Silicon Valley
Chapter 31 Dell goes public
Henry has high hopes for Isearch. He wants to keep up with Google, and he has to come up with all kinds of black technologies like it. It is super awesome and jaw-dropping! ! !
In order to enhance the competitiveness of the global online, it is essential to get a search box out.
Now many companies have followed suit and built portal websites with Qiu Online, because they found that such websites have a lot of traffic. And the large traffic means that it will be favored by more advertisers, so that you can make money. Although Global Online has strong advantages, it has also been divided into a large part of the traffic!
For example, AOL has also begun to do portals!
Because of the sluggish development of AOL, Steve Case had to rethink and reposition AOL. By studying the development model of global online, Steve Case believes that the portal network will be a major trend of the Internet in the future, so he resolutely transforms the US financial network. After some revisions, the AOL portal was established, and AFC is just one of its sub-sites!
Not only did AOL do this, but there were at least four or five websites that Henry knew.
But now only Global Online and AOL are doing the best. Global online roughly occupies 76.5% of the market share, AOL occupies 15% of the market share, and the remaining 8.5% of the market share is divided by other portals!
In order to prevent sites like America Online from taking the food, Henry decided to use his trump card as soon as possible to make them return home by defeat, and even embezzle them!
The artifact of "search box", it's time to appear!
I search, you can find out!
The slogan "I can find out by searching", Henry made this slogan the most classic and familiar sentence on the Internet!
Henry wants to make Isearch and Global Online go hand in hand, and both become Internet giants! ! !
In the previous life, Yahoo declined because it lost to Google in search. Portal alone has no core competitiveness. If you can do it, others can do it too. But now that Henry is here, Global Online can not only achieve close cooperation with Isearch, but also develop more functions that can make people sticky, such as Twitter. Global online with Twitter, you can have an invincible position!
Henry is a simple understanding of the affairs of other companies, and he is now devoting himself to the development of search company wholeheartedly!
However, the major event of Dell's listing, Henry should focus on it anyway.
On July 30, Henry and Michael Dell rushed to Nasdaq. We talked for a long time that day, mainly about the development route of Dell after its listing. Henry agrees with Michael Dell's intention to conduct a global layout. However, Michael Dell also revealed that he is going to enter the server, which makes Henry a pain in the ass. Isn't this going to grab the cake with Noah's Ark?
Noah's Ark is not a listed company and does not need to explain anything to the outside world, including the company's financial situation or shareholder membership. Naturally, Michael Dell didn't know that Henry was actually the man behind Noah's Ark!
In the past life, Dell was relatively successful in making servers.
Henry was helpless and said to Michael Dell, "Michael, I'm actually a major shareholder of Noah's Ark! If Dell wants to do a server, I think it's better to take a stake in Noah's Ark. Only cooperation between the two parties can produce the greatest value!"
Michael Dell was very surprised, how could Henry be able to intervene in any place related to the Internet. Michael Dell could only express deep admiration. Dell thought about Henry's suggestion and finally agreed. Combining two benefits, Noah's Ark has now developed application software servers, database servers, etc. in addition to web servers, and has become the overlord in the server industry.
Although IBM has also started to make servers, it is still one step behind Noah's Ark for the time being. However, IBM has a solid foundation, and it may not be impossible to catch up. And if Dell is going to be a server, it must start from scratch and want to compete with Noah's Ark. It doesn't take a few years, that's a delusion! Now it is the best to be a shareholder in Noah's Ark.
However, although Noah's Ark has not been listed, people in the industry are extremely optimistic, and investors are also very sought after. According to the evaluation of relevant professional evaluation agencies, the total market value of Noah's Ark is conservatively estimated at 1 billion US dollars!
It is impossible for Dell to spend money to buy shares in Noah's Ark. The only possible way is to exchange shares. Henry first reached an intention to exchange shares with Michael Dell, and the specific situation will be discussed after Dell is listed.
On August 1st, Dell went public!
Dell's development speed is obvious to all. In three or four years, it has created fabulous sales performance, with a sales scale of hundreds of millions of dollars! In the prospectus, Dell plans to establish branches around the world and expand its scale. Then there are a bunch of slogans and development strategies that touch the excitement of investors, such as building a huge processing plant. , insisting on direct sales, reducing the profits of middlemen, adhering to the customer-oriented market strategy, and shouting to go "diversified" hardware development, anyway, all kinds of bragging, but these have undoubtedly added a lot to Dell. Fraction!
In the prospectus, Dell's shareholder members are actually the current Internet giant Nicholas Group, and this is the icing on the cake for Dell. It's hard to think about it!
After the listing, Dell's stock price soared, shocking the Nasdaq!
The listing, Dell issued 10 million shares, accounting for 20% of the total share capital, the issue price is four dollars a share. By the end of the day, Dell's stock price had risen to $24 a share, a sixfold increase! Dell's market cap hits $1.2 billion! In the following days, although the rise slowed down, it still rose slowly!
