America's No. 1 financial conglomerate

Chapter 367 A More Far-Reaching Strategy

As Ernst's figure completely disappeared from the shadow of the Telephone & Telegraph Corporation headquarters, the door of the black limousine slowly closed, shutting out the oppressive feeling emanating from the building that symbolized the power of the telecommunications giant.

The air inside the car was more stagnant than outside, and the cool touch of the leather seats and the subtle fragrance of the car air freshener did nothing to ease Ivan Setonberg's tense state.

After Ernst sat down, his gaze inadvertently swept over Ivan, whose hands were clasped on his knees. Ivan's lips opened and closed several times, and a lingering sense of unease lingered between his brows. His hesitant expression was like a painting filled with unspoken thoughts, particularly noticeable in the quiet carriage.

After a moment of silence, Ernst broke the silence first, his voice echoing clearly in the carriage: "Are you worried about your future? Or to put it more bluntly, you want to know whose orders you should take in the future within the mainland telecommunications system, right?"

Upon hearing this, Ivan Setonberg's body stiffened slightly involuntarily. He slowly raised his head to meet Ernst's gaze.

Those were deep eyes, as if they could see through all the doubts and anxieties in people's hearts.

In the few seconds that his gaze met thats, Ivan's inner struggle surged like a turbulent tide, while confusion and worry grew wildly like vines, impossible to suppress.

In the end, he could not go against his true feelings and slowly nodded, his movement slight but firm, acknowledging Ernst's guess.

Even though Ernst reached an agreement with Telephone and Telegraph Group on cooperation with Continental Telecom, Ernst still holds 51% of Continental Telecom's shares in terms of equity structure, and theoretically still has absolute control over the company.

However, during the cooperation negotiations, Ernst made it clear that two years later, Telephone and Telegraph Group would have the right to acquire Continental Telecom in its entirety at the market price at that time, thus achieving privatization.

Ivan Setenberg is certain that the Telephone and Telegraph Corporation will exercise this right two years from now.

Mainland China Telecom is like a golden goose that can continuously generate revenue. Its stable profitability is a fatal attraction for any company.

No rational business entity could refuse such a high-quality asset that can consistently generate substantial profits.

From the perspective of a professional manager's career positioning, Ivan doesn't need to worry about the company's ultimate ownership.

Regardless of whether Ernst takes control of Continental Telecom in the future or it falls into the hands of the Telephone and Telegraph Group, as a core manager of the company, this experience will undoubtedly add a significant chapter to his career, while also ensuring a stable and substantial salary.

He only needs to focus on doing a good job in daily operations and management and fulfilling his responsibilities. Whether he stays with the Telephone & Telegraph Group or leaves, he will be able to advance in his career.

But he just felt uncomfortable; this feeling was like fine needles constantly piercing his mind.

One minute you're saying I'll become your trusted subordinate, giving me full trust and authority, and the next you're trying to sell me out, expecting me to help you count the money?

Are you kidding me?

In the world of capital, profit is always the primary consideration, and it is understandable that capitalists take profit maximization as their goal.

Even so, it's unacceptable to so blatantly manipulate the feelings of us elites, especially when such manipulation is so open and undisguised.

This made him feel that he was not even as good as a Hollywood bitch. No matter how much she was looked down upon or manipulated in private, at least she knew to cover it up and show respect in public.

But I felt like I had been played with and then forced to wander the streets naked with a dog leash, my dignity being ruthlessly trampled in this capitalist transaction.

Just as Ivan was lost in his complex emotions, Ernst's voice rang out again, carrying a hint of reassurance: "Don't worry, I won't give up on the telecommunications industry easily."

Ernst turned his gaze out the car window, his eyes fixed on the towering Telephone & Telegraph Corporation headquarters building, which was still clearly visible.

After a moment, he spoke again slowly, his tone carrying a hint of unfathomable meaning: "Perhaps one day, you'll be sitting in Michael Armstrong's office?"

