Kailena, hearing that the bet was on her, suddenly exclaimed angrily, "What did you say?! The bet is me!!!"
Henry, half-jokingly, replied, "I hadn't finished! I see you're eager! Why, do you hope the bet is on you so you can lose to me? Is that it…?"
"You have such a shameless soul!" Kailena's face flushed red, her nose wrinkling in annoyance. With a curse, she stormed off.
Henry called after her, "Hey, don't walk away! Why don't you want to bet!!!"
Kailena ignored him, entering her office and slamming the door shut.
Henry shrugged and sighed, "Well then, that conspiracy failed; Kailena didn't take the bait!"
Feeling a bit down, Henry rushed to Isearch, and upon arrival, he heard the news: "Isearch Encyclopedia" had been successfully developed!
"Hurry up and launch this feature!" Henry exclaimed joyfully.
Isearch Wiki closely follows the Wikipedia model: professional, accurate, detailed, and free of censorship!
As for the "Thousand Degrees Encyclopedia," well, that's far behind Wikipedia! Wikipedia's influence is so vast that entire countries aim to block it…
Isearch aims to be a beacon of freedom on the internet!
There's no need to hide anything; the general public has the right to know the truth!
"Bill Joyce, remember that Isearch Encyclopedia is fearless of any governmental threats. With a commitment to free speech and professionalism, all content can be edited!" Henry stated seriously.
"Yes!!!" Bill Joyce affirmed, nodding in agreement.
At the beginning of October, Isearch Encyclopedia officially went live! To prepare for this, Isearch expanded its scale, purchasing numerous Noah's Ark servers and establishing its first data center in San Jose, California!
Simultaneously, Isearch began recruiting over 400 employees dedicated to data editing and review tasks! Given that the early content of Isearch Encyclopedia was nearly blank, the company needed to spearhead the content improvement! In reality, the editing of materials during the development of Isearch Encyclopedia had already begun. Over 400 employees had worked tirelessly day and night for more than a month with some tangible results!
The editing teams encompassed various fields including economics, politics, military affairs, and entertainment, ensuring a broad scope of popular topics were addressed!
The launch of Isearch Encyclopedia naturally garnered strong support from many companies tied to Henry!
Among them, Netscape browser, Global Online, and Isearch itself provided the most promotion!
With Netscape's pop-up windows, Global Online's coverage, and Isearch's search interface prompts, the internet became inundated with advertisements for Isearch Encyclopedia!
When you're affluent and resourceful, getting anything done is undoubtedly easier! This phenomenon only serves to highlight why the rich seem to get richer while the poor struggle—capitalists exploiting the scenario!
Without various collaborations and promotional efforts, Isearch Encyclopedia's trajectory would have been unclear!
Not limited to online promotion, Isearch Encyclopedia also engaged in offline advertising, primarily targeting colleges. The company temporarily hired local students from various universities to assist in promotions. The commissions for these students were minimal, but their contributions made a substantial impact! Each university recruited about 20 to 30 students, organizing them into teams to canvass male and female dorms. It felt unstoppable!
On the first day of Isearch's launch, traffic rankings shot into the top ten, with up to 10,000 entries edited!
The following day, the number of edited entries surged by another 50,000!
In the internet's early days, entertainment options were scarce, with users left to browse BBS forums and consume news!
Now, thanks to Isearch Encyclopedia, users had fresh content! Editing entries not only proved engaging but also provided a sense of accomplishment!
Isn't it gratifying to think about others browsing through entries you edited?
Isearch Wiki also implemented a point system; the more entries you edited, the higher the points earned and the more prestige you gained. As entries received views, users amassed additional points! Some individuals became so engrossed they spent all day editing entries just for the fun of it and to climb the leaderboard!
With the continuous enhancement of Isearch Encyclopedia's content, it became the first choice for information searches!
As a result, user engagement with Isearch increased, resulting in heightened loyalty among Isearch users. Meanwhile, competitors like AOL Search and other search engines began losing ground, shedding significant market share!
