I Am A Trilionaire - Chapter 35
MCI Company, American Microwave Communication Company, is a well-known long-distance telephone communications company in the United States.
When MCI was founded in 1963, it prospered immensely and literally broke the ATT monopoly in the industry. Since then, the U.S. telecommunications industry. has started competition. ATT’s full name is the American Telephone and Telegraph Company. As long as you know that its predecessor was the company founded by the inventor of the telephone, surely you will know how great this ATT is! ! !
MCI companies can break monopolies and have their own advantages!
In the 1980s and 1990s, MCI was always synonymous with technological innovation in the field of communication, in this era, the MCI flag represented advanced communication technology. Even the National Science Foundation Network (NSFNET) was built and operated by it! ! !
Therefore, when the news that Cisco was going to acquire MCI came out, the entire industry and the United States were shocked! ! !
The MCI is huge, with a market value of tens of billions of dollars!
Cisco wants to annex MCI immediately after going public. It was like a snake that wanted to devour a cow!
However, the possibility of annexation was not without results.
More than a dozen banks including Citibank, Morgan Bank and others have declared their deals will continue to help Cisco win this acquisition!
Cisco headquarters, CEO’s office.
Henry and John Chambers are up to something.
In fact, Henry’s announcement on the board of directors that he wanted to acquire MIC was actually a smoke bomb, but Cisco’s real goal was “someone else”!
Founded in 1987, UUNET is one of the Tier-1 Internet backbone ISP companies in the United States!
Among them, ISPs refer to Internet service providers, and Tier-1 refers to the Internet which has its own optical fiber or satellite links throughout the country and the world, has global routing capabilities, and does not need to pay “tolls” from other providers. Tier-1-ISP services can be connected to each other via free peer-to-peer interconnection, thus accessing the entire Internet!
As a Tier-1 ISP, UUNET will be the fastest growing ISP in the United States in the future, surpassing the two telecom giants MCI and Sprint!
Companies with such great potential could be acquired for a fraction of the money. If UUNET is not obtained, won’t you regret it later?
The National Science Foundation Network (NSFNET) is growing rapidly, but the speed of development of commercial Tier-1 networks cannot be underestimated! It is important to know that US Telecom is not a monopoly like some countries. It owns more than N telecom companies. Therefore, this Tier-1-isp company is growing very fast. They are growing rapidly everywhere in the United States, and they eventually link together to form a wider range than the NSFNET. Internet.
After all, there were a lot of people and great power. The NSFNET will eventually have to be replaced by the Tier-1 network, and eventually become part of Tier-1! ! !
UUNET is able to stand out from the many Tier-1-isp, of course this is unusual!
MCI company looks like a sweet cake, but the total assets and scale is too high, if Cisco swallow it, I’m afraid the sweet cake cannot be digested!
The reason Henry wanted to make smoke pop up was because UUNET had only been established for two years, and it didn’t cost much to get it, but Henry anticipated that AOL and Sequoia Capital would cause trouble! UUNET will be profitable this year, Henry will get it before UUNET gets a profit, so the price can be cheap!
If not, AOL and Sequoia Capital will create trouble and delay the timing of the acquisition. Not only was UUNET gaining in profitability and soaring value, but a bid between the two parties would also cost Cisco a lot of money for nothing!
Henry told John Chambers to proceed in secret. On the surface, he is negotiating with MCI, but the actual negotiations must be on UUNET’s side!
For a time, the telecommunications industry took off!
The media reports on the negotiations between Cisco and MCI every day, and all kinds of news come out.
“On this day, Cisco CEO John Chambers and MCI CEO Michael Priestley met at a hotel!”
“Executives from Cisco said that the requested price for MCI was too high and negotiations were deadlocked.”
“According to Citibank executives, Cisco will lend a total of US $ 5 billion to Citibank, Morgan Bank and Goldman Sachs!”
It seems that the negotiations between Cisco and MCI are in full swing, but the fact is, Cisco is purely negotiating all kinds of unrealistic ideas, putting the negotiations at a dead end! But secretly sending someone to contact the real target UUNET company!
UUNET was very surprised by Cisco’s visit. Don’t they intend to get MCI? How did they get here?
