Silicon Valley
Chapter 6 Cisco85
Henry, who has dropped out of Stanford High School, is now busy with Cisco's development and cleaning up the Nicholas Bookstore property.
Woolf made up for the misappropriation of the company's money the next day, and he was also afraid that Henry would trouble him. Woolf and others thought that Henry would not sell the bookstore, but they guessed wrong after all. Henry's actions were quick. A week later, he got in touch with three well-known bookstores in California, and basically reached a sales intention. When the representatives of the three bookstores came to the headquarters of Nicholas Bookstore, Woolf and others were dumbfounded.
"Henry, you have no right to do this!!!" Woolf yelled at Henry.
"Why not? I am the controlling shareholder, and I have officially notified you at the board of directors. Therefore, selling the bookstore is in line with all procedures." Henry said lightly, "Of course, my promise that day is still valid, no more, no less, or 5%. Premium!"
After Henry finished speaking, he led the representatives of the three bookstores into the parlour. Woolf and other shareholders, big and small, looked at each other in dismay, and immediately followed.
At the negotiating table, Henry had already negotiated the general content with the representatives of the three companies. The acquisition of Nicholas Bookstore by three bookstores does not include the "Nicholas Bookstore" brand name. The acquisition capital is 20 million US dollars!
As soon as Woolf and others saw the content of the agreement, they knew they were going to lose money. The bookstore had a market value of $24 million, but now it sold for $20 million, a loss of $4 million all of a sudden. As for the brand name of the bookstore, it is of little value to them, and they don't value it at all. What's more, Henry bought their shares at a premium of 5%!
In this way, if the bookstore is sold, they will lose a lot!
"Chairman, this... I'll sell you the shares in my hand." A minority shareholder said to Henry.
"Okay." Henry looked at him meaningfully, then nodded.
"Chairman, I want to sell too!"
"..."
The minority shareholders basically stated that they would sell their shares to Henry, and in the end only Hank Woolf was left. Hank Woolf holds 12.5% of the shares and is the vice president of the bookstore. He has a high position and is embarrassed to bow his head to Henry. Henry looked at him and smiled playfully: "Mr. Woolf, it looks like you don't plan to sell your shares. Haha, well, I'll save more money."
Hank Woolf's face almost dripped with blood: "No, it's not. I'm going to sell my shares too!"
"Mr. Woolf is worthy of being a smart man, he knows the current affairs!" Henry smiled and sarcastically said, "Okay, since you all decided to sell your shares to me, now transfer all the shares to my name, and I will let the financial Write a check for you!"
"Okay!" The big and small shareholders nodded.
An hour later, Woolf and others left the company with satisfaction. Henry looked at their backs and shook his head in his heart. If it wasn't for the sake of avoiding disputes over the brand name of "Nicholas Bookstore", he would not have bought their shares at a premium. After all, they are shareholders, and they have a share in the brand name.
At three o'clock in the afternoon, Henry signed a contract with the three bookstores. Before that, Henry had already attracted a talent who could really do things in the company. He is Gilly Hurt, 30 years old. He was originally a team leader in the book purchasing work under the company. His ability is very outstanding, his social level is very high, especially he has connections with major publishing houses! Henry attaches great importance to this point, so he decided to hire him as the manager of the company's purchasing department.
That's right, Henry is going to emulate Amazon Bookstore to build a new company whose name is undoubtedly "Nicholas Bookstore"!
Henry's grandfather left him a large inheritance, bank deposits, villas, etc., plus the Nicholas Bookstore, the total assets reached more than 30 million US dollars. But the bad thing is that the U.S. inheritance tax is desperate, and at least half of the more than 30 million dollars has to be paid! Henry honestly went to pay his taxes and paid $17 million. The U.S. estate tax is designed to slaughter big families. The richer they are, the more vicious they are.
Henry felt as if he had peeled off a layer of skin after he came out of the tax office!
The Nicholas Bookstore is also established in San Jose. Although the time is not yet mature, it is possible to build a team to hone and hone. This small amount of money Henry can still afford. What's more, Cisco is in Henry's hands. He knows very well that the advent of the Internet age will be more "fierce" than his previous life, and if he fails to seize this opportunity, he may be eliminated.
At the same time, Henry also moved to San Jose to live with the Bosacs, but his main purpose was to eat. The development of Cisco makes Henry very happy. According to Posak, the first router is expected to be developed in August, which is at least half a year earlier than the previous life. After living in San Jose, Henry taught himself and wrote novels. West German Publishing House always sent people over to follow up the manuscript. Henry thought to himself, he should hurry up and finish writing Harry Potter while the business of the two companies is not busy now, otherwise he will not know if he will have time to write in the future.
Recently, Harry Potter's second book, "Harry Potter and the Chamber of Secrets," topped the US bestseller list for six consecutive weeks, with a total sales of more than three million copies. with the Philosopher's Stone. The West German Publishing House cheered and wanted to make Henry a god. The second time Henry got his royalties, he had more than three million dollars, nearly two million more than the first time. Lerner often joked, "Henry, you write novels every day, I believe that one day, you will become the richest man in the world!"
Henry gave her a roll of eyes and smiled: "I'm already the richest man in the world because I own 60% of Cisco shares!"
As soon as Henry finished speaking, Lerner smiled, she absolutely did not believe what Henry said.
On July 1st, unable to stand the eager and eager "eyes" from the West German Press, Henry put the third Harry Potter book "Harry Potter and Azkaban" that had been written earlier. The Prisoner was sent to the West German Press. It didn't take long for the newspapers or the media to be full of advertisements for the third Harry Potter book.
