Chapter 16 West Germany and Netscape were listed successively
On April 10, 1987, after months of preparation and roadshows, the West German publishing house was finally going public.
Before that, Henry and Edward Joe speculated how much the stock price would rise this time.
Edward Joe believes that the average medium-sized publishing house will have a market value of tens of millions of dollars, but the West German publishing house will definitely break 100 million.
Henry smiled, he didn't know what the final market value of the West German publishing house was.
He came to Wall Street with Edward Joe and kept an eye on the price limit.
Although the West German publishing house is only a medium-sized publisher in the United States, it has performed well, and Henry's stake in it has won the attention of investors, and the stock price has risen very well, closing the day at $25 per share. This price shocked Edward Joe, much to Henry's surprise, and it seemed that his fame did play a big role.
In total, 2 million shares were issued in this IPO (initial public offering) of the West German publishing house, which is almost 20% of the shares. After today, it means that the market value of West German publishing houses has risen to $250 million, which is $150 million more than Edward Joe guessed. By the next day, the stock price had fluctuated slightly, but not much.
The whole West German publishing house was in a state of excitement!
Originally, in the IPO, Henry's shares had to be diluted somewhat, and then Henry took advantage of the listing of the West German publishing house to cash out part of the shares, and in the end only 23.5% remained. But Henry had an extra $12 million in his hands. In the end, it is still to play finance to make money, but Henry does not dare to speculate in stocks casually, stocks are uncertain, under the influence of Henry's butterfly, it is difficult to guarantee that there will be no changes. For example, the 2000 Internet bubble must have been preceded.
But there are some things, no matter how good Henry is, but I'm afraid it can't be changed, for example, the collapse of the Soviet Union or something, if Henry crosses over, the Soviet Union will not disintegrate, and even Henry himself will have to wonder if he is too awesome!
Henry cashed out $12 million and didn't have to worry about money for the time being.
By April this year, the number of netizens in the United States had reached 100,000. There was an Internet company that stood out, and even Henry couldn't help but be a little shocked when he heard its name.
This company is called "AOL", which is a well-known name, and in the early days of the Internet, it was on a par with Yahoo, and later merged with Warner Pictures, with a market value of more than $300 billion. Henry did not dare to underestimate this company, and immediately ordered people to inquire about this company.
The next day, Henry got his hands on AOL.
AOL's predecessor, Quantum Computer, was founded by Steve Keys in 1985, and at that time, they began to provide online information services to computer users. This company is not slower than Nicholas Bookstore, but it is not developing as fast as Nicholas Bookstore!
Steve Keys believes that the Internet has a lot to offer, and that it is necessary to develop online information services even if the family is bankrupt. This kind of behavior is very stupid in the eyes of others, because the Internet environment was still very harsh at that time, and Henry had money to burn, but Steve Case was not as rich as Henry.
He dared to do this, which is really admirable.
In 1986, they built a service system, and then ran to Apple every day, through thick and thin, and finally, Apple was impressed by his perseverance and agreed to install their online service system. Steve Case's company barely survived, and with the development of the Internet, the company became more and more enjoyable, and even its reputation reached Henry's ears.
Henry took this information, his brow furrowed slightly.
AOL is not terrible, but the data shows that Sequoia Capital has begun to contact AOL, which is the most headache for Henry!
Sequoia Capital's investment in AOL undoubtedly added a huge trouble to Henry.
In the past life, the glorious history of AOL, Henry is more clear, the first acquired Netscape, the second acquired ICQ, and the third acquired Warner Pictures. Such a bullish company, if it gets the investment of Sequoia Capital, Henry has to make certain moves to suppress it.
Henry didn't know what Sequoia Capital and AOL were talking about, Steve Keys was a talent, and Henry thought that it would be best to be able to take it for his own use, so he sent someone to contact Steve Case to see if he could buy his company. Henry sent Nicholas Bookstore CEO Geille Hurt to talk to him that day. Geely Hurt's fame and status on the Internet can be regarded as a giant. Letting him talk about it is enough to give Steve Keys enough face.
Henry means that it is better to buy it wholly and get a controlling stake no matter how bad it is.
However, the day after Geely Hurt arrived, he called back to Henry, saying that Steve Keys was resolute and rejected his offer.
Henry was not surprised to receive the news. Steve Keys is an ambitious man and a man of great talent, otherwise AOL would not have grown in his hands.
It wasn't long before Ford Brooke, the executive director of Sequoia Capital, called out of the blue, and Henry could hear a hint of smugness in his tone.
"Hello Henry, I've heard you negotiate with Steve Case to buy his company?"
"Hehe, Mr. Brooke, are you well-informed?" said Henry, sneering.
"Hehe, it's nothing, we at Sequoia Capital are also optimistic about this company and are negotiating with Steve. And the plan you want to buy AOL is what he told us!"
