Henry has high hopes for Isearch. He aims for it to stand alongside Google, creating revolutionary technologies that are impressive and groundbreaking!
To enhance Global Online's competitiveness, developing a search box is essential.
Numerous companies have already followed suit by building portal websites, realizing that these types of sites generate significant traffic, which attracts advertisers and leads to revenue. Although Global Online has strong advantages, it has still lost a large share of this traffic!
For instance, AOL has also stepped into the portal game!
Due to the stagnation of American Finance Network, Steve Case had to rethink and reposition AOL. After studying the development model of Global Online, he concluded that portal networks would become a significant trend on the Internet. Consequently, he transformed the U.S. Financial Network into the AOL portal website, which is now just one of several sub-sites!
Not only AOL is doing this; Henry is aware of four or five other portals.
Currently, Global Online and AOL dominate the space. Global Online commands a remarkable 76.5% market share, while AOL accounts for 15%. The remaining 8.5% is divided among other portals!
To prevent competitors like AOL from encroaching on their market, Henry is determined to unleash his secret weapon, ensuring that they go home empty-handed and even pilfer some of their traffic!
The "search box" is the artifact that must make its debut!
With Isearch, you can find anything!
Henry wants to make the slogan "I will find it after a search" the most iconic and recognizable phrase on the Internet!
He aims for Isearch and Global Online to rise together, both becoming Internet giants!
In his past life, Yahoo faced decline after losing the search battle to Google. Relying solely on being a portal without core competitiveness is futile. If you can do it, so can others. However, with Henry's involvement, Global Online can effectively partner with Isearch while also innovating additional engaging features—much like Twitter. Once Twitter is up and running, they'll secure an unbeatable position!
Henry is now fully focused on the development of his search company.
However, he must keep an eye on such pivotal events as Dell's initial public offering.
On July 30th, Henry and Michael Dell gathered at Nasdaq. They talked extensively that day, primarily about Dell's growth strategy post-IPO. Michael planed for a global expansion, a concept Henry supported. However, Michael revealed his plans to enter the server market, which alarmed Henry. Wasn't this encroaching on Noah's Ark's territory?
Noah's Ark is not a publicly listed company, meaning it doesn't need to disclose details about its financial situation or shareholders. Naturally, Michael Dell was unaware that Henry controlled Noah's Ark!
In Henry's past life, Dell had successfully ventured into the server business.
Resigned, Henry explained to Michael Dell, "Michael, I am actually the majority shareholder of Noah's Ark! If Dell pursues the server market, it would be more advantageous to invest in Noah's Ark and collaborate with us—this mutual partnership could yield tremendous benefits!"
Michael Dell was taken aback. Henry's involvement seemed to reach every corner of the Internet. In awe, Michael could only express his admiration. After considering Henry's proposal, he ultimately agreed. It made sense; Noah's Ark has expanded beyond web servers to include application software and database servers, making it a leading player in the server market.
While IBM has started its foray into servers, it remains a step behind Noah's Ark, which could rise above them. However, IBM has a solid foundational reputation, and could potentially catch up. If Dell chooses to develop servers from scratch, it would be unrealistic to expect quick competition with Noah's Ark! Investing in Noah's Ark is clearly the best option.
Despite Noah's Ark not being a publicly traded company, industry insiders are extremely optimistic about its future, garnering significant interest from investors. Professional evaluations estimate Noah's Ark conservatively holds a total market value of around $1 billion!
It's unlikely for Dell to purchase shares directly in Noah's Ark; the only feasible method would be a stock swap. Henry and Michael agreed to discuss specifics once Dell goes public.
On August 1, Dell officially went public!
The company's rapid growth was evident; in three to four years, Dell had achieved remarkable sales, totalling hundreds of millions of dollars! In its prospectus, Dell outlined plans for worldwide expansion and a plethora of proposals designed to exhilarate investors, including the creation of a large manufacturing facility, focusing on direct sales to consumers while minimizing middlemen, maintaining a customer-centric market strategy, and boldly claiming to pursue a diversified hardware approach—essentially, a marketing spectacle.
In the prospectus, it even mentioned the involvement of the esteemed Nicholas Group—an impressive endorsement for Dell.
Following the IPO, Dell's stock price skyrocketed, leaving Nasdaq astounded!
