Chapter Thirty-Six: Darkness Chencang
MCI Corporation, i.e., Microwave Communications Corporation of America, is a well-known long-distance telephone communication company in the United States.
When MCI was founded in 1963, it was a glorious company that completely broke the monopoly of AT&T as a monopoly in the industry, and the U.S. telecommunications industry has since embarked on the road of competing with others. AT&T's full name is AT&T, and as long as you know that its predecessor is the company established by the inventor of the telephone, you will know how awesome this AT&T is!!
MCI is able to break the monopoly and has its own advantages!
**In the decade, MCI has been synonymous with technological innovation in the field of communication, and in this era, the banner of MCI company represents advanced communication technology. Even the National Science Foundation (NSF) is built and operated by it!!
Therefore, when the news of Cisco's acquisition of MCI came out, the entire industry and the United States were shocked!!
MCI is huge, with a market capitalization of tens of billions of dollars!
Cisco wants to swallow MCI as soon as it goes public, which is like a snake swallowing an elephant!
However, the possibility of annexation is not impossible.
Citibank, JPMorgan Bank and more than a dozen other banks have said that they will help Cisco to facilitate this acquisition!
Cisco Headquarters, CEO's Office.
Henry and John Chambers were plotting something.
In fact, Henry's announcement on the board of directors that he would buy MIC was actually a smokescreen, but Cisco's real goal was "someone else"!
Founded in 1987, UU is one of the early Internet backbone Tier-1-ISP companies in the United States!
Among them, ISP refers to Internet service providers, while Tier-1 refers to Internet services that have their own fiber or satellite links throughout the country and the world, have global routing capabilities, and do not need to pay "tolls" from other providers. Tier-1-ISPs can connect to each other through free peering to access the entire Internet!
As a Tier-1-ISP, UU will be the fastest growing ISP in the United States in the future, surpassing the two major telecom giants MCI and Sprint!
Such a company with huge potential, and it doesn't cost much money to get into the bag, isn't it a mistake to not collect UU?
Although the US Science Foundation (NSF) is developing rapidly, the development speed of the commercial Tier-1 network should not be underestimated! You must know that the United States telecommunications is not like some countries to engage in monopolies, it has more than N telecommunications providers, so these Tier-1-ISP companies are developing rapidly, and they are like blooming everywhere in the United States, and finally they are connected together to form a network that covers a wider range than NSF.
In the end, there is still strength in numbers, and NSF's position will eventually be replaced by the Tier-1 network, and finally become a part of Tier-1!!
UU is able to stand out from many Tier-1-ISPs, which is by no means ordinary!
MCI seems to be a sweet tooth, but the total assets and scale are too high, Cisco swallows it, I'm afraid it will be indigestion!
And the reason why Henry wants to make a smoke pop out is because UU has only been established for two years, and it really doesn't cost much to acquire it, but Henry is afraid that AOL and Sequoia Capital will make trouble from it! UU will be profitable this year, and Henry will buy it before it is profitable, so that the price can be cheap!
Otherwise, AOL and Sequoia Capital made trouble and delayed the acquisition, not only did UU achieve profitability and soar in value, but the bidding between the two sides would also make Cisco lose a lot of money in vain!
Henry instructed John Chambers to do it in secret, ostensibly to negotiate with the MCI, but the real negotiations were on UU's side!
For a time, the telecommunications industry was surging!
The media reports on the negotiations between Cisco and MCI every day, and there are all kinds of news.
"One day, Cisco CEO John Chambers and MCI CEO Michael Priestley met at a hotel!"
A Cisco executive said that MCI's asking price was too high, and the negotiations were deadlocked. ”
"According to Citibank executives, Cisco will lend a total of $5 billion to Citibank, JPMorgan Bank, and Goldman Sachs Group!"
It seems that the negotiations between Cisco and MCI are in full swing, but in fact, Cisco is purely trying to make the negotiations deadlocked!
UU was surprised by Cisco's visit, weren't they buying MCI, how did they get here?
Lauren Marks, chairman and CEO of UU, had a vague guess about Cisco's purpose for coming here, despite his doubts!
