Silicon Valley
Chapter 62
Nicholas and Cisco''s market value is high, but it does not mean that the capital flow is also high!
Citibank and Morgan bank refused to lend. With the funds from Cisco and Nicholas, they could not stabilize the stock price of Cisco. Henry knew that Sequoia Capital still had 2.7% of the shares, which would be nearly $1.4 billion if they were all sold. Such a big order is bound to cause severe turbulence in Cisco''s stock price. Cisco must put forward more money to stabilize the situation!
If AOL fails again, Cisco will need a lot of money. But it''s clear that AOL is going to hit the bottom of the hole!!!
Cisco has spent a lot of money on AOL before. In fact, the sum of Nicholas and Cisco is less than two billion dollars! In a short time, there is no money at all!
"You go back to work first. I need to think quietly!"
Henry was alone in the office all afternoon. Due to the sudden backwardness of Citibank and Morgan bank, Cisco is almost passive! Indeed, in the eyes of banks, the market value of Cisco and Nicholas is unreasonably high. In terms of influence and strength, they are far less powerful than the alliance composed of more than a dozen companies! In line with the principle of interests first, the decision of Citibank and Morgan Bank seems to be very correct!
Henry also learned the cruelty of the capital world!
Clearly said before the good thing, backwater only in between the change of hands!!!
As time passed, John Chambers and others walked restlessly outside the door, looking at the office door from time to time
Until a quarter past five in the afternoon, the door of Henry''s office suddenly opened and everyone turned to look here!
Henry came out with a blank face.
"Chairman, have you figured out what to do?" John Chambers stepped forward and asked.
Henry said word for word: "I decided to give up the acquisition of MCI company for the time being!"
Everyone looked very surprised and looked at each other!
Henry waved his hand to silence everyone, and then said coldly, "chambers, you write down all the telecom companies of AOL alliance. One day, I will swallow them all!"
"Yes!" John Chambers, with a shudder in his heart, answered in a loud voice. Then John Chambers asked, "Chairman, what do we do now? The top priority is how to deal with Sequoia Capital''s selling shares
"Let them throw it!" Henry said coldly, "I''ll take this opportunity to take back all the shares of Cisco!"
No one knows better than Henry how many switches and routers the development of the Internet needs! In the future, the market value of Cisco will reach hundreds of billions of dollars. Henry doesn''t mind taking back some while the share price is cheap!
When Henry came to the crowd, Zhizhu said: "MCI is not so easy to be acquired. They can''t win MCI without three or five months. And that''s enough time for us to raise money! "
With that, Henry asked everyone to go home from work. But John Chambers was left to discuss the matter!
"Chambers, you are personally responsible for the recovery of Cisco shares. Remember to seize the opportunity and take more shares with limited funds! Now Nicholas group, Cisco and I have a total of 2.4 billion US dollars in personal savings. If the company''s management wants to invest in it, it''s OK! Remember, make sure to get back more shares this time! "
Henry does not know how many people will sell Cisco shares this time, but Sequoia Capital is definitely one, maybe Citibank and Morgan bank are also possible!
"Chairman, please rest assured, I will ask the most professional team to help us!" John Chambers nodded.
"Well!" Henry said, "in addition, you start to contact other banks to see which bank is willing to lend us?"
"OK, no problem!"
……
……
Cisco''s share price has stabilized after a period of turbulence. But before long, another wave of turbulence came! This time is more serious, larger and takes the longest time. Citigroup, Morgan and Sequoia Capital have sold their shares one after another. However, in order to prevent the stock price from falling too fast, their tactics are very hidden. They did not sell their shares all the time before. Instead, they threw a little every day, which is hard to detect! Its transaction process is through thousands of transaction accounts to complete the transaction, although each account transaction is small, but add up, the total number is very huge!
It''s hard for ordinary shareholders to notice the actions of Sequoia Capital, Citigroup and Morgan bank, but Cisco knows what they are doing in the stock market!
"They''re on the move..." Henry said faintly, "we can''t do without showing, can we?"
"Chambers, you immediately spread rumors that Cisco is losing money, or something else. In short, I want Cisco''s share price to drop sharply!"!!! In addition, Citigroup, Morgan, Sequoia Capital sold a lot of Cisco shares. I see how they can make money secretly by cashing out
"OK, I''ll do it now!" Chambers nodded.
The next day, the major media in the United States began to report many negative news about Cisco, such as the loss of US $200 million in the last quarter, such as the accident in a certain factory of Cisco, which caused many casualties, such as the disagreement of the company''s management, and so on. Then it is reported that Citigroup, Morgan and Sequoia Capital have all sold their shares wantonly. Obviously, they are ready to "flee". The major media even list a lot of data to prove that Sequoia Capital is indeed selling the shares of Cisco company!!!
And Sequoia Capital, Citigroup, Morgan sold shares, which in turn proved that the negative news is very likely to be true!
As a result, Cisco''s share price plummeted!!!
Sequoia Capital, Citigroup and Morgan also changed from dark to open selling. They lost a lot of money in vain! But because AOL is short selling Cisco shares, they still make a lot of money!
After all, the majority of shareholders lost!
For Henry, it doesn''t matter that Cisco''s market value is reduced. He doesn''t value it for a while. Low is better, more conducive to Henry to take back shares! But investors'' money is discounted... Of course, if you are optimistic about Cisco and make a long-term investment, you will definitely get rich!
Two weeks later, Cisco''s market value dropped to $31 billion and $20 billion evaporated. However, Henry took back 15.6% of the shares!!!
After the stock market turmoil, Henry held more than 73% of Cisco''s shares, Nicholas group held 7%, Citigroup, Morgan and Sequoia Capital all sold off Cisco''s shares, and they have no relationship with Cisco ever since!
However, Cisco and Nicholas don''t have much money now, and Henry only has $100 million on hand!
Want to buy MCI company, seems to be out of reach( Ask for support!)