In the CEO's office at Cisco headquarters, Henry posed a serious concern to John Chambers: "Our strongest opponent right now is AT&T. What if they dare to acquire MCI and engage in monopoly practices?"
Chambers responded with a smile, "AT&T originally split due to monopolistic practices. If we manipulate public opinion to suggest that they're violating U.S. monopoly laws by acquiring MCI, they'll likely back off once they hear the backlash!"
Henry chuckled, "Well then, let's first drive AT&T out of the game, and then we'll take on AOL!"
"Absolutely, no problem!" John Chambers laughed.
Afterward, John Chambers utilized the internet and various media outlets to clandestinely sway public sentiment against AT&T, emphasizing that they were ignoring U.S. monopoly law and could be monopolizing the long-distance telephone industry by acquiring MCI. The result was a wave of public condemnation against AT&T, culminating in a police inquiry. A week later, AT&T held a press conference announcing their decision to withdraw from the MCI acquisition!
Steve Case and his associates recognized that AT&T's withdrawal was likely orchestrated by Cisco. Rather than oppose it, they capitalized on the situation. With one less competitor, their chances for victory had increased! Now, the battle was set between the alliance of Cisco and the Nicholas Group against the AOL coalition.
Although the two sides had not yet officially engaged in conflict, the attention of the entire United States focused on them. Major newspapers and television stations closely monitored the situation, while experts and professors offered their insights. The potential $10 billion acquisition was extraordinarily notable, drawing interest globally! Yet, each participating company had simultaneously bolstered its reputation through this high-stakes maneuver.
Cisco and the Nicholas Group had become household names!
"Two against ten? Impressive!!!" one internet user praised.
"Support Cisco, support Nicholas!" echoed another.
Historically, Americans often sympathize with the underdog. Henry, with only two companies, contrasted sharply with AOL's dozen or so ventures, and he was showcasing this disparity in media appearances—certainly not flying under the radar!
"Cisco and Nicholas are no match for us!!!" asserted the CEO of ANS confidently.
"Cisco and Nicholas need to withdraw from the MCI acquisition!" the ANS CEO exclaimed. Despite regarding AOL's team as strong with ample funding, he claimed that Nicholas and Cisco were merely inflated stock prices—dismissing their capabilities altogether. He even warned that Cisco's stock could plummet!
Before long, Cisco's stock began to falter, with a significant sell-off occurring that day.
---
An emergency meeting was convened among Henry, John Chambers, and others.
"Based on current events," John Chambers reported solemnly, "it's clear someone is deliberately suppressing Cisco's stock price. And don't guess—it's undoubtedly AOL!"
Henry replied, "Some time ago, a large number of Cisco shares were purchased in the stock market. It seems this has been a long-established plan!"
"That's correct!" John Chambers agreed. "Our immediate priority is to stabilize the stock price. I suggest we absorb any shares they offload, no matter how many."
"How much cash do we currently have on Cisco's books?" Henry asked.
"Only $2.5 billion!"
"Let's reach out to Citibank and Morgan Bank for assistance!" Henry ordered firmly.
"Understood!" John Chambers nodded in compliance.
With the AOL alliance launching a brazen attack, if Cisco couldn't withstand the storm in the stock market, their stock price would collapse entirely. The AOL scheme not only aimed to profit but also intended to further weaken Cisco's foothold!
---
Henry then called upon the Nicholas Group, instructing them to help stabilize Cisco's stock by purchasing shares on the open market. Cisco's market valuation was still well below potential, and the Nicholas Group's investments would certainly appreciate!
In the ensuing week, the stock market provided a thrilling spectacle—hundreds of millions of dollars' worth of Cisco shares were traded daily in both sell-offs and purchases! Yet in the end, Cisco's stock price managed to stabilize.
---
At Sequoia Capital headquarters, Steve Case, Ford Brook, and representatives from other companies gathered.
Steve declared, "Ford, it's time for Sequoia Capital to make its move! Cisco is on the brink. If we sell our shares, it'll initiate a domino effect, and Cisco's stock price will surely plummet! We can profit immensely through short selling!"
Ford Brook expressed hesitance, "But Cisco has the backing of Citibank and Morgan Bank. I'm worried..."
Initially, Sequoia Capital had no knowledge of the stock price suppression scheme; it was a tactic devised by Steve Case. By deliberately keeping Sequoia in the dark, he aimed for them to act too late, making it more difficult for them to backtrack! Now, they faced a binary choice: support AOL, or risk severe losses if the plan faltered, given their stake as major shareholders of AOL and minor shareholders of Cisco.
Yet, within Sequoia Capital, there was trepidation regarding Citibank and Morgan's backing of Cisco. Selling their shares could result in severe financial losses!
"Ford, just watch!" Steve smirked mysteriously.
As he spoke, the CEOs of Citibank and Morgan Bank entered the room!
Ford Brook stared in disbelief. "What's happening? Why are the CEOs of Citibank and Morgan Bank visiting?"
Everyone promptly greeted the two banking heads.
Max Rockefeller, CEO of Citibank, assured, "We're collaborating on this operation."
"Indeed!" chimed John Morgan, CEO of Morgan Bank, "Morgan Bank and Citibank are remaining neutral!"
Steve patted Ford Brook on the shoulder. "Since the two major banks refrain from aiding Cisco, their fate is sealed! It'll be tough for them to withstand our assault! Ford, I suggest we start unloading shares while we still can to maximize profits!"
Ford Brook and Steve exchanged knowing smiles.
---
Meanwhile, Henry's stance was one of disbelief as he confronted Chambers. "What?! Citibank and Morgan Bank both refused to lend us money?!"
"Yes!" John Chambers replied with a resigned smile. "AOL has effectively lobbied them; neither bank is willing to take sides. They value the telecommunications companies as their important clients!"
A grimace overcame Henry's face as he realized the depth of the situation.
It became evident that relying on banks was ultimately unreliable.