Chapter 434

At the end of the bell ringing ceremony and the beginning of the inquiry stage, some people who participated in the listing even had an unreal feeling seeing Cisco's soaring share price.

After two hours of seven rounds of bidding, Cisco shares officially traded at $28, up 55.5% from $18.

The opening rate of 55.5% is the same as that of AOL two months ago. However, the opening market value of Cisco is US $8.7 billion, which has exceeded the highest market value of AOL two months ago.

However.

The opening market value of $8.7 billion is still just the beginning.

The whole day after that, the whole capital market was closely watching Cisco's rising share price.

After more than four hours of trading, Cisco's stock price peaked at $49.75, equivalent to 276% of the issue price, and its market value peaked at $154.7.

Such a market value, has surpassed the relatively old Microsoft and Intel two technology giants.

Finally, by the end of the day, Cisco's share price was fixed at $36.25, up 101% in a single day, with a market value of $11.27 billion.

Just on this day, a giant enterprise with a market value of 10 billion US dollars was officially born.

Simon's memory of Yahoo, the first day of listing, the highest stock price was equivalent to more than three times the issue price. However, Yahoo shares listed on the day of the highest stock price, the market value is only about $1 billion.

Companies with a market value of 1 billion US dollars and enterprises with a market value of 10 billion US dollars are obviously different.

What's more, it's 1991.

In this era, there is no giant enterprise with a market value of 100 billion in North America.

The market value of 10 billion US dollars is already a threshold.

For example, Time Warner, a media giant with a net asset of 25 billion US dollars, once had a market value of more than 8 billion US dollars last year due to the economic environment and high debt. After the rebound of the US stock market this year, it returned to the club with a market value of 10 billion yuan.

Therefore, Cisco's market value has broken through the $10 billion mark in a single day, which can definitely be called a miracle.

Before that, many analysts on Wall Street predicted that Cisco's best IPO market value should be $3 billion. After the IPO, if the market feedback is good, the market value is expected to exceed $5 billion.

As for Simon's direct determination of Cisco's IPO market value at $5 billion, Wall Street generally believes that this is a kind of risk-taking move of killing the chicken to get the egg, which is Simon's stupid move.

If the IPO price is set too high, it limits the space for the stock price to rise. Even if the IPO is barely successful, it is likely to cause the tragedy of the stock price breaking after the IPO.

Once the IPO breaks, the development of the next few years may fall into a haze.

The final result of the matter was obviously beyond everyone's expectation.

The highest one-day increase was 176%, and the highest market value was US $15.47 billion.

The closing price rose 101%, with a closing market value of US $11.27 billion.

Such a good start, even if there will be a correction in the stock price in the next period of time, can not cover up the fact that Cisco is favored by the capital market.

Looking back at the results, many people found that the first day of Cisco's listing was not an accident.

Most notably, compared with the last AOL IPO, Simon westero's public performance is obviously more high-profile and publicity. The whole westero system is building momentum for this Cisco IPO, and Simon westero has published a signed article in the New York Times for the first time.

Young people who have accumulated tens of billions of dollars in just a few years are enough to be warmly sought after by the capital market.

Simon westero's prediction at the bell ringing ceremony that Cisco's market value is expected to exceed 50 billion US dollars in the next five years completely ignites the market enthusiasm accumulated by westero system for Cisco's IPO during this period.

Since the 1987 stock market crash, the average annual return rate of the US stock market has been less than 10% in recent years due to the continuous economic downturn.

Even if Cisco's market value at the close of the day is US $11.27 billion, if the company's market value can reach US $50 billion in five years' time, the return on investment will be enough to attract numerous capital forces in North America, such as pension funds and insurance funds.

Affected by the first day of Cisco's listing, technology stocks in the U.S. stock market also rose across the board.

Microsoft's share price rose 6.3% on the same day, closing at $13.39 billion.

Intel's share price rose 3.7% on the day, closing at $11.09 billion.

AOL's share price rose 7.1% on the same day, reaching a market value of $7.19 billion, returning to its peak on the first day of IPO in July.

