Chapter 35 Secondary Investment

When Netscape was listed, because the controlling party was the Nicholas Group Company, and the Nicholas Group Company was not a listed company, it did not disclose its shareholders to the outside world! Therefore, the outside world did not know that Henry was the boss behind Netscape!

But this time it didn't work, Henry is the majority shareholder of Cisco, and before the company goes public, it must be clearly stated in the prospectus.

At this moment, Henry is famous!

After Apple Steve Jobs, Microsoft's Bill Gates, Dell's Michael Dell, and Oracle CEO Ellison, Henry is the most awesome young billionaire who didn't even go to college!!

At this moment, the media "rioted" and sent countless elite soldiers to encircle and intercept Henry!

At this moment, Henry is really depressed, can he still live a quiet life?

"Refuse, refuse all interviews!!!"

Miss Helen made Henry a cup of coffee for her, and Henry had become accustomed to her craftsmanship and the taste of coffee.

Today's Helen Wheeler is not the same as she was at the beginning, but more and more slim, and more and more female white-collar temperament!

Tall, wearing a white shirt and black leggings, she looks sexy!

"Chairman, media reporters are blocking the door of the company, and they can't get away," Helen said helplessly......

Henry is now at Cisco's corporate headquarters, and it has been a week since Cisco went public, and the stock price has exceeded $70, and Cisco's market value has exceeded $7 billion! Today, Cisco will hold a major board meeting. Therefore, Henry had to come to the company at the risk of being harassed by journalists!

The money raised after Cisco's IPO is generally reinvested, because the money is the money after the shareholders' shares are sold, so it is the shareholders' money, not the company's. Normally, it is a secondary investment, but Henry doesn't know if Sequoia Capital will follow it or not. However, at this board meeting, representatives of many large companies came, including representatives of more than a dozen banks or venture capital funds such as Citibank, JPMorgan Bank, KPCB Venture Capital Fund, IDG Technology Venture Capital Fund, Goldman Sachs Group, etc.!

These banks and venture capital funds are very bullish on Cisco, and after Cisco went public, they all bought some Cisco shares to a greater or lesser extent. They themselves have the right to attend this meeting, and at the same time, they are obviously very interested in Cisco's secondary investment, otherwise they would not come.

Sequoia Capital representative Ford Brooke was also in attendance!

The meeting was moderated by CEO John Chambers, who gave a post-IPO speech and future ambitions of Cisco, and the real drama began immediately!

"This board meeting will be a secondary investment in Cisco, and willing shareholder representatives can participate!" said John Chambers, "then based on Cisco's current stock price, with a total market capitalization of $7 billion, Chairman Henry Williams will reinvest 90% of the funds he received in the stock market, or $850 million." As for how much you want to invest, we can discuss it together!"

Henry's original shareholding in Cisco was 67.5%, and Cisco went public to issue 20% of the shares, of which 13.5% was used to go to Henry, obtaining $945 million in funds, and Henry invested another $850 million, leaving more than $90 million!

At this time, Sequoia Capital Ford Brooke said: "Sequoia Capital will not make a secondary investment!"

Sequoia Capital has its own small ninety-nine, they believe that Cisco's market value has reached its peak, and there is little room for growth, and the investment income is not cost-effective to invest. Instead of spending so much money to invest in Cisco, it is better to invest, you can get more shares than Cisco, and once it is listed, Sequoia Capital can make a lot of money!

However, no one could have imagined that Cisco's market value would be as high as five or six hundred billion US dollars in the future, and Sequoia Capital would definitely regret it at that time!!

This time, Sequoia Capital will not make a secondary investment, and its shares will definitely be greatly diluted!

Mr. and Mrs. Bosak naturally made a second investment, they are one of the founders of the company, and they hope that the company will develop better and better!

The meeting lasted for a long time, from 9 a.m. to 3 p.m.

It is impossible for Henry to agree with other venture capital institutions to invest heavily in Cisco and share the shares, so he must grasp a degree. Therefore, coordinating the major investors and rationally distributing shares has become one of the key tasks of this meeting!

After the meeting, Henry's shareholding reached about 63.5%, the Bosses 10.5%, the company's management 4.5%, Citibank and Morgan Bank both 2.5%, Goldman Sachs, IDG, and KPCB each accounted for 2%, while Sequoia Capital's shares were diluted to 3.8%, and the remaining shares were held by many other small shareholders! Cisco obtained $1.32 billion through secondary investment!

How to deal with so much money from Cisco? It's very simple, just three words, "Acquire and go"!

Cisco will not repay the bank money for the time being, Citibank and Morgan Bank will not collect debts at all, and the longer Cisco delays it, the better, and the loan interest will be more!

The bank is a monster institution, and the richer you are, the more it likes to lend you! If you don't have money, it won't lend to you!

In order to scale Cisco's performance, it is necessary to recommend Cisco products before users are connected to the Internet!

If Cisco also does Internet access services, then when users access the Internet, Cisco can immediately recommend their own products, which is a perfect match!

At the same time, in order to crack down on AOL's Internet access services, Cisco's involvement in Internet access services is of great strategic significance!

is different from AOL's petty family, and it also rents someone else's network channel!

If you want to do it, you can do it with a big vote!!

The acquisition of the network backbone network is awesome!!

Before the end of the meeting, Henry announced Cisco's plan to acquire the network backbone, and when everyone heard it, they all raised their hands and praised it, but only Ford Brooke smiled bitterly: Isn't Cisco forcing AOL to death by doing this? Others don't know the details of Henry, can he not know? Nicholas Group and Isearch are all companies under his name......

Now that he is going to join forces with Cisco to besiege AOL, Ford Brooke almost wants to die!

Nima, don't bring such a bully!

Ford Brooke rushed back to Sequoia Capital and immediately reported the news to the board, as well as Steve Case.

However, AOL has small arms and legs, and it is very helpless for Cisco to acquire the network backbone. They are left with nothing to do, hoping that Sequoia Capital can snipe at them. But sniping is completely contrary to Sequoia Capital's development strategy, they are venture capital companies, not technology companies, sniping at Cisco, and then buying a network backbone, is simply thankless! Moreover, Sequoia Capital does not have so much money.

Don't look at Sequoia Capital, but it has invested in many companies, and it may not have a lot of funds in hand, unless it sells shares or borrows, otherwise there is no money to buy the network backbone!

"On January 10, 1989, Cisco formally submitted an acquisition request to UU!!

As soon as this remark was released, the whole United States was shocked again! (Everyone collect and vote, please support during the new book...... )