In July 1985, seven researchers convened in Dr. Irving Jacobs's home to discuss key initiatives and subsequently established Qualcomm. Their development of CDMA technology propelled the company to success.
Henry focused on maintaining his composure and greeted the Qualcomm representatives: "Hello, I am Henry Williams, the chairman of Cisco MCI!"
The Qualcomm group was initially taken aback. They had dismissed him as a mere employee but quickly realized he was, in fact, the chairman. As uncertainty danced in the air, John Chambers approached. "Mr. Williams, may I ask who these individuals are?" He typically refrained from addressing Henry as "chairman" in front of outsiders to protect his true identity.
However, it was essential for Henry to make known his title this time.
"These are representatives from Qualcomm; they're here to discuss a business proposition," Henry replied with a chuckle. "It's amusing; I introduced myself as the chairman, and they didn't believe me! John, you must assist me in clearing this up!"
John Chambers appeared surprised, contemplating what made Qualcomm's visit appear so significant that Henry felt it necessary to reveal his identity.
"Yes, gentlemen, this is Mr. Henry Williams, chairman of Cisco MCI!" John Chambers affirmed with a serious tone.
"Oh wow, I'm surprised! How old are you? Fifteen? Sixteen? I can't believe you're the chairman of a publicly traded company valued over $20 billion!" exclaimed a Qualcomm representative.
Henry cracked a modest smile. "Now that John Chambers stands in my corner, do you believe me?"
Qualcomm's representatives nodded. "Since Mr. Chambers, as CEO of Cisco, vouches for your identity, we can certainly trust it!"
"It's a pleasure to meet you, Mr. Williams! I'm Owen Jacobs, chairman of Qualcomm," said a middle-aged man wearing glasses and meeting Henry's handshake with enthusiasm.
"Nice to meet you, Mr. Jacobs! I was intrigued to hear that you've developed the CDMA technology. Have you sought out other telecommunications companies to promote this technology?"
Irving Jacobs's expression shifted to one of discomfort. "Yes, we first approached AT&T, but they blatantly refused to adopt CDMA technology."
"Mr. Jacobs, it doesn't surprise me that AT&T turned you down."
"Oh? Why's that?" Owen asked, his curiosity piqued.
Henry smiled and inquired, "Mr. Jacobs, have you heard of Nikola Tesla?"
"Nikola Tesla?" Owen muttered, ruminating for a moment. "Oh! Is he the one renowned for alternating current?"
"Precisely!" Henry affirmed. "Are you acquainted with the dispute between Tesla and Edison?"
Irving Jacobs nodded affirmatively. "I've heard of it. Edison advocated for direct current and aggressively constructed power stations nationwide while facing financial ruin. He recognized the advantages of alternating current, but switching from DC to AC would dismantle everything he built—his legacy would be worthless. Consequently, he resisted adopting AC technologies vehemently! I see what you're implying. The conflicts Qualcomm is confronting reflect a similar predicament. AT&T refuses to abandon their traditional wireless systems to accommodate CDMA!"
"Yes! Precisely!" Henry said, grinning broadly and continuing, "But we at Cisco MCI are different. We embrace CDMA technology and are eager to advocate for it as the standard for global wireless communication! Just envision this, Mr. Jacobs—Qualcomm transforming into the world's premier wireless technology firm, receiving global recognition and applauded for its achievements!"
"Mr. Jacobs, I eagerly look forward to a bright future for Qualcomm!" Henry concluded, smiling at Owen Jacobs.
Owen commenced to feel enthused toward Henry's words, yet he retained a level of composure befitting his experience. "Mr. Williams, I assume Cisco won't provide support for free. What conditions would accompany your assistance?"
Henry took a sip of his coffee and replied, "To be forthright: my proposal is for Qualcomm to merge with Cisco, thereby becoming family. Naturally, Cisco MCI will back Qualcomm and aid in promoting CDMA technology!"
The atmosphere shifted in the room as Owen Jacobs and his associates exchanged glances filled with surprise.
Jacobs pressed, his voice stern, "You mean to say that Cisco intends to acquire Qualcomm?!"
"You could interpret it that way," Henry replied nonchalantly. "Alternatively, you might say Cisco is investing in Qualcomm, but the expectation is that Cisco will attain controlling interest. Regardless, Cisco will guarantee Qualcomm considerable autonomy. Typically, we wouldn't intervene in Qualcomm's operations—unless it pertains to significant decisions!"
Noting the ambivalence on Owen Jacobs's face, Henry encouraged him, "Mr. Jacobs, integrating Qualcomm into the Cisco system isn't a disadvantage. Under Cisco's roof, Qualcomm can dedicate itself to research and development without fretting over promotional issues! Furthermore, you understand that the benefits at Cisco are exceptional. Following acquisition, we'll ensure truly equal treatment—including reward options—for all Qualcomm employees!"
Owen Jacobs contemplated Henry's suggestions, finally relaxing. "Mr. Williams, I need to evaluate this proposal and confer with my partners before making a definitive decision!"
"Of course!"
Afterward, Henry and John Chambers escorted Owen Jacobs and his team from the office.
"Chairman, is Qualcomm truly as influential as it appears?" John Chambers inquired out of curiosity.
"They are indeed significant. The CDMA technology they've developed could overhaul the entire wireless sector! We must acquire them!" Henry affirmed decisively. "Keep a close watch on the movements of Qualcomm's executives; I require you to gather reliable intelligence!"
"Understood!" John Chambers nodded in agreement.
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Upon returning to Qualcomm, Owen Jacobs immediately informed his colleagues of the conversation he'd just had with Cisco MCI. The team then engaged in a heated discussion!
Some members were inclined to merge with Cisco, while others were adamantly opposed.
Ultimately, they reached a resolution indicating that Qualcomm would refrain from responding to Cisco's offer until after additional discussions with other telecommunications firms had taken place. After all, Qualcomm represented the culmination of extensive hard work by everyone involved, and merging with Cisco would feel akin to relinquishing ownership. Most members weren't keen on the idea!
In short order, Henry learned that Qualcomm executives had begun contacting other telecommunication companies!
"I anticipated it wouldn't be that straightforward…" Henry mumbled quietly to himself.