Chapter 362: 363

San Francisco.

In a villa in Woodside hills, a western suburb of Palo Alto.

When it was just light, Simon subconsciously reached for it and took a slender waist into his arms.

As soon as she picked up a vest and wanted to put it on, Jennifer was held by Simon and pressed close to the man's chest. Knowing that he liked this feeling very much, she didn't resist. She nestled for a while before coaxing the child to say in a low voice: "let me go, OK? I'll help you prepare breakfast, and I'll go back to work later. "

Last night, after attending the reception of Lu wassalman, chairman of MCA, the female assistant said no but was abducted to San Francisco by Simon.

Simon swam his hands over the girl assistant and said, "sleep with me a little longer, Alison. They'll prepare breakfast."

"But I want to prepare it for you myself."

"All right."

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

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

As the Assistant prepares breakfast in the kitchen, Simon changes into a sportswear and leaves the house to jog on the asphalt road in the mountains.

It's a rare opportunity for Simon to exercise freely. The population near Malibu is relatively dense, and his every move will also attract attention. He can only exercise in the villa gym on weekdays, especially if he goes to New York.

As he was running, a black Mercedes Benz slowed down suddenly and pulled over. The window was pulled down. A middle-aged man said to Simon through the window, "man, there are two people behind you..." In the middle of the conversation, the middle-aged man recognized Simon, surprised, surprised and uncertain, and asked, "are you, um, Simon westero?"

Knowing that the middle-aged man was kind enough to remind himself that two people were following him, Simon stopped, nodded with a smile and said, "good morning."

The two bodyguards who jogged with Simon also stepped up vigilantly to catch up.

The middle-aged man knew that he had made a joke and got out of the car to say hello to Simon. He turned out to be a senior manager of Oracle and left a business card when he left. He handed the card to Neil Bennett behind him. Simon continued to jog. Ten minutes later, he returned to his residence. The female assistant was ready for breakfast.

Without the help of the AB girls who came together this time, they brought their breakfast into the restaurant in person.

After breakfast, the female assistant talked about the cocktail party last night: "vassalman has found out our layout. What are you going to do next?"

At the cocktail party last night, Lou wassalman said frankly that he knew that Simon was preparing to buy MCA. He also revealed to him the progress of negotiations between Panasonic and MCA, and frankly welcomed danilisi entertainment and Panasonic to bid for their own company.

Simon, of course, will not join the acquisition negotiations immediately according to vassalman's wishes, but he just played a perfunctory role.

At this time, Simon said, "do you remember the plan that AOL submitted a month ago to buy out Bell Atlantic, bell Pacific and Nynex regional telecommunication network platforms to develop the Internet?"

In the famous at-t Split case in 1983, bell telephone and Telegraph Company, which once monopolized the entire U.S. telecommunications market, was split into national at-t, which mainly engaged in long-distance telephone, and seven other regional telephone companies. Simon just mentioned three of the seven little bell companies in that year, and they are also the regions of more than ten states on the East and west coasts where AOL plans to focus its business Mobile telecom company.

In addition to a small number of self built line networks, most of AOL can only rent the line network platform of traditional bell system.

With the promising prospect 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 of Bell Atlantic and other three companies, and sign an exclusive agreement by paying a certain fee to the three companies every year, which can not only prevent other Internet service providers from entering the business of AOL In addition, it can obtain more support from the three operators in terms of Internet access services.

If the heads of the three regional telecom companies can see the future like Simon, they will not agree with AOL's proposal in any case.

You know, once you sign the 20-year exclusive contract proposed by Steve case, not only other Internet service providers, but even the three telecom companies themselves, can't carry out ISP business alone.

However, the reality is that the Internet industry in the United States has just sprung up, and AOL has only more than 100000 users. This kind of figure is just a trifle in front of traditional telecom giants, and it's not worth participating in. If you can get an extra income through selling off the platform, why not?

As a result, all three companies expressed interest in Steve Case's proposal.However, the specific terms of cooperation, the parties saw for a month, have not reached an agreement.

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The three companies believe that since AOL wants to buy out their line network, it needs to pay according to the total number of users, rather than the specific number of Internet users that AOL proposes to pay.

