Hollywood Hunter

Chapter 363 Exclusive plan

Remember in one second [End of the God Station] Mobile phone user input address: m.xinwanben.com

San Francisco.

Inside a villa in the Woodside Hills on the western outskirts of Palo Alto.

The sky just lit up, and sensing the movement beside him, Simon subconsciously reached out and fished it out, grabbed a slender waist and brought it into his arms.

Jennifer, who had just picked up a small vest and wanted to put it on, was taken by Simon and pressed against the man's chest. Knowing that he liked this feeling, she didn't resist. After a while, she coaxed a child and said softly, "Let's go. Can you drive me? Prepare breakfast for you, and go back to work later."

After attending the reception of mca chairman Lou Vasalman last night, the female assistant originally said no, but was abducted by Simon to San Francisco.

Simon swam around the female assistant with his big hands and said, "Sleep with me for a while, Alison and the others will prepare breakfast."

"But, I want to help you prepare myself."

"All right."

Feeling Jennifer's insistence, Simon had to let go, watching the female assistant get out of bed and walk to the bathroom after putting on the vest and pants, and he quickly sat up.

In the early 1990s, the Woodside Mountains were not as prosperous and crowded as they were after the start of the Internet era. At the end of August, because they were also in the Mediterranean climate, the surrounding area was still full of business.

The female assistant was preparing breakfast in the kitchen, and Simon changed into a set of sportswear and left the house, jogging on the asphalt road among the green trees and sparsely populated mountains.

This kind of unfettered opportunity for free activities is a bit rare for Simon now. The population near Malibu where he lives is relatively dense, and his every move will also attract attention. He can only exercise in the villa gym on weekdays. If he goes to New York, Even more so.

While running, a black Mercedes-Benz car suddenly slowed down and approached, the window was pulled down, and a middle-aged man said to Simon through the window: "Man, there are two people behind you..." The young man recognized Simon, surprised, surprised, and a little unsure, and asked, "Are you, um, Simon Westeros?"

He roughly understood that the middle-aged man was kindly reminding himself that two people were following him, Simon stopped, nodded with a smile, and said hello: "Good morning."

The two bodyguards who were jogging with Simon also speeded up vigilantly to catch up.

The middle-aged man knew that he was making a joke, and got out of the car to greet Simon. It turned out to be an executive of Oracle, and he left a business card before leaving. Handing over the business card to Neil Bennett behind him, Simon continued to jog and returned to his residence after more than ten minutes. The female assistant had already prepared breakfast.

Without the help of the two girls ab who came together this time, the two brought the breakfast into the dining room in person.

After breakfast, the female assistant talked about the cocktail party last night: "Vasalman has discovered our layout, what are you going to do next?"

At the cocktail party last night, Lou Vasalman said straight to the point that he knew that Simon was preparing to acquire mca. He also took the initiative to reveal to him some of the progress of the negotiations between Panasonic and mca, and he bluntly welcomed Daenerys Entertainment. Bid for own company with Panasonic.

Of course, Simon would not immediately join the acquisition negotiation as Vasalman wanted, but it was just a perfunctory and perfunctory one.

Hearing what the female assistant said at this time, Simon said, "AOL submitted the plan to buy out the three regional telecom network platforms of Bell Atlantic, Bell Pacific and Nynex to develop the Internet, do you remember it?"

In the famous at-t split in 1983, the Bell Telephone and Telegraph Company, which had monopolized the entire US telecommunications market, was split into a national at-t and seven other regional telephone companies, which mainly focused on long-distance calls, Simon just said. The three of them happened to be three of the seven Bells that year, and they were also regional telecommunications companies in more than ten states on the east and west coasts that AOL planned to focus on.

AOL's current business, except for a small number of self-built line networks, most of them can only lease the line network platform of the traditional Bell system.

As he is optimistic about the prospects of the Internet industry, Steve Case submitted a plan to Simon at the end of last month, hoping to buy out the Internet access service franchise rights of three companies including Bell Atlantic, and pay a certain fee to the three companies every year. In the form of signing an exclusive agreement, this will not only prevent other Internet service providers from entering AOL's business territory, but also gain more support from the three operators in terms of Internet access services.

If the heads of the three regional telecommunications companies can see the future like Simon, it is unlikely that they would agree with AOL's proposal by any means.

You must know that once the 20-year exclusive contract proposed by Steve Case is signed, not only other Internet service providers, but even the three telecommunications companies themselves, cannot conduct isp business alone.

However, the reality is that because the Internet industry in the entire United States is just emerging, and AOL only has more than 100,000 users, such numbers are completely trivial in front of traditional telecom giants, and it is not worth participating in the field in person. Get an extra income by selling the platform, why not do it?

As a result, all three companies have expressed interest in what Steve Case is proposing.

However, the specific terms of cooperation have been tossed around for a month, but no agreement has been reached.

