Indeed, Bernard Ebers was in dire straits, with his company on the brink of bankruptcy!
This short sale caused the company to lose $450 million, plunging it into massive debt. Although the company was part of AOL, it was still a competitor facing disaster, with Sprint, BBN, ANS, and others contemplating how to acquire it.
Despite a market value over $5 billion, it was merely a facade; the company was drowning in debt, resembling a building on the verge of collapse. Unless someone provided a lifeline, it would surely go bankrupt and liquidate!
But would anyone extend that lifeline?
Bernard Ebers frantically searched for funding, yet no one was willing to assist. Allies were deliberating on how best to dismantle him, and the banks were unwilling to extend help given the company's terrible financial situation!
The AOL alliance began to fracture internally, and a drama of internal strife was unfolding!
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While the American Online Alliance faced its own turmoil, five notable guests arrived at Cisco: Director Rowan of the U.S. Telecommunications Industry Administration, French Ambassador Clark Longfellow, and their entourage!
Yesterday afternoon at three o'clock, an unexpected call arrived at Cisco stating that a U.S. government official would be visiting the next morning! However, it was astonishing that the visitors were none other than Rowan, the Director of the Telecommunications Industry Administration, and Ambassador Clark Longfellow! Upon revealing their identities, John Chambers's heart raced, and he quickened his pace!
In that fleeting moment, an idea sparked in John Chambers's mind.
"Could the U.S. and France be preparing to lay down a submarine optical fiber network?!!!" John Chambers excitedly escorted them throughout Cisco, passionately promoting Cisco's products, technologies, and networks while hinting that Cisco was perfectly capable of executing the submarine optical fiber project!
"The development pace of our Cisco network is the fastest in the United States, and our optical fiber technology is the best! We partner with the first-class optical fiber company, CommScope. Whether for terrestrial or submarine optical fibers, our technology is highly advanced—60% of U.S. optical fiber originates from CommScope!!!"
Rowan exchanged meaningful glances with John Chambers and turned to the French ambassador. "Clark, what are your impressions of Cisco?"
"Impressive! Truly a powerhouse in network equipment within the U.S.!!!" Clark Longfellow responded with a smile.
"Thank you for the praise, Ambassador Clark. Here at Cisco, we will continue to innovate and strive for excellence!" John Chambers replied, beaming.
After about half an hour, Rowan and Clark departed from Cisco. Though they did not explicitly state the purpose of their visit, it was evident to any observant bystander that something major was in the works. It was unlikely that the Director of the U.S. Telecommunications Industry Administration and the French ambassador would visit Cisco without a compelling reason.
Once Rowan and Clark had left, John Chambers quickly contacted Henry to inform him of the exciting news.
"Chairman, I believe the U.S. and France are preparing to establish a submarine optical fiber. They are seeking a suitable partner, and I think we must secure this opportunity!" John Chambers asserted confidently.
Henry felt a surge of excitement. If the network fiber was laid in France, it could extend across European countries, potentially paving the way for a global internet network!
"Yes, we must ensure we win this partnership!!!" Henry nodded firmly. "Initiate public relations efforts immediately; it's time for Cisco to flex its muscles!"
The U.S. government had often benefited from Cisco's technological prowess. As a leader in network equipment, they maintained a close relationship with both the military and government officials. Cisco's capabilities in network security and monitoring were significantly stronger than most imagined. Many of these operations remained confidential, and once uncovered, they were categorized as technical issues rather than revealing sensitive operations. This wasn't merely opportunistic behavior; it was essential for survival!
Cisco began mobilizing, as many influential U.S. officials lent their support to the lobbying efforts, which seemed entirely natural given Cisco's stature!
Initially, the U.S. government had been interested in MCI to assist with laying down the submarine optical fiber between the U.S. and France, but given MCI's current turmoil, it was challenging to rely on them. So they diverted their attention to Cisco. After some evaluations, U.S. Telecommunications Director Rowan and French Ambassador Clark Longfellow were genuinely impressed by Cisco and bolstered their lobbying efforts with assistance from several government officials!
The contract for this collaboration was all but secured!
Within a week, Rowan and Clark returned to Cisco to discuss formal cooperation.
John Chambers welcomed them into the conference room.
Director Rowan began, "Mr. Chambers, I'm sure you know why we are here! The U.S. and France are prepared to establish a submarine optical fiber connectivity project and require a partner for collaboration. After evaluations and comparisons, we've determined that Cisco is the most suitable company!"
"Cisco is honored to cooperate with you; this is a tremendous opportunity for us!" John Chambers nodded enthusiastically.
"This submarine optical fiber network will be jointly invested in by both the United States and France, granting both parties operating rights! What the U.S. government has implied is that they are prepared to delegate the management rights for the U.S. segment to Cisco!" Rowan explained.
As always, there are no free lunches. John Chambers asked, "What conditions will Cisco be required to fulfill?"
"Cisco will need to remit 90% of the annual profits generated from the submarine optical fiber network operations!" Rowan replied with a smile.
John Chambers calculated internally: "The 90% profit paid in, with the remaining 10% serving as operating expenses for Cisco! While it's not ideal, it's better than nothing! Plus, this contract will greatly enhance our brand's reputation. If other countries seek to lay down optical fiber and connect to the internet, they'll think of Cisco first!"
"No problem; we accept these terms!" John Chambers nodded.
"As for the costs associated with laying submarine optical fiber, we would like Cisco to provide a budget as soon as possible and outline an estimated project completion date!"
John Chambers remarked, "A week ago, we dispatched exploration vessels to survey the ocean for the best route, so I expect to provide a solid proposal shortly!"
"Excellent!!!" both Rowan and Clark replied, looking satisfied.
"Shall we initial the letter of intent for our cooperation?" John Chambers suggested.
Both Rowan and Clark nodded, "Sounds good!"