As Isearch continued to expand its features, AOL Search and similar platforms struggled to resist. With Isearch's recent introductions and innovative marketing campaigns, how could they maintain their foothold?
Such is the harsh reality of the online world! According to the Matthew effect, the rich continue to thrive while the weak falter. Eventually, other search engines would be driven from the market in disgrace!
In AOL's office, CEO Steve Case simmered with anger.
"You fools! Why can't you come up with such brilliant ideas? All of you are useless! Pathetic!!!"
Steve Case's face was flushed with fury; even with the office full of employees, it was dead silent!
"I don't care how you handle things. Now! Immediately! I want a plan written up—AOL Search cannot be defeated!!!"
"Yes!!!" everyone chorused in response.
Once the staff departed, Steve pulled a cigarette from his desk, lighting it in frustration. Through the smoke, his face radiated displeasure!
The rapid growth of Cisco—which began extending its promotional services to Global Online, Netscape, and Isearch directly from people's internet access—was clearly targeted to undermine AOL. Complications only compounded for Steve, who once celebrated the widespread adoption of internet concepts among investors. Now, AOL's stock performance was lacking compared to that of the Nichols Shopping Network and Netscape!
Nicholas Shopping Network was now valued at $35 billion, Netscape reached $10 billion, and even IMDB's valuation climbed to $4 billion; meanwhile, AOL's value languished at just $9 billion—less than that of a mere browser! Consumed by anger and discontent, Steve frequently wrestled with insomnia, leading to personal issues that necessitated the use of certain potent aids to maintain his composure. The announcement about Isearch launching Isearch Wiki caused a sudden and severe drop in AOL's search market share, driving Steve into a frenzy!
"Ceo, Ford Brook, executive director of Sequoia Capital, is here!" announced his assistant at that moment.
"Send him in."
Ford Brook hurriedly entered Steve's office. Upon greeting him, he stated gravely, "Steve, AOL is facing significant trouble!!!"
"What's going on?" Steve questioned, wondering how matters could worsen! He rubbed his temples, looking utterly fatigued.
"MCI is in financial trouble due to mismanagement. They managed to falsify accounts and diverted company funds into risky stock investments, resulting in a $250 million loss! The news broke, causing MCI's stock to plummet. Before I arrived, MCI's market value had dropped from $15 billion to $8 billion! Now the FBI is auditing MCI's finances, and several key players have been taken in for questioning!" Ford explained, shaking his head.
"Damn!!!" Steve couldn't help but shout, "What a bunch of idiots!!!"
While it wasn't particularly tragic to see MCI fail, the repercussions would ensnare others! Steve's expression darkened, practically dripping with tension. MCI represented a crucial partner for AOL. Accessing the internet via MCI's network was essential for successful product promotion! If Cisco acquired MCI, it would be tantamount to AOL being cut off!
Steve seethed internally, maintaining a stoic exterior as he remained silent!
The atmosphere in the office turned tense. Ford recognized that Steve was lost in thought, so he dared not interrupt but kept contemplating possible responses!
After some time, Steve spoke gravely, "Such a major merger will not be resolved quickly."
"Indeed, asset evaluation alone is time-consuming." Ford nodded. "MCI itself has substantial existing value; it's internal management that has eroded confidence. While Cisco is pursuing MCI, it's likely that other companies will express interest as well!"
Pondering the situation, Steve suddenly declared, "Brook, I've decided to acquire MCI!!!"
Steve's statement elicited surprise from Ford.
"Steve, AOL's flagship valuation is only $9 billion! How can you possibly swallow MCI?!"
"There's no need for a complete acquisition; we can aim for just a controlling stake!"
"Even so, obtaining a controlling stake in MCI won't be simple. Though prices have fallen, it still boasts a valuation over $7 billion…" Ford objected.
Steve, brimming with determination, asserted, "We could partner with other telecommunications companies, like Sprint…"
"You're suggesting a collaborative acquisition of MCI?"
