Henry had been stalling over Sequoia Capital's demands.
Sequoia Capital had invested heavily, and its interests were increasingly diverging from those of Cisco, necessitating Cisco to onboard new strategic partners and broaden its market reach!
Henry called for a meeting with Cisco's management team to address these matters.
Once the Posacks, John Chambers, and other executives arrived, Henry articulated his intentions.
"Recently, Sequoia Capital has heavily invested in our competitor. I think everyone is aware of Sequoia's recent actions. I won't elaborate on this—since they've harmed Cisco's interests, we must secure a new strategic partner. Moreover, it is imperative that Cisco accelerates its growth!"
"The most efficient way to grow our company rapidly is through acquisitions. Not only do we gain talent and technology from the acquired companies, but we can also expand our scale quickly!"
"Thus, we at Cisco must initiate a merger and acquisition strategy, and our approach must be swift, precise, and ruthless! Identify targets and act quickly. We will use any and all means at our disposal, whether through external competition or internal divisions. Our goal is to acquire ten companies within the next six months!!!"
After Henry concluded, the Posacks looked a bit skeptical. They felt that Henry's ambitions might be hasty. Acquiring ten companies in half a year seemed impractical, especially given the company's current financial capacities. Acquiring additional companies could put immense pressure on their resources!
"Henry, are we rushing? While acquiring one or two companies is feasible, it's unrealistic to think we can complete ten acquisitions in six months!" Bossack cautioned.
"If we receive external investment but fail to act decisively, we risk allowing our competitors to gain ground! Allowing them to develop is tantamount to signing our own death warrant! While ten companies may appear ambitious, it's not impossible!" Henry responded while glancing at John Chambers. John Chambers was known for executing Cisco's acquisition strategies masterfully.
As John Chambers caught Henry's gaze, he recognized that Henry expected him to voice his own thoughts. After a moment, he interjected, "I believe the chairman's plan is sound! It is indeed time for Cisco to ramp up its mergers and acquisitions efforts, and I maintain that acquiring ten companies in six months is absolutely feasible!"
Following his agreement with Henry, John Chambers continued, "A small network equipment company might only require a few million dollars for an acquisition. For medium-sized companies, acquisitions typically range from $10 to $100 million. While our current capital may be limited, we can secure financing from banks, or utilize leveraged buyouts to access affordable credit that can finance our acquisitions and utilise the future profits from the acquired companies to repay the debts. By doing this, we can minimize the financial burden on Cisco!"
"Furthermore, major banks like Morgan Bank and Citibank are eager to partner with Cisco!" John Chambers concluded.
Henry clapped in approval and replied, "Chambers is right! We can utilize loans or leveraged buyouts to facilitate our mergers and acquisitions strategy! I am confident because I believe in John Chambers. He has a proven track record!"
Henry's confidence stemmed from John's past accomplishments. In Henry's previous life, John Chambers transformed Cisco from a medium-sized company into a world-renowned giant!
Known as "one of the best CEOs of the 21st century," John Chambers earned that title through his genuine abilities!
After the meeting adjourned, the responsibility for executing the mergers and acquisitions plan was fully entrusted to John Chambers.
The Posacks, however, were clearly apprehensive as their perspectives clashed with Cisco's management. Such conflicts led to them parting ways in Henry's previous life.
Cisco showed immense growth potential and boasted an excellent reputation. Morgan Bank and Citibank were both eager to extend loans to support Cisco's merger and acquisition endeavors! Regarding operable matters and potential targets, Henry trusted John Chambers and the team with the execution. He was confident they would achieve positive outcomes!
Henry recognized that although he possessed great skills, he wasn't frequently present at Cisco to fully grasp the company's dynamics or comprehend competitors like John Chambers could. Blind direction from him could lead to unnecessary complications! A certain degree of decentralization allowed for extraordinary accomplishments. Still, John Chambers would send Henry reports detailing acquisition targets, alongside necessary justifications and analyses.
Though absent from Cisco's day-to-day operations, Henry remained well-informed of the company's acquisition plans!
As a shareholder of Cisco, Sequoia Capital retained a board position, ensuring they were privy to Cisco's latest developments. On one hand, they whispered behind closed doors; on the other hand, they couldn't help but feel pleased about the positive trajectory of Cisco's actions. The implication was clear: once it went public, Cisco's stock price would surely soar!
Yet Sequoia Capital found itself in a contradictory position. A godson could thrive, but it ultimately benefited Henry, causing inner conflict.
However, at the core of their desires lay the hope that Cisco would still perform well. Having previously invested $60 million, they commanded a substantial 35.2% share of the company. In contrast, their holding in the Nicholas Group stood at just 10%!
Now, Sequoia Capital was eager for Cisco to go public!
Henry was, in fact, aligned with their hopes...
In June, the National Science Foundation announced the completion of its network speed enhancement project. With an increase in average user speed to 0.5 Mbps and a reduction in network access fees to just $1,000 per year, the number of internet users surged dramatically. Hundreds of new users began accessing the internet daily, and tens of thousands were expected to be online!
Cisco experienced a significant surge, leading to unprecedented business volume. Despite increased hiring efforts, they struggled to keep pace. Cisco's performance increased more than tenfold!
With the IPO topic being prioritized, the timeline projected for Cisco to go public was set for late 1988.
In July, Henry turned 14. Due to Cisco's burgeoning operations, he sometimes found himself helping with various company affairs. Occasionally, he worked part-time as a network technician, assisting users in installing modems and routers. In Beverly Hills, where Henry resided, he encountered a user who repeatedly requested urgent help. Unfortunately, the technicians were preoccupied attending to other clients at that moment!
Henry decided to take matters into his own hands and assist the client with network equipment installation.
Upon arriving at the location, Henry knocked on the door and called out, "Cisco services—network installation! Is anyone home?"
Shortly thereafter, the door creaked open.
As Henry met the homeowner, he was momentarily stunned: "Nicole Kidman?"