Reborn as a tycoon in Hong Kong
Chapter 577 Reconciliation, the price of failure (two in one)
Seattle, Blue Software.
In the company's conference room, there are two groups of people sitting on both sides of the long table.
Bill Gates and Paul Allen are the bosses of the company, so they are naturally there, and opposite them are Bill Harveys and the lawyers, accountants, assistants and others he brought.
"You two, this is the third day of our negotiations. If we can't reach an agreement today, I think our negotiations should end here."
Bill Harveys said with a threat. Lin Baicheng's words gave him confidence, but he still hoped that the negotiation could be successful. Only by successful negotiation could he show his ability.
If the negotiation with Bill Gates and Paul Allen collapsed, anyone could do it. Just send someone over and put forward a condition that the two of them could not agree to, and the negotiation would naturally collapse.
Therefore, in Bill Harveys' view, since the boss sent him to negotiate, the boss still hopes that the negotiation can be successful on the basis of meeting the boss's conditions.
"Okay, let's work out a result today."
Bill Gates does not want to continue to delay, and there is no point in wasting time on negotiations.
“About the Chairman’s investment in Blue Software Company’s shares.”
Immediately afterwards, the two parties negotiated how many shares Lin Baicheng could hold in Blue Software Company. This was the biggest disagreement between the two parties. However, they had a rough estimate of Blue Software Company's valuation, so it was not a big problem.
Bill Harveys wanted to get more shares of Blue Software Company for Lin Baicheng. Lin Baicheng said that he must get at least 20% of the shares. Of course, it was impossible for him to get just 20% of the shares for Lin Baicheng. That would only make him look like he was a loser. His ability is very poor, so the shares he wants to fight for must be more than 20%, otherwise he would rather fail to negotiate.
Bill Gates and Paul Allen did not want to give Lin Baicheng too many shares. After all, the two sides were in a hostile relationship. If they gave Lin Baicheng too many shares, it might affect their control of the company.
This negotiation is the last, so both sides slowly reveal their bottom lines.
Bill Harveys said that Lin Baicheng wants 22% of the shares of Blue Software Company, and in the next two years, as long as Blue Software Company raises financing, Lin Baicheng will have the same proportion of priority to follow in the investment. In this case, Blue Software Company will not be able to forcibly dilute Lin Baicheng's shares within two years.
Bill Gates and Paul Allen had a lower bottom line, and were only willing to give up 20% of their shares. However, they were the ones who initiated the negotiations, and they were also the ones involved in the lawsuit. Therefore, after discussing for a while, they still agreed. A compromise was made, giving up 2% more shares.
However, Bill Gates and Paul Allen also have conditions, that is, of the 22% shares that Lin Baicheng can obtain, 5% of the shares must be handed over to Bill Gates for five years.
Bill Harveys refused to agree after hearing this, but Bill Gates said he was worried about Lin Baicheng's fight for control of the company. Since he could promise that Lin Baicheng's shares would not be forcibly diluted in the next two years, Lin Baicheng should also Make concessions to reassure him.
Bill Gates showed a firm attitude. Bill Harveys could not guarantee whether Bill Gates would be young and vigorous. Therefore, after thinking about it, he said that he would report to Lin Baicheng. The specific answer or not would be up to Chairman Lin Baicheng. Just make a decision.
Therefore, the negotiations between the two parties were temporarily ended, and Bill Harveys took the people away from Blue Software Company and returned to the hotel.
After Bill Harveys and others left.
Paul Allen said to Bill Gates: "Bill, if Allen is unwilling to give in in the end and does not agree to let you use the 5% of the equity, what are you going to do?"
"What else can I do? I can only choose to compromise."
Bill Gates shook his head and talked about this step. It was impossible for him to cause the negotiation to fail because of Lin Baicheng's refusal to give in.
Paul Allen was a little surprised when he heard this: "Bill, I thought you would persist to the end."
"Paul, the two of us are in a lawsuit. If we don't reach a settlement with Allen, not only will we be in trouble, but the company's software will also be in trouble. This is the most important thing."
What worries Bill Gates is that Blue Software's computer operating system technology and ownership of patents are subject to lawsuits. Once the company develops, investors will definitely worry about thunderstorms, which will have a significant impact on the company's valuation. Influence. In addition, if the company keeps fighting lawsuits, it is hard to say whether it can develop the company, so solving the trouble is the most important thing.
"Bill, if you think so, then I'll be relieved."
Paul Allen was really worried that Bill Gates was too self-centered. Now that he heard Bill Gates say this, he was immediately relieved, and at the same time he was more confident in whether the company could develop.
On the other side, Bill Harveys, who returned to the hotel, tried to find a way to contact Lin Baicheng in New York.
It is indeed inconvenient to not have a mobile phone nowadays, but after several turnarounds, Bill Harveys still contacted Lin Baicheng, and then reported the negotiation results to Lin Baicheng.
"22% of the shares, 17% of the equity?"
Lin Baicheng thought about it after listening, and after a moment he said: "We can give 5% of the shares to Bill Gates, but the time is equivalent to the number of years of the preferential follow-up investment rights we have obtained. In other words, if I The shares only have two years of preferential follow-up rights, so the time for 5% of the shares to be exercised by Bill Gates is also two years."
"Yes, Chairman, I will make him agree."
Bill Harveys said he didn't ask what Bill Gates would do if he didn't agree.
