America's No. 1 financial conglomerate

Chapter 378 Treasure

The next morning, when Carl pushed open the conference room door again, an even heavier and more oppressive atmosphere than the day before instantly hit him, almost causing him to stop in his tracks.

At one end of the long conference table, Richie McKinney sat upright, with two documents of different thicknesses neatly arranged on the mahogany table in front of him.

The red-covered document clearly states "Bell Labs Sale Plan" in large characters, while the blue-covered document next to it appears thicker, with "Bell Labs Personnel Optimization Plan" printed at the bottom.

Carl took a deep breath, walked to his seat on one side of the conference table, and sat down after placing his briefcase on the chair.

Before Richie McKinney could even sit down, his assistant got up and brought the two documents to him.

The file made a slight scraping sound as it fell onto the table, which was particularly clear in the quiet meeting room.

Clearly, this forces him to make a choice between life and death at Bell Labs: either watch this technological mecca change hands or personally push tens of thousands of researchers to the brink of unemployment.

Carl didn't immediately open the document. Instead, he looked up and slowly scanned everyone in the conference room.

Some of the executives present avoided his gaze, while others met his eyes without hesitation, their gazes carrying a hint of urgency and indifference.

"Before making a final decision, I'd like to ask you to look at a few things." Karl's voice trembled slightly.

He picked up the black briefcase beside him, unzipped it, and carefully took out the items one by one, placing them on the conference table in front of him.

Transistors encased in transparent glass cases, palm-sized CCD image sensors, printouts of UNIX system source code and patent documents, and many other exhibits are each labeled with a sizable yellow tag indicating the year of invention and its impact.

Carl's gaze lingered for a moment on these items that bear witness to Bell Labs' glorious history. "In 1979, Benjani Strausslupp of Bell Labs invented the C++ language. Today, this programming language supports more than 80% of the world's financial transaction systems, from stock trading on the New York Stock Exchange to fund settlements in multinational banks. The stable operation of the C++ language is indispensable behind the scenes."

"In 1983, Bell Labs made a major breakthrough in the field of fiber optic communication technology, developing low-loss optical fiber and high-efficiency optical amplifiers. This technology not only reduced transoceanic telephone rates by more than 90%, but also built the backbone network of global Internet communication, allowing information to cross oceans instantly."

As he spoke, Carl picked up a chip slightly larger than a fingernail. The chip's surface was covered with fine circuit patterns, and it gleamed with a faint metallic luster under the conference room lights.

"This is a quantum cascade laser chip that Bell Labs invented just last year. Although it's not yet ready for commercial use, I think that day is not far off. This chip can emit lasers at specific wavelengths, and if applied to medical imaging equipment in the future, it can improve imaging accuracy tenfold."

"Enough!" Just as Carl was about to continue introducing the next exhibit, Hart suddenly raised his hand impatiently to look at the watch on his wrist, interrupting him.

"Karl, we're here today to discuss the future of Bell Labs, not to listen to your history lectures. These so-called achievements cannot change the fact that Bell Labs is a money-losing company today."

Hart leaned forward slightly, his hands clasped on the table, his tone unwavering and firm: "The future you speak of is ultimately just an unknown possibility. Who can guarantee anything about the future? Can you guarantee that quantum cascade laser chips will be commercially viable? Can you guarantee that these technological achievements will bring Lucent substantial profits?"

"More importantly, can they prevent Lucent's stock price from failing to reach its full potential due to the burden of Bell Labs? Can they stop the fact that Bell Labs is costing the company billions of dollars every year?"

"But these technological achievements can prevent Lucent from becoming a soulless shell!" Carl Weller suddenly raised his voice, his fist clenching involuntarily.

"Bell Labs has never been an ordinary research and development department; it cannot be valued solely in terms of assets. Since 1925..."

Since its founding, it has embodied the spirit of AT&T Corporation's relentless pursuit of technological innovation, regardless of cost, and the unwavering belief of countless researchers in advancing human technology.

Weller's gaze swept over every executive present, his tone filled with anguish. "What are we doing now? To maintain revenue, we're relying on providing huge loans to customers to boost equipment sales. For short-term profits, we're selling Bell Labs, the very soul of the company."

"Has no one considered that when the communications market becomes saturated, and when other competitors surpass us technologically, Lucent, having lost Bell Labs as its technological core, will be completely abandoned by the market?"

"By then, even the highest stock price and the most lucrative short-term profits will vanish into thin air."

Hart snorted coldly, a disdainful look on his face. "You don't need to worry about that. After Bell Labs is sold, we will immediately set up a new Lucent Lab, a lab that focuses entirely on the research and development of Lucent products."

"The R&D funding and personnel costs of the new laboratory can be reduced to 30% of the current level each year, or even lower. Do you think we are still in the era of talent shortage in the 1950s and 60s? As long as we are willing to pay high salaries, Lucent can use a large number of top talents from all over the world. This is no longer the era in which Bell Labs can be arrogant based on its past achievements."

As Karl sat in his seat, listening to Hart's words, a sudden wave of melancholy washed over him, like a rabbit being cooked after its hunt is over.

Back in the day, Bell Labs was a leader in the field of communications technology, making significant contributions to the development of AT&T.

I never imagined that agreeing to leave Lucent back then would end up like this.

He wanted to make one last effort, hoping that the management, blinded by short-term interests, would wake up and realize the importance of Bell Labs to Lucent.