AOL is willing to pay each user $20 per year to three companies. According to AOL's overall 150000 users in August, it only costs $3 million a year to pay three companies.

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

On the other hand, according to the plan of the three companies, although they are willing to reduce the cost of a single user to one tenth of AOL's quoted price, that is, two dollars, multiplied by the total number of nearly 20 million users of the three companies in more than 10 states on the East and west coasts, AOL will have to pay a huge fee of 40 million dollars a year just in the beginning.

Moreover, the three companies will retain the right to renegotiate every two years during the term of the contract.

AOL's overall valuation was less than $100 million a few days ago when it injected capital into westero to seize control. Obviously, the reason why the three companies dare to speak so loudly is that they must have seen Simon, the big money maker behind the scenes.

Fat sheep are not slaughtered, white sheep are not slaughtered.

Not only that, considering Simon's optimistic attitude towards the Internet industry, the three companies also asked for a stake in AOL.

In Simon's opinion, if he could sign the exclusive agreement, he would be happy to pay $40 million immediately. When the Internet industry starts to break out, the three companies will definitely find out what a big mistake they have made.

But of course, this kind of thought can not be revealed, Simon is not likely to agree to the three companies to participate in AOL.

As a result, this matter has been entangled for a month, and up to now it has no result.

Obviously, Jennifer remembers it and nods: "I think it would be more cost-effective for Bell Atlantic three to pay according to the total number of users if they could reduce the single user quotation to $1. But what does this have to do with our acquisition of MCA? "

Simon said: "my previous plan was to let AOL launch the acquisition of these traditional operators when AOL develops to a certain scale and the federal Telecommunications Regulations are relaxed a little bit. Three networks in one, remember I said this idea? "

"In 1984, the telecommunication Act introduced in the process of at-t splitting restricted long-distance telephone companies, regional telephone companies and cable TV companies from entering each other's fields. It should be very difficult for the federal government to deregulate telecommunications, "the female assistant said skillfully, suddenly understood, and said," are you going to launch an acquisition with traditional operators now? "

"Bingo," Simon tapped on the porcelain plate with a fork. "When you go back today, you can start to collect the information of these three companies, including their asset market value, business status, management information and industry related legal documents, and remember to keep it confidential."

"I'll do it myself," nodded the assistant. "But then we might have to raise a lot of money. What's more, it's impossible to buy these three companies at one time. Which one are you going to choose? "

Simon blurted out: "Bell Atlantic."

It is impossible for the current westrow system to eat three companies in one gulp, both in terms of capital and law.

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

Bell Atlantic is the predecessor of Verizon, the second largest telecom operator in the United States after at-t for many years. Its business areas are also in the densely populated states of Pennsylvania, New Jersey, Washington, D.C. and Virginia in the eastern United States, with a regional population of more than one fifth of the United States.

Of course, Bell Atlantic has the highest market value among the three companies.

Even in the context of the outbreak of the Gulf War and the continued decline of the US stock market, the market value was more than US $5.6 billion by the end of last week.

Given a 30% premium, Simon needs at least $8 billion to win Bell Atlantic. With the $7 billion prepared for MCA, Simon will need to spend $15 billion this time, most of which will be obtained through loan financing.

The acquisition of Reynolds nabesk, which was completed at the beginning of last year, has completely become a disaster one and a half years later. After the outbreak of the US debt crisis at the end of last year, there have been very few mergers and acquisitions of more than US $1 billion in this year.

Simon plans to double the operation of this large-scale acquisition, once the news comes out, will definitely detonate the entire federal media.

In fact, Simon would like to go step by step if he has enough time.

However, this is the period of the worst economic downturn in the 1990s of the United States. Once the United Nations forces have successfully solved the Gulf War next year, the federal economy will recover rapidly. At that time, Simon may pay more than 10 billion US dollars if he wants to get Bell Atlantic, and even invite bidders.In the long run, if Simon waits until the peak of the new technology wave in the 1990s, and then promotes the expansion of AOL according to the original plan, it will involve a large-scale merger and acquisition of 100 billion US dollars, but the obstacles at the level of government supervision will be more than ten times.

Now that many things have changed, it is undoubtedly the best choice to start the expansion of westero system in the field of telecommunications ahead of time while the funds available are very abundant.

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