"That's right!" Steve confirmed. "By working in unison, our chances of acquiring MCI improve substantially! Cisco has an interest; we must claim MCI for AOL! Though we might struggle now, fortunes can change!"
Ford nodded in agreement.
At that moment, the phone rang, and Steve's secretary picked it up. Instantly her expression faltered, and she leaned closer to whisper in Steve's ear, "Ceo, Cisco has just held a press conference where they announced a $10 billion bid for MCI!"
"$10 billion?! Where will they find such immense funds?!!!" Steve's jaw dropped incredulously.
"Citibank and Morgan Stanley have offered loans to Cisco, using 20% of their shares as collateral!" the secretary explained, casting a cautious glance at Ford. She was aware that Sequoia Capital used to be one of Cisco's major shareholders, but after several financing rounds, their shares had been diluted to a mere 2.7%, causing them to lose even their board seat! Now that Cisco's market valuation soared past $50 billion, the situation looked bleak for Sequoia Capital, which might very well regret their decisions!
Steve processed this information with a deepening frown; Cisco had already placed a $10 billion bid. To ensure their successful acquisition of MCI, AOL would have to rally support from other companies to exceed this amount. However…
A sense of desperation washed over him. $10 billion was an astronomical figure. Even if AOL pledged all their shares, others might still shy away from this risky endeavor! Steve had envisioned forging strategic alliances with other firms to secure MCI's controlling stake, but now, with Cisco's immediate bid, despair crept in.
"Don't panic, Steve! Cisco might just be bluffing, trying to scare off potential competitors!" Ford tried to comfort him.
"Regardless if Cisco's bluffing or not, we must strengthen our alliances and unite our efforts! Band together to resist Cisco's influence!!!" Steve refused to concede, his resolve firm.
"Absolutely. Sequoia Capital will handle outreach to other firms. We're already discussing matters with Sprint and upper management of other companies!"
"Great, continue pushing!"
---
The pursuit of MCI represented the largest acquisition effort Cisco had seen since its inception. Though Henry hadn't intended to go after MCI at such an early stage—given the high market valuation—circumstances had changed when MCI compromised its own integrity through fraudulent accounting practices and financial mismanagement. Investor confidence plummeted, and the stock value dropped rapidly.
If a corporation engages in unethical behavior, it must face consequences!
Currently, if Cisco didn't act on acquiring MCI, then they would miss an incredible opportunity!
With Henry's support, John Chambers and the other executives sanctioned the acquisition. Both Citibank and Morgan Stanley express willingness to extend financial assistance to Cisco!
For MCI, a lucrative takeover was almost guaranteed!
MCI not only maintains the most comprehensive internet backbone in the U.S. but is also the country's second-largest long-distance telephone provider. Losing either designation would be detrimental! By acquiring MCI, Henry could not only bolster their internet infrastructure but also broaden influence within the telecommunications sector!
As the backbone of the internet, Cisco would need to lease telephone lines from other telecom companies to maintain service. By acquiring MCI, they could drastically minimize internet servicing costs. Thus, from any vantage point, Cisco's acquisition of MCI seemed inevitable!
However, the acquisition would not come without challenges. MCI's shareholders were widely dispersed, with the largest holding merely 6.5%. For Cisco to secure a controlling stake or even privatize MCI would require extensive effort, as numerous competitors were circling!
In addition to the AOL Coalition, telecommunication giants such as AT&T were also vying to obtain MCI!
AOL exhibited remarkable prowess, aligning itself with more than a dozen telecommunications companies, including Sprint, ANS, and BBN, to collaborate in the acquisition of MCI!
In this contest of power, Cisco seemed the underdog!
However, the Nicholas Group then declared its intention to partner with Cisco for their MCI acquisition efforts!
With a combined market cap nearing $100 billion, the Nicholas Group and Cisco dwarfed AT&T's valuation! In contrast, AOL totaled only about $60 billion on a good day!