The three companies believe that since AOL wants to buy out their network, it needs to pay based on the total number of users, rather than the specific number of Internet access users proposed by AOL.

AOL's plan is willing to pay three companies per user per year

The company's $20 fee is calculated based on AOL's overall number of 150,000 users in August, and the fee to be paid to the three companies in a year is only $3 million.

Although 3 million US dollars is not much, considering the rapid growth of AOL users in recent months, in a year or two, as long as the number of AOL users reaches the million level, this number is actually very impressive.

On the other hand, if according to the plan of the three companies, although they are willing to reduce the cost of a single user to one-tenth of the US online quotation, which is two dollars, but multiplying the three companies in more than ten states on the east and west coasts is close to 20 million of the total number of users, AOL just started paying a hefty $40 million a year.

Moreover, the three companies also retain the right to renegotiate every two years during the contract period.

When AOL invested in Westeros to seize control a few days ago, the overall valuation was less than $100 million. Obviously, the three companies dared to speak so loudly because they saw Simon, the big moneymaker behind the scenes.

Fat sheep are not slaughtered for white.

Not only that, considering Simon's own optimism about the Internet industry, the three companies also asked for a stake in AOL.

In Simon's view, if he can sign this exclusive agreement, even if he really comes up with $40 million immediately, he will be extremely happy. When the Internet industry starts to explode, the three companies will definitely find out what a big mistake they have made.

However, of course, this kind of thinking cannot be expressed, and Simon is even less likely to agree to the three companies' shareholding in AOL.

So, this matter has been entangled for a month, and so far there is no result.

Jennifer obviously remembered this and nodded: "I think it would be more cost-effective if the three Bell Atlantics could lower the single user offer to $1, and it would be more cost-effective to pay based on the number of users. However, what does this have to do with our acquisition of mca? relation?"

Simon said: "My previous plan was that when AOL developed to a certain scale and the federal telecommunications regulations were relaxed, let AOL initiate the acquisition of these traditional operators. Three networks in one, remember I said this any ideas?"

"The Telecommunications Act, introduced during the at-t split of 1984, restricted long-distance, regional, and cable companies from getting into each other's territory. It should be difficult to get the federal government to deregulate telecommunications," said the female assistant adept After speaking, he suddenly understood and said, "Are you planning to launch an acquisition from a traditional operator now?"

"Bingo," Simon tapped lightly on the porcelain plate with a fork, "You can start collecting information on these three companies when you go back today, including their asset market value, operating conditions, management information, and industry-related information. legal documents, and keep it confidential.”

"I'll do it myself," the female assistant nodded and said, "However, in this case, we may have to raise a lot of money. Besides, it's impossible to buy these three companies at once. Which one are you going to choose? "

Simon blurted out: "Bell Atlantic."

The current Westeros system wants to eat three companies in one bite, neither financially nor legally.

Therefore, among the three companies, Simon's real target is actually Bell Atlantic.

Bell Atlantic is the predecessor of Verizon, the second largest telecommunications operator in the United States after at-t many years later. Its business areas are also in the densely populated states of Pennsylvania, New Jersey, Washington, D.C. and Virginia in the eastern United States. The regional population exceeds that of the United States. one fifth.

Of course, Bell Atlantic also has the highest market capitalization of the three.

Even against the backdrop of a continued decline in U.S. stocks amid the outbreak of the Gulf War, the market cap was more than $5.6 billion as of last week's close.

Considering the acquisition premium of about 30%, Simon needs to prepare at least $8 billion in funds to win Bell Atlantic. Counting the $7 billion prepared for mca, the amount of funds Simon needs to use this time will reach $15 billion as a whole, most of which needs to be obtained through loan financing.

A year and a half later, the Reynolds Nabisco acquisition, which was completed early last year, has turned into a complete disaster. After the U.S. debt crisis erupted at the end of last year, there have been very few corporate mergers and acquisitions over $1 billion this year. .

This large-scale acquisition of the two-line operation in Simon's plan will definitely detonate the entire federal media once the news spreads.

Speaking of which, if time is enough, Simon actually wants to go every step of the way.

However, right now is the lowest period of the US economy in the 1990s. Once the United Nations forces solve the Gulf War neatly next year, the federal economy will recover rapidly. At that time, if Simon wants to get Bell Atlantic again, the price he pays may exceed 10 billion US dollars, and he may even usher in a bidder.

In the longer term, if Simon waits until the peak of the new technology wave in the 1990s, and then promotes AOL's expansion according to the original plan, then large-scale mergers and acquisitions involving hundreds of billions of dollars will be involved, but the obstacles at the government regulatory level will exceed the present. more than ten times.

Now that many things have changed, it is undoubtedly the best choice to start the expansion of the Westeros system in the telecommunications field in advance, taking advantage of the abundant funds available at the moment.

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