章 433: Chapter 433: Difficult Negotiations
[Chapter 518: Difficult Negotiations]
The personal PC market is full of smoke. In addition to the four powerful ones, there is also a Dell computer hidden in the corner. Although this product is non-mainstream, it is very stable, and it is simply taking one step at a time.
While the hardware sector was heating up, the software side seemed relatively calm. After acquiring Oracle, the direction of White Systems began to shift. The software suitable for personal PCs primarily revolved around office suites and micro-database systems.
As for CD players, they could simply be labeled as a gimmick. Clearly, William White had plans to sell off the personal PC software segment.
"Sir, Microsoft's valuation has been skyrocketing. Our business here hasn't gone public, which puts us at a disadvantage," Filson said.
"Well, software sales are going well lately, right? We can leak some news about splitting our office software business for an IPO," William suggested.
Filson understood what his boss meant. In fact, he was quite frustrated; that pesky Bill just wouldn't let go of those shares, completely oblivious to his own interests.
"Sir, what if we made a hostile takeover?"
William shook his head with a bitter smile. "Filson, they're not bothering me now because I've invested heavily in lobbying. If we expand our personal PC business again, we'll have trouble."
Filson understood that well. The boss's venture capital firm had invested in many IT companies, most of which were in the personal PC field.
"Sir, if Microsoft buys our PC software division, won't that cause you problems too?" Filson asked.
"Not at all. Those shares will all go into the family fund. You know I've got children now, and I need to leave something for them."
"Got it, sir. I understand that a board seat isn't necessary."
"Exactly. I believe Bill Gates knows this too. He's just sizing up my intention to sell that part. Plus, he knows I'm eyeing shares in Microsoft."
"Alright, I'll handle it. I believe he'll throw a fit when he hears the news."
...
Filson wasn't mistaken; the triumphant Bill immediately chose to unleash a barrage of curses.
William knew he didn't need to go all out, as that would surely attract the Justice Department's attention. He only needed to cut off a small piece, but he had to be the best in that field.
Clearly, Bill Gates understood William's thoughts. Though somewhat dismissive, he couldn't help but feel a little pleased.
He figured it out -- William was avoiding the operating system business not because he lacked the capability but because he didn't want to become the next IBM.
The name International Business Machines made it clear; they weren't even originally a computer company. In fact, the broad range of industries the Big Blue was involved in was staggering. They were involved in any profitable venture, and it is needless to say how many people hate them.
...
"Sir, this IPO might just be a ruse. No doubt, Microsoft is the one eager to buy this company."
"Ha! Our wealthy friend seems a bit impatient. That guy Bill really knows how to stir the pot."
"This time, it might lead to a resolution."
"Looks like William White can be reasonable, despite his arrogance," said the old man, smiling, while his subordinates could only agree. He wanted to say that our firm was too reckless, which led to resentment. A hostile takeover sounds easy, but what happens after the acquisition? Do you expect the core team to keep working with you?
The deeper your understanding of the IT industry, the more you grasp the importance of personnel. A hostile acquisition might be straightforward, but sustaining good development is pure fantasy.
...
Communication with Bill Gates wasn't particularly smooth. Frankly, valuation was mere talk. If he thought the price was low, he could throw in a little cash.
What frustrated everyone was that both sides had similar plans.
However, this time William White wasn't going to wait. If Bill Gates kept insisting, he wouldn't mind creating an operating system.
"Bill, you have three months. If you can't make a decision, we'll unload all our stocks," William stated firmly.
"Oh, is White Systems planning to create an operating system?" Bill replied mockingly.
"Ha! You've got it wrong. Our boss intends to support Jobs; Apple's valuation is low now. If the acquisition is successful, the hardware part will be sold to Compaq," Filson added.
Initially, the first few words from Bill didn't faze him; he doubted that compatible machine manufacturers would use Apple's system.
However, the following conversation took on a different flavor. Yes, if Apple transitioned into a software company, Microsoft would be in big trouble.
There was also a significant possibility that Microsoft would be abandoned by the Big Blue. The thought of these frightening aspects made Bill Gates smile wryly.
Today's negotiator was the chief strategist for William White. What he said represented William's thoughts.
White Systems was not a bunch of rookies; they weren't interested in hostile takeovers. The most valuable asset for Microsoft lay in its core team.
Rather than spend a fortune on acquiring them, it was better to recruit them directly. As long as the conditions were attractive enough, there would surely be takers.
"Alright, I know this is just a threat, but I need to respond carefully. I'll get back to you soon," Bill conceded.
"Trust me, Bill. This is truly the boss's intention. We've always had plans for an operating system, dating back to before IBM decided to collaborate with you," Filson replied.
Looking at the materials in his hand, Bill Gates couldn't help but smirk. Based on what he saw, he quickly concluded that it was genuine. However, in the end, IBM gave the contract to Microsoft, which was plain favoritism.
"I remember clearly; the boss said the chances were slim since IBM preferred working with smaller companies," Filson added.
"Fine, Filson. Let's start anew," Bill said.
The two men continued their sparring, but this time, Bill couldn't afford to stall. He was fully aware that Windows 3.0 was doing well, but White Systems' office software was developing rather ordinarily. If things dragged on, the valuation for William White would suffer greatly.
Of course, this wouldn't be resolved easily. It was going to be a long process, but both sides seemed genuinely interested.
...
"Sir, there's a strong chance this time; that guy really is tough to deal with," Filson commented.
"Ha! Did you rile him up using Jobs?" William asked.
"Yes, that's his biggest concern," Filson admitted.
"That rascal is stubborn as a mule; if we don't shake him up a bit, we might have some dragging on our hands."
Filson was taken aback. He sensed his boss had a touch of bluffing in his words.
"Sir, are you just trying to intimidate him?" Filson queried.
"Of course, developing an operating system solo is too daunting. More importantly, users have become accustomed to existing systems. No matter how good your product is, it doesn't guarantee they'll accept it. Let's work on it; aim to have it sorted out in two months."
"Sure thing, sir. It's not a problem."
*****
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