The moment Ivan Setonberg heard those words, his eyes widened in shock and disbelief. His breathing became rapid, his chest heaving slightly, and he could even clearly feel his heart pounding violently inside his chest.

This is AT&T, after all. In the hearts of telecommunications professionals worldwide, it has long transcended the scope of ordinary companies. It is like a pilgrimage temple in the telecommunications industry, a vast empire that exists like a god.

How could I possibly have the opportunity to become the head of this vast telecommunications empire, sitting in the office of the group's core decision-makers and controlling the overall situation?

The thought exploded in Ivan's mind like a thunderbolt, plunging him into extreme shock and confusion.

"Is this really possible?"

He kept questioning himself, the immense joy and intense uncertainty intertwined, making it difficult for him to calm his inner turmoil.

But when his gaze refocused and landed on Ernst's face beside him, looking at the other's well-defined features and somewhat composed and confident expression...

Ivan couldn't help but ask himself: Is this really impossible?

This man has already created too many amazing miracles in the business world. Since he has been able to create so many miracles, it does not seem entirely impossible for him to become the king of telecommunications in the future and lead himself to the pinnacle of power in the Telephone and Telegraph Corporation.

After the initial excitement subsided, a strong sense of curiosity entwined Ivan's thoughts like vines.

He took a deep breath, suppressing his excitement, and cautiously asked Ernst, "May I know what your purpose was in exchanging Continental Telecom for Bell Labs?"

In Ivan's view, Ernst's series of actions surrounding Continental Telecom and Telephone & Telegraph Corporation, such as agreeing to the future privatization of Continental Telecom and the submissive attitude he showed in Michael's office, were all purposeful, and his ultimate goal was Bell Labs.

He wanted to understand the true intentions behind this and figure out what Ernst wanted to achieve through these arrangements.

Upon hearing Ivan's question, Ernst slowly withdrew his gaze from the window and turned to give Ivan a deep look.

In his original plan, this information involving core strategic planning should not be easily disclosed to anyone outside his core team.

But Ivan's question just now made Ernst change his mind.

From that question, he sensed Ivan's trust in him and his determination to be loyal, so he could reveal some key information about the plan to him.

After a moment of contemplation, Ernst spoke slowly, his voice carrying a hint of solemnity and determination: "The purpose is very simple: to dismantle this vast telecommunications empire once again."

"Break up the Telephone & Telegraph Group again?" Upon hearing this answer, Ivan almost instinctively exclaimed in disbelief.

After saying that, he suddenly realized that his reaction was too agitated. He quickly looked around nervously and only breathed a sigh of relief when he confirmed that he was in a closed carriage and that no one else could hear their conversation.

This answer is so unexpected and so terrifying.

Ernst's decision to target the breakup of this giant company again is an idea so audacious it's almost insane.

After a brief moment of shock, Ivan was filled with doubt, and hesitantly asked Ernst, "Is this really possible?"

"Why not?" Ernst's lips curled into a slightly sarcastic smile upon hearing Ivan's question. He looked at Ivan and retorted firmly, "Wall Street's greed knows no bounds. Do you think the previous 1-for-22 stock split was the end?"

Most people know that Telephone & Telegraph Corporation was once forced to break up by regulators for violating antitrust laws, which is commonly known as the split from one to eight, namely, the core Telephone & Telegraph Corporation and seven regional Bell companies.

Few people know that the Telephone and Telegraph Group was split into twenty-one companies. Apart from the core Telephone and Telegraph Group, the other twenty were Bell Group companies.

However, among these twenty Bell companies, seven companies gained greater attention and influence in the industry due to their extensive business scope, which led to the common perception and reporting of a split from one to seven.

However, even after such a large-scale breakup, Wall Street's greedy desires were not satisfied.

In the years following the breakup, Wall Street capital forces, through analysis of market data, discovered that the combined market capitalization of the individual Bell companies after the breakup exceeded that of the original Telephone and Telegraph Corporation by seven or eight times.

This astonishing wealth growth effect has revealed a new wealth secret to Wall Street capital.

Since splitting this model can bring such rich returns, they naturally want to keep replicating and promoting it.