Lauren Marks, chairman and CEO of UUNET, even though he was confused, he vaguely guessed why Cisco came here!
The Cisco representative said straightforwardly: “Mr. Lauren, we from Cisco want to acquire UUNET and build it into the best ISP in the United States and the world !!! Even though UUNET has only been around for two years, we believe that Cisco UUNET is a good company, a company that very good, and a company with great potential. We from Cisco are willing to do our best to help him! Mr. Lauren, I want to know if UUNET is willing to join the Cisco system and become one of them ?! ”
Seeing that Cisco was going to promote UUNET in this way, Lauren Marks was a little scared. UUNET was only founded two years ago. Having to invest too much money to build the network, and not many users at first, still lost out. If UUNET doesn’t survive the borrowing fees, I’m afraid I will go bankrupt for a long time! There are many ISP companies like UUNET in the United States.
Now that Cisco has shown great sincerity, there is no need for UUNET to be arrogant. Lauren immediately replied: “We can talk about this!”
Furthermore, UUNET held a board meeting to discuss the issue!
At the end of the meeting, everyone agreed to join the Cisco system the most beneficial for the development of the company. Of course, shareholders can also earn large sums of money.
That night, Cisco and UUNET held a non-announcement formal negotiation!
Quickly, Cisco’s acquisition of UUNET will exactly and remarkably change after a while! Over time, it is difficult to guarantee that the news will not leak, which will cause unnecessary trouble!
The negotiations between Cisco and UUNET were very fast, they talked once that night and again the next day, and then they were ready to sign a contract!
Cisco is very generous with 100 million US dollars to buy UUNET. This price far exceeds the current market value of UUNET, which is very attractive!
Cisco also guaranteed that UUNET’s original management would remain unchanged in one year, and there would be no layoffs of employees, and promised that after three years, UUNET would launch an equity incentive plan!
Two of the points raised by Cisco are particularly relevant: one for shareholders, and the other for company executives and employees. Both parties are very satisfied with Cisco’s condition!
After the contract was signed, Cisco ended negotiations with MCI!
Soon, Cisco announced: “On January 25, 1990, Cisco acquired UUNET with 100 million US dollars! UUNET is a very promising ISP company. We believe with the help of Cisco resources and channels, UUNET will achieve rapid development !!!”
On the day of Cisco’s announcement, Cisco’s share price was up two dollars!
After Cisco acquired UUNET, it changed its name to WorldNet and reached strategic partnerships with the Nicholas Group and Isearch. In addition to providing Internet access services to users, he will also provide information services, and use Nicholas Group’s resources to provide a variety of even customized value-added services.
However, WorldNet’s top priority right now is none other than making powerful calling software.
Through dial-up software, WordNet can push various services directly to users!
Simplicity has always been Henry’s point of view. Therefore, this call software interface is very simple. On the first interface, the top center position is the WorldNet logo. This logo is also very simple, WorldNet artistic markings plus a sparkling touch. Below is an account and password input box. After the user calls successfully, another interface appears. The top of the interface displays the status of the call, and there are two click buttons in a prominent place below: Global Online Portal, Nicholas Shopping Network.
Below is the “More Services” button!
Although the interface is simple and concise, it is not charming, but it also highlights two main websites and grabs the user’s attention! ! !
In fact, for Internet novices and veterans alike, Nicholas’s global online portal and shopping network are enough for them!
Because the call software is simple and compact, easy to set up. With the joint cooperation of a large company under the name Henry, call software was developed within a week! “More Services” includes email, news and current events, financial reports, and of course more features will be added gradually in the future.
As an ISP company, WorldNet users are the key.
Good marketing and high quality service are magic weapons for ISPs to win!
As for high quality service, it can definitely be done with corporate resources under the name Henry. As for marketing, this is a brainstorming task.
When ISPs attract users, the various propaganda methods are confused, and even a little dumbfounded. The war between ISPs was truly extraordinary. Henry knows he will have another unexpected company in the future … But Henry turns around fiercely and finds that he seems to be making the equipment supplier of the Internet application service industry chain-basic Network operators-content aggregators and manufacturers-user-service providers do all they need, and Henry won’t make any way for another company!
Go your own way, not letting other companies benefit.