Among the surging tech stocks, Motorola, with a one-day decline of 3.9%, is like an alternative.This result is only because Simon westero said in an interview on the day of Cisco's listing, "I've sold Motorola shares.".

In fact, in Simon's memory, Motorola's market value reached 100 billion at the peak of the new technology wave around 2000. Because of the rise of mobile communication in recent two years, the company's performance has also continued to rise, so it is very worthy of investment.

However, since the two sides have made a deal, Simon has no intention of easing up.

Moreover, Motorola is undoubtedly the biggest obstacle for Nokia to enter the North American market.

At the beginning, in the process of acquiring Bell Atlantic, it was precisely because Motorola filed an objection to the federal regulatory authorities that Simon had to publicly promise that Nokia would not enter the North American market.

This time, Robert Galvin, the retired chairman of Motorola, did not disappoint the outside world. He once again attacked Simon in the media. Galvin believed that Simon's remarks at the Cisco bell ringing ceremony were extremely irresponsible and misleading investors. The SEC should investigate Simon's remarks.

At the end of the following weekend, Motorola's management had to publicly clarify that the company's operating condition was excellent. Meanwhile, it also claimed that it would enter the Internet equipment market and break Cisco's monopoly in this field.

Because of the high stock price of Cisco on the first day of listing, Wall Street inevitably appeared short phenomenon.

Robert Galvin's attack on Simon obviously hit some hedge funds.

Therefore, in the next few days, there was a wave of irresponsible remarks in the media that attacked Simon's arbitrary judgment of Cisco's future stock price. However, predicting a company's future stock price trend is what the whole wall street is doing.

Every Wall Street investment bank will issue corresponding evaluation reports on a regular basis.

Simon's remarks about Cisco's market value of $50 billion in five years are out of line in the eyes of many people, but they do not violate any federal stock market regulations.

Although there are still some disputes, Cisco's IPO has been a great success in any case.

In addition to all the procedures, Cisco finally got $660 million.

The management team announced a series of enterprise development measures in the following week.

Affected by these good news and market transactions, Cisco's market value has been steadily maintained at more than 10 billion US dollars in the second week of listing.

In addition, the original green shoes program has been successfully implemented.

Some of Cisco's other shareholders sold 6 million shares for an additional $18, cashing in $108 million.

At the beginning, these shareholders were proud that Simon could agree to start the green shoe mechanism. As long as the IPO is successful, even if the share price does not rise too high, it is not difficult to cash out the additional 6 million shares.

However, when Cisco's market value exceeds 10 billion in a single day, the shareholders who contributed to the green shoe scheme will inevitably regret it.

According to the current share price of Cisco, the 6 million shares are completely half price free. The shareholders who sold the shares are equivalent to a one-time loss of hundreds of millions of dollars. How can this not be distressing.

What's more, Simon westero's five-year $50 billion prediction.

In fact, most investors are not short of patience. The reason why we choose to cash out is that we are not sure about the future of the enterprise in addition to our own capital needs.

No one knows what a company will be like in the future?

However, if Simon westero's prediction of Cisco's $50 billion market value in five years comes true, the extra shares sold this time will be very unwise.

For Westeros, other shareholders choose to cash out, which actually brings some benefits.

According to the ownership structure plan formulated before Cisco IPO, once the initial shareholders' Class A shares are sold, these shares will be automatically converted into class B shares with only one tenth of class A shares. Unless the two parties agree in advance and obtain the approval of the controlling shareholder and the board of directors of the company, this will be true for the shares held by westero company.

Simon, of course, would not agree that the nature of the shares sold by other shareholders remains unchanged.

Therefore, the conversion of 6 million class A shares into class B shares means that westero's voting right to Cisco is further increased.

Cisco successfully completed the IPO, the media continued to discuss the company's share price in the process, and soon began to focus on another hot topic.

What is Simon westrow's current wealth?

The reason for this is that Forbes magazine said it would publish the new annual US 400 rich list in mid September.

Although the U.S. stock market began to recover in the first half of the year, and the Gulf War was a clean fight, the continued downturn of the U.S. economy did not immediately improve.