Driven by capital, Lucent Technologies was spun off from the Telephone & Telegraph Group and became an independent company.

"What do you think would happen to Lucent's stock price if it sold Bell Labs?"

Before Ivan could gather his thoughts and give an answer, Ernst immediately followed up with a second question: "You said that Telephone & Telegraph Corporation has essentially finalized its acquisition of Remote Broadcasting, officially entering the cable television broadcasting industry. What would happen if it also achieves remarkable success in the bandwidth business?"

Guided by Ernst, Ivan followed Ernst's line of thought and instantly understood the key logic. He looked at Ernst with disbelief and astonishment, filled with admiration and amazement at Ernst's business acumen.

He hadn't expected Ernst to have laid out such an ingenious plan around these judgments. All of these arrangements, which seemed unrelated to outsiders, formed an intricately linked whole.

If Lucent sells Bell Labs, the company's profit figures will see a significant increase in the short term.

Furthermore, Wall Street capital, in pursuit of higher returns, will inevitably fuel the frenzy through various means, such as releasing optimistic research reports, buying large amounts of company stock, and raising ratings.

Under these circumstances, no one can accurately predict how high Lucent Technologies' stock price will soar.

It is not impossible for Lucent's stock price to more than double in the short term, and for the company's market value to exceed $200 billion.

The telecommunications industry is in a phase of rapid development, and the market is paying close attention to telecommunications companies. Investors are also very enthusiastic, and any positive news can easily cause stock prices to fluctuate significantly.

The meteoric rise in Lucent's stock price will inevitably trigger a chain reaction on Wall Street.

Wall Street's capital shareholders will inevitably turn their attention back to Telephone and Telegraph Corporation.

After all, Telephone & Telegraph Corporation has a larger business scale, richer asset reserves, and deeper industry resources, which undoubtedly gives it greater potential for splitting up and room for speculation.

If Telephone & Telegraph remains confined to traditional fixed-line business, its appeal to Wall Street capital will be relatively limited, lacking sufficient motivation and justification for a breakup.

The fixed-line telephone business market is relatively mature, with limited growth potential and a relatively simple profit model, making it difficult to achieve a significant increase in market value through a spin-off.

However, once Wall Street capital discovered that Telephone & Telegraph Corporation was no longer a single fixed-line telephone operator, but had successfully entered the cable television service field through the acquisition of a remote broadcasting company, and had also achieved significant results in the bandwidth business, forming a diversified business pattern with fixed-line telephone, cable television and broadband services running in parallel.

This diversified business structure provides Wall Street capital with enormous room for maneuver.

Wall Street doesn't care about your long-term development; what they need to do is to make the pie bigger in the short term, then reap the rewards and make huge profits.

Thinking of this, Ivan frowned, a new question arising in his mind: "Even if the Telephone and Telegraph Corporation is broken up again, such an industry giant is not so easy to acquire and control."

Ernst, however, dismissed Ivan's concerns, asking, "When do you think this telecom bubble, inflated by Wall Street, will burst?"

Ivan pondered for a long time, then looked up and said with certainty, "Economic crisis."

Ernst laughed; he wasn't too foolish after all.

In capitalist societies, economic crises are an inevitable phenomenon.

Every major economic crisis presents an opportunity for a reshuffling of the wealthiest individuals or industries.

In the United States, there are financial institutions that specialize in profiting from economic crises.

When an economic crisis hits, they will choose to buy at the bottom, then operate these valuable companies to recover before selling them, and continue to lie low and wait.

It's like an antique dealer in the financial industry; they might not make a sale for years, but when they do, they can live off it for years.

While it may not make you rich overnight, it is definitely relatively stable.

"When the bubble bursts and the crisis comes, whether or not to buy will no longer be up to Telephone & Telegraph Corporation, but rather up to whoever has the money."

Ivan, having sorted out his thoughts, smiled and picked up where Ernst left off, "So what we need to do now is release this news and let Wall Street know that someone is interested in Bell Labs."

>