Silicon Valley

Chapter 16 West Germany and Netscape went public

On April 10, 1987, after months of preparation and roadshows, West German Publishing House finally went public.

Until then, Henry and Edward Joo guessed how much the stock price would go up this time around.

Edward Joe believes that the market value of an average medium publishing house will reach 80 to 90 million US dollars, but the West German publishing house will definitely exceed 100 million.

Henry smiled, and he didn't know what the final market value of West German Press was.

He came to Wall Street with Edward Joe and kept an eye on the daily limit.

Although West German Publishing House is only a medium-sized publishing company in the United States, its performance is good. Coupled with Henry's shareholding, it has won the favor of investors. This price shocked Edward Joe, which surprised Henry, and it seemed that his fame did play a big role.

West German Press issued a total of 2 million shares in this IPO (initial public offering), which is almost 20% of the shares. After today, it means that the market value of West German Press has risen to 250 million US dollars, which is 150 million US dollars more than the market value of Edward Joe's guess. By the next day, the stock price moved slightly, but not much.

The whole West German publishing house is in a state of excitement!

In the original IPO, Henry's shares had to be diluted, and then Henry took advantage of the listing of West German Press to cash out some shares, and finally only 23.5% was left. But Henry had an extra $12 million in his hands. In the end, it was still playing finance to make money, but Henry didn’t dare to invest in stocks casually. It’s impossible to say stocks, and under the influence of Henry’s butterfly, it’s hard to guarantee that it won’t change. For example, the Internet bubble in 2000 must be ahead of schedule.

But there are some things, no matter how good Henry is, but I'm afraid he can't change it. For example, the disintegration of the Soviet Union or something. If Henry crosses over and the Soviet Union does not disintegrate, even Henry himself has to wonder if he is too awesome!

Henry cashed out 12 million US dollars, so he didn't have to worry about funds for the time being.

By April this year, the number of Internet users in the United States had reached 100,000. There was an Internet company that performed very well, and even Henry couldn't help being a little shocked when he heard its name.

This company is called "AOL". This name is famous. In the early days of the Internet, it existed on a par with Yahoo. Later, it also merged with Warner Films, with a market value of more than 300 billion US dollars. Henry did not dare to underestimate this company, and immediately ordered his staff to inquire about this company.

The next day, Henry got the AOL materials.

AOL, formerly known as Quantum Computer, was founded by Steve Case in 1985, at which time they had begun to provide online information services to computer users. This company is no slower than Nicholas Bookstore, but its development speed is not as fast as Nicholas Bookstore!

Steve Case believes that the Internet has great potential, and it is necessary to develop online information services when the family goes bankrupt. This kind of behavior is very stupid in the eyes of others, because the Internet environment at that time was still very severe, Henry had money to burn, but Steve Case was not as rich as Henry.

It is admirable that he dares to do so.

In 1986, they built a service system, and then they ran to Apple every day without stopping. Finally, Apple was moved by his perseverance and agreed to install their online service system. Steve Case's company barely survived, and with the development of the Internet, the company's life became more and more enjoyable, and even the reputation reached Henry's ears.

Henry took this document and frowned slightly.

AOL is not terrible, but according to the data, Sequoia Capital has already started contact with AOL, which is the most headache for Henry!

Sequoia Capital's investment in AOL undoubtedly added a huge trouble to Henry.

In the past life, AOL's glorious history, Henry is more clear that the first acquisition of Netscape Netscape, the second acquisition of ICQ, the third acquisition of Warner Films. If such a powerful company gets investment from Sequoia Capital, Henry has to take certain actions to suppress it.

Henry didn't know how Sequoia Capital and AOL talked about it. Steve Case was a talented man. Henry thought it would be best if he could use it for his own use. So, he sent people to start talking with Steve Case first. Case reached out to see if he could buy his company. Henry appointed Nicholas Bookstore CEO Gilly Hurt to discuss it in person. Geely Hurt's reputation and status in the Internet can be regarded as a giant. Let him talk, it is enough to give Steve Case's face.

Henry means that it is best to acquire a wholly-owned asset, and even if it is not good, he must get a controlling stake.

However, the day after Gilly Hurt went, he called Henry back, saying that Steve Case was firm and rejected his acquisition request.

Henry was not surprised when he received this news. Steve Case is ambitious and talented, otherwise AOL wouldn't have grown in his hands.

Not long after, Sequoia Capital executive director Ford Brook suddenly called, and Henry could hear a hint of smugness in his tone.

"Henry, hello, have you heard that you are negotiating with Steve Case to buy his company?"

"Hehe, Mr. Brooke, are you well-informed?" Henry sneered.

"Hehe, nothing, we Sequoia Capital are also optimistic about this company and are negotiating with Steve. And he told us your plan to acquire AOL!"

"Oh, is it? It seems that this guy is smart enough to tell you about this on purpose, so that he can sell it."

