Chapter 754 – Agreeing to the conditions
3 days later, Bill Gates called Feng Yu. Actually, he had made his decision on the day after their meeting. He delayed for another 2 days as he did not want to show Feng Yu, he was anxious to make a decision. But in fact, 3 days was much faster than Feng Yu expected.
“Hi, Bill, Hi Paul.” Feng Yu was surprised to see Paul Allen.
Although Paul Allen was Microsoft second-biggest shareholder, he mainly focuses on his own software company. Also, Paul Allen loves sports and had bought many sports team, like NBA’s Portland Trail Blazers. In the future, he will buy Seattle Seahawks. He was also known as the wealthiest owner in the NBA.
When Paul Allen saw Feng Yu, he was surprised. Feng Yu was too young. At Feng Yu’s age, he was still starting Microsoft with Bill Gates. However, Feng Yu was already a multi-millionaire at such a young age. Did he make all his money by himself? But even if he made all his money himself, I am still richer than him!
“Seems like I don’t need to introduce.” Bill Gates laughed.
“Paul, I feel it is hard for your Portland Trail Blazers to win the Championship. Jordan is back, right?” Feng Yu asked suddenly.
Damn! You tried to embarrass me the moment you step in? You are the one who started this. I will make things difficult for you!
“Who says so? Jordan will not be back this year. Also, he will not qualify for the finals! Our Blazers will surely win the Championships within 5 years!” Paul Allen replied angrily.
“Really? How about we have a bet. If I manage to buy a team, my team will become the Champion faster than you.” Feng Yu smiled.
“You will not be able to buy any teams, because you are not a citizen! Even if you buy a stake in a team, you will not win, unless the team is Bulls or Rockets!”
“Hey, Paul, Feng, we are here to talk about Microsoft and not NBA. You all can talk about NBA later.” Bill Gates said.
How much does a sports team cost? If Bill Gates wants, he could buy out the whole NBA! The best teams were only worth around 100 million. Those average teams cost much lesser than 100 million.
What’s there to talk about these small businesses? Microsoft is more important!
Paul Allen turned his head away. This Feng was too irritating!
“Then let’s talk about Microsoft. You all agree to my conditions?” Feng Yu smiled.
When someone is angry, and you are smiling, the other party will get angrier, even if you did not say a word.
Paul Allen was furious!
“We will not accept any of your conditions!”
Bill Gates immediately pull his old friend back. They had already discussed, and why did Paul change his mind at the last minute?
“Feng, what he meant is we will not accept your conditions fully. We wish to discuss with you.” Bill Gates explained.
Feng Yu shrugged his shoulders. “Ok. What do you all want to discuss?”
“Firstly, we can accept you to the board of directors. But after you enter the board, you must put Microsoft interest before yourself. Are you clear?”
Putting Microsoft’s interest before self? That means you want to raise the price?
“I’m sorry. I don’t get what you mean. I will surely protect Microsoft’s interest, but I also do not want to suffer any losses on my side.”
“But you cannot let Microsoft suffer losses, just for you to make money.” Paul Allen barked.
Feng Yu looked at Paul Allen: “Paul, what do you mean? What losses does Microsoft have? I am helping Microsoft open up a new market. The world’s biggest market. It is several times bigger than the US market!”
“You are just playing with words. You think we do not know about China’s economy? We have a sales office in China and it been there for more than 3 years. China is still a poor country. Most of the people there are poor!” Paul Allen sneered.
In terms of population, China seems to be a massive market. But the population in Africa is higher. Can Africa be considered a big market? Many parts of Africa do not even have electricity, how can they use a PC?
“Do you all understand China better than me? Microsoft’s sales office is in China for 3 years. Have they analyzed the growth of PCs in China? Do they know about how much China’s economy had grown? Have they tabulated the growth of wealthy Chinese people? You all should also know how fast China’s economy is growing. How does it compare with the US market? A city in China has a bigger market than one US state.”
China’s economy was starting to grow these two years. Although at the initial phase, the growth was slow, after the year 2000, it shocked the world. The Chinese economy might not be spectacular now, but it was no longer considered a poverty nation.
“Since you say Chinese economy is growing rapidly, then Microsoft should treat China the same as the others. The price of the operating system and software should be the same as in other countries.” Paul Allen said arrogantly.
Didn’t you say China is prosperous now? Then why should we sell our products to you all at a lower rate?
“It is because of consumer behavior. A poor man, who had slogged for many years, finally got some money. Do you think he will spend his money like a spendthrift? He is used to saving every penny, and it has become a habit! If you still insist on selling your products at the usual price, then I can guarantee that you will not be able to sell many copies. Also, it is not that difficult to crack Microsoft system codes.”
Paul Allen’s face changed. “You are going to produce counterfeits? This is illegal!”
“I am not the one doing this. It is those users. Can you all tell who is using the original version and who are using the pirated version? You all also cannot go and search everyone’s home. Low prices + Bundle, is the right way to do it. This year, Lenovo will take over the whole Chinese PC market. Do you believe me?”
Bill Gates pulled Paul Allen back. Feng Yu and Paul Allen were about to fight. Bill Gates wondered what was wrong with Paul Allen. He was not someone with a foul temper.
“Feng, I do not want to argue with you. I will just tell you what our conditions are. If you are willing to accept, then we will cooperate. If you do not want to accept, then we will give up.”
Feng Yu gestured to Bill Gates to continue. Then he picked up his coffee and took a sip. At the same time, he glanced at Paul Allen.
“Paul and I will each exchange 1% of Microsoft shares with you. This way, you will own 2% voting shares, and I will nominate you to enter the board of directors. Can you tell me what you are good at and what position do you want?”
“I want to be the overall in-charge of the Chinese market. I promise I will help Microsoft penetrate the Chinese market, and I will not care about other things.”
“Ok. You will be the Vice President of Asia Pacific and will be overseeing the China market. Your first condition is settled. Let’s talk about your other demand. We have discussed and do not agree with 12 USD. The lowest price we can accept is 20 USD. This is already the cheapest rate in the whole world. Your cost will not increase a lot if you include it into Lenovo’s PC. After all, China’s tax on electronic products is so high, and you all will still have the price advantage!”
Feng Yu thought for a while. Microsoft’s operating system price in other regions was still much higher than 20 USD. Now, Microsoft is selling the operating system, bundled with the full Office software. This was already a good bargain and can be accepted.
“Fine. I will give in to you. I will accept this condition.”