Chapter 105: Blackstone Company
Midtown Manhattan, the most expensive business district in New York, is home to many world-famous financial companies. However, this is not all the world of large companies, and many small companies with unique skills can also have a piece of the world here.
In an office building in Rockefeller Center, a small start-up company has its office here. The company was founded last year with a registered capital of only $400,000 and only four bosses and employees. Now, a year later, the total number of employees in the company has doubled to ten. Why would a company with only 10 members dare to set its office address on Wall Street, because the company's founders are not ordinary people.
The company's two founders, both from Lehman Brothers, one of the five largest investment banks, are named Blackstone, which is derived from the Greek meaning of the founder's name Peterson, and the German meaning of the founder's name, Schwartzman, which means black. Peterson and Schwartzman were not unknown on Wall Street, having served as assistant for international economic affairs in the Nixon administration, secretary of commerce, chairman of the National Productivity Council, and chairman of the U.S.-Soviet Business Council before joining Lehman Brothers. He has extensive contacts in politics and business in the United States, and is also a partner of Lehman Brothers. As for Schwartzman, he was Peterson's apprentice at Lehman Brothers, and when he was at Lehman Brothers, Schwarzman became a partner of Lehman Brothers at the age of 31 under Peterson's appreciation and support, which is simply a miracle on Wall Street.
Peterson and Schwartzman worked very happily at Lehman Brothers, one of them was well-connected in both political and business circles, and the other was very proficient in equity investment. So after Lehman Brothers proved their ability and won a good reputation in the industry, the two left Lehman Brothers to set up their own business. With $400,000 and their respective assistants, they set up this small investment consulting firm, whose main business is to help commercial companies provide professional investment advice. However, so far, the company's development has not been smooth, and it is still in the process of exploring its operations.
During this time, the business battle between Yota Communications and AT&T excited the entire Wall Street. Even the two partners of Blackstone began to pay attention to this fierce business battle. The two companies were evenly matched from the beginning, until KKR turned the whole situation around halfway, and this series of dazzling business exchanges made the very quiet telecom industry hot. However, just after KKR announced the sale of its stake to AT&T, Wall Street analysts and bankers widely believed that Yota's defeat was a foregone conclusion, and AT&T now has 27.95% of Motorola's outstanding shares, and is just one step away from a general tender offer. Since Yota Communications is a private company, its finances are not public, but analysts generally believe that the only way out for Yota Communications to go public and bring in new strategic investors is currently the only way out. If Yota Communications goes public to raise funds, then AT&T, which has Goldman Sachs and Morgan Stanley behind it, will definitely not let go of this opportunity to eat unicorns in the field of mobile communications. Although Eva may lose control of the company, she will still make a lot of money, and no one will be a real loser in this business battle.
To everyone's surprise, Eva, the female head of Yota Communications, did not choose the clear path given by analysts. Instead, he visited powerful investment firms everywhere, hoping to find new allies without giving up their shares. All analysts agree that Eva's stubbornness will completely ruin Yota Communications, a top-performing stock. But Eva's stubbornness made the two Blackstone partners feel compassion.
Peterson and Schwartzman's Blackstone Company didn't have much business right now, so they used the Yota Newsletter case as their research object to pass the time, along with training their inexperienced employees. Schwartzman found all the information about Yota Communications since it opened, and worked with Peterson to research the stubborn company. After a detailed analysis of the company's financials, technology, and market outlook, Peterson and Schwartzman quickly discovered the value of Yota's communications.
It's not so much that Yota Communications is inseparable from AT&T, but that AT&T is inseparable from Yota Communications. Yota Communications is truly the leader in the mobile communications market, their first generation of mobile communication technology has swept the United States, and the second generation of mobile communication technology has been successfully implemented in Japan. According to feedback from the Japanese market, Yota's second-generation mobile technology not only has better call quality, but can also transmit multiple forms of data, which is simply disruptive. Thanks to this data transmission technology, operators in the Japanese market can provide users with real-time information such as weather information, text news, and financial information. This is definitely not comparable to AT&T's current service.
"Peterson, do you think Yota Communications is still salvageable?" Schwartzman asked his mentor for advice.
"I don't think this matter is really irreparable, I just think that the female CEO of Yota seems to be trapped in the cage of capital, and sometimes the problem of capital is not necessarily solved only by capital." Peterson said meaningfully.
"Peterson, I think we should take the initiative to reach out to Yota Communications, if we can take over Yota Communications' business consulting business and help them out of trouble, it will be so helpful for our Blackstone development, we will definitely make a name for ourselves on Wall Street!" Schwartzman said excitedly.
"Boy, I know you can see the essence of this, Yota Communications can do without AT&T, but AT&T can't do without Yota Communications. But I just wonder why this company doesn't accept AT&T's investment and insists on using its own funds to develop? Peterson asked rhetorically.
"I don't know, but I don't think it matters?" Schwartzman was about to continue convincing Peterson when there was a knock on his office door. After getting Peterson's permission, the door was pushed open, and Peterson's personal assistant placed a document on the table and said, "Boss, I've consulted with a lawyer, most of Cisco's patents are in competition with Yota Communications, and Cisco's patent applications are generally later than Yota's. The lawyer said that if Yota initiated a patent lawsuit, Cisco might not be able to pass the test! ”
"Schwartzman, let's see if we can talk to the beautiful CEO of Yota, we have what she needs now." Peterson said with a smile.