Zhu Ning: Who Is Blowing Up The Internet Bubble?

Whether investment bankers, mergers and acquisitions consultants, investment research analysts and chief economists, at best, they can only be regarded as more speakers in the capital market than real ones. After all, public funds and private fund managers who have large amounts of money are truly those who make huge profits from the rise of the stock market by holding a large number of stocks. In the meantime, it includes both the "bulls" that are really optimistic about the trend of the big market and the unswerving "dead end". There are tactical investors who are flexible in and out of the market. These people keep changing their positions and transactions with the rhythm of market fluctuations.

In 2011, the US IT giant HP bought Autonomy, a British software company at a price of 11 billion 100 million US dollars. Less than a year later, Hewlett-Packard Co revealed that a serious accounting scandal occurred during the acquisition process. HP accused Autonomy of highlighting the company's revenue and gross profit margin and misleading potential acquirers. HP recorded a $8 billion 800 million worth of non cash goodwill impairment charges worth $8 billion 800 million in the fourth quarter of fiscal year. This also means that in just a year, HP's Autonomy purchase of about 10000000000 dollars has lost 80%, and HP's share price has fallen to its lowest level since October 2002. Autonomy's shareholders are undoubtedly the winners of the acquisition, while HP's shareholders and executives are clearly the victims of the merger.

While HP's board of directors launched investigations and chain actions against DDT, KPMG, Barclays and other intermediaries involved in the acquisition, another important intermediary behind the deal was FrankQuattrone, who also played a pivotal role in persuading HP to pay high price acquisitions.

So where is Faran Kurt Ron? FrankQuattrone was once the most influential and profitable banker in Silicon Valley during the Internet bubble. He was there. Morgan Stanley Deutsche Bank and Credit Suisse, and led and participated in the largest IPO transaction in the era, including Netscape, Amazon and CISCO IPO. Records show that at the peak of the Internet bubble, Tyrone earned more than one hundred million dollars a year.

What Jean Te Ron is famous for is the investigation and allegation by the SEC and the judiciary about Tyrone's alleged illegal activities during the Internet bubble after the dotcom bubble burst. On the one hand, Tyrone broke through the "the Great Wall of China" between different business sectors of investment banks: the three businesses of securities analysis, venture capital and listing underwriting. Because they own shares in pre listed projects, each time he is responsible for the project can be successfully listed, so that his venture capital investment not long ago is worth doubling. In the final analysis, this is a disguised insider dealing involving serious conflicts of interest.

In addition, in order to get more investment and listing projects, Tyrone will make use of the opportunity of distributing hot IPO shares to benefit the IT entrepreneurs and IT giants, who are expected to be listed, and gain the unique insider information and investment opportunities. Federal investigators also believe that Tyrone sometimes artificially packed the company's performance on the basis of understanding the inside of the pre listed companies, pushing up some Internet Co's performance and stock prices. Although after two trials, he eventually reconciled with the plaintiff and was not convicted, but his reputation in Silicon Valley during the Internet bubble was greatly affected.

It happens that there is a similar case, Internet bubble Another star of the period, HenryBlodget, an Internet analyst at Merrill Lynch, was also charged by EliotSpitzer, a New York prosecutor, after the Internet bubble burst. He accused him of many of the public reports of many Internet studies published during the Internet bubble, which are quite different from his views on the same stock in Merrill Lynch's internal communication.

Prosecutors believe that Blodget For the sake of their own interests and employers, malicious disseminations of false information, singing more short and misleading investors have an inescapable responsibility for the frenetic investor sentiment and investment behavior at the top of the Internet bubble. The prosecution eventually reached a settlement outside the court, and Blodget promised not to enter the capital market for life and to pay millions of dollars in fines.