Back To 1995

   Chapter 176 Killing Crazy

  The global telecommunications industry has basically the same model, that is, the investment is large and the returns are slow, but the revenue is continuously stable. In the stock market, the telecommunications industry generally does not fluctuate much.

  Not all telecommunications companies can build a line like American Telecom, which can make a lot of Wall Street companies go crazy.

Even America Telecom spent more than 300 million dollars, and then saw the hope of completion. In addition, the most important thing is that this line has already found a buyer, because of scarcity and irreplaceability, so that America Telecom can sit on the ground. Starting price, one-time advance payment for five-year line use rights.

   This is basically impossible for other telecommunications companies. They all build lines and then advertise to attract customers to the network. It may take three to five years for a line to recover, which is relatively smooth.

But on the contrary, once a telecom group develops, it can rely on abundant cash flow and continue to develop like a snowball. Therefore, telecom, banking, insurance and other companies have always been big players in the acquisition industry, nothing else. , is more money!

This year, thanks to the popularity of the Internet, the technology has also shifted from dial-up access to broadband and optical fibers. More importantly, the cancellation of the regulation of the telecommunications industry in America has brought the telecommunications industry in America into an outbreak period. This year alone More than a dozen telecommunications companies lined up, waiting to log on to the New York stock market to make money with the Nasdaq.

  Companies such as UUnet and Qwest, which are doing the same thing as Telecom America, are also emerging telecom companies based on the Internet. However, Telecom America really has a line, and Qwest is completely the founder's mouth.

   In order to go public, Qwest Quest founder Philip Anschutz and President Joseph Nacchio have completely moved the Internet industry to the telecommunications industry.

Threatened that Qwest has a good relationship with several Bell companies, and plans to lay 100,000 kilometers of fiber-optic broadband lines to provide network telecommunications services to all cities in America. The revenue should increase by 15% every year, and the profit should increase by 20% every year. Anyway, is blowing hard.

   In other periods, this kind of bragging will definitely be disgusted, but now is the hottest period in the Internet industry, and this statement is really believed...

   Thanks to the hot market in the telecommunications industry, acquisitions or investments are not a big deal.

   But when the two industry giants, the Telephone and Telegraph Group and Enron Corporation, began to cooperate and invest in the same telecommunications company, it began to attract attention.

Just as America's telecommunications and Internet industries began to pay attention to America Telecom, which has had a special color since its birth, and is now listed by America's top 100 giants at the same time, about America The news of telecommunications came out again, and the telecommunications industry was completely fried.

  Anyone with discerning eyes knows that America Telecom is currently being targeted. Those well-informed already know that WorldCom is going to step on the little ant of America Telecom, and then get America Telecom's line to enter the New York market.

   But now, countless people have expected that the ants will be crushed by elephants, not only did not happen, but compared with WorldCom, America Telecom, which can only be regarded as an ant, blew the horn of counterattack and launched a counterattack against the elephants!

  It is not that the telecommunications industry has not been without big things. WorldCom itself is an expert in this game, but it was only after WorldCom became more and more powerful.

   Where would it be like America Telecom? It's like, WorldCom, when it was first established, directly challenged the Telephone and Telegraph Group!

  It was no secret that WorldCom was eyeing UUnet. As a result, other telecom giants did not jump out. Instead, America Telecom began to grab food and compete with WorldCom for this old-fashioned Internet provider.

It seems that they still dislike playing enough, and before the telecommunications industry has recovered, there is news that America Telecom plans to form a joint consortium, mainly composed of America Telecom, Enron Corporation, Comerica Bank, and Telephone and Telegraph Group. The acquisition group wants to acquire WiTel, which owns America's top ten and has more than 11,000 miles of underground fiber optic lines. This is also one of WorldCom's long-cherished telecommunications companies.

  The entire America Telecom and Finance people, on this day, stared blankly at America Telecom as if it were going crazy, and released one after another.

   Yesterday, it was still in precarious danger. It was targeted by many opponents. It seems that America Telecom, which is only one step away from bankruptcy, has started the frenzy mode today, a mode that wants to fight WorldCom to the end.

   Looking at the news released by America Telecom, countless people who watched it were dumbfounded. They didn't know whether the times were changing too fast or they couldn't keep up with the rhythm.

The news of America Telecom is really hard to tell whether it is true or false. If it is suddenly reported by America Telecom, if it is really ants swallowing the sky, it announces that it will take one step to the sky and acquire giants such as MFS Communications Company, I am afraid the outside world will not be too surprised. , It's really a move by America Telecom, it's shocking!

  America Telecom, which did not have many people's attention at first, immediately attracted countless attention when it started to fight with WorldCom.

