Chapter 1030 – Feng Yu’s advantage
Ballmer cannot make the decision and knew there would be no outcome. He decided to return to the US, and let the board or Bill Gates decide whether if they should agree to Feng Yu’s harsh condition.
All of Microsoft’s directors, except for Feng Yu, were present at the monthly director meeting.
“Hmph! Someone is disregarding the company’s policy again! I think we should not offer him any shares this year!” Paul Allen looks at the empty seat.
Everyone on the board knows Paul Allen dislikes Feng Yu. His hatred towards Feng Yu worsens after Feng Yu becomes the World’s Second Richest man. If Paul Allen did not sell off some of his Microsoft shares to invest in other companies, his net worth would be over 20 billion USD, and the gap will not be so big.
But now, Paul can’t catch up with Feng Yu. The rest of the directors pretended not to hear what Paul Allen said, as they do not want to be caught in between them.
“Alright, Paul. Let’s start the meeting. We need to discuss a few matters today. First, our Win98 operating system is selling well, but there are a few bugs we need to fix urgently. We must not let our customers think our system has security issues… The last issue to be discussed is the Gbox partnership issue.”
“What’s there to look for another partner? If we are going to develop a gaming console, we, Microsoft, will do it ourselves!” Paul Allen shouted.
Cooperate with Feng Yu?! What a joke! Feng Yu is not qualified to be Microsoft’s partner!
“Paul, I don’t think developing the console ourselves is a good idea. First, we do not have experience in developing hardware. I think I don’t need to mention the reason why. Secondly, Feng Yu owns advanced technologies that are critical to this product…”
“Wait. You say we don’t have experience in hardware development, then do Feng Yu has the experience? Furthermore, we can acquire a company with experience as we have sufficient funds. I think Nintendo is a good company.” Paul interrupted Ballmer.
This Ballmer is always siding with Feng Yu. I must be blind to agree to give him so many shares in the past.
“Paul, don’t forget that Feng Yu owns a few consumer electronic companies. He also has a stake in Lenovo group. Compare to us, and he is much stronger in hardware than Microsoft. Also, we are unable to acquire Nintendo as they demanded an astronomical price.” Ballmer explained.
“Paul let Steve finish first.” Bill Gates is slightly pissed.
Paul Allen mumbled something and kept quiet. He lowered his head to get a drink, but realized all the drinks on the table are Yuan Li energy drinks. When he sees the drinks, he got more mad. Even if there is no coffee, you can serve tea, Coke, or other beverages. Why must you bring this Yuan Li energy drink into the meeting?!
If the programmers love this drink, just give it to them. Why must you all serve this drink at the director’s meeting?! Even if I have to die of thirst, I will also not drink this!
Ballmer continued. “The situation now is we are unable to acquire any good game console company. Sega has already shown us that they are not a match for Sony and Nintendo. Also, Sony’s game console is using the Linux system, and Nintendo had chosen to work with IBM.”
“We only have two choices now. We can set up a subsidiary or department to develop our own console like what Allen said, or we can choose to work with Feng Yu.”
“But our weakness is very obvious. We do not have experience in developing hardware, and it will take a long time if we want to catch up with Sony and Nintendo. If it is one or two years, it is still fine. But if it takes eight to ten years, our losses will be much higher.”
“But if we partner with Feng, it will be different. Feng has a game development company and is China’s biggest game distributor. His company is also well known around Southeast Asia. Also, Feng’s companies have the experience of developing hardware, and their consumer electronic products are very popular. I think I don’t need to provide the data to you all, right?”
“Feng’s game development company had acquired two South Korean companies, one Hong Kong company, one Taiwanese company, one Japanese company, one Chinese company, and our North America’s Blizzard. After these companies are merged, it will become the world’s biggest game company. They have over 1,000 game developers and many experienced development teams. I am sure all of you know why Sega Saturn failed. They have limited games, and consumers do not like it. Do note that their technology is not far behind Sony and Nintendo at that time.”
“Feng can not only provide us with the rights to many game titles, but he can also stop issuing game rights to Sony and Nintendo. The games they produced will only be suitable for our system, and more importantly, DVD technology patents are owned by two groups. One of the groups is the DVD forum, and they use Wind and Rain – Philips standards. This standard is used by most electronic appliance factories and owns more than 70% of the market share. The other group is the DVD alliance, and they use the DVD + RAM standard. This standard only owns around 20% of the market share.”
“That means the best solution for us is to work with Feng Yu?”
“Why can’t we use VCD technology?” Someone asked.
“Most of the VCD technologies and patents, around 95%, are owned by Feng. Also, we want to develop a better product than Sony and Nintendo, and we cannot use outdated technology.” Ballmer explained.
“If it is like this, then we can only work with Feng. I agree with this partnership.” One director said.
Another more cautious director asked. “Steve, have you discussed with Feng on the conditions for this partnership?”
Ballmer looked at Bill Gates and the rest of the directors and said. “Feng’s condition is he wants the absolute majority of the joint partnership company.”
Paul Allen almost jumped up and roared. “Impossible!”
Bullshit! This Feng Yu is too arrogant. You are partnering Microsoft, and you still want to majority of the shares? Who do you think you are?!
