Back To 1995

   Chapter 197 Eat and wipe

   Not to mention, can we find another line that can be compared with the line from Chicago to Wall Street? Now America Telecom is basically stared at by all parties, and it is playing a clear card!

   "It seems that President Kravis has a plan!"

  Song Yang looked at Kravis, who was confident. If he could propose this plan, Kravis must be prepared, otherwise he would not have made such a proposal.

   "CMPU company, CompuServe company is the earliest Internet online service provider in America, the world's earliest e-mail service provider, forum service provider, personal dial-up Internet service, all provided by CompuServe company!"

   seems to have its own providence. Before Song Yang launched Hotmail, CPMU was the first to provide e-mail services, but it was just the first e-mail.

As a result, I got up early and rushed to a late episode. The e-mail box was in the hands of CMPU, and no tricks were played. Forums and chat rooms were also the first to provide Internet services by this company, and they were also lukewarm. fire.

The business that made CompuServe listed is actually dial-up online, which is the same thing that AOL is doing today. It was listed many years ago, but even in this line, it has never done AOL, and now the dial-up business has been far away from AOL. It’s far away, but the fundamentals are still there, especially the rise of the Internet wave, which makes this ageing early online service provider look like a second spring, and its performance this year is also quite good.

   "Now CompuServe, in the hands of Brock Tax!"

  Kravis pointed to the information of the two companies and said to Song Yang and the others.

Block Tax Company is the largest chain of tax service providers in America. In America and Europe, ordinary people cannot do without a place to file tax returns. Most people do not have their own private accountants, and rely on these tax suppliers to handle them. In terms of taxation, there are more than 10,000 stores in America alone, more than pharmacies, not to mention Canada, Europe and other markets.

  Song Yang looked at the Brock tax company and CompuServe's information in front of him, and then looked at the excited Kravis in front of him, a thought arose in his heart, "Do you want American Telecom to acquire CompuServe?!"

   Both Kravis and Roberts applauded. They now know why the media praised Song Yang so much. Song Yang could guess their intentions just by mentioning it.

   In other games, KKR Group may not be very good, but in acquisitions, KKR Group is an expert.

The acquisition of CompuServe came to the rhythm that Kravis was most familiar with. "Americas Telecom needs to get the support of Wall Street investors first, and this is an opportunity. CompuServe is not as good as it used to be, but in Washington, New York, and several other state, with over 5 million+ users!"

   "But America Telecom does not need these users, and America Telecom will not do dial-up Internet business!" Gleick couldn't help but said.

There are indeed many users of dial-up Internet access. AOL has exceeded nearly 17 million users this year. However, America Telecom is doing broadband services. Dial-up Internet access is cheap, but the network speed is too fast. If you get the Wall Street and Silicon Valley markets, it is impossible to play that way.

  Kravis smiled and glanced at Roberts who was beside him. Roberts replied, "We said, this is an acquisition, it's a transaction, and Inter-American Telecom doesn't necessarily have to merge CompuServe."

"CompuServe's current market value is around $1 billion. As long as it is acquired from Block Tax Company, it can be split and sold. AOL should not want to see a new competitor emerge, online business and dial-up. Internet business can be sold directly to AOL, other technology patents can be sold to UUnet, Qwest, and the rest of the industry can be mortgaged to banks or other institutions!”

This is KKR's most familiar method. Buying a company and realizing it at the fastest speed is to split and sell it, squeeze out the last drop of value, break it into pieces, and then replace it with a pen knife. Then return the money to the banks and institutions that lent money to the KKR Group, and KKR earns the rest.

On the CompuServe, the broken ship still has three pounds of iron, especially the existence of AOL. If you don't want to fight with America Telecom in the dial-up Internet business, the most direct way is to buy CompuServe from America Telecom. Conspiracy, it can also be said to be hard robbing, catching AOL to cut wool, or hard cutting!

  Song Yang couldn't help applauding this plan. It was indeed Kravis' style.

   Of course, there are still risks, but they are not so huge. The key is to see how to operate. With the popularity of the Internet today, no matter whether it is dial-up Internet access or broadband services, as long as you buy it, you will be wildly sought after by Wall Street!

Looking at Kravis, Iger couldn't help but feel a little amazed. The old rivers and lakes are indeed the old rivers and lakes. After this acquisition, no one in the entire telecommunications industry will dare to despise America Telecom, and it can also make the sweeteners. Wall Street institutional support.

