[Chapter 898: The Money Grab Continues]
As Netscape's stock price soared above one hundred dollars, it wasn't just Silicon Valley that was buzzing; Wall Street and the entire nation seemed to collectively spiral into an irrational frenzy.
A market valuation of a hundred billion was, in William White's eyes, simply laughable. If this valuation system held any weight, Microsoft would have already crossed a trillion dollars.
However, he had no intention of missing out on this once-in-a-lifetime opportunity. After Cisco's restructuring, it was time to go public again.
"Andy, this is yet another hundred billion dollar company. Is our market insane?"
"Sir, according to Cisco's annual report, they're projected to reach 1.4 billion dollars in revenue this year. With an average gross margin of over 50%, they're practically printing money," Andy replied.
"Really?" White raised an eyebrow. The old guy at Morgan Stanley seemed confused; this wasn't just any internet company; they had actual products.
"Sir, the internet is developing rapidly. In the near future, they're expected to have an astonishing growth rate. Next year, the highest estimates already exceed 4.5 billion. That means, if you calculate with a 20 times PE ratio, this is a company worth four or five hundred billion."
"So, this valuation isn't high after all?"
"It is. Right now, the acquisition funding has surpassed Netscape's. Many predict that the market cap could break two hundred billion right out of the gate."
"Damn, they're just printing money. But wait, isn't there any competition? How can they ensure these margins continue?"
"Cough, cough, boss, there aren't any decent competitors. Cisco's brand is the sole choice for routers in the international market."
The old man was left speechless. The Sequoia Capital guy was probably hiding somewhere crying. And that founding couple? God, what on earth did they give up?
Human thoughts are odd; there's something called jealousy that can lead people to lose their sanity. To be honest, if there wasn't a prehistoric monster lurking behind this, this company would have been destroyed long ago.
The IRS or the Justice Department? William White wouldn't worry about those traditional tactics. If someone truly provoked him, it might just trigger an American equivalent of an Exodus.
They say the rich resent each other, but the wealthy also harbor jealousy of the rich. However, they typically don't act on it. Anger towards the rich is a double-edged sword, or perhaps Pandora's box. If the affluent class broke that rule first, fantastic; many would be waiting to rise again.
"By the way, Andy, does that internet logistics company have any financing plans?"
"Yes, this time it seems like they intend to cash out all their investments."
"Keep in touch. Let's not spark any disputes over valuations; it's proven that we can be quite foolish."
Morgan Stanley was deep in it, and Citi and Goldman Sachs investment managers weren't faring any better. The risks they mentioned, the investors couldn't see; they only noticed one investment myth after another. If White Bank offered wealth management services, those clients would probably disappear in droves.
Bubble?
Run along, they didn't even grasp what internet economics actually meant but dared to make judgments about bubbles.
"Well? They're not intimidated, are they?"
Filson forced a smile; his boss had quite the appetite. But honestly, he was right. Too much money with naive investors meant things had to move fast.
"Very enthusiastic. Morgan Stanley and Goldman Sachs aren't stuck on those valuations anymore. I heard their investment managers even approached Steve yesterday."
"Hahaha, they were ignored yesterday. You don't need to tell me; I know Jobs must have brushed them off."
"Cough, cough, pretty much. Anyway, it wasn't a pleasant meeting."
"Ugh, can't he be a little more tactful?"
Filson thought to himself, how could he point fingers at others when his own situation wasn't any better? Those investment bankers were unfortunate enough to encounter him; they claimed to negotiate but left no room for maneuvering. The message was clear: if you're in, great; if not, scram.
Netscape's hundred billion dollar valuation had set the whole world ablaze. Various investment firms raced madly toward Silicon Valley. As a side note, there were no discounts on flights to San Francisco anymore.
Some felt exhilarated, while others bore the weight of despair. Don Valentin was now the laughingstock of both Silicon Valley and Wall Street.
Many had intentions of deceiving William White; Don wasn't the earliest nor the most unfortunate; he was simply the least timely.
If he had waited another year or so, even if William White wanted to clear things out, it would have been impossible. Seeking death? Sometimes not even the gods could intervene.
"Don, are you joking? Shorting the Nasdaq? Have you been drinking today?"
Soros looked at the old man in bewilderment. Was this a feigned foolishness or real? If he recalled correctly, wasn't he supposed to have a lot of investments?
"George, what's Netscape worth, a hundred billion? That's ridiculous. Besides, I'm not telling you to do that right away. It will definitely end in disaster."
Soros felt a headache; everyone knew there was a bubble. When bubbles burst, who didn't end up in a mess? That was just classic nonsense.
Oh, the fool blinded by hatred. If you didn't still have some value, I wouldn't bother to deal with you.
Don Valentin knew that Soros was a big short seller, but what he didn't know was that Soros had hidden interests as well.
A group of big shots were out there raking in money, and then here came a small fry trying to stir up trouble.
Cough, were you truly bored of living? Soros eyeed the old man with skepticism. If I jumped right now, without William White having to lift a finger, those big shots would shred me to pieces. You think you can compete with William White?
"Don, I'll keep an eye on it. You have a point; the Nasdaq truly is overheated.
I heard the desert rich and the Germans have invested too. Hahaha, does Silicon Valley hold that much value?"
Soros's jests and indifference were clear to Don Valentin. They were both seasoned foxes; it was pointless to play games.
Of course, he was resentful; losing his rationality wasn't an option. Without this Cisco business, he could have been the biggest benefactor of this round.
It's important to know that it wasn't just Cisco that William White had stirred up; several companies felt the impact. Although these companies eventually reconciled, they had no collaborations. From this point alone, even though he suffered a massive loss, William White had no intention of forgiving him.
"Soros? Ha! What is this? The Losers' Alliance? I get it, Tanner, keep a close watch on those two."
"Young Master, why not surprise them?"
"Cut the nonsense; economic issues need economic methods. Tanner, if we start breaking the rules, this world will truly descend into chaos."
"Understood, Young Master. I always feel they're up to no good. It's not fitting for you to just sit back and react."
"Actually, these guys aren't a huge threat. Remember this, Tanner: bare feet aren't afraid of those wearing shoes; the so-called insanity often means just that."
Tanner couldn't help but think that his English was quite impressive. However, some idioms could be avoided, as they might provoke laughter.
Leaving the golf course, Don Valentin felt a mix of confusion. Apparently, there wouldn't be any movement from Soros at this time. Oddly enough, the old man's recent actions were peculiar; perhaps he had spotted a target. If it wasn't the Nasdaq, then what exactly was it?
*****
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