But all they got in return was unwavering delusion.

Hart pointed to the two documents in front of Carl, his tone icy. "Carl, allowing Bell Labs the option to sell or lay off employees is already the greatest mercy we can show them."

"So please stop wasting everyone's time and choose one of these two options. We don't have time to listen to you boasting about Bell Labs' glorious history."

Boasting?

When did Bell Labs' technological achievements come to be described with such a term?

Carl turned his gaze to Richie McKin, who had remained silent, trying to see a hint of wavering in his eyes, but all he saw was a cold calm.

"Wall Street will destroy AT&T and Lucent." Carl's voice was filled with resentment and disappointment. "Your name and Armstrong Robert's name will be nailed to the pillar of shame in the tech industry and despised by future generations."

Ricky McGinn's face turned ashen instantly, and his fingers on the table trembled slightly, clearly enraged by Carl's words.

He still didn't speak, but slowly raised his right hand, extended his index finger, and gently tapped the Patek Philippe watch face on his left wrist.

The action was all too clear: hurry up and don't delay any longer.

The conference room fell silent again, with only the ticking of the clock on the wall clearly audible.

The atmosphere in the conference room of Ernst Asset Management was completely different.

After scanning Jane Fraser and O'Shea Ricardo sitting at the table, Ernst put down the phone and said, "Let's put this proposal on hold for now. We'll discuss the specific funding arrangements when I get back."

Jane Fraser and O'Shea Ricardo exchanged a glance upon hearing this, seeing the same surprise and confusion in each other's eyes.

What does that mean?

We've been working on this proposal for two days, and you're just going to say we're not going to play anymore?

Ernst, seeing their puzzled expressions, smiled helplessly and then delivered news that shocked them both: "Telephone & Telegraph Corporation just called me; they've agreed to sell Bell Labs to me. I need to settle things there first before considering the financial matters here."

Who says the rich don't lack money? The richer you are, the more money you lack.

For the wealthy, it's not a matter of lacking small sums of money; every single transaction involves an enormous amount.

Before the loan money even entered the financial market, the Telegraph and Telegraph Corporation replied.

Faced with this money-devouring behemoth, we must prioritize investing in it, even if it means earning less in the capital market.

"Acquiring Bell Labs?" Jane Fraser and O'Shea Ricardo exclaimed almost simultaneously, their mouths agape enough to fit a fist.

Even ordinary Americans have heard of Bell Labs. This research institution, founded in 1925, has become, to some extent, a symbol of America's scientific and technological research strength and a sacred place in the hearts of countless researchers.

Jane Fraser, regaining her composure, still stared at Ernst in disbelief. "How is this possible? Why would Telephone & Telegraph Corporation be willing to sell Bell Labs?"

She couldn't believe that Bell Labs would be sold; it was as absurd as a car company selling off its core engine development department, leaving only the production and assembly workshop.

"How dare Armstrong make such a decision? Isn't he afraid of becoming the eternal villain of the Telephone and Telegraph Corporation?"

O'Shea Ricardo nodded in agreement, "Once Bell Labs discovers several core technologies that can dominate the market and launch highly competitive products, Armstrong will be repeatedly brought up by the Telephone and Telegraph Corporation, and his name will be nailed to the pillar of shame in global commerce."

Ernst picked up the cold water on the table, took a sip, and slowly said, "Armstrong isn't that stupid. He won't personally take charge of this. I'm sure he won't utter a single word related to selling words; he'll pretend not to know and remain silent."

All they need to do is acquiesce, and those financial hyenas on Wall Street will use their shareholder influence at TT Group and Lucent to push other executives to step forward and, under the pretext of optimizing the company's asset structure and improving shareholder returns, formally finalize the sale of Bell Labs through a board vote.

In this way, even if problems arise later, the executives who pushed things forward will bear the responsibility, and Armstrong and Rich McGinn will finally have a reason to walk away unscathed.

"Lucent—" O'Shea Ricardo suddenly muttered to himself, his eyes lighting up instantly. He tapped his hands lightly on the table as his brain raced.

When Ernst saw his expression, he immediately understood what he was thinking.

Without the burden of Bell Labs, which costs billions of dollars annually, Lucent's financial statements will improve significantly, and profits are likely to grow exponentially.

With the added hype from Wall Street investment institutions, it's not impossible for Lucent's stock price to double in the near future.

This is undoubtedly an excellent opportunity to go long, and O'Shea is unlikely to let it pass him by.

Jane Fraser quickly realized this as well, but she was more concerned with the acquisition of Bell Labs itself.

She looked at Ernst with a hint of worry in her voice, "Bell Labs is a behemoth. Its annual operating costs are as high as several billion dollars, and its patent revenue is relatively limited. It has always been a money-loser for Telephone & Telegraph Corporation."

Although it is a temple of science and technology, it is also a heavy burden. Ernst heard this and his eyes gleamed with excitement. "In other people's eyes, Bell Labs may be a heavy burden, but in my eyes, it is a treasure trove that can provide a continuous source of wealth."

Bell Labs has thousands of core patents, and although many of them have expired, the foundation it has laid is truly solid.

Moreover, many of these patents have not yet been fully developed and utilized. Is there anyone who understands the commercial value of these technologies better than him?

For Ernst, Bell Labs was a perpetual motion machine of technology.