"The third new work of the genius boy Harry Potter - "Harry Potter and the Prisoner of Azkaban"!!!"
"A new book by a talented eleven-year-old author!"
That's right, Henry is eleven years old, his birthday is June 19th. Moreover, because Harry Potter is too popular, many fans affectionately call Henry "Harry Potter", and many of them are behind the operation of the bad guy from West German Press, who publicized some of Henry's deeds in the UK. Henry's uncle Peter's family suffered, and were madly abused and despised by fans around the world. Since the first Harry Potter book became popular, the West German Publishing House was connected, and the British Penguin Publishing House got in touch with Henry and signed a licensing contract. The content of the contract is that Henry Williams authorized the Penguin Publishing House about " The European paper copyright of the Harry Potter series of novels, the royalties of the manuscripts reach 12%. However, the billing fee is settled annually.
It didn't take long for someone to come from Hollywood. It was a small film company. Anyway, a film company that Henry had never heard of, Zhangkou asked for the film adaptation rights of the novel.
Henry asked how much they were going to pay?
Seeing that Henry was young, the person in charge thought he was easy to bully, so he shouted "rich and powerful": "One million dollars, the film adaptation rights of the entire novel series!"
"Go away!!!" He was a second-hand dealer who had lied to me, and Henry suddenly cursed in his heart.
"Mr. Williams, don't be angry, the price is easy to say." The person in charge of the small film company smiled shyly, "How about you make a price?"
"Sorry, I don't have the idea of selling the rights to the adaptation of novels and movies right now. If there is, I will call to let you know!" Henry stood up and issued an eviction order.
Subsequently, several batches of Hollywood film companies came one after another. Henry refused one by one. Henry was very aware of the value of the Harry Potter IP. The profit from selling the book was only a small part of it, and the more important thing was the peripheral income after the movie. And this premise is that the film must be successful. Therefore, Henry would rather let a powerful film company make a classic for free than make a bad film for a little money!
Stunts are one of the keys to Harry Potter's success.
It's 1985, so early.
As August approached, Henry could clearly sense the tension within Cisco. The new product is about to be successfully developed, and everyone is hopeful about it, but at the same time, it is inevitable to be uneasy. Because they are walking the road no one else has ever traveled...
Henry also came to the laboratory to "start a fight", but every whim always made the entire R\u0026D team ecstatic.
Bosak said: "This is my student, the most proud student!"
On August 5th, Cisco's first router finally came out. Posac asked Henry to name it, and Henry thought about it and said, "Just call it Cisco85, August 5, 1985. It's a meaningful name, isn't it?!"
"Okay, the name is good!!!" Bosak agreed happily upon hearing Henry's words.
So, that's how the first Cisco router got its name.
Cisco85.
When something comes out, it has to be sold.
Possack said he could go to Stanford to pitch.
Henry shook his head, this is the way of thinking of a typical technical talent. How do capitalists play? Give them away!
Having never eaten pork or seen a pig run before, Henry raised his head and said, "This, Mr. Posac's idea is very good, but the effect is slow. I think we can give it to some well-known universities or scientific research institutions for use. After a period of time, we will take it back, and if they want to continue using it, they will buy it. Hehe, but I think once they use our company's router, they will definitely not be able to live without it!"
"Okay!!!" Bosak exclaimed excitedly.
But at this time, the company's financial officer, Lerner, poured cold water on him: "The company doesn't have much money, so I'm afraid it won't even be able to pay wages!"
"Then, let me invest another two million..."
Henry blushed for a while, feeling as if he was evil. Invest another two million, and the Posacs' shares will be diluted. But the company has no money, and in the end it still has to raise financing. Whoever raises money is not financing, why should it be cheaper for others, Henry comforted himself in his heart.
The Posacs thought about it, and finally agreed to Henry's request for financing.
In terms of allocating shares, Henry only needs 10%, which is definitely the conscience of heaven and earth. Sequoia Capital raised 2.5 million US dollars after Cisco has developed, but took one-third of the shares of others. This is simply "The Legend of the Hungry Wolf". This kind of "legend" has been staged many times by Sequoia Capital...
The Bosac couple was embarrassed. At the beginning of the company’s founding, Henry invested 1 million and got 60% of the shares. Now, it has not been a year, and only one product has been released. Henry invested 2 million US dollars, but only took 10% of the shares. % of the shares, the Posac couple only felt that they were taking advantage of Henry, and taking advantage of the child was unacceptable! ! !
The Posacs discussed it and finally decided to give Henry 25% of the shares.
Don't, so much! Henry couldn't help swallowing after hearing the Bosac couple's decision.
"Mr. Bosac, you have given me too many shares!"
"Not much at all!" Posac said.
Henry shook his head. The Bosacs are honest people and good teachers who teach and educate others. They can't take too much advantage of themselves. This is morally difficult. Second, the future development of Cisco will make it difficult for the Bosacs. I feel unhappy. If both parties are unhappy because of this incident today, it will be bad. If there is a problem with the management of the enterprise, the trouble will be big!
If they can't get angry enough, take the team out to start a business, and get another competitor out, Henry will cry to death!
"Well, you give me 15%, I'll have a bad conscience any more."
Seeing Henry's firm attitude, the Posacs finally agreed to his distribution method. At the same time, the two also appreciate and like little Henry more and more, treating him like their own children.
Finally, the proportion of Cisco's shares, Henry accounted for 75%, the Posac couple accounted for 25%.
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