The $21 Billion Dollar Mistake: One of the biggest Technology deals in U.S. History is when Network Solutions was sold by SAIC, a white owned company, to VeriSign, another white owned company, for $21 billion dollars in the Year 2000. But, from 1979 to 1997, Network Solutions was started and owned by two Black Men, Albert White and Emitt McHenry, co-founders of Network Solutions, the Internet domain name registry. Wow! History: Once upon a time, a couple of friends got the idea that this tech stuff might be a good business opportunity. Emitt J. McHenry was working diligently at the time as a vice-president at the former Union Mutual Insurance Co. Between this position and a former one which he held as a systems engineer at IBM, he could see how the dots were beginning to connect in a new way in business so he, along with some partners, started a little company called Network Solutions in 1979. It was suggested that Network Solutions, given its expertise, track record and core competency, put in a bid to the government to manage the domain name registration services for the Internet. They figured, “Why not?,” put in the bid, and won the contract. Won sole authority to develop the system and issue web addresses ending in , .net, .org, .edu and .gov. “You have to understand,” explains White. “We had no competitors for the bid. Not AT&T. No one. No one really knew what this Internet thing was, so it was not on anyone’s radar... Around this time, White had been brought on by his friend McHenry in order to head up corporate marketing at Network Solutions. His role included many responsibilities, but one of the main ones was to evangelize about this new platform called the Internet. He remembers that it was tough-going but that, in time, Network Solutions grew to approximately 400 employees. But Capital was needed, and it was needed now. The issue was how to raise it, and that issue quickly became two-fold. One, White says that Network Solutions could not raise money because people did not believe the Internet was ever going to be anything of great value. and Two, if it were something of value, it was perceived that anyone Black couldn’t possibly be on top of it. Wow! “I know as I was out doing my thing, I could sense that it was literally like, ‘if it was going to be big, white people would already have this thing,’” says White. “We got dismissed again and again, by white and black investors alike.” So, after Many Years of both good and bad times, Network Solutions was sold to an outfit called Science Applications International Corporation (SAIC) for $4.8 million in 1997. But this is when the mistake comes... Just 3 years later in the year 2000, Science Applications International Corporation (SAIC) sold Network Solutions to VeriSign for $21 billion dollars!!! and made history as one of the biggest tech deals in the U.S. History. Network Solutions remains one of the most important companies in the Internet industry. Traumatized and Devastated - White and McHenry stopped speaking to each other and parted ways, bitter with disappointment. But eventually, for White and McHenry, time has changed many things. It’s taken several years, but the two former business partners have found their way back to friendship and continue to share with each other’s families and at events. McHenry owns and runs a $300 million company with firms such as Nokia among its clients. White has some guiding words of wisdom: “If there is any advice I could give black entrepreneurs today,” explains White, “it would be that you must stick with what you are doing, if you feel it is right. Don’t allow other people to tell you that you don’t have anything important like we did. That is really the key. That’s why we suffered. Listening to other people…” Deep...This is Adrian X, and this is Just My 2 Cents... Reference: thegrio/2012/06/28/black-founders-of-internet-domain-registry-network-solutions-reminisce-on-racial-barriers-in-tech-sector/2/ Samantha Battle Brian Gardner NubianSoul Mecca Dennard MykEl Djedi Bakarii Omari Gardner Donna Smith Tanja L. May Natefan PageCampbell Brian Howard Willie Edwards Bill Oliver Mike Smith
Posted on: Mon, 25 Nov 2013 10:39:17 +0000
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