Chapter 751 – Two conditions
“Of course, it’s real.”
Microsoft had just launched Win95, and it comes along with IE browser. This was Microsoft first step to monopolize the PC operating system. But Microsoft only has the English version of their Win95. It will be difficult for them to penetrate the Chinese market with their English versions of Win95.
In 1992, Microsoft had set up a branch office in Beijing to promote their operating system and Microsoft Office. But the response was lacking. This was also due to the number of PC users in China.
But now it was different. DOS will soon be obsolete. The user-friendly Win95 will take over the whole market, and in the future, most office software, games, etc. were developed based on Windows operating system. The price war in China between Lenovo and other PC makers will start soon, and the number of PC users in China will increase rapidly.
If Lenovo were to install a Chinese version of Win95 now, it would help Microsoft entering the Chinese market!
But Bill Gates know that Feng Yu would not do this for free. He also knows that Feng Yu owns the shares of China’s biggest PC manufacturer. Feng Yu must be here to talk about cooperation between both companies.
“All Lenovo’s PCs will be installed with Windows, Office, and IE browsers. Are you fine with this condition?”
Bill Gates was excited. He was satisfied with this condition. If they had a deal, then Microsoft’s profits will rise to the next level. Also, the share prices will increase after this cooperation was announced.
Opening a new market like China will attract more investors, and they will be fighting over Microsoft shares.
“What do I need to do?” Bill Gates asked.
This was an attractive condition. But if Feng Yu’s demands were too harsh, Bill Gates will also not agree. After all, there were many brands of PC in China, and some of them were already working with Microsoft.
Feng Yu showed two fingers: “I only have 2 requests. First, I want the lowest prices in the whole world!”
“Feng, this is impossible. Our products have standard prices, and it’s the same worldwide. We can’t give you lower prices.” Bill Gates rejected.
Feng Yu glanced at him. Same worldwide? Bullshit! No products in the world will have the same prices. In different areas and regions, there will definitely be differences in rates!
“Bill, don’t you want to enter the Chinese market? I have said before, my men will take care of the Chinese version. The prices must be lowered. If not, how can we cover the cost?”
“We can also produce Chinese language Windows.” Bill Gates argued.
Feng Yu shrugged his shoulders. “You know, Chinese? How many people in Microsoft knows Chinese? Chinese language is one of the oldest languages in the world. It is too complicated. Even us, Chinese, don’t dare to claim we know everything about this language. Who in your company dares to say it?”
“We have lots of engineers from China, and we also do not need too complex words. We just need to make it simple. The concept of our Win95 operating system is simple and user-friendly.” Bill Gates replied.
Who says Microsoft does not have Chinese staffs? We had hired many Chinese overseas graduates. This was to make preparations to enter the Chinese market! See, I have the foresight!
Feng Yu raised his brows. Seems like Microsoft had thought about this way before. But those Chinese overseas graduates were really that outstanding? Maybe in the future, there might be some exceptional Chinese engineers. But in this era, the best Chinese language programmers were all in China!
“You are talking about the graduates you recruit these two years? You really think they are outstanding? Also, they were educated in the US. Do they really know what the Chinese want? Only China Chinese knows the Chinese best.”
“Those Chinese overseas students are not Chinese? Also, we do not need any complicated words. We need to cater to old people and kids too. They should be enough.”
Feng Yu looked at Bill Gates and then lean back and crossed his legs. “Bill, maybe you do not know me well enough. I have lots of investments, and no matter what company I invest, I am always the best in the industry. You really think there are no companies in those industries better than my companies?”
Bill Gates’ face changed. He remembered what his China staff told him. They said to him that in China, the Government was more powerful than the market. Some people with authority can influence the economy anytime and force the shut down of any company they like.
Was Feng trying to tell him that he could stop Microsoft from entering the Chinese market?
“Feng, what do you mean by this?”
Feng Yu smiled and replied: “It’s up to you to interpret my message. I will still suggest cooperation with me. After all, I also own Microsoft shares, and I do not want to see Microsoft losing the big Chinese market.”
Feng Yu purposely did not explain and let Bill Gates go and imagine.
“Since you also own Microsoft shares, why are you not wanting Microsoft to make more money?” Bill Gates asked Feng Yu.
“That’s my second request. I want to enter the Microsoft board of directors!”
Every time Warren Buffett invests, he will spend a lot to acquire the shares of the company and then enter the board of directors. He had also bought out some companies directly.
If Warren Buffett could do that, why can’t Feng Yu?
Although this company was called Microsoft, and Bill Gates was now the world’s richest man, but Feng Yu was still able to face him calmly. Feng Yu was Microsoft’s third-biggest shareholder and owns more shares than those people on the board.
Feng Yu had never thought about being the Chairman of the board. This was not possible. Bill Gates and Paul Allen were still around, and they will never let go of their authority.
Paul Allen had left Microsoft for a few years, but he returned back to the board a few years ago. He still has a good relationship with Bill Gates. He was definitely closer to Bill Gates compared to Feng Yu.
The rest of the directors on board will also support Bill Gates. It was impossible for Feng Yu to be the Chairman. However, it should not be a problem for Feng Yu to be one of the directors.
If Feng Yu had not become a director, he would not have a say in the company’s operations. This was not what Feng Yu could tolerate. Feng Yu’s investment in Microsoft will be surely profitable, but if he could influence the company’s strategy, it will be much better.
Bill Gates looked at Feng Yu for a while. So, this was what Feng wanted? He was aiming to enter the board of directors!
With 15% shares of the company, it should be reasonable for Feng Yu to enter the board of directors. But the shares owned by Feng Yu were all non-voting common stocks. If Feng Yu was allowed to enter the board of directors, then he will have voting rights. Although Feng Yu percentage of shares will not be able to threaten Bill Gates position, he must not belittle Feng Yu.
Bill Gates thought for a while and then look at Feng Yu. “I cannot make the decision on you joining the board of directors by myself.”
Feng Yu crossed his arms and smiled: “I can wait. But can Microsoft operating system’s launch in China wait?”