Greg, who has always been cautious, can't help frowning when he hears that he is going to take another risk. Since the establishment of American Telecom, he has not let him worry, for fear that one day he will get rid of it and finally make it to the line from Chicago to Wall Street. It's done, and now it's time to start playing with fire again.

Glick looked at Song Yang and hesitated, and gave Marcus a wink, wanting Marcus to stop this adventurous plan, but what Glick didn't expect was that the first sentence Marcus came up with turned out to be , "What about the acquisition funds?"

Hearing that Marcus agreed with the plan, Greg gave him a stern look. Marcus just pretended he didn't see it. He felt that the plan was a play. Kravis and the KKR group were involved in the deal. It's very promising, and as a financial officer, who doesn't want to make a few shocking operations?

   "KKR Group is willing to provide 20% of the funds for this acquisition. In addition, it can provide guarantees for America Telecom, find Wall Street's Citibank, etc., and provide bridge funds for America Telecom to use for the acquisition!"

Playing this trick, Kravis has long been adept at providing $200 million for the acquisition. Once the acquisition is completed, no matter whether America Telecom makes a profit or not, at least KKR Group will be able to get nearly $12 million in consulting fees and consulting fees. The service fee, the entire acquisition process will not take more than a month, and the KKR Group can get 8% of the income, this transaction is not too profitable.

Wall Street needs investment banks and institutions, like KKR Group, to provide a bridge fee and then collect a high income. This is why Wall Street institutions are so keen on acquisitions. Banks such as Citi previously supported KKR Group to acquire Rimba For the battery, just after the acquisition was completed, KKR Group took out tens of millions of dollars in "management fees" and returned it to banks such as Citi. Don't be too sloppy.

"The acquisition of CompuServe, KKR Group expects to generate between $100 million and $160 million in profits, American Telecom is expected to get 40% of it!" Kravis said to the crowd in the office. Profiteering.

  Song Yang touched his chin, but he wasn't blinded by those tens of millions of dollars. The so-called "defeat before victory", Song Yang needed to know first, what would happen if the acquisition was completed and CompuServe failed to be sold to AOL!

  Song Yang asked Kravis this question, but Kravis didn't evade it, nodded and said, "There is no 100% thing in the world. It is indeed possible to happen. After the acquisition, it is difficult to take action."

"If the entire merger, including the split plan, fails, KKR Group will continue to help America Telecom deal with the problem. It can repackage and list CompuServe. In addition, it can be mortgaged to the bank in exchange for funds, and it will issue long-term bonds to repay the bank's bridge funds. It may make America Telecom carry a certain degree of negative equity, but it will not cause America Telecom to suffer too much loss, I promise, it just takes a certain amount of time!"

   Kravis spread his hands and said, and came up with another plan, which was also to eat and wipe the CompuServe, but this time it was to kill those leeks on Nasdaq.

   "Song, you should understand that risk is both an opportunity. Once successful, America Telecom will get sufficient funds from Wall Street to acquire more companies and complete the plans that America Telecom has promoted to the outside world!" Kravis said again.

   After a moment's pause, Song Yang extended his hand to Kravis, "I'm very happy, President Kravis, to be the investment advisor of America Telecom. I believe that America Telecom and KKR Group can cooperate very happily."

   Hearing that Song Yang agreed with the KKR Group's plan, Kravis and Roberts were overjoyed, Kravis said to Song Yang, "Song, I knew you would agree to this plan!"

When the others left, Song Yang left Iger behind, looked at Iger, Song Yang said, "You have also seen the current situation of America Telecom, I need you to cooperate with people like Kravis to help America Telecom buys those companies!"

   "I understand." Iger also looked at Song Yang and said.

Song Yang nodded, "Not only the acquisition of those telecommunications companies, I think you should have seen Telecom America's plan, I need you to open Telecom America's communications stores to America and even major cities in North America and Europe. , it is not only a chain of service stores for America Telecom, but also the largest chain of electronics retailers in America, which is very important for America Telecom."

After a few years, when the telecommunications industry is stable and the popularity goes down, the major telecommunications companies must be facing a lot of debt. Only those who can repay this debt can survive. Mobile phone chain retail stores , is the life extension thing Song Yang prepared for America Telecom.

   After solving the problem of the head of Americas, Song Yang did not stay in New York any longer, but returned to San Jose overnight. However, the media were quite curious about the new head of Americas Telecom.

   (end of this chapter)