Reborn Tech Maniac

Chapter 734 Dare to blow up my boat is not that simple

……

After Datang Mobile Communications acquired the cellular phone operating license of LIN Broadcasting Company, it further consolidated its leading position as the largest cellular phone company in the United States.

The media is naturally very focused on this major industry development, but this is not the point, but the crazy degree of money-burning of various cellular communication operating companies.

It has been more than five years since the U.S. Federal Communications Commission officially issued a cellular phone operating license in 1983. Naturally, there is no secret about some information in this field.

For example, the standard that can most vividly measure cost input and value output, that is, the apportioned price of each "head", can be said to be a concept deeply rooted in the hearts of the people.

An article in the "Wall Street Journal" analyzed this, with a very eye-catching title - "Location, Location, Location", which pointed out that in order for Datang Mobile Communications to obtain a cellular phone operating license in New York, an area where "location" is important , the cost per "head" paid is as high as $365.5.

It should be known that when the FCC first issued cellular phone operating licenses, industry powerhouses, including Bell in various places, were skeptical, which directly led to less intense competition for licenses. At that time, the average price per "head" was roughly for $4.5.

As the commercial prospects of cellular telephone systems became clearer, competition for licenses became fierce, and by 1986 the average price per "head" had risen to about $20.Southwest Bell paid $40 per head in certain acquisitions during the same period.

Afterwards, the "capital" cost of the license, as an important financial data of various cellular phone communication companies that have started to officially operate, has become more and more secretive.

But the existing information is enough to explain the problem-in order to repel all competitors, Datang Mobile Communications Company gave a crazy price to win the cellular phone operating license of LIN Broadcasting Company.

Everyone is staking the land regardless of the cost, so it is naturally driven by real interests.

Back in 1981, AT&T, which hadn't been dismantled, conducted an official assessment of the potential of cellular telephony in the United States, and it concluded that it wouldn't have more than a million subscribers until the year 2000.

In reality, the number of cellular phone users has already exceeded 100 million.

Investors who wake up from a dream and react, have no time to worry about why AT&T, the giant that controlled the entire American communications industry at the time, came up with such a stupid and ridiculous evaluation result. The most important thing is to catch up and get a share of the action.

In this case, the prospects of the cellular phone business in the United States are naturally more and more optimistic.Of course, the premise is that you can afford to burn money like Datang Mobile Communications Company; if you don’t have that strength, quickly learn from LIN Broadcasting Company, sell at a high price, and leave the market; otherwise, it’s like McCaw Cellular Phone Like the company, hanging up and down in embarrassment.

Without the financial media showing off, ordinary people would understand that Datang Mobile Communications, backed by the richest man in the United States, has a financial situation comparable to that of traditional communications companies like the Bell System, especially with the addition of British Telecom.

Therefore, when the news came out that Datang Mobile Communications Company would IPO within the year, people who were interested in it got excited and paid attention to any relevant news, lest they miss an opportunity to make a fortune.

On the other hand, McCaw Cellular Phone Company, which ranks second, although it seems to be in second place, the number of licenses is obviously different from that of Datang Mobile Communications Company, which is ranked first, and its financial situation is relatively poor. A large part of its funds comes from garbage. Bonds are like building a building on the beach.

……

"Craig McCaw's attitude is very cold?" After listening to Tang Wenmao's report, Tang Huan asked subconsciously.

The external analysis of the current situation of Datang Mobile Communications Company and McCaw Cellular Phone Company can be said to be in place, and Tang Huan also intends to annex McCaw Cellular Phone Company, so that the cellular phone business that relies heavily on economies of scale can squeeze out as much profit as possible. Oil and water come.

Tang Wenmao shrugged innocently, "After my meeting with Craig McCaw, I told him straight to the point. He immediately asked me what kind of price I could offer him. Naturally, I asked McCaw directly. The current debt situation of the cellular phone company. As a result, Craig McCaw just said coldly, 'You are going to be disappointed', and sent me out."

"In this way, this guy is not as dead end as the outside world understands. He still has cards to play in his hand." Tang Huan muttered to himself and analyzed.

……

Craig McCaw, like Gates, was born in an upper-class family in Seattle, and even went to the same school-Lakeside Middle School.His father, Eroy McCaw, was a radio station owner and operator of a cable TV system, one of the pioneers who ventured successfully and found profits in the radio field at the time.

However, the McCaws were not as lucky as the Gateses.Eroy McCaw died early of a heart attack, leaving a mess that was strong on the outside but strong on the inside.Fortunately, a cable TV franchise was passed on to the four sons without any obstacles, and Craig McCaw, who dropped out of college like Gates, built his father's unfinished business on this basis. .

But by the early 1980s, Craig McCaw was not thinking about cable TV.Gein has encountered the ceiling of his career. The further the development of this field, the more he will invest in capital. Only national players are left to play in the field, just like the TCI controlled by John Malone. Companies that can't get in are getting more and more suppressed.

In the process of looking for new investment areas to expand his ambitions, the cellular phone business, which had just begun to emerge, came into Craig McCaw's eyes. It has great similarities with the operation model of cable television, and in its early stages of development This stage is not valued by the capital giants, which is just suitable for him to find another battlefield.

In the more than 10 years of operating cable TV, Craig McCaw has formed his own business philosophy - if you don't expand, you have to perish, that is, to grow through continuous acquisitions.Business success is achieved through economies of scale.

At a young age, he is very good at reducing costs. Every time he acquires a small company, he can quickly make the financial statements look good, and then get a bank mortgage loan, which has won the trust of many bankers. .

