Chapter 69 Mergers and acquisitions of MCI
In order to make it easier for Firefly's marketing team to establish distribution channels, Henry asked Global Online and Isearch to sign a cooperation agreement with Firefly, and the agreement is mainly that Global Online and Isearch will carry out various promotions for the games published by Firefly!
As a result, the exposure of the game released by Firefly is high!
Then, Firefly takes this agreement to talk about cooperation, whether it is a game company or the lowest channel, it is happy to cooperate with Firefly Game Company!
In addition, Nicholas Shopping Network will also open a product category dedicated to the sale of game CDs, and focus on promoting this!
Online and offline, selling at the same time, for game companies, the attraction is quite strong!
Online, it's just a matter of Henry's words, and it's done!
Offline is what Firefly Games needs to spend a lot of effort to do!
1989 passed, and the New Year didn't take long. Just when the work of Firefly Games was in full swing, the ocean-going survey ship had sent back the news that it had found a submarine fiber optic line with the shortest distance, safer and easier to lay, and then WORL budgeted for this line, and the length and bandwidth would be the determining factors for the price of this submarine fiber optic fiber.
However, this time France only asked for 950 Gbps of bandwidth and 39,000 km of line, and CommScope, a subsidiary of WORL, finally offered a price of $1.5 billion! After this price was reported, Rowan Rowan, director of the US Telecommunications Industry Administration, and French Ambassador Clark came to Cisco again, this time for the purpose of bargaining!
In fact, Cisco can earn more than 500 million yuan in this business, and it doesn't matter if it is reduced by one or two hundred million.
The 950Gbps bandwidth is simply not enough for the whole of Europe, and European countries must build their own submarine fiber!
The main funder of this submarine fiber is France, so Rowan basically doesn't speak, mainly because Clark has always wanted Cisco to reduce the price!
John Chambers had already received Henry's behest, and he said, "It's okay to cut prices, but France has to introduce more business to Cisco." Cisco wants France to hold a grand ceremony after the completion of the submarine fiber, and then invite European government dignitaries to attend. Finally, just introduce Cisco to them! It's as simple as that, if France agrees, we at Cisco are willing to cut the price by $200 million!!."
"300 million will be a deal!!" Clark said loudly.
"250 million, if the price is reduced again, we Cisco will lose money!" John Chambers said with a very painful look on his face.
"Okay. Clark smiled, "However, although France promised to hold a ceremony and introduce important officials from various governments to you, it didn't work out in the end, and it didn't matter what !!happened in France."
"Of course!"
In the end, everyone signed the agreement on the spot. After signing the agreement, John Chambers smiled and reached out to shake hands with Clark and Rowan, "Happy cooperation!!
"Happy working together!"
……
The next day, Cisco held a press conference to announce: "Cisco's WORL will undertake the construction of submarine network optical fiber in the United States and France!! which 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 be connected to Europe, thus greatly promoting the development of Internet globalization!!
As soon as the news came out, the world was shocked. Countries around the world have moved, the rapid development of the Internet in the United States, all countries have seen it, and now France is one step ahead, and other countries can't help but consider whether to build submarine optical fiber and connect to the Internet!
For a time, many countries called Cisco to inquire about the situation.
On the third day, Cisco announced that WORL would be listed on the NASDAQ on February 1, 1990!
News after news, and almost the front pages of American newspapers were WORL.
CommScope, a subsidiary of WORL, has its own fiber optic cable ship and excavator, and on the second day after Cisco signed the agreement with Rowan and Clark, it has already 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!
With the news of worl's imminent launch, Cisco's contact with MCI has become more frequent. The major shareholders of MCI weighed the pros and cons, and it was a good choice to merge with worl in order to get MCI out of the quagmire as soon as possible. The only point of contention is how many shares can be shared on your side after the merger!
This kind of thing will not be discussed for a while, but the intention to cooperate is already obvious. Cisco dragged them for the time being, and when they waited for WORL, the bargaining chips would be even greater!
As time passed, February 1st, it was not long in coming.
Worl has received a lot of attention from investment firms, and some people are waving checks outside Wall Street, claiming that they can't wait to get the checks ready, and when Worl goes public, buy all its shares!
On February 1, Worl conducted an IPO and issued 200 million shares at $5 each, accounting for 20% of the total share capital. Due to the large number of shares issued, the increase was slow, but the stock price rose to $9.1 on the same day, and the market value of WORL exceeded $9 billion! The next day, WORL's stock was still rising, and finally the stock price stabilized at $9.5! In other words, WORL's market value was $9.5 billion!
Cisco took this market value chip and then negotiated with MCI, believing that MCI's internal financial problems and management problems were very serious, and deliberately underestimated the market value of MCI, thinking that 10 billion is appropriate!
For the week that followed, Cisco negotiated with MCI almost once a day!
&nbCI's shareholding is relatively fragmented, and Cisco secretly buys some of these shareholders' shares at a high price, and then lets them help Cisco speak for themselves. As a result, the victory gradually tilted in favor of Cisco! In the following rounds of negotiations, more and more agreed with Cisco's conditions. When Cisco said it could value MCI at 11 billion, the merger plan was finally completed!!
worl and MCI merged, and Cisco took out $2 billion, holding 51% of the shares, to obtain an absolute controlling stake in the new company, and renamed the new company Cisco MCI.
After the signing of the agreement, Cisco and MCI jointly held a press conference to announce: "Worl, a subsidiary of Cisco Corporation, and MCI Corporation have officially completed the merger and acquisition plan of more than $20 billion, and the new company will be named Cisco MCI. Cisco will hold 51% of the shares, and the original MCI shareholders will hold 49%!"
The news of the press conference shocked the United States.
MCI and worl are both giants in the industry, and the merger of the two giants gives people a feeling of being a giant and a giant!
Major media reports have made various speculations about the prospects of the new company. It is believed that in the future, the Internet backbone network will form a situation in which Cisco MCI dominates!
It is of great significance for Cisco to win the MCI, and in the future, there is no one in the Internet access area, which has laid a solid foundation for Henry's career, and is basically invincible! In addition, it has also created an opportunity for Henry to enter the communications industry!! (The recommendation vote is too weak, please give it to you.) In addition, the book friend group: 424930141, everyone is welcome to join!)
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