Silicon Valley
Chapter 35 Secondary Investment
When Netscape went public, because the controlling party was Nicholas Group, which was not a listed company, it did not disclose its shareholder members to the outside world! Therefore, the outside world did not know that Henry was the boss behind Netscape!
But this time, it will not work. Henry is a major shareholder of Cisco. Before the company goes public, it must be clearly stated in the prospectus.
At this moment, Henry became famous!
After Apple Jobs, Microsoft Bill Gates, Dell's Michael Dell, and Oracle CEO Ellison, Henry is the most awesome young billionaire who didn't even go to college! ! !
At this moment, the media "rioted", and sent countless elite soldiers to besiege Henry!
At this moment, Henry is really depressed, can he still live a quiet life?
"Reject, reject all interviews!!!!"
Henry hid in the office and shouted angrily! Miss Helen thoughtfully made Henry a cup of coffee. Henry had become accustomed to her craftsmanship and the taste of coffee, and he always felt unaccustomed to drinking coffee made by others.
Today's Helen Wheeler is not the same as before, but more and more slim, and more and more female white-collar temperament!
She's tall and looks sexy in a white shirt and black leggings!
"Chairman, the media reporters are blocked at the door of the company, and they can't drive away..." Helen said helplessly.
Henry is now at Cisco's headquarters, and it has been a week since Cisco went public. The stock price has exceeded $70, and Cisco's market value has exceeded seven billion! Today, Cisco will hold a major board meeting. Therefore, Henry had to come to the company at the risk of being harassed by reporters!
The money raised after Cisco goes public will generally be reinvested, because the money is the money after the shareholders' shares are sold, so it is the shareholders' money, not the company's. Usually, a second investment is made, but Henry does not know whether Sequoia Capital will follow. However, at this board meeting, there were representatives of many large companies, including Citibank, Morgan Bank, KPCB Venture Capital Fund, IDG Technology Venture Capital Fund, Goldman Sachs Group and more than a dozen banks or venture capital funds!
These banks and venture capital funds are very optimistic about Cisco, and they all bought more or less Cisco shares after Cisco went public. They themselves have the right to attend this meeting, and at the same time, they are obviously very interested in Cisco's second investment, otherwise they will not come.
Sequoia Capital representative Ford Brook then also attended the meeting!
The meeting was moderated by CEO John Chambers, who gave a speech about Cisco's post-IPO and future ambitions, and the real drama begins!
"This board meeting will make a second investment in Cisco, and all willing shareholder representatives can participate!" John Chambers said, "First of all, according to Cisco's current stock price, the total market value is as high as seven billion US dollars. Mr. Henry Williams will reinvest 90% of his stock market capital, or $850 million. As for how much you want to invest, we can discuss together!"
Henry originally held 67.5% of Cisco's shares, Cisco issued 20% of the shares, of which 13.5% of the shares were used by Henry, and 945 million US dollars were obtained. Henry invested another 850 million US dollars, leaving more than 90 million US dollars. !
At this time, Sequoia Capital Ford Brook said: "Sequoia Capital will not make secondary investments!"
Sequoia Capital has its own Xiao Jiujiu. They believe that Cisco's market value has reached its peak and there is little room for growth. If they invest again, the investment income is not cost-effective. Instead of spending so much money to invest in Cisco, it is better to invest, you can get more shares than Cisco, and once listed, Sequoia Capital can make a lot of money!
However, no one could have imagined that Cisco's market value in the future would be as high as five or six hundred billion US dollars, and Sequoia Capital would definitely regret it! ! !
This time, Sequoia Capital will not make a secondary investment, and its shares will definitely be heavily diluted!
Naturally, the Bosac couple also made a second investment. They are one of the founders of the company, and most hope that the company will develop better and better!
The meeting went on for a long time, from nine o'clock in the morning to three o'clock in the afternoon.
It is impossible for Henry to agree with other venture capital institutions to invest heavily in Cisco and share the shares, so a degree must be grasped. Therefore, coordinating the major investors and rationally allocating shares has become one of the key tasks of this meeting!
After the meeting, Henry's shareholding reached about 63.5%, the Posac couple 10.5%, the company's management 4.5%, Citibank and Morgan Bank both 2.5%, Goldman Sachs, IDG, KPCB each accounted for 2%, while Red Shan Capital's shares were diluted to 3.8%, and the remaining shares were held by many other small shareholders! Cisco got $1.32 billion through secondary investment!
Ask Cisco how to deal with so much money? It's very simple, just three words, "acquisition and go"!
Cisco will not repay the bank money for the time being, and Citibank and Morgan Bank will not collect debts at all. The longer Cisco delays, the better the loan interest will be!
A bank is a monster institution, the richer you are, the more it likes to lend you money! If you have no money, it will not lend you money!
In order to expand Cisco's scale performance, it is necessary to recommend Cisco products before users connect to the Internet!
If Cisco also provides Internet access services, then when users access the Internet, Cisco can immediately recommend their own products, which is a perfect match!
At the same time, in order to combat AOL's Internet access services, Cisco's involvement in Internet access services is of great strategic significance!
Unlike AOL's petite family, it also rents other people's network channels!
If you want to do it, do it with a big vote! ! !
The acquisition of the network backbone network is awesome! ! !
Henry announced Cisco's plans to acquire the backbone network before the meeting was over. Everyone raised their hands and praised him, but Ford Brook smiled bitterly: Isn't Cisco killing AOL by doing this? Others don't know Henry's details, can he not know? Nicholas Group, Isearch company are all companies under his name...
Now, together with Cisco to besiege AOL, Ford Brook has the heart to die!
Nima, don't bring such bullying!
Ford Brook rushed back to Sequoia Capital in a daze, and immediately reported the news to the board of directors, and also told Steve Case to know.
But AOL's small arms and legs expressed helplessness for Cisco's acquisition of the network backbone. They are left with nothing left, hoping that Sequoia Capital can snipe them. But the sniping is completely contrary to the development strategy of Sequoia Capital. They are a venture capital company, not a technology company, sniping at Cisco, and then acquiring a network backbone network is simply thankless! Also, Sequoia doesn't have that much money.
Don't look at Sequoia Capital, but it has invested in many companies, and it may not have a lot of funds. Unless it sells shares or borrows, it has no money to acquire the backbone of the network!
"On January 10, 1989, Cisco officially made an acquisition request to MCI!!!"
As soon as these words were released, the United States was shocked again! (Let's collect and vote, please support the new book...)
The latest, fastest and most popular serial works on the Internet are all in the original! \u003c/a\u003e\u003ca\u003eMobile users please read. \u003c/a\u003e
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