Back To 1995: Chapter 176 kill crazy
Chapter 176 Killing Crazy
The global telecommunications industry has basically the same model, that is, large investment and slow returns, but revenue continues to be stable. In the stock market, the telecommunications industry generally does not fluctuate much.
Not all telecommunications companies can build a line like America Telecom, which can drive all Wall Street companies crazy.
Even American Telecom spent more than 300 million US dollars, and only then did it see the hope of completion. In addition, the most important thing is that this line has already found a buyer, because it is scarce and irreplaceable, so America Telecom can sit on the ground The starting price is a one-time advance payment for the five-year line use right.
This is basically impossible for other telecommunications companies. They build lines and then advertise to attract customers to the network. It may take three to five years for a line to pay back, which is relatively smooth.
But in contrast, once the telecom group develops, it will be able to rely on abundant cash flow and continue to develop like a snowball. Therefore, companies such as telecom, banking, and insurance have always been big players in the acquisition industry. , that is, more money!
This year, thanks to the popularity of the Internet, technology has also transformed from dial-up access to broadband and fiber optics. More importantly, the abolition of regulations on the telecommunications industry in America has brought the telecommunications industry in America into an explosive period. This year alone has already Queuing up a dozen telecommunications companies, waiting to log on to the New York stock market and NASDAQ to collect money.
Companies such as UUnet and Qwest, which do the same thing with American Telecom, are also emerging telecommunications companies based on the Internet, but America Telecom does have a line anyway, and Qwest is completely boasted by the founder.
In order to go public, Philip Anschutz, the founder of Qwest, and Joseph Nazio, the president, completely moved the Internet industry to the telecommunications industry.
Threatened that Qwest has a good relationship with several Bell companies, and will lay a 100,000-kilometer fiber-optic broadband line to provide network telecommunications services to all cities in America. The revenue will increase by 15% every year, and the profit will increase by 20% every year. Anyway, It's blowing hard.
In other times, such bragging would definitely be disgusted, but now is the hottest period in the Internet industry, and this statement is actually believed...
Thanks to the hot market in the telecommunications industry, acquisitions or investments are not a big deal.
But when two industry giants, 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 bit of special color since its birth, and now it is being photographed by the top 100 giants of American companies at the same time. About America The news of telecommunications came out again, which completely blew up the telecommunications industry.
Anyone with a discerning eye knows the current situation of American Telecom, which is being targeted by others. Those who are well-informed already know that the elephant of WorldCom is going to trample the little ant of American Telecom to death, and then get the line of American Telecom to enter the New York market.
But now, what countless people expected, the ant will be crushed by the elephant not only did not happen, but compared with ShiCom, American Telecom, which can only be regarded as an ant, blew the counterattack horn and launched a countercharge against the elephant!
It’s not that the telecommunications industry hasn’t had things that go from small to big. WorldCom itself is an expert at playing this game, but it was only after WorldCom became more established.
How could it be like America Telecom?
It has long been no secret that WorldCom is eyeing UUnet. As a result, other telecommunications giants did not jump out. Instead, American Telecom began to compete with WorldCom for this veteran Internet provider.
It seems that the game is not big enough. Before the telecommunications industry recovered, there was news that American Telecom planned to form a joint consortium, mainly composed of American Telecom, Enron, Comerica Bank, and Telephone and Telegraph Group. The acquisition team wants to acquire WiTel, which owns the top ten companies in America and has more than 11,000 miles of underground fiber optic lines. This is also one of the telecommunications companies that WorldCom has long wanted.
The entire American Telecom and financial people, this day, stared blankly at America Telecom, who seemed to be killing crazy, and released one after another.
Yesterday, America Telecom, which was still in jeopardy, was targeted by many opponents, and seemed to be one step away from bankruptcy, has turned on the berserk mode today, a mode that wants to fight WorldCom to the end.
Watching one news after another released by American 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 American Telecom is really difficult to distinguish between true and false. If American Telecom suddenly spreads, if it really swallows ants, and announces that it will go to the sky in one step and acquire giants such as MFS Communications, I am afraid that the outside world will not be too surprised. , It is really a move made by American Telecom, it is too shocking!
America Telecom, which didn't get much attention at first, immediately attracted countless attention when it started to fight with WorldCom.
Regarding the news released by American Telecom, the majority of people speculate. It sounds like America Telecom has found a backer, with Anran on the left and Telegraph Group on the right, and a Comerica Bank behind it, which seems to be completely true.
