Silicon Valley

Chapter 62 Recovery of Shares

The market value of Nicholas and Cisco is high, but it does not mean that the capital flow is also high!

Citibank and Morgan Bank refused to lend, and with the funds from Cisco and Nicholas, it was impossible to stabilize Cisco's stock price. 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 single throw will inevitably lead to violent turbulence in Cisco's stock price, and Cisco must spend more money to stabilize the situation!

If AOL falls again, Cisco's capital needs will be enormous. But it's clear that the AOL Alliance will definitely get down! ! !

Before, Cisco has spent a lot of money to deal with the AOL alliance. In fact, the combined funds of Nicholas and Cisco are less than $2 billion! In a short period of time, it is impossible to collect money at all!

"You guys go back to work first, I need to think quietly!"

All afternoon, Henry stayed alone in the office. Due to the sudden reversal of Citibank and Morgan Bank this time, Cisco is almost passive! Indeed, in the eyes of the bank, the market value of Cisco and Nicholas is inflated, and in terms of influence and strength, it is far less powerful than the alliance formed by a dozen companies! In line with the principle of the supremacy of interests, the decision of Citibank and Morgan Bank seems to be very correct!

Henry can be considered to have experienced the cruelty of the capital world!

Obviously, the things that were said before will only change hands! ! !

Time passed, and outside the door, John Chambers and others walked back and forth restlessly, their eyes always looking at the office door from time to time...

It wasn't until a quarter past five in the afternoon that the door of Henry's office suddenly opened, and everyone turned to look here!

Henry walked out with an expressionless face.

"Chairman, have you decided what to do?" John Chambers stepped forward and asked.

Henry said word by word: "I have decided to temporarily abandon the acquisition of MCI!"

Everyone looked very surprised and looked at each other!

Henry waved his hand to make everyone quiet, and then said coldly: "Chambers, you write down all the telecommunications companies that are affiliated with AOL, and one day, I will swallow them all!!!"

"Yes!!!" John Chambers trembled in his heart and immediately responded loudly. Later, John Chambers asked, "Chairman, what should we do now? The most urgent task is how to deal with the sale of shares by Sequoia Capital!!!"

"Let them throw it!!!" Henry said coldly, "I will take this opportunity to take back all Cisco shares!!!"

No one knows better than Henry how many switches and routers are needed for the development of the Internet! In the future, Cisco's market value will surely reach hundreds of billions of dollars. Taking advantage of the cheap stock price, Henry doesn't mind taking back some!

Henry walked in front of the crowd, and Zhizhu said in his hand: "MCI is not so easy to be acquired. They won't be able to take MCI in three or five months. And during this time, it's enough for us to raise money!"

After that, Henry asked everyone to go home from get off work. However, John Chambers was left to discuss things!

"Chambers, you are responsible for taking back Cisco's shares. Remember to seize the opportunity to win more shares with limited funds! Now Nicholas Group, Cisco, and my personal deposits add up to a total of 2.4 billion. U.S. dollars, if the company management wants to invest in it, too! Remember, be sure to get back more shares this time!!!”

Henry doesn't know how many people will sell Cisco shares this time, but Sequoia Capital must be one, and 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, "Also, you start to contact other banks to see which bank is willing to lend us a loan?"

"Ok, no problem!"

...

...

Cisco shares have stabilized after a period of volatility. But not long after, another wave of turmoil struck! This time it was more serious than the last time, it was bigger in scale, and it took the longest time. Citigroup, Morgan, and Sequoia Capital successively sold their shares, but in order to prevent the stock price from falling too fast, their tactics were very subtle. They did not sell their shares in a big way, but every day, making it difficult for people to notice! The transaction process is completed through thousands of transaction accounts. Although each account has a small number of transactions, if added up, the overall number is huge!

It is difficult for ordinary shareholders to detect the actions of Sequoia Capital, Citigroup and Morgan Bank, but Cisco knows their actions in the stock market well!

"They're starting to act..." Henry said lightly, "Then we can't help but express, right!"

"Chambers, you immediately spread rumors that Cisco is losing money, or something else. In short, I want Cisco's stock price to plummet!!! In addition, you will sell Citi, Morgan, and Sequoia Capital a lot of Cisco's shares. Poke it out, let me see how they can cash out and make money secretly!!!"

"Okay, I'll do it now!" Chambers nodded.

The next day, major media in the United States began to report many negative news about Cisco, such as the loss of 200 million US dollars in the last quarter, such as an accident in a certain Cisco factory that caused many casualties, such as differences in the company's management, etc. Lots of negative news. Then it was reported that Citi, Morgan, and Sequoia Capital have all sold their shares, and they are obviously ready to "flee". The major media even listed a lot of data to prove that Sequoia Capital is indeed selling Cisco. Company shares! ! !

And Sequoia, Citi, and Morgan sell their shares, which in turn proves that the negative news is most likely true!

As a result, Cisco's stock price plummeted! ! !

Sequoia Capital, Citi, and Morgan have also changed from dark to open, and they have suffered from dumb losses and lost a lot of money in vain! However, since AOL is shorting Cisco shares, they are still making more money!

In the final analysis, the majority of shareholders are still at a loss!

For Henry, it doesn't matter that Cisco's market value is reduced, he doesn't value it for a while. Lower is better, and it is more conducive to Henry to recover his shares! But the investors' money has been discounted... Of course, if you are optimistic about Cisco and make long-term investments, you will definitely make a fortune!

Two weeks later, Cisco's market value dropped to $31 billion, evaporating $20 billion at once, but Henry recovered 15.6% of his shares! ! !

After this stock market turmoil, Henry's personal holdings in Cisco exceeded 73%, Nicholas Group held 7%, Citigroup, Morgan, and Sequoia Capital have all sold off Cisco's shares, and have no half-haired relationship with Cisco since then!

However, Cisco and Nicholas don't have much money right now, and Henry has only $100 million left on hand!

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