Silicon Valley

Chapter 36 Darkness Chencang

MCI, the American Microwave Communication Company, is a well-known long-distance telephone communication company in the United States.

When MCI was established in 1963, it can be said to be very popular. It completely broke the situation of AT\u0026T's monopoly in the industry, and the US telecommunications industry has since embarked on the road of competition. AT\u0026T's full name is the American Telephone and Telegraph Company. As long as you know that its predecessor was a company established by the inventor of the telephone, you know how awesome this AT\u0026T is! ! !

MCI can break the monopoly, and it has its own advantages!

In the 1980s and 1990s, MCI has always been synonymous with technological innovation in the field of communication. In this era, the banner of MCI represents advanced communication technology. Even the National Science Foundation Network (NSFNET) 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 value of tens of billions of dollars!

Cisco wants to annex MCI as soon as it goes public, which gives people a feeling of snake swallowing an elephant!

However, the possibility of annexation is not without.

Citibank, Morgan Bank and more than a dozen banks have said to the outside world that they will help Cisco to facilitate this acquisition!

Cisco headquarters, CEO's office.

Henry and John Chambers are plotting something.

In fact, Henry's announcement on the board of directors to acquire MIC is actually a smoke bomb, but Cisco's real goal is "someone else"!

Founded in 1987, UUNET is one of the earliest Tier-1-ISP companies in the United States!

Among them, ISP refers to the Internet service provider, and Tier-1 refers to the Internet that has its own fiber or satellite links throughout the country and the world, has global routing accessibility, and does not need to pay "tolls" from other providers. Serve. Tier-1-ISPs can be connected to the Internet through free peering, so as to access 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!

With such a huge potential company, it can be acquired without spending much money. Wouldn't it be a mistake to not accept UUNET?

Although NSFNET is developing rapidly, the development speed of commercial Tier-1 network should not be underestimated! You must know that US Telecom does not have a monopoly in some countries. It has more than N telecom operators. Therefore, these Tier-1-isp companies have developed rapidly, like blooming everywhere in the United States, and finally connected to form a wider coverage than NSFNET. network.

In the end, the strength of the number of people is still strong, and the status of NSFNET will eventually be replaced by the Tier-1 network, and finally become a part of the Tier-1! ! !

UUNET company is able to stand out from many Tier-1-isp, naturally by no means ordinary!

MCI company looks like a sweet pastry, but the total assets and scale are too high, Cisco swallows it, I am afraid it will be indigestion!

The reason why Henry wants to make a smoke pop is because UUNET 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! UUNET will make a profit this year. Henry wants to buy it before it makes a profit. In this way, the price can be cheap!

Otherwise, America Online and Sequoia Capital made troubles and delayed the acquisition time. Not only did UUNET achieve profitability and its value soared, but the bidding of both parties would also make Cisco lose a lot of money in vain!

Henry instructed John Chambers to conduct it in secret and negotiate with MCI on the surface, but the real negotiation is with UUNET!

For a time, the telecommunications industry is booming!

The media reports on the negotiation 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 the so-and-so 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, Morgan Bank, and Goldman Sachs Group!"

It seems that the negotiation between Cisco and MCI is in full swing, but in fact, Cisco is just messing with the mud, putting forward all kinds of unrealistic ideas and making the negotiation deadlocked! But secretly sent people to contact the real target UUNET company!

UUNET is very surprised by Cisco's visit, aren't they buying MCI? Why did they come here?

Although Lauren Marks, chairman and CEO of UUNET, has doubts in his heart, he also vaguely guessed the purpose of Cisco's coming here!

The representative of Cisco said straight to the point: "Mr. Lauren Marks, we at Cisco want to acquire UUNET and build it into the best ISP in the United States and even in the world!!! Although UUNET has only been established for two years, we at Cisco believe that , UUNET is a good company, an excellent company, a company with great potential, we Cisco are willing to do our best to help it! Mr. Max, I wonder if UUNET is willing to join the Cisco system and become one of them?!”

Seeing Cisco's promotion of UUNET, Lauren Max felt a little frightened. UUNET has only been established for two years. Because it needs to invest too much money to build the network, and there are not many users at the beginning, it has been losing money. If I didn't survive with loans, I'm afraid I would have gone bankrupt long ago! There are many ISP companies like UUNET in the United States.

Since Cisco has shown great sincerity, UUNET has no need to be arrogant. Lauren Marks responded directly: "This matter can be discussed!"

Subsequently, UUNET held a board meeting to discuss and discuss the matter!

At the end of the meeting, everyone agreed that joining the Cisco system is the most beneficial to the company's development. Of course, shareholders also get a huge share of the money.

That evening, Cisco and UUNET had a formal unannounced negotiation!

Soldiers are expensive, Cisco's acquisition of UUNET must be a blitz, and things will change later! Over time, it is difficult to guarantee that the news will not be leaked, which will lead to unnecessary troubles!

The negotiation between Cisco and UUNET was very fast, we talked once that night, and again the next day, and then we were ready to sign the contract!

Cisco is very arrogant to spend 100 million US dollars to fully acquire UUNET. This price far exceeds the current market value of UUNET, which is simply irresistible!

Cisco also guarantees that the original management of UUNET will remain unchanged within one year, and will not dismiss any employees, and promises that after three years, UUNET will launch an equity incentive plan!

The two points proposed by Cisco are very targeted, one is for shareholders, the other is for company executives and employees, both parties are very satisfied with the conditions proposed by Cisco!

After the contract was signed, Cisco ended the negotiation with MCI!

Not long after, Cisco announced: "On January 25, 1989, Cisco acquired UUNET with a total investment of 100 million US dollars! UUNET is a very potential isp company. We believe that with the help of Cisco's resources and channels, UUNET will grow by leaps and bounds!!!”

Cisco's stock price rose two dollars on the day Cisco announced the news!

After Cisco acquired UUNET, it changed its name to WorldNet, 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 and even customized value-added services.

However, WorldNet's current priority is, among other things, making a powerful dial-up software.

Through dial-up software, WordNet can push various services directly to users!

Simplicity is always what Henry insists on. Therefore, the interface of this dial-up software is very simple. In the first interface, the upper middle position is a logo of WorldNet. This logo is also very simple. It is an artistic signature of WorldNet with a hint of glitter. Below is the account and password input box. After the user dials successfully, another interface appears. The top of the interface displays the dialing status, and there are two click buttons at the conspicuous place below: the global online portal and the Nicholas shopping network.

Then there is the "More Services" button!

Although the interface is simple and simple, it will not be dazzling, and it can also highlight the two major websites and attract users' attention! ! !

In fact, for Internet rookies and veterans, the Global Online Portal and Nicholas Shopping Network are enough for them!

Because the dial-up software is simple and simple, it is also very easy to make. With the concerted cooperation of major companies under Henry's name, the dial-up software was developed within a week! There are emails, news and current affairs, financial reports, and, of course, many more features in the "More Services" section, which will be added slowly in the future.

WorldNet as an isp company, users are the key.

Good marketing and high-quality service is the magic weapon of ISP!

As for high-quality service, it can definitely be achieved with the resources of the company under Henry's name. Marketing is a tricky business.

When ISPs are robbing users, the various publicity methods are dizzying and even a little stunned. The war between ISPs is absolutely raging. Henry knows that he will have another company that he does not worry about in the future... But Henry turned around abruptly, only to find that he seems to be turning the Internet application service industry chain "equipment supplier-- Basic network operators--content collectors and producers--service providers--users "do everything", it is simply not leaving a way out for others!

Go your own way and leave others with no way to go? (The new book asks for support, please get your hands on it and vote for this book!)

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