But although these companies have announced their support for American Telecom, it is really hard to say how far they can go.
But then the news from An Ran made these rumors and smoke bombs a bit more real.
Enron, who just passed the application for a telecom license in the American Communications Commission, immediately announced that it will operate telecom business with America Telecom, the license will be transferred to America Telecom, and plans to invest 500 million U.S. dollars in exchange for a 5% stake in America Telecom!
This news is quite explosive. Enron directly valued American Telecom at US$10 billion. Almost as soon as the news came out, it was reported by the Wall Street media.
Qwest Telecom, which had just passed the listing review and was preparing to cut leeks, heard the news, and instantly felt that its listing was not good.
For Qwest, I feel that I am ruthless enough, and the balloon I blow is big enough, but compared with America Telecom, Qwest is just like playing house, and America Telecom has blown up to a valuation of tens of billions of dollars in one breath. !
When Philip Anschutz and Joseph Nazio saw the news concocted by American Telecom, they couldn't help sighing that this is how the Internet is played. Song Yang is worthy of being a genius from the Internet. Let's play with flowers!
Nazio and Nazio, who were busy with the road show to promote the leeks, also stopped to check the news of American Telecom. This is likely to be one of Qwest's main competitors in the future. In terms of blowing balloons, American Telecom has completely blown up Qwest's side.
Philip asked Nazio, "So America Telecom has survived the crisis. Do you think it is possible for them to acquire companies like UUnet?"
Nazio also read these true and false news, but he was at a loss, and could only judge based on experience, "It seems that America Telecom, which has obtained the license, has avoided the trouble of bankruptcy, but can it be acquired? Losing UUnet is not guaranteed, it depends on how much Bruno Song, the darling of the Internet, can pay to get Enron, Comerica Bank, Telephone and Telegraph to fully support him, after all, the opponent is WorldCom and Ebes!"
There is no free lunch in the world, Nazio firmly believes in this, just like this time Qwest Telecom has to commit itself to Western Bell in order to seek the support of the other party in order to go public.
But this time, American Telecom brought in the support of Enron and Telephone and Telegraph Group. Nazio didn't believe that Song Yang didn't pay any price!
Nacchio and countless people in the telecommunications industry are speculating on the news released by American Telecom. When it is somewhat credible, Enron and Telephone and Telegraph Group are quite impressive.
Originally, since the beginning of this year, with the launch of Enron’s online platform, the slogan “Recreate Enron” resounded in America, which caused Enron’s stock price to continue to rise.
Now it has invested in American Telecom. Although it has not directly entered the telecommunications industry, it is equivalent to indirectly entering the telecommunications and the hottest Internet industries.
As for the 500 million US dollar, whether it is being taken advantage of by only taking 5% of American Telecom's shares, it seems to have no effect on Enron. On that day, Enron's stock price hit a record high again, and the profit brought by the stock price directly exceeded 500 million. The US knife is several times more than that!
For Enron, which is in a hot period, any news can be understood as good news, and it is a reason for the rise. As long as there are people chasing after it, Enron's stock price will continue to rise. This investment in American Telecom is just a rise. reason only.
Compared to Enron, as a representative of the telecommunications industry, Telephone and Telegraph Group, which has always been tepid, recorded a 3% increase in a few days.
An 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 American Telecom allowed the outside world to see the changes in the Telephone and Telegraph Group, and the stock price rose sharply. Even though this investment may lose money, it still made Betts and the directors of the Telephone and Telegraph Group heave a sigh of relief. The real reaction made Betts and the Telephone and Telegraph Group more interested in the specific cooperation with America Telecom.
Following the news released by American Telecom, the stock prices of Enron, Telephone and Telegraph Group, etc. rose sharply. Comerica Bank also attracted attention because of its investment in American Telecom. It seems to be a win-win situation for all parties.
However, WorldCom, which was attacked by American Telecom's talkative skills, did not perform very well that day.
As the president of WorldCom, Ebes did not keep the investors of WorldCom waiting. After all, maintaining the stock price is the top priority of the management of WorldCom. If the stock price falls, all plans of WorldCom will be ruined.
That night, WorldCom issued an announcement to officially initiate the acquisition of UUnet!
However, shortly thereafter, another giant in the telecommunications industry, MFS, also suddenly announced that it would join the battle for the acquisition of UUnet!
(end of this chapter)