Silicon Valley

Chapter 26 The Sequoia Capital Conspiracy

Henry browsed the US Financial Network and found that the website mainly provides various financial news, and profoundly exposes the economic problems of the United States. There is even a column comment area for senior economists. The content looks very high!

Steve Case is smart enough to come up with an economist column, and he knows how to capitalize on celebrity! ! !

After Henry watched it, he had to admire one or two.

However, Steve Case would be naive if he thinks he can beat Henry with this!

The US Financial Network has indeed attracted a lot of people at present. One is because it is fresh, and the other is because many of the main people who go online are indeed business people. But Americans pay attention to the economy, usually by reading newspapers and watching TV. They do not have the habit of watching economic news online, so the number of people is not exaggerated! The main purpose of people who go online now is communication, business communication, technical communication and so on.

They exchange information, mostly by email!

And the global online email has been recognized! When people become accustomed to using global online emails, even if you ask him to change an email, he is too troublesome to change it. Unless there is a disruptive technological innovation in this email, user habits will be hard to change!

And with the increasing number of netizens and the decline of their knowledge level, the purpose of people surfing the Internet is more to pursue entertainment! ! !

In fact, communication is also a form of entertainment!

ICQ, QQ, MSN and other instant messaging software that will be active on the Internet in the future will be good communication platforms. After the popularity of Facebook community exchange sites, communication has almost become an indispensable part of people's entertainment in the Internet!

At this stage, AOL has indeed made a great move. But whether the next move can continue to move well, it is difficult to predict!

Shortly thereafter, AOL lost two lawsuits one after another!

In the first lawsuit, the judge sentenced AOL to infringe Netscape's graphic browser patent, compensated $2 million, and required AOL to make certain modifications to the browser before it could be put into operation. At the same time, it is necessary for Netscape to authorize some of the patents of the AL browser, otherwise, the judge will sentence it to the crime of monopoly! Of course, AOL has to pay Netscape a certain amount of patent fees every year!

The second lawsuit, the content is similar, AOL infringes the global online patent graphic email patent, compensation of 1 million US dollars. However, Global Online must also authorize some patents, otherwise it will form a monopoly.

Monopoly is a serious problem in the United States.

In the previous life, Apple was about to go bankrupt, and the Microsoft system had no rivals. Seeing that the axe of monopoly was about to fall, Microsoft extended a helping hand and pulled Apple!

In the previous life, AMD was almost finished, Intel threw a piece of meat for it to eat, and AMD survived!

Henry also knew the seriousness of the problem, and he expressed helplessness, but there was nothing he could do!

But how can the patent fee not go to hell?

AOL shouted that the patent fee is too expensive. Henry said that the patent fee is very expensive. Now there are only two GUI browsers on the market, which means that the two browsers monopolize the market. How can it not be more expensive? Besides, the expensive royalties are not for everyone's sake. You see, the expensive royalties make the entry barrier to the browser industry higher, and there are not too many people to join the competition. The ultimate beneficiary is not your United States. Online...and Netscape!

America Online is depressing to eat at a loss, but it has to be eaten!

As the lawsuit settled, Henry's conflict with AOL also died down.

AOL has seldom clamored for it, and now it's acting like a tortoise, or maybe it's trying hard!

With what Henry knew about Steve Case, he would rather believe the latter!

In Scully's hands, Apple has signed two bad contracts in a row. The first one is to agree to Microsoft's use of some Apple system interface patents, and the second one is to sign an agreement with AOL to install the AL browser! These two shocks are much stronger than the previous life, and they play the role of one plus one greater than two!

Apple has begun to walk on the brink of bankruptcy!

Of course, Apple is by no means going bankrupt in a short period of time!

Maybe one or two years, maybe three or four years, maybe longer. In the previous life, Apple fell into bankruptcy in 1996, losing hundreds of millions of dollars in a single quarter! No way, that year Microsoft broke out, and Apple suffered a disaster! Now, Apple is just hurting its vitality, not the root!

The wind was blowing outside, it was pouring rain, and the weather was terrible!

After Henry reviewed the documents, he fell directly on the desk and fell asleep. During this time, Henry was also very busy, and AOL blocked him, and Sequoia Capital also started small moves!

Sequoia Capital helped AOL fight the Nicholas Group, and Henry didn't bother him, but it actually caused trouble in Cisco!

With the development of time, the network speed of the US Science Foundation will be completed ahead of schedule this year. At that time, the cost of accessing the Internet will be greatly reduced, and the network speed will also be greatly improved! Cisco's performance during this period has increased explosively every month, and it has established a European branch in France and an Asian branch in Hong Kong.

Originally, the establishment of an Asian branch in Japan was most beneficial to the company's development, but Henry was not happy with Japan. If Mao wanted to help them develop their networks, they had to go to Hong Kong first. Hong Kong's geographical location and economy are not inferior to Japan's, but the place is a little smaller, but it has a wide range of radiation responses, which is also beneficial to Cisco's business in Asia!

Sequoia Capital disagreed with Henry on this point, and they believed that it would be best for the company to establish a branch in Japan!

Henry firmly disagreed.

Sequoia Capital was very angry, and began to win over the Bosaks and the company's management to create pressure on Henry!

But the Bosacks supported Henry, and John Chambers, who was also promoted by Henry, has now taken the position of CEO of the company, while Bosack has changed to be the chief technology officer, and Lerner will continue to serve as the company's financial director. The entire top management of the company is of one mind with Henry, and Sequoia Capital's words are useless.

I don't know what it was thinking, but it actually started to urge the company to go public!

Henry originally had a plan to list Cisco. Only by listing and financing can Cisco truly become rich, become a local tyrant, and then wave checks everywhere, become a king of acquisitions, and become a giant!

However, the time for listing and financing has not yet come. Henry feels that it is undoubtedly the best time to choose to go public after the speed-up of the US Science Foundation website is completed!

Cisco is now developing not just routers, but switches and modems.

Modem dial-up needs to be used. In the beginning, there is no need to dial-up to access the Internet, but since the US Science Foundation Network is in the hands of American capitalists, it has changed in quality and gradually became commercialized. It costs money to access the Internet, and you have to dial up to get online. Modems also came into being, and Cisco was one of the first companies to make this thing!

Now there are more and more companies producing network equipment, but Cisco has always dealt with the lead!

However, there are still many companies that are chasing after them, especially the company is the most prominent!

While Henry's battle with AOL was in full swing, Sequoia continued to invest $50 million in the company. Sequoia Capital was originally an angel investor. It has already occupied a lot of shares in the first round of investment. This time it invested again. It is obviously very optimistic, and even wants to make it the best network equipment provider in the United States and even the world. !

And this, in every sense, is hurting Cisco!

Hearing this news, Henry secretly analyzed that Sequoia Capital is eager to get Cisco listed. Does it want to cash out, and then help the company develop with determination? (Less updates today, a little more tomorrow... Please support as always!)

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