The representative of Cisco said straight to the point: "Mr. Lauren Marks, we Cisco want to acquire UU company, and then build it into the best ISP in the United States and even the world!! although UU has only been established for two years, we Cisco believe that UU company is a good company, an excellent company, a company with great potential, and we Cisco are willing to do our best to help it! Mr. Marks, I wonder if UU company is willing to join the Cisco system and become a member of it?!"
Seeing Cisco raise UU in this way, Lauren Marks felt a little honestly afraid, UU was only two years old, because it needed to invest too much money to lay the network, and there were not many users at the beginning, so it has been losing money, UU would have gone bankrupt if it hadn't survived with loans! There are many ISP companies like UU in the United States.
Since Cisco has shown great sincerity, there is no need for UU to be arrogant, and Lauren Marks responded directly: "This matter can be discussed!"
Subsequently, UU held a board meeting to discuss and discuss this matter!
At the end of the meeting, everyone agreed that joining the Cisco system is the most beneficial for the company's development. Of course, shareholders also get a huge share of the money.
That evening, Cisco and UU had a formal unannounced negotiation!
Cisco's acquisition of UU must be a blitzkrieg, and if it is too late, it will change! After a long time, it is difficult to guarantee that the news will not be leaked, which will cause unnecessary trouble!
Cisco's negotiations with UU were fast, one night, another the next day, and then the contract was ready to be signed!
Cisco is very generous to spend 100 million US dollars to acquire UU, which is far more than the current market value of UU, which is simply irresistible!
Cisco also guaranteed that the original management of UU Company would remain unchanged within one year, and would not dismiss any employees, and promised that after three years, UU Company would launch an equity incentive plan!
The two points raised by Cisco are very pertinent, one is for shareholders, and the other is for the company's executives and employees, no matter which party is very satisfied with the conditions proposed by Cisco!
After the contract was signed, Cisco ended the negotiations with MCI!
Not long after, Cisco announced: "On January 25, 1989, Cisco acquired UU for $100 million! UU is a very promising ISP company, and we believe that with the help of Cisco's resources and channels, UU will develop by leaps and bounds!!
On the day Cisco announced the news, Cisco's stock price rose by two dollars!
After the acquisition of UU, Cisco changed its name to World, and reached a strategic partnership with Nicholas Group and Isearch, in addition to providing users with Internet access services, it will also provide information services, and use the resources of Nicholas Group to provide users with a variety of value-added services.
However, World's current first priority, if nothing else, is to make a powerful dialing software.
Through dialing software, Word is able to push various services directly to users!
Simplicity has always been Henry's view. Therefore, the interface of this dialing software is very simple. In the first interface,The upper middle position is a World Logo,This Logo is also very simple,It's the artistic signature of the World plus a hint of glitter,Below is the account number and password input box。 After the user successfully dials up, another interface will appear, with the dialing status displayed at the top of the interface, and two clicked buttons in the prominent place below: Global Online Portal, Nicholas Shopping Network.
And then there's the "More Services" button!
The interface is simple and simple, but it doesn't dazzle and highlights both websites to grab the user's attention!!
In fact, for Internet rookies and veterans, the global online portal and Nicholas Shopping Network are enough for them!
Because of its simplicity and simplicity, the dial-up software was also easy to make, and with the concerted efforts of Henry's major companies, the dial-up software was developed within a week! The "More Services" section includes email, news and current affairs, financial reports, and of course, many more features that will be added in the future.
As an ISP, users are key.
Good marketing and high-quality service are the key to success for ISPs!
As for the quality service, it can definitely be done with the resources of Henry's company. And marketing, on the other hand, is a more mind-wrenching thing.
When ISPs are grabbing users, all kinds of propaganda methods are dizzying, and even a little jaw-dropping. The war between ISPs is absolutely monstrous, and Henry knows that he will have another uneasy company in the future...... But when Henry turned around, he found that he seemed to be doing everything in the Internet application service industry chain "equipment suppliers - basic network operators - content collectors and producers - business providers - users", which simply did not leave a way for others to survive!
Go your own way, so that others have no way out?(The new book asks for support, please move your hands and vote for this book!)
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