"Hehe, nothing. Originally, we at Sequoia Capital were not fully convinced of AOL's development prospects, but even Henry, you are interested in a company, you must be right! The board of directors has decided to invest 15 million US dollars in the United States. Online. Steve Case also agreed to our company's financing plan, and just now, we signed the contract!"

"Congratulations, you found another gold mine." Henry said indifferently, Ford Brook's words were obviously protesting.

"Hehe...where and where." Ford Brook smiled smugly.

"I'm very curious, how many shares did you take?"

"Uh..." Ford Brook smiled awkwardly and said, "25%, Steve is a tough guy, you know that, hehe..."

"Only 25%? Oh, it seems that if I hadn't sent someone over, you wouldn't have spent so much, hehe, I'm so sorry, I've caused you trouble!"

Ford Brook's face was startled, and he smiled shyly: "Hehe, nothing, nothing."

Henry hung up the phone, his face was not very good. After a long silence, he called Gilly Hurt and told him to always pay attention to the development of AOL. Afterwards, Henry began to think about his future development plans. He only had 22 million US dollars in his hands. As we all know, the Internet was very expensive in the early stage. Henry had to find a way to raise money. Now Henry holds four companies, Nicholas Bookstore, Cisco, Pixar, and Noah's Ark. Of these four companies, only Cisco has made money, but for the sake of development, there is basically no dividend. As for the other three, they are all swindles.

Henry thought about it for a long time, and finally decided to split the Netscape browser to market, and then make money. The importance of the browser is self-evident, but it is less important than others. If Henry made a billion dollars or more through the Netscape browser, he wouldn't have to worry about money at all. Then create various Internet companies that will make money in the future. If one day there is no money, then a company will be split up and listed, and continue to make money!

Listing financing is king! ! !

Henry thought about it for a long time and finally came to this conclusion!

Afterwards, Henry returned to Nicholas Bookstore and had a good afternoon with Gilly Hurt.

The next day, Nicholas Bookstore announced something big.

"The board of directors has decided that the Netscape browser will soon be split for listing and financing, and the board of directors has decided to launch an equity incentive plan. The company's employees can subscribe for the corresponding shares according to the contribution standards that the company will announce soon!"

When Gilly Hurt announced the end, the whole company cheered.

On June 1, Nicholas Bookstore officially split the Netscape browser, established a separate subsidiary, and held a press conference.

At a press conference, Geely Hurt announced plans for the Netscape browser to be listed on the Nasdaq.

As soon as the news came out, the media caused a sensation. This will be the first Internet company listed on the Internet since the rise of Inter!

Newspapers, television, radio and many other media have reported.

Sequoia Capital heard the news and hurriedly called Henry.

"Henry, I heard that the Netscape browser is going to go public?" Ford Brook asked.

"Yes, we have submitted a listing application to Nasdaq." Henry responded.

"You know, we at Sequoia Capital are very optimistic about your Netscape browser. Do you think we can subscribe for some shares before going public?" Ford asked.

"It's not impossible to subscribe for some shares. Let's exchange Apple shares." If Sequoia Capital did not invest in AOL, it would not be impossible for them to subscribe for some shares, but Henry doesn't want them to take advantage now.

Ford's tone was stagnant, and he paused before saying, "I have to discuss with the board of directors."

Sequoia still sees Apple as more valuable than Netscape Browser. Henry didn't say much, they would regret it when the Netscape browser was launched.

After a while, Geely Hurt was very busy. He had several jobs. He was both the CEO of Nicholas Bookstore and the CEO of Netscape Browser. He was also busy with road shows. He ran all over the country. After acquiring 2% of his Netscape browser shares, Henry Hurt was in pain and happy after going public, not to mention a million dollars.

In September, the Netscape browser was officially listed.

All of a sudden, the United States was shocked.

Netscape browser IPO, issued 2.5 million shares, accounting for 20% of the total share capital. As soon as the Netscape browser stock was listed, it went up like a rocket, but people were terrified. The rate of increase was no slower than that of Microsoft. The issue price was $2 per share, but after a morning, the share price soared to $18, a nine-fold increase. In the afternoon, the stock price rose unabated. At the close of the day, shares of Netscape Browser soared to $40, performing a miracle on the Nasdaq.

That night, the American media went crazy, and the global media went crazy, and they rushed to report the legend of the Netscape browser launch! ! !

Netscape's listing this time, the final market value of 500 million US dollars!

The New York Times said: "Netscape's IPO is a huge success, and Internet companies will prosper!!!"

"Washington Post" reported: "It's crazy, the investors are crazy!!!"

...

No matter whether the media praised or questioned, Netscape's stock price still rose on the second day, but the rise was not as obvious as the first day, and the stock price only rose by 2 US dollars.

The successful listing of Netscape has stimulated a large number of people, and many investors have begun to invest funds in Internet companies. Sequoia Capital is one of them. In addition to investing in AOL, they are also actively looking for new targets.

Through this listing, Nicholas Bookstore has raised more than $70 million.

Next, it's time to start making big moves. (vote……)

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