Chapter 31 Dell goes public
Henry has high hopes for the isearch company, to keep up with Google, and to make all kinds of black technologies like it, which is super awesome and jaw-dropping!!
In order to enhance the competitiveness of the global online, it is essential to get a search box to come out. ∈♀,
Now there are many companies that follow the example of the online portal because they find that there is a lot of traffic to do this kind of website. And a lot of traffic means that it will be favored by more advertisers, so that you can make money. Global Online certainly has a strong advantage, but it has also been diverted from a large part of the traffic!
For example, AOL has also started to make portals!
Due to the sluggish development of the American financial network, Steve Keys had to rethink and reposition AOL. By studying the development model of global online, Steve Case believes that the portal will be a major trend of the Internet in the future, so he resolutely transforms the American financial network. After some revision, the American online portal was established, and the American Finance Network is just one of the sub-sites!
It's not just AOL that, but there are four or five of the sites that Henry knows.
But right now, only Global Online and AOL are doing best. Global Online has about 76.5% of the market share, AOL has 15% of the market share, and the remaining 8.5% of the market share is divided between other portals!
In order to prevent the likes of AOL from taking prey on them, Henry decided to use a killer trick early, so that they would return home with a feather and even embezzle them!
It's time for the "search box" to appear!
isearch and you'll find out!
The slogan "I will search and you will know", Henry made this slogan the most classic and familiar sentence on the Internet!
Henry wants iSearch and Global Online to go hand in hand, and both become Internet giants!!
In the previous life, Yahoo declined because it lost to Google in search, and the portal alone has no core competitiveness, you can do it, and others can do it. But now with Henry, Global Online can not only cooperate closely with isearch, but also develop more features that can make people sticky, such as Twitter. If you have Twitter online in the world, you can be invincible!
Henry has a brief understanding of the affairs of other companies, and he is now fully committed to the development of the search company!
However, Henry should pay attention to such a major event as Dell's listing anyway.
On July 30, Henry and Michael Dale rushed to NASDAQ. We talked for a long time that day, mainly on the issue of Dell's development route after its listing. Michael Dell intends to go global, which Henry agrees with, but Michael Dell also revealed that he is preparing to enter the server, which makes Henry hurt. Isn't this about grabbing cake with 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 Dale didn't know that Henry was actually behind Noah's Ark!
In the previous life, Dell was relatively successful in making servers.
Henry was helpless and said to Michael Dell: "Michael, in fact, I am the majority shareholder of Noah's Ark! If Dell wants to make a server, I think it is better to take a stake in Noah's Ark, and the cooperation between the two sides can produce the greatest value!"
Michael Dale was surprised that Henry could intervene in any place related to the Internet. Michael Dale could only express his deep admiration, and Dale thought about Henry's suggestion for a while, and finally agreed. In addition to developing web servers, Noah's Ark has also developed application software servers, database servers, etc., becoming the overlord of the server industry.
&nbAlthough it has also started to make servers, it is still one step slower than Noah's Ark for the time being. However, IBM has a strong foundation, and it may not be impossible to catch up. And if Dell wants to build a server, it has to start from scratch, and if it wants to compete with Noah's Ark, it won't take several years, that's delusional! Now you can take a stake in Noah's Ark, that's the best.
However, although Noah's Ark is not listed, but industry insiders are extremely optimistic, investors are also very sought after, according to the relevant professional evaluation agencies, the total market value of Noah's Ark is conservatively estimated at $1 billion!
It is impossible for Dell to spend money to buy shares of Noah's Ark, and the only possible way is to exchange shares. Henry first reached a share exchange agreement with Michael Dell, and the details will be discussed after Dell goes public.
On August 1st, Dell went public!
The speed of Dell's development is obvious to all, and 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 Company wants to establish branches and expand its scale in the world, and then it is a bunch of all kinds of bullstaking slogans and development strategies that have touched the excitement of investors, such as establishing a huge processing plant, insisting on direct sales, reducing middleman profits, adhering to the customer-oriented market strategy, and shouting to go "diversify" Hardware development, anyway, is all kinds of bragging, but these have undoubtedly added a lot of points to Dell!
In the prospectus, the shareholders of Dell actually have the current Internet giant Nicholas Group Company, and this is the icing on the cake for Dell, and it is difficult to think about it!
After going public, Dell's stock price soared, shocking the NASDAQ!
In this listing, Dell issued 10 million shares, accounting for 20% of the total share capital, at an issue price of $4 per share. By the end of the day, Dell's stock price had risen to $24 a share, a sixfold increase! Dell's market capitalization had reached $1.2 billion! In the following days, although the rally slowed down, it continued to increase slowly!