   For the news released by America Telecom, the majority of people are speculating. It sounds like America Telecom has found a backer, left Anran and right Telephone and Telegraph Group, and there is a Comerica Bank behind it, which seems to be completely worthwhile.

   But although these companies have announced their support for America Telecom, it is really hard to say how far they can go.

   But then the news from An Ran made these cannons and smoke bombs become a little more real.

   Enron, who just passed the telecommunications license application at the American Communications Commission, immediately announced that it will operate telecommunications business with America Telecom, and the license will be transferred to America Telecom, and plans to invest $500 million in exchange for a 5% stake in America Telecom!

   This news is quite explosive. Enron directly valued America Telecom at 10 billion dollars. Almost as soon as the news came out, it was reported by the Wall Street media.

   Qwest Telecom, which has just passed the listing review and is about to cut leeks, felt that its listing was not fragrant when he heard the news.

On Qwest's side, I felt that I was ruthless enough, and the balloon was big enough, but compared with America Telecom, Qwest's side is just like playing a family. America Telecom has blown up to a valuation of 10 billion dollars in one breath. !

When Philip Anschutz and Joseph Nacchio saw the news concocted by America Telecom, they couldn't help but sigh that this is the way to play the Internet. Song Yang is indeed a genius from the Internet, and he can be in the telecommunications industry. Give flowers to play!

The two Nacchio, who were busy on the road show and promoting the leeks, also stopped to check the news of America Telecom, which is likely to be one of Qwest's main competitors in the future. Blow up the balloon, and America Telecom will blow up Qwest's side.

  Philip asked Nachio, "So, America Telecom has survived the crisis. Do you think it is possible for them to acquire UUnet?"

Nachio also saw these true and false news, but he was confused, and he could only judge based on experience, "Now it seems that America Telecom, which has obtained the license, has avoided the trouble of bankruptcy, but can it be acquired? UUnet is not necessarily lost, it depends on how much Bruno Song, the darling of the Internet, can pay to get Enron, Comerica Bank, and Telephone and Telegraph Group to fully support him, after all, his opponents are WorldCom and Ebes!"

  There is no free lunch in the world, Nachio is convinced of this, just like this time, in order to go public, Qwest Quest Telecom had to commit to the Western Bell Company to seek the support of the other party.

   And this time, America Telecom brought in the support of Enron and Telephone and Telegraph Group. Nachio did not believe that Song Yang did not pay any price!

  Naccio and countless people in the telecommunications industry are all speculating on the news released by America Telecom. When they are somewhat credible, Enron and the Telephone and Telegraph Group have performed quite well.

   Originally this year, with the launch of Enron's online platform, the slogan of "Rebuild Enron" resounded in America, which kept Enron's stock price soaring.

   Now it has invested in America Telecom. Although it did not directly enter the telecommunications industry, it is equivalent to indirectly entering the telecommunications and the hottest Internet industry.

As for the US$500 million, is it taking a 5% stake in America Telecom? It seems to have no effect on Enron. On that day, Enron's stock price hit a record high again, and the profit from the stock price directly exceeded 500 million. More than several times the US knife!

For Enron, which is in a hot period, any news can be understood as positive, and it is the reason for the rise. As long as there are people who are following it, Enron's stock price will continue to rise. just the reason.

  Compared to Enron, as a representative of the telecommunications industry, the Telco Group, which has always been tepid, recorded a 3% increase in a few days. It was the largest day for the stock price since Bates became the head of the Telco Group!

  Any action is better than no action. Compared with the somewhat rigid Telephone and Telegraph Group, the investors are more looking forward to the Telephone and Telegraph Group to make greater moves in the Internet industry.

Investing in America Telecom has allowed the outside world to see the changes in the Telephone and Telegraph Group, and the stock price has risen sharply. Even if this investment may lose money, it still makes Bates and the directors of the Telephone and Telegraph Group relieved that the stock price is the highest. The real response made Bates and the Telephone and Telegraph Group more interested in the specific cooperation with America Telecom.

   With the news of Telecom Americas, the stock prices of Enron and Telephone and Telegraph Group rose sharply, and Comerica Bank also attracted much attention because of its investment in Telecom Americas, which seems to be a win-win situation for all parties.

   However, WorldCom, which was attacked by America Telecom's mouth-watering skills, did not perform very well that day.

   As the president of WorldCom, Ebes did not make WorldCom’s investors wait for a long time. After all, maintaining the stock price is the top priority of WorldCom’s management. Once the stock price fell, all of WorldCom’s plans would be in vain.

   On the evening of the same day, WorldCom made an announcement and officially launched the acquisition of UUnet!

   But soon after, another giant in the telecommunications industry, MFS, also suddenly announced that it would join the acquisition of UUnet!

   (end of this chapter)