At the same time, in addition to his own brothers, Craig McCaw also formed his own team at this stage, and actually attracted some people to work for him.

Armed with these resources and rushing into the fledgling field of cell phone applications, Craig McCaw was like a fish in water, out of control.

……

Tang Wenmao speculated and said, "Perhaps, Craig McCaw's debt situation is not as bad as the outside world knows?"

"That's impossible." Tang Huan shook his head. "The investment game of cellular phones is not just about buying operating licenses, but also spending real money to buy equipment and build a realistic service network. We understand the rules best. .”

Speaking of this, Tang Huan picked up a document and looked it over again, and said slowly: "Craig McCaw's largest fund in the initial stage came from the 1 million US dollars provided by the banker who trusted him. ; followed by $13 billion raised through junk bonds, and then McCaw Cellular Phone IPO. $3 million was raised; soon another $6 million was raised on junk bonds. It can be seen that junk bonds in Craig · How important it is to McCaw's financial situation."

"It can be said that Craig McCaw has brought the situation to this point. The major shareholders of the banks and those 'junk stocks' have not dared to 'wean their milk'. Otherwise, the huge amount of money invested before will be ruined. gone."

"Also, last year, Craig McCaw sold his stake in cable TV that he had amassed over the years for $7.75 million and managed to lure TCI CEO John Malone into McCaw Cellular The board of directors may not be a compromise on his part to save the situation."

Tang Wenmao calculated in his mind for a moment, and then said suspiciously: "Although TCI is one of the top giants in the US cable TV field, and John Malone is also among the billionaires, I am afraid it still cannot help Craig McCaw to support the scene." Otherwise, John Malone would not have dissuaded Craig McCaw from following up with an offer that day in the final stages of the LIN Broadcasting Corporation cellular telephone operating license auction."

"That's why I said, Craig McCaw must have got another good card." Tang Huan said in a deep voice, "Perhaps, I should meet with him in person to test his tone."

Tang Wenmao patted the armrest of the sofa angrily, "So, when we met that day, this guy was most likely teasing me."

"It's harmless to play with him, after all, he might hate us so much." Tang Huan said with a smile: "You can contact Craig McCaw again and see if we can talk face to face."

……

During this period, Tang Huan's villa in New York ushered in new guests - the Bush family.

1988 was another election year in the United States. Reagan, the oldest president in American history who had been re-elected twice, was about to step down in less than a year. Attack this throne.

As the eldest son, Bush Jr. is obliged to actively move around to help his father win support.Tang Huan naturally became an extremely important public relations target, not to mention that the relationship between the two parties has been dating for many years, and they do not move abruptly.

During the greetings, Bush Jr.'s twin daughters—Barbara and Jenna, leaned into Tang Huan's ears together and asked, "Have Jin Chang and Jin Ge returned to the United States yet?"

Tang Huan laughed loudly, "The two of them are too naughty, so I shut them up in that strange environment in Asia, where they study and study honestly?"

"That's it..." The two little girls looked disappointed, "Then will they have summer vacation?"

"It depends on their actual performance." Tang Huan continued to tease the future first daughter of the United States, "Otherwise, I won't even let you watch the Olympics."

……

With lively children in the middle to adjust the atmosphere, the villa was suddenly much bustling.

The topic of Bush Jr. and Tang Huan quickly turned to this year's US election.

In fact, Bush Sr., who has a rich resume, has accumulated a lot of money after years of operation, and his advantages in the election are quite obvious.

In the primary round of the 1980 election, Bush Sr. lost to Reagan.After that, he agreed to serve as the deputy of the opponent, partnered for the election, and finally won the victory. He served as the vice president for eight years during Reagan's presidency.

During this period, Bush Sr. tried his best to keep a low profile, and his main task was to attend various public events, large and small, including several state funerals, which were then used as comedy material by the media.

The cautiousness of Bush Sr. can be seen from the response to the assassination of Reagan on March 1981, 3. Compared with the "improper wording" of then Secretary of State Alexander Haig's "now I am in charge", Bush Sr. who was visiting abroad, On the grounds that it did not meet the vice president's specifications, he rejected the suggestion of his staff to return directly to Washington by helicopter to take power.

Regardless of whether there is any information provided by Tang Huan, who was at the scene of the incident, it played a correct reference role. Major dispute.

Bush also personally presided over a special committee, lifted more than a hundred regulations that were considered outdated, and made amendments to other regulations, thereby reducing the size of the federal government to match the "small government" of Reagan economics. "Proposed.

On July 1985, 7, Reagan underwent surgery due to health problems. During this period, Bush Sr. took over Reagan's work and became the acting president.

According to China's strategy, in the past eight years, Bush Sr. has worked hard and tried his best to accept good fortune.In this year's presidential nomination competition within the Republican Party, the phenomenon of popular expectations reflects the value of this savings.

Seeing that Tang Huan was so obviously optimistic about his father, Bush Jr. was very happy, so he was also in the mood to chat about his oil business that was not going well in the past few years, and said with emotion, "The ceasefire within the year of the Iran-Iraq War is almost a certainty, and it is almost certain. Don’t know what that will do to the price of oil.”

It was a coincidence that while the two were talking about this topic, the assistant hurriedly delivered a newspaper, which clearly read: The world's largest oil tanker, the Sea Giant, was hit by a missile launched by Iraq and sank.

Seeing the face of the richest man turned ugly, Bush Jr. comforted: "It's just a boat, it doesn't matter much to you."

"Is there someone like you who can explain people?" Tang Huan muttered angrily, and then snorted coldly in his heart, "It's not that simple for these war lunatics to dare to blow up my ship!"

(End of this chapter)