Lin Baicheng said: "I think three years is almost enough for Blue Software Company's priority to follow the investment, so the right to exercise the shares also gives Bill Gates three years. Of course, if Bill Gates wants to set the time to five If it’s years, let’s do it for five years, there’s no need to insist.”
Bill Harveys immediately said: "Okay, I will try to set the time as three years."
Lin Baicheng asked: "So, what do you say about the valuation of Blue Software Company and the asset allocation of Microsoft Corporation?"
"The valuation of Blue Software Company is not high, between US$8 million and US$10 million. The specific valuation needs to be discussed again. The most valuable thing about the company is the technology and patents of the computer operating system, and an IBM contract. Blue Software Company’s operating software purchase contract is over.”
"As for Microsoft, Bill Gates and Paul Allen have agreed to transfer their shares to you, and the company will be valued at US$6 million. This has been negotiated. Once the negotiations are successfully reached, then The share transfer will be completed, and at the same time Microsoft and Blue Software will sign an agreement to jointly hold technology and patents for computer operating systems."
Bill Harveys answered aloud.
"I have no objection to the valuation of the two companies, but as for Microsoft, there should be no problems with the share transfer contract. After the transaction is completed, the company will be moved to Los Angeles. If Microsoft employees want to stay, recruitment will be restarted. Those who have no problem with the procedures and abilities will be retained. And those employees who do not want to stay in the company will follow the normal resignation procedures."
Lin Baicheng plans to let New Century Software Company work with Microsoft to develop and sell computer operating systems. However, the two companies only cooperate on this technology, so they will jointly invest in the establishment of the company, while Microsoft will retain its operating cash. If there is business, and if Lin Baicheng suddenly has any ideas, he can let Microsoft do it.
Since Microsoft and New Century Software are to cooperate, then moving Microsoft to Los Angeles is the right thing to do. He has no special feelings for Redmond. There is no need for Microsoft to be located there specifically. Transportation and talent recruitment are more convenient in Los Angeles.
Bill Harveys responded: "Okay, I'll do my job accordingly."
Lin Baicheng said: "Well, tell me again after the negotiation with Bill Gates has the final result."
"Yes, Chairman!"
Bill Harveys answered, and he put down the phone after Lin Baicheng hung up.
In the afternoon, Bill Harveys took people to Blue Software Company again, and started negotiations again with Bill Gates and Paul Allen in the conference room.
When Bill Harveys put forward Lin Baicheng's conditions, Bill Gates only thought about it briefly and agreed. The three-year driving time for 5% of the shares, and the three-year preferential follow-up investment rights for Lin Baicheng's 22% of the shares are all within Bill Gates's tolerance and he can accept it.
After Bill Gates agreed to the conditions proposed by Lin Baicheng, the negotiation was basically completed. Later, the two parties did not struggle for long on the valuation of Blue Software Company, and soon reached an agreement on a valuation of US$9 million.
Lin Baicheng paid US$1.98 million to acquire 22% of the equity of Blue Software Company, and also spent US$2.1 million to acquire 70% of the Microsoft shares held by Bill Gates and Paul Allen, for a total of US$4.08 million.
The reason why Microsoft is valued at US$6 million and the combined 70% shares of Bill Gates and Paul Allen are worth US$2.1 million is because Microsoft has a debt of US$5 million, which is shared by the three shareholders. Fortunately, the cash and uncollected accounts in the company's account totaled US$2 million, so the company's liabilities were US$3 million, and US$2.1 million had to be deducted from the US$4.2 million worth of Bill Gates' shares.
In the end, Bill Gates and Paul Allen were able to get only $2.1 million from Microsoft.
This time, Bill Gates and Paul Allen can be said to have suffered quite a loss. Microsoft was previously valued at around 10 million U.S. dollars, and 70% of their shares were worth 7 million U.S. dollars. Even after deducting the company's loans, there was still enough money left. Three to four million dollars.
In addition, Bill Gates and Paul Allen have a very high shareholding ratio in Microsoft. Even if IBM takes a stake, their shares will not be diluted too much.
But in today's Blue Software Company, Lin Baicheng personally holds 22% of the shares. I don't know how much IBM will hold, but I guess it is 10% to 20%. Their shareholding ratio is no higher than that of Microsoft. More often than not, maybe even less.
The result of this is that after all the messing around, Bill Gates and Paul Allen not only did not make any money, but actually lost money.
But this is the price of failure. Bill Gates and Paul Allen wanted to kick Lin Baicheng out, but things were not done well, and the loser will naturally have to pay the price. At least they are not involved in lawsuits now, and Blue Software Company is also not involved in lawsuits. As long as Blue Software Company rides on the giant ship of IBM, then they will have hope and a future.
Compared with Bill Gates and others, Lin Baicheng obtained 22% of the shares of Blue Software Company and the entire Microsoft Corporation. The actual value of Microsoft Corporation should be higher than the estimated value of US$6 million, but it will not be much higher. , Lin Baicheng values the company's computer operating system technology and patents.
However, although Lin Baicheng has obtained the technology and patents for computer operating systems, he cannot guarantee that the company's development will be comparable to that of Blue Software Company, which is backed by IBM. Fortunately, he still holds 22% of the shares of Blue Software Company. He can still eat the meat of computer operating systems.
That night, Lin Baicheng learned the final result of the negotiations from Bill Harveys. He was not very satisfied with this, but fortunately he had no loss and could accept it.
In fact, if possible, Lin Baicheng hopes that Microsoft can develop as smoothly as before its rebirth. Even if the 30% of the shares he initially held went through several rounds of dilution, it should be no problