Chapter 111 Bargaining for Shares

After all the twists and turns, Fang Hexuan's real purpose is to cooperate with Microsoft.

Develop an operating system with GUI based on 86-DOS.

Although he is rich, he has no roots in the United States, that is, no connections in the political and business circles.

Even if he spent money to develop an operating system similar to Windows,
How to convince other PC manufacturers to cooperate with him?

How to form an alliance with Intel?

How could he make the US government feel comfortable handing over the key to an emerging industry to a foreigner?
Not to mention, racism is rampant in the United States today.

Those gentlemen in Congress are really good at looking for trouble.

You, a Chinese, have made a fortune on American soil. Is there still any law to enforce the law?

Therefore, even if Fang Hexuan was rich, he could not do whatever he wanted in the United States.

Even if he becomes an American citizen, there will still be no hope.

Fang Hexuan had already fully understood the rules of the game in the white world.

Therefore, he can only make the most favorable choice for himself when conditions permit.

First, they acquired the full copyright of 86-DOS, and then joined forces with IBM.

These two steps are to pave the way for the third step of cooperating with Microsoft and even acquiring a stake in Microsoft.

It is best to invest, which has three major benefits.

First, you can reap equity dividends from Microsoft's future development.

Second, to gain experience to develop Maple Leaf Computer’s own operating system.

Third, join forces with Microsoft to suppress Apple Computer Corporation.

When Gates heard it was 86-DOS, he suddenly felt heartbroken.

I did think about acquiring it before, but my pride got the better of me and I decided to develop it myself.

Now, this Chinese man not only got a ready-made system, but also reached a cooperation with IBM.

Isn't this the script he should be playing?

Anyone who is not a fool should know how tempting IBM's order is.

I was careless and my engineering thinking was fatal!

His face turned blue and white, and only he knew the confusion and regret in his heart.

After a moment, Gates said bitterly:

"Mr. Fang, since your purpose is to test this system, how about we try another way of cooperation?"

"Oh? Mr. Gates, please go ahead."

"Mr. Fang, I will buy this system from you for ten times the price you paid, and then we will improve and perfect this system together. After that, you can use the upgraded system to install it on your personal computer."

"Mr. Gates means that he wants my system? And he wants me to use the upgraded system for free?"

"That's right. Mr. Fang makes hardware and Microsoft makes software. Not only do we not have the risk of competition, but we also have room for cooperation."

"But why should I sell it to you, Microsoft? If I find another software company to cooperate with me to improve DOS, wouldn't it be easier to use my computer? I still retain the copyright of DOS."

"."

Gates was choked and speechless, but he was unwilling to accept this. If Microsoft missed the opportunity to cooperate with IBM, it would lose the entire personal computer market.

He gritted his teeth and said with determination:

"As long as... As long as Mr. Fang agrees to sell DOS to me and act as a matchmaker for the cooperation between Microsoft and IBM, I can sell you some of my Microsoft shares."

"Haha, Mr. Gates overestimates himself and Microsoft."

"What I said before was just a polite remark. I can find a dozen companies like yours in Silicon Valley."

"Why don't I go back to Silicon Valley and cooperate with them? I have the system and the orders. I have an absolute dominant position."

In order to get more shares, Fang Hexuan pretended to disparage Gates and Microsoft, making Gates blush and turn pale.

"Then I wonder how Mr. Fang can agree to sell DOS to Microsoft?"

".Well, I admit that what Mr. Gates said just now makes sense. I will focus on hardware in the future, and software should be handed over to professional companies." "However, Microsoft is just a small company now, and its valuation is not worth mentioning in my opinion."

"Mr. Gates, are you sure you want to buy my DOS? Are you sure you want to continue cooperating with IBM?"

"Of course, I am sure that these two things are vital to Microsoft's survival!"

"Thank you Mr. Gates for being so candid, but business is business, don't you think?"

".right."

"Okay, I won't waste my words. I can agree to your terms, but how many shares can I get?"

".Currently, I own 64% of the entire company and Paul owns 36%."

"As long as Mr. Fang agrees to sell it to Microsoft DOS, Baoliu and I can each give you 5% of the shares."

"Haha! Mr. Gates really likes to joke. You probably think I don't understand software and can't see the potential of the personal computer market."

"Mr. Fang, 10% of the shares is already a lot, and I am very sincere."

"No, Mr. Gates may have forgotten an important prerequisite. DOS is a stepping stone. Without this stone, Microsoft would not have received IBM's hundreds of millions of dollars in operating system orders."

"Mr. Fang is even more of a joke. If you really have hundreds of millions of dollars, why would you choose to cooperate with Microsoft?"

"Mr. Gates is a smart man. Doesn't he know how to calculate? A system costs $300-500. Hundreds of millions of dollars is just the installation volume of hundreds of thousands of computers."

"With IBM's influence in the computer field, as long as they launch their first personal computer next year, I believe that there will be no problem in shipping more than 20 units."

"."

"Mr. Gates, don't even think about leaving me behind and talking to IBM alone. Without the DOS system, would you be able to ask them for help?"

".Then how many shares do you want?"

"60%."

"What? Are you crazy? This is impossible. Don't even think about it!"

"Then how much did you say?"

"15%."

"Haha, are you crazy too? At least 58%."

"You're so brave to ask for it. The maximum is 18%."

The two of them bargained and argued for a long time, and their faces were red from the struggle.

Finally, a number acceptable to both parties was reached - 34%.

As for how to get Paul Allen to agree to cede his shares, that is not Fang Hexuan's concern.

If he doesn't take more shares now, after the dilution in the next few decades, won't he become a spiritual shareholder similar to retail investors?
"I can accept this number, but I have a condition!"

"Don't go too far. Microsoft is the company that Paul and I founded together. Allowing you to own one-third of the shares is already the limit for us."

"Haha, don't get excited. I know Microsoft will add other technical talents and executives in the future, and will also introduce various investments. I just don't want my shares to be diluted."

“Therefore, I need to get the qualifications and opportunities to participate in subsequent investments.”

"We can talk about this. I need to discuss it with Paul first. It's really a headache. I also need to think about how to convince him to agree to your investment."

"Good luck to you then."

······
Fang Hexuan never expected to own a large number of Microsoft shares. This is unrealistic.

When Microsoft's stock became the largest stock in North America, there were too many people who wanted to covet it.

Later, Gates got involved in a monopoly lawsuit, and he sold part of his shares to certain forces.
Only then was he able to get rid of the harassment of the lawsuit.

Therefore, in any society, conflicts of human relations and interests are inevitable.

Fang Hexuan knew this principle very well. He asked for a little more now and then increased the capital appropriately later.

Even after multiple rounds of dilution, you should keep your shares at around 20%.

After the millennium, if you still held 10%, you would have made a lot of money.

(End of this chapter)