Chapter 562

During the two days when the New York Stock Exchange is closed at the weekend. There have been two major events that concern at & T in a row. The first is that the US Natural Science Foundation announced the establishment of five supercomputing centers in the United States. Any user can connect to the five supercomputing centers through specific network protocols to share their powerful computing power. As soon as the news came out, universities and research institutes all over the United States were excited about it. Many famous universities planned to apply for this service with telecom operators that provide network connection services. The news was just right. Many investors holding shares of at & T were all laughing when they heard the news, They can't wait to know what price at & T's share price will rise with the good news when the market opens next Monday.

However, the good mood of these investors only lasted until Sunday night, and they were soon devastated by another news. It was less than 12 hours before Monday's opening. Many Wall Street investors have received the latest news from the news agency. On Sunday afternoon, Yota communications filed a lawsuit with the District Court of San Jose, where Cisco headquarters is located, accusing Cisco of infringing a total of seven patented technologies of Yota communications on network solutions, and requesting the court to immediately prohibit all related products of Cisco from being sold on the market, As the lawyer of Yota communications provided sufficient evidence to prove that Cisco's products had serious infringement, the San Jose District Court accepted Yota communications' proposal and officially banned the public sale of Cisco's products in the California market.

Many people saw this news before they fell asleep. When the Wall Street fund managers who ate a lot of at & T during this period saw this news, they could not fall asleep any more.

At nine o'clock on Monday morning, the New York Stock Exchange had just opened. At & T's share price immediately turned down and lost 13% of its market value. Along with Motorola's stock also began a dramatic decline. The sudden lawsuit made at & T unprepared. As a last resort, they applied to the New York Mercantile Exchange for suspension. However, the suspension of trading could not avoid the end of at & T's losses. When the suspension of trading could not sell at & T's shares, investors immediately concentrated all their panic on Motorola. After at & T announced the suspension of trading at noon, the trading opened in the afternoon, Motorola and the company's shares fell by 14 percent. A lot of investors who just ate up Motorola's stock not long ago suddenly took advantage of the situation.

The CEO of at & T, together with the head of Motorola, flew to San Jose by special plane that afternoon, and financial reporters from all walks of life also rushed to San Jose to inquire about the intellectual property litigation involving 100 billion investment.

The legal procedures in the United States are extremely complicated and cumbersome. Before the formal hearing, the judge will call the lawyers of both sides to participate in the preliminary hearing meeting to determine the focus of dispute, jury, evidence and other specific issues involved in the court trial. It is recorded that at the preliminary hearing meeting, the lawyer representing Yota communications submitted 300000 pages of evidence to the court. This information is almost piled up in the judge's office. I'm afraid it will take a month to read it, and even the judge can't help taking a breath. In addition, Yota's lawyer also asked Cisco to compensate Yota for as much as $7 billion. This number has excited the media who have been waiting outside, and it can definitely rank in the top ten of the litigation amount in the United States.

The San Jose District Court's injunction is only valid for a few weeks, and the scope of validity is only limited to California. After the expiration of the injunction, the court will determine whether the injunction will be continued. This point has long been calculated by the wily Peterson, so after launching the first lawsuit, Yota communications began to blossom in various states of the United States according to the strategy set by Peterson, and continued to file lawsuits to the court again and again.

Although these lawsuits are initiated in the district courts of various states, the United States is a case law. As long as Yota communication wins one of these lawsuits, Cisco's products will not be publicly sold in the U.S. market.

EVA can finally take a bad breath. For a long time, EVA has been bullied by the capitalists on Wall Street, and now it's their turn to get hurt. Thanks to Liao Sha's special attention to patents at the beginning of the company's establishment, Yota's legal department has not been compressed or even streamlined. Now these efforts have been rewarded. Yota's legal department has quietly built a moat for the company that its competitors can't cross.

Schwarzman, Blackstone's partner, went to New York with EVA after the lawsuit. Schwarzman has now convinced EVA to bring in new investors in iridium. So he plans to use his relationship on Wall Street to find out if there are strong investors willing to participate in EVA's iridium project.

Both Schwarzman and EVA came from famous schools, but Schwarz joined the skeleton society when he was at Yale and went to Harvard Business School after graduation. He's much better than EVA, who graduated from medical school. After a series of communication and discussion, Schwartz first won over his old owner, Lehman Brothers. Because at & T has been suspending its trading, and the cost of Motorola's stock in at & T's hands is too high. Moreover, at & T's acquisition of Motorola is funded by high interest rate financing from Wall Street. If it falls so sharply, at & T will burst its position. However, for the remaining shareholders who have held Motorola for many years, Motorola's good foundation no longer exists. While the stock price has not yet fallen back to pre liberation cash, they can still make a steady profit, so they do not want to suspend trading.

The split of Motorola's board gave Schwarzman a reason to persuade Lehman Brothers to take advantage of the situation. With Schwarzman's eloquence, Lehman finally took the side of Yota communications. Yota communications will be funded by Lehman Brothers, one of the top five investment banks. But it's just the beginning. Bill Gross, head of investment at Bank of Columbia, has taken on a new task: short Motorola shares, which will only make life more difficult for at & T.