants in the industry. The two merged and the giants united, giving people the feeling of being a giant and a giant!

   Various media have reported and made various speculations about the prospects of the new company. It is believed that in the future, the Internet backbone network will form the dominant position of Cisco MCI!

   It is of great significance for Cisco to win MCI. In the future, no one can access the Internet. 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 communications industry! ! ! (Recommendation ticket is too weak, please give it to everyone. In addition, book friends group: 424930141, welcome to join~www.NovelMTL.com~ Welcome to read, the latest, fastest and hottest serial works~ www.NovelMTL.com~ For mobile phone users, please go to read.

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