A week later, Dell's total market capitalization reached $1.5 billion. Henry brought Bob Gallaher, CEO of Noah's Ark, Geely Hurt, CEO of Nicholas Group, and John Chambers, CEO of Cisco, to Dell to discuss the exchange of shares between Noah's Ark and Dell.
When negotiating, there are many people. Under pressure from the three CEOs, Michael Dell will definitely make more concessions. If Henry talked to him alone, his momentum would be a little thin after all.
Formal negotiations begin.
Henry didn't say much after announcing his intention to cooperate at the beginning. There are very awesome subordinates, and it's good to sit and watch fishing as your own boss!
Michael Dyer is only 23 years old now, how can he beat a man like John Chambers who is experienced in negotiations and has a lot of tactics?
Henry drank his coffee and smiled at the scene.
At this moment, there is already a war of words on the negotiating table, so it is not fierce!
Although Michael Dale is not an idle person, his opponent is too strong and he is at a disadvantage!
"Although Noah's Ark is not listed, it is far stronger than the current Dell company by virtue of its performance and reputation in the industry! What's more, among the computer companies, Dell is at most above the middle to upper scale, and there are many companies that are far stronger than Dell, such as IBM, Apple, HP, Compaq, etc., and among the server companies, Noah's Ark is the hegemon in this company! And with the layout of Noah's Ark sub-stations in the United States, the server hosting performance is increasing day by day, and there will be a steady stream of funds pouring into Noah's Ark Company!" Bob Gallaher exclaimed.
"That's right! Since the speed of the American Science Foundation network, the Internet has developed rapidly, and the demand for servers is also increasing, and the market value of Noah's Ark should rise sharply!" said Geely Hurt.
John Chambers: "Noah's Ark has established itself as an authority in the server space, with a lot of patents and technologies. Noah's Ark is one step ahead, and even IBM is no match for it. Generally speaking, some companies with huge potential, if they are not short of money, will basically not raise funds, let alone give up their shares! And Noah's Ark Company is just such a company, not short of money at all!! now Dell's shareholding in Noah's Ark is an extremely rare opportunity, if it is not for Mr. Williams, Noah's Ark will not choose to cooperate with Dell at all. We will have more and better choices, such as HP, Apple, Compaq and so on...... Big blue like IBM has sent people over to take a stake, but we don't agree! So, if Dell wants to take a stake in Noah's Ark, it has to make more concessions!!
Michael Dell's face was very ugly when everyone said it, and he retorted: "Dell is developing rapidly, and we have sold hundreds of millions of dollars in a few years, creating a sales myth." Excellent prospects for future development......"
John Chambers decisively interrupted: "What is your core technology at Dell? Don't tell us, your core technology is to assemble computers, which even middle school students who have studied computers in their teens ......."
Michael Delton's face turned red, at the beginning of Dell's development, the core technology of wool was to sell and assemble computers!
Dell is taking the marketing route!
But John Chambers doesn't ask about marketing, he asks about technology. This stumped Michael Dyer!
Subsequently, despite Michael Dell's efforts to explain his own way of running a company, technology is fundamental in the high-tech innovation industry. Seizing on this, Michael Dyer was a mess. Michael Dell himself knew this, so after Dell went public, he vigorously developed hardware and put forward the idea of developing servers.
Marketing is king, supplemented by technology, is the foundation of Dell's future glory!
Relying on marketing alone, without technology, is equivalent to having no foundation, and sooner or later it will collapse! Can assembling a computer be sold for a lifetime? That is, now the general public is not familiar with computers, and if you ask a person who knows how to buy a computer, everyone else will buy their own parts and assemble them, what kind of CPU, hard disk, power supply, and other things, you can buy them back and assemble them, what do you want Dell to do?
"In my opinion, it would be most appropriate for Dell to exchange 30% of the shares for 15% of Noah's Ark. John Chambers said lightly.
"What?!, this can't be !!" Michael Dale shouted with excitement when he heard John Chambers' stock swap!
Michael Dale was a little annoyed, and at this time, it was finally Henry's turn to step up.
"Michael, don't get excited. 30% Dell shares for 15% Noah's Ark shares is a bit unreasonable. So, 30% Dell shares for 20% Noah's Ark shares. After all, Noah's Ark is a server leader, and it is indeed a great opportunity for Dell to become a shareholder, and it is normal for the company to exchange shares at a premium! Besides, after Dell acquires a stake in Noah's Ark, it will play an incomparable role in Dell's future hardware development! As the saying goes, stand tall and see far. If Dell can stand on the shoulders of Noah's Ark, a server giant, the future will be infinite!!"
"I need to think about it!" said Michael Dale, after a pause. (Vote, vote...... )
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