"Oh, yes? It seems that this guy is clever enough to tell you about it on purpose, so that you can sell it for a price. ”
"Hehe, nothing. Originally, Sequoia Capital was not fully convinced of AOL's development prospects, but even Henry, the company you fancy must not be wrong! The board of directors has decided to invest 15 million US dollars in AOL. Steve Keys has also agreed to our company's financing plan, and just now, we have signed the contract!"
"Congratulations, you've discovered another gold mine. Henry said coldly, Ford Brooke was clearly demonstrating.
"Huh...... Where, where. Ford Brooke smirked.
"I'm curious, how many shares did you take?"
"Uh......" Ford Brooke smiled awkwardly and said, "25%, Steve is hard to deal with, you know, hehe......"
"Oh, it looks like if I hadn't sent someone, you wouldn't have spent so much, hehe, I'm really sorry to block you!"
Ford Brooke was stunned and sneered, "Hehe, nothing, nothing." ”
Henry hung up, his face not looking very good. After a long silence, he called Geely Hurt and told him to keep an eye on AOL's developments. Subsequently, Henry began to think about future development plans, he only had 22 million dollars in his hand, as we all know, the Internet was very expensive in the early stage, and Henry had to find a way to raise money. Now Henry holds a total of four companies, Nicholas Books, Cisco, Pixar, Noah's Ark. Of these four, only Cisco made money, but for the sake of development, there were basically no dividends. As for the other three, they are all pit money.
Henry thought about it for a long time, and finally decided to split Netscape Browser and go public, and then circle the money. The importance of the browser is self-evident, but it is less important than anything else. If Henry had made a billion dollars or more through Netscape, he wouldn't have to worry about money at all. Then create a variety of Internet companies that will make money in the future, and if they run out of money one day, they will split a company and go public, and continue to make money!
Listing and financing is king!!
Henry thought about it for a long time and finally came to this conclusion!
Henry then returned to Nicholas' and had an afternoon of conversation with Geille Hurt.
The next day, Nicholas Bookstore announced something big.
"The board of directors has decided to split Netscape Browser for listing and financing in the near future, and the board of directors has decided to launch an equity incentive plan, and the company's employees can subscribe for corresponding shares in accordance with the company's upcoming contribution standards!"
When Geely Hurt made the announcement, the whole company cheered.
On June 1, Nicholas Bookstore officially split Netscape Browser, established a separate subsidiary, and held a press conference.
At a press conference, Geely Hurt announced plans to list Netscape on the NASDAQ.
As soon as this news came out, the media became a sensation, and this will be the first Internet company to go public since the rise of the Internet!
Newspapers, television, radio and many other media have reported on it.
Sequoia Capital heard the news and hurriedly called Henry.
"Henry, I heard that Netscape is going to go public?" asked Ford Brooke.
"Yes, we have filed a listing application with NASDAQ. Henry responded.
"You know, we at Sequoia Capital are very optimistic about your Netscape browser, do you think we can subscribe for some shares before going public?" asked Ford.
"It's not impossible to subscribe for some shares, take Apple shares in exchange. "If Sequoia Capital hadn't invested in AOL, it wouldn't have been impossible to let them subscribe for some of the shares, but Henry doesn't want them to take advantage right now.
Ford's tone froze, and he paused before saying, "I still have to discuss it with the board." ”
Sequoia Capital continues to believe that owning a stake in Apple is more valuable than Netscape. Henry didn't say much either, and when Netscape went public, they would regret it.
After a period of time, Geely Hurt was very busy, he wore many hats, he was the CEO of Nicholas Bookstore, and the CEO of Netscape Browser, and he was busy with roadshows, running all over the country, but hard work was hard, Henry gave him 2% of Netscape Browser shares, and after going public, let alone a million dollars, Henry Hurt was painful and happy.
In September, Netscape Browser was officially launched.
This shocked the whole United States.
Netscape IPO with 2.5 million shares, accounting for 20% of the total share capital. As soon as Netscape Browser stock was listed, it rose like a rocket, which frightened people, and the speed of rising was not slower than Microsoft. The offering price was $2 per share, but one morning passed, and the stock price soared to $18, a nine-fold increase. In the afternoon, the stock price rally did not abate at all. By the end of the day, Netscape's stock price had soared to $40, performing a miracle on the Nasdaq.
That night, the media in the United States went crazy, and the global media also went crazy, scrambling to report on the legend of the Netscape browser listing!!
Netscape went public this time, with a final market value of $500 million!
The New York Times said: "Netscape IPO is a huge success, Internet companies will !! boom"
The Washington Post reported: "A spin-off company with less than 10 employees is worth $500 million, crazy, investors are crazy!!"
……
Regardless of the media's praise or questioning, Netscape's stock price was still rising on the second day, but the rise was not as obvious as on the first day, and the stock price only rose by $2.
The successful listing of Netscape has stimulated a large number of people, and many investors have begun to invest their funds in Internet companies. Sequoia Capital is one of them, and in addition to investing in AOL, they are also actively looking for new targets.
With this listing, Nicholas Bookstore raised $100 million.
Next, it's time to make a big move. (Vote...... )