Affected by the environment, the wealth growth of many top rich people has stagnated. Some real estate tycoons even went bankrupt and were completely kicked out of the North American rich list.

Simon was obviously an accident.Just in the past year, the westrow system annexed MCA and Bell Atlantic, two enterprise giants with a total market value of 14 billion US dollars, and the total amount of liabilities of the whole westrow system also exceeded 10 billion US dollars.

However, after AOL's and Cisco's IPOs have been successful in a row, coupled with the stock prices of Microsoft, Intel, sun and other technology companies that are heavily held by westero in the past year, no one will think that Simon westero's personal assets will fall.

Simon westero has been the richest man in North America and the world since last year.

Now the question is, how much has the super rich got this year?

Simon doesn't have time to do this himself.

Although Cisco's IPO has been a great success, John Chambers and many other management members have also doubled the pressure because of Simon's five-year $50 billion speech.

Now that the words have been said, Simon has to pay more attention to Cisco. The following weekend and the first few days of the new week, Simon stayed in San Francisco to personally participate in the next step of Cisco's planning.

So it wasn't until September 12, Thursday, that Simon was able to return to Los Angeles.

After that, of course, I still can't relax.

Before that, on September 6, the same day Cisco was launched, Katherine's "the last flower" opened with 1216 screens in North American theaters.

From September 6 to September 12, in the first week of painting, the box office of "the last flower" totaled 7.74 million US dollars in seven days, which basically met the expectation of Denise entertainment.

Because of its good media reputation, the film is expected to have a very beautiful long term.

In addition to the new film "flowers of doomsday", a series of film projects of danielis entertainment are continuing to advance. Simon returns to Los Angeles and immediately begins to work on these projects.

Strictly speaking, Hollywood is not suitable for the professional manager system. Big studios have always been more inclined to paternalistic decision-making.

Peter Cooper and John Peters, the two current "professional managers" of Sony's Columbia Pictures, are undoubtedly the most typical negative cases.

Because Sony promised not to interfere in the operation of Columbia Pictures at the beginning, and under the guidance of two "professional managers", the operation of Columbia Pictures has become worse and worse recently.

Therefore, even if daenerys entertainment is split into three production and distribution networks, namely daenerys pictures, new world pictures and gaomen pictures, Simon still holds the final power of all projects. What he lets go of is actually the executive power of his film projects.

Moreover, the estimated annual film production and circulation of the three records in the plan is about 40, which is not much.

What's more, every film project often means millions or even tens of millions of dollars of investment. As long as the time is properly arranged according to the specific situation of the project, Simon can basically take care of it.

As we enter the middle of September, the end of the year schedule is no longer far away.

Scream 3, the final part of the scream series, is scheduled for October 25th, with only one month left. This will be the beginning of danielis Entertainment's schedule at the end of 1991.

During this period, not only "scream 3", but a series of projects such as "Toy Story", "horror corner", "fried green tomato" and "farewell to the piano" by Denise entertainment at the end of 1991 were completed one after another.

Toy story is undoubtedly the top priority of the schedule at the end of 1991.

In fact, the box office of this 3D animated film itself is still in the second place. As long as it is as successful as in the original time and space, the peripheral sales of the film can reach billions of dollars, which is the key.

and toy story also can provide the Universal Studios with the image of IP that is enough to compete with Disney. This is also crucial.

if Simon is not planning toy story and next year's Jurassic Park, and so on, Simon will not dare to start the construction of Universal Studios.

As a movie theme park, if the lack of Disney's iconic big screen image to attract tourists, the future business situation can be imagined.

compared to Disneyland, Universal Studios has been a big weakness in IP.

Universal Studios before most of the time, only through buying authorization from other studios to build scenic spots in Disneyland and competing with Disneyland, Universal Studios tried to develop many animated film projects, but not all of them. It has not been seen for many years to provide IP images for Universal Studios.

In the original time and space, the lighting entertainment of popular 3D animated films such as "Godfather", "little yellow man" and "pet secret" appeared under Universal Pictures. In fact, it was also the result that universal pictures had to continue to invest in 3D animated films under its overall corporate strategy.