Chapter 463 Reconstruction of the world's high-tech field
November 18, 2002, a very auspicious day.
Hong Kong's PCTC acquired the American Global Communications Company, which was under bankruptcy protection, for US$11.7 billion. Compared with the US$45.6 billion that was not negotiated before, this price is completely worthless.
After the merger, the multinational communications company was named Hong Kong Global Communications Company, while the original Yingke Telecommunications was directly thrown into the ocean. This name was both stingy and unpleasant. Wang Yaocheng expressed his disdain for it at all.
January 22, 2003
Hong Kong's Global Communications Company once again spent US$22.2 billion to acquire the optical fiber and cable business of the American World Communications Company, which was under bankruptcy protection, and took over the optical fiber network throughout North America, as well as long-distance telephone and other services in metropolitan areas on the east and west coasts.
This part of the business is the crown jewel of the US-based WorldCom Corporation, which is worth hundreds of billions, with an original value of more than 68 billion US dollars.
Unfortunately, under the leadership of creditors who were eager to withdraw funds, it was sold to Hong Kong Global Communications Company at a low price, making it a multinational communications company spanning North America and East Asia.
Only in North American market
Hong Kong Global Communications ranks third in terms of long-distance customer share, and its customer base is mostly located in developed metropolitan areas on the east and west coasts, with strong payment and spending power. At the same time, it is also an important customer base for high-tech products.
In one fell swoop, we got rid of the business in the vast inland and economically weaker southern states, and our operating costs were greatly reduced.
March 7, 2003
These two heavyweight acquisitions were approved by the U.S. Trade Commission, which is committed to anti-monopoly, and gave the green light to go ahead amid the uproar against monopoly.
In response to a reporter’s question, U.S. Commerce Secretary Mangel Glenn said;
“The United States is committed to advancing the process of world trade freedom, expanding the breadth and depth of commercial and high-tech cooperation, firmly maintaining the basic norms of commercial society, and creating a good environment for people from all over the world to invest and operate in the United States. This once again validates the dazzling American dream,
It is the paradise of investment in the world..."
Blah blah blah, it's all such nonsense.
February 18, 2003
News came that shocked the financial circles of the United States and the world. Microsoft, together with several other large companies, acquired Yahoo for a price of 202 billion U.S. dollars at a premium of 66%, which set a new record in the history of world mergers and acquisitions.
Although the transaction value is as high as 202 billion U.S. dollars, after all, not all Yahoo shareholders sold their shares, and the actual transaction volume is far less than this figure.
(If based on Yahoo’s market capitalization of US$140 billion, the actual transaction price should be US$232 billion! This is because the common stock does not have a 66% premium factor, so the total acquisition value is US$202 billion)
Among them
Microsoft joined forces with Time Warner, Johnson & Johnson, Pfizer and Merck to acquire 32.2% of Yahoo's original controlling shareholder Wang Yaocheng's preferred equity at a premium of 66%, with a total value of US$65.044 billion.
72% of this large transaction totaling US$65.044 billion was completed in the form of a share exchange through the issuance of new shares. Several companies paid a total of US$46.83 billion in preferred equity, including;
After the merger, Royal Fund obtained 13.3% of Microsoft, 4.4% of Time Warner, and 7.8% each of Johnson & Johnson, Pfizer, and Merck, with a total preferred equity value of US$46.83 billion.
In addition, Royal Fund continues to retain 10.02% of Yahoo's common stock without voting rights.
The remaining 28% of the transaction was acquired in US dollars in cash, and US$18.214 billion was paid to the royal family fund. After the tax return at the end of the year, federal and state personal income taxes totaling 21.5% were deducted, and US$14.298 billion in cash was finally obtained.
Under the Nasdaq market rules;
Microsoft will acquire the preferred shares of Yahoo that other minority shareholders are willing to sell on the same terms.
word gets out;
The world's financial circles are in an uproar, predicting that Microsoft will become an unshakable overlord in the network high-tech industry and will dominate the world's software industry for the next 50 years.
After the M&A transaction occurs
Microsoft's stock rose rapidly by 8.72%, and its market value exceeded the US$170 billion mark in one fell swoop, reaching a height of US$177.8 billion.
at the same time
Yahoo's stock rose 4.46% in a single day, showing that Wall Street is unanimously optimistic about this.
The historic merger of Microsoft and Yahoo is a powerful alliance in the Internet high-tech industry. Looking at the fields they have entered is frightening, and it makes people unable to resist at all.
Microsoft is the undisputed overlord of desktop systems, providing Microsoft Windows operating system and Microsoft Office series software to users around the world, and is the world's largest comprehensive computer software provider.
Yahoo is the world's largest portal website, providing a wide range of services such as politics, military, technology, entertainment, and gossip news, with a market share of 83.2% and more than 600 million loyal users worldwide (excluding Yahoo Japan and Yahoo China)
.
At the same time, Yahoo's share in the search field reached 66.57%, and it combined with Microsoft's IE browser to rank first and second in the market respectively.
It occupies a total of 88.6% of the global search market and is widely favored by advertisers. This is an almost unassailable advantage.
Since the Royal Family Fund has only given an official response, its true purpose is unknown. The world's mainstream media financial news has reported on this, and there is a wide range of speculations.
Reported by the British Times;
Lord Wang Yaocheng, the godfather of Silicon Valley, sold Yahoo and planned to switch to the communications field for development.
The Washington Post reports;
Does the entry of network high-tech giants into traditional industries mean a change in investment trends?
Reported by Japan's "Yomiuri Shimbun";
Network technology or communications industry? The world's richest man may bet on the wrong thing.
Reported by South Korea’s Chosun Ilbo;
Wang Yaocheng, the world's richest man of Korean descent, has captured the U.S. communications industry, attracting global attention.
New "Sing Tao Daily" report;
Global Communications Corporation, a multinational enterprise that emerged out of nowhere, changed the world communications market structure.
The external disturbances have not affected Royal Fund’s entire industry chain layout in the electronics and semiconductor industry.
We are still advancing steadily in accordance with the established policies, dispatching a large number of personnel to enter the US market, and spending a lot of effort to re-establish the framework and unique company culture of Global Communications.
From the Atlantic coast of New York and the Boston metropolitan area to sunny Florida, and the Pacific coast of Oregon to California, Global Communications has an extensive long-distance customer base, as well as fiber optic backbone networks and base stations throughout the United States.
These assets originating from several companies were consolidated under Global Communications. Due to the large number of personnel losses caused by layoffs and cost reductions, the business became fragmented.
The team dispatched by Hong Kong Global Communications Company went to various parts of the United States to receive and integrate assets, settle them on site and operate them carefully according to the company's plan, and implement a new management system and corporate culture.
This will be a long process, and we can expect to see initial results by the end of 2003. The integration time is initially set at one year.
Assets and equipment are dead, but people are alive.
Reborn from the ashes, a brand new enterprise will emerge.
With reference to the world's advanced corporate management systems, through the latest concepts such as lean management, flat structure, and partitioned responsibility systems, we will create a service-oriented multinational communications company dedicated to improving user experience.