Back to 1995

Chapter 197
Not to mention, can we find another line that can be compared with the line from Chicago to Wall Street? Now American Telecom is basically being watched by all parties, and they are playing their cards!
"It seems that President Kravis has a plan!"

Song Yang looked at the confident Kravis. If he could propose this plan, Kravis must be prepared, otherwise he would not make such a proposal.

"CMPU and CompuServe are the earliest Internet online service providers in America, and the world's earliest e-mail service providers, forum service providers, and personal dial-up Internet services are all provided by CompuServe!"

It seems that there is God's will in the dark. Before Song Yang launched the Hotmail mailbox, CPMU was the first to provide e-mail service, but it was just the first e-mail.

As a result, I woke up early to catch an evening episode. The email address was in the hands of CMPU, and no tricks were played. The forums and chat rooms were also the first to provide Internet services by this company, and they were also tepid. fire.

The business that made CompuServe go public was dial-up online, which is the same thing that AOL does today. It went public many years ago, but even in this line of business, AOL never did it. It is far away, but the basic market is still there, especially the rise of the Internet wave, which makes this old and early online service provider have the meaning of a second spring, and this year's performance is also quite good.

"Now CompuServe is in the hands of Block Tax Corporation!"

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

Bullock Tax Company is the largest chain tax service provider in America. In America and Europe, ordinary people can’t do without tax returns. Most people don’t have their own private accountants and rely on these tax providers. For taxation, there are more than 1 stores in America alone, which is more than pharmacies, not to mention Canada, Europe and other markets.

Song Yang looked at the Bullock tax company and CompuServe's information in front of him, then looked at the excited Kravis in front of him, and a thought arose in his mind, "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 can guess their intentions just by mentioning it.

KKR Group may not be good at other things, but KKR Group is an expert in acquisitions.

The acquisition of CompuServe has come to the rhythm that Kravis is most familiar with, "America Telecom needs to get the support of Wall Street investment institutions first, and this is an opportunity. CompuServe is not as good as before, but in Washington, New York, and several other State, with more than 500 million users!"

"But America Telecom doesn't need these users, and America Telecom won't do dial-up Internet business!" Greck couldn't help but said.

There are indeed a lot of users of dial-up Internet access. AOL’s users this year have exceeded nearly 700 million. However, American Telecom is engaged in broadband services. Dial-up Internet access is cheap, but the network speed is too slow. It is impossible to play that trick when you go to Wall Street or Silicon Valley.

Kravis smiled and glanced at Roberts who was on the side. Roberts continued, "As we said, this is an acquisition and a transaction. American Telecom does not necessarily have to merge with CompuServe."

"The current market value of CompuServe is about one billion dollars. As long as it is acquired from Bullock Tax Company, it can be split and sold. AOL should not want to see a new competitor appearing, online business and dial-up Internet business can be sold directly to AOL, other technical patents can be sold to UUnet and Qwest, and the rest of the industry can be mortgaged to banks or other institutions!"

This is the method KKR is most familiar with. Buy a company and realize it at the fastest speed. That is to split it up and sell it, squeeze out the last drop of valuable things, dismantle it into pieces, and then exchange it for a pen. Then return the money to the banks and institutions that lent money to the KKR Group, and the rest will be earned by KKR.

As for CompuServe, there is still three catties of iron in the broken ship, especially with the existence of AOL. If you don’t want to start a war with America Telecom in the dial-up Internet service, the most direct way is to buy CompuServe from America Telecom. Conspiracy can also be said to be a hard robbery, catching AOL to cut wool, or hard cutting!

Song Yang couldn't help applauding this plan, it was indeed Kravis' style, and it was also the fastest way for American Telecom to pull Wall Street institutions to make a fortune.

Of course, there are still risks, but they are not that huge. The key still depends on how to operate. With the popularity of the Internet today, regardless of whether it is dial-up Internet access or broadband services, as long as you buy it, you will be frantically sought after by Wall Street!

Iger looked at Kravis, and couldn't help feeling a little amazed. The old Jianghu is indeed the old Jianghu. After this acquisition, no one in the entire telecommunications industry would dare to underestimate America Telecom anymore, and it can also make the company that has gained the sweetness Supported by Wall Street institutions.

Greg, who has always been cautious, frowned when he heard that he was going to take another risk. Ever since the establishment of American Telecom, he hadn't let him worry about it. Finished, and now it's time to start playing with fire again.

Greg looked at Song Yang, hesitant to speak, and winked at Marcus, wanting Marcus to stop this adventure plan, but what Greg didn't expect was that the first sentence that Marcus came up was actually , "What about the acquisition funds?"

Hearing that Marcus actually agreed with the plan, Greg gave him a hard look. Marcus pretended not to see it. He felt that there was something wrong with the plan. With Kravis and the KKR Group operating it, the acquisition was a It's promising, and as a financial officer, who doesn't want to make a few operations that shock the world?

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

Playing this trick, Kravis has long been familiar with it and provided 1000 million dollars for the acquisition. Once the acquisition is completed, regardless of whether American Telecom makes money or not, at least KKR Group will be able to get nearly 8 to [-] million dollars in consulting fees and services. Fees, the entire acquisition process will not take more than a month, and the KKR Group can get [-]% of the income, this transaction is simply not too profitable.

Wall Street’s investment banks and institutions, like KKR Group, provide a bridge fee and then receive a high income. This is why Wall Street institutions are so keen on acquisitions. Banks such as Citigroup previously supported KKR Group’s acquisition of Rimula As for the battery, the acquisition has just been completed, and the KKR Group paid tens of millions of dollars in "management fees" to repay Citigroup and other banks. Don't play too slippery.

"With the acquisition of CompuServe, KKR Group is expected to generate a profit between 6000 million and 40 million US dollars, and American Telecom is expected to get [-]% of it!" Kravis said to the people in the office, talking about the huge profits. .

Song Yang rubbed his chin, he was not blinded by the tens of millions of dollars, the so-called failure before winning, Song Yang needs to know first, what will happen if the acquisition is completed and CompuServe fails to be sold to AOL, who is taken advantage of!
Song Yang raised this question to Kravis, and Kravis didn't evade. He nodded and said, "There is no [-]% thing in the world. It is indeed possible that it will be difficult to sell after the acquisition."

"If the entire merger, including the split plan, fails, KKR Group will continue to help America Telecom deal with the problem, and can repackage CompuServe to go public, and mortgage it to the bank in exchange for funds, and use it to issue long-term bonds to try to repay the bridge funds of the bank. It may cause American Telecom to bear a certain degree of negative equity, but it will not cause American 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 wipe out CompuServe, but this time it was to cheat the leeks of Nasdaq.

"Song, you should understand that risks are opportunities. Once successful, America Telecom will get sufficient funds from Wall Street to acquire more companies and complete the plans that America Telecom has advertised!" Kravis added.

After a pause, Song Yang stretched out 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 to the KKR Group's plan, Kravis and Roberts were overjoyed. Kravis said to Song Yang, "Song, I knew that you would agree to this plan!"

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

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

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

After a few years, when the structure of the telecommunications industry is stable and the heat goes down, there must be a lot of debts in front of the eyes of the major telecommunications companies. Only those who can repay the debts will be able to survive. Mobile phone chain retail stores , is the continuation tool that Song Yang prepared for America Telecom.

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

(End of this chapter)