A week later, Dell's total market value reached $1.5 billion. Henry brought Noah's Ark CEO Bob Gallagher, Nicholas Group CEO Jerry Hurt and Cisco's CEO John Chambers to Dell to discuss with Michael Dell the issue of Noah's Ark and Dell's share exchange.
When negotiating, there are many people. Under the pressure of the three CEOs, Michael Dell will definitely make more concessions. If Henry talked to him alone, he would be a little weaker after all.
Formal negotiations begin.
Henry didn't say much after that, except for announcing the intention of the two sides to cooperate at the beginning. There are very good men, just sit and watch fishing when you are the boss!
Michael Dell is only 23 years old now, so young, how can he compete with a veteran and sophisticated negotiator like John Chambers?
Henry drank coffee in a relaxed manner and smiled at the situation.
At this moment, the negotiating table is already arguing, how intense!
Although Michael Dell is not an ordinary person, but his opponent is too strong and at a disadvantage!
"Although Noah's Ark is not listed, its performance and reputation in the industry are far stronger than the current Dell! What's more, among computer companies, Dell is at most medium-to-upper-scale, and there are many more. The company is far stronger than Dell, such as IBM, Apple, Hewlett-Packard, Compaq, etc. Among the server companies, Noah's Ark is the overlord! And with the deployment of Noah's Ark branches across the United States, server hosting performance is increasing day by day , there will be a steady stream of money pouring into Noah's Ark!" exclaimed Bob Gallagher.
"That's right! Since the speed of the US Science Foundation network has been accelerated, the Internet has developed extremely rapidly, and the demand for servers has also increased. The market value of Noah's Ark should soar!" Gilly Hurt said.
John Chambers: "Noah's Ark has established an authority in the server field and has a lot of patents and technologies. Noah's Ark is one step ahead, even IBM is not its opponent. Generally speaking, some companies with great potential , If there is no shortage of money, basically it will not raise financing, let alone give up shares! And Noah's Ark is exactly such a company, and it is not short of money at all!!! Now it is extremely rare for Dell to invest in Noah's Ark. If it weren't for Mr. Williams' connection, Noah's Ark would not have chosen to cooperate with Dell at all. We will have more and better choices, such as HP, Apple, Compaq, etc... like IBM Big Blue has sent people over to buy shares, but we all disagree! Therefore, if Dell wants to buy shares in Noah's Ark, it must make more concessions!!!"
Michael Dell's face was very ugly when everyone said that he retorted: "Dell is developing very fast. We have sold hundreds of millions in a few years, creating a sales myth. The future development prospects are excellent..."
John Chambers interrupted decisively: "Excuse me, what is the core technology of your Dell company? Don't tell us, your core technology is to assemble computers. Even middle school students who have studied computers in their teens will..."
Michael Dell's face immediately turned red. At the beginning of Dell's development, the core technology of wool yarn was to sell assembled computers!
Dell is taking the marketing route!
But John Chambers asked not about marketing, but about technology. That stumped Michael Dell!
Then, despite Michael Dell's eloquent exposition of the way he runs his company, in the high-tech innovation industry, technology is fundamental. Grab this, and Michael Dyer is a mess. Michael Dell himself knew this, so after Dell went public, it vigorously developed hardware and even proposed the idea of developing servers.
Marketing is the king, and technology is the supplement, which is the foundation of Dell's success in the future!
Marketing alone, without technology, is equivalent to having no foundation, and will collapse sooner or later! Can an assembled computer sell for a lifetime? That is to say, the general public is not familiar with computers these days. You ask someone who knows computers to buy a computer. Others will buy the components and assemble them. Anything like CPU, hard disk, power supply, etc., can be assembled by themselves. What do you want Dell to do? !
"In my opinion, it is most appropriate for Dell to exchange 30% of Noah's Ark for 15% of Noah's Ark." John Chambers said lightly.
"What?! This is impossible!!!" When Michael Dell heard John Chambers's stock exchange method, he was excited and shouted!
Michael Dell was a little annoyed by being forced, and at this time, it was finally Henry's turn to go out.
"Michael, don't get excited. 30% of Dell shares for 15% of Noah's Ark shares is a bit unreasonable. Let's say 30% of Dell shares for 20% of Noah's Ark shares. After all, Noah's Ark is a leader in servers, and Dell can take a stake. It is indeed a huge opportunity, and it is normal to exchange shares at a premium! Besides, after Dell becomes a shareholder in Noah's Ark, it will play an incomparable role in Dell's future hardware development! As the saying goes, stand tall and see far. Dell If the company can stand on the shoulders of Noah's Ark, the server giant, the future will be infinite!!!"
"I need to think about it!" Michael Dell said after a moment of silence. (Vote, vote, vote...)
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