In this IPO, Dell issued 10 million shares, representing 20% of the company's total capital, at $4 per share. By the end of that day, Dell's stock price skyrocketed to $24 per share—a sixfold increase! Dell's market capitalization soared to $1.2 billion! In the days that followed, while the growth rate began to level off, the value continued to rise slowly.
A week later, Dell's market valuation reached $1.5 billion. Henry convened Noah's Ark CEO Bob Gallagher, Nicholas Group CEO Geely Hutt, and Cisco CEO John Chambers at Dell to discuss the share swap deal with Michael Dell.
With multiple high-ranking executives present, Michael Dell would undoubtedly feel the pressure to make concessions. One-on-one negotiations would have placed Henry at a disadvantage.
The negotiations commenced.
Henry remained mostly silent after articulating his desire for cooperation between the two companies. He was content to let his capable subordinates handle the discussions—experts like John Chambers were seasoned negotiators in comparison to 23-year-old Michael Dell.
While Henry casually sipped coffee, the verbal sparring intensified at the negotiating table!
Though Michael Dell was no slouch, he was clearly outmatched by the seasoned veterans on the other side!
"Although Noah's Ark is not publicly listed, it significantly outperforms Dell in both reputation and industry contributions! Moreover, within the computing industry, Dell ranks only in the middle tier compared to giants like IBM, Apple, Hewlett-Packard, and Compaq. By contrast, Noah's Ark reigns supreme in the server market! Our network of sub-stations across the United States ensures consistent revenue to Noah's Ark!" Bob Gallagher asserted emphatically.
"That's right! With the acceleration of the National Science Foundation network, the Internet is expanding rapidly, resulting in increased demand for servers. Therefore, Noah's Ark's market value should continue to climb!" Geely Hutt added.
John Chambers chimed in, "Noah's Ark has established itself as a trusted authority in the server space, boasting numerous patents and valuable technologies. They are ahead of the curve—even IBM struggles against them. If we're speaking generally, potential companies with access to adequate financial resources seldom seek to raise further funds or relinquish shares. Noah's Ark fits this description—it isn't lacking in capital! Dell's investment in Noah's Ark represents a rare opportunity! If it weren't for Mr. Williams, Noah's Ark would not have made the choice to collaborate with Dell; we have alternatives like HP, Apple, and Compaq. Not to mention, IBM once approached us about acquiring shares, and we declined! If Dell wants to invest in Noah's Ark, greater concessions are necessary!"
Michael Dell's expression shifted as he bristled; he retorted, "Dell is developing rapidly! We've achieved hundreds of millions in sales in just a few years—this is a remarkable feat! Our future prospects are promising!"
John Chambers countered firmly, "What is the core technology behind Dell? Please don't tell us that it's just assembling computers! Even kids in middle school understand how to assemble computer parts!"
Michael Dell felt the heat rise to his cheeks. In its early days, Dell's core value proposition rested on computer assembly and sales!
Dell thrived on marketing!
However, John Chambers focused on technology, throwing Michael into a quagmire!
Despite Michael's earnest attempts to justify his business model, it ultimately fell flat in the high-tech innovation industry, where technology serves as the bedrock to any successful venture. Michael Dell was painfully aware that after going public, investing in hardware and exploring server development would be paramount.
"Marketing is king," the industry often proclaimed, but technology establishes the foundation for Dell's prospects!
Solely relying on marketing without technology is a recipe for disaster; it's akin to building a house on sand—an eventual collapse is inevitable! Can assembled computers remain a viable sales avenue forever? As people gradually gain competence with technology, they will shift towards purchasing individual parts and assembling their computers. Why would they turn to Dell?
"In my opinion, it would be most appropriate for Dell to exchange 30% of its shares for 15% of Noah's Ark." John Chambers suggested calmly.
"What?! That's absurd!" Michael Dell shouted in outrage upon hearing John Chambers' proposal!
Pushed to the limit, Michael was visibly frustrated, which opened the door for Henry to chime in.
"Michael, let's not get agitated. Swapping 30% of Dell's equity for 15% of Noah's Ark is a tall order! How about we adjust that to 30% of Dell's shares for 20% of Noah's Ark? Noah's Ark is a leader in servers, and investing would be a noteworthy opportunity. A premium share exchange is not unreasonable! Moreover, with Dell's ownership in Noah's Ark, it would greatly benefit Dell's hardware strategy! As the saying goes, standing on the shoulders of giants allows one to see further. If Dell can ally with Noah's Ark, the possibilities will be limitless!"
"I need to think about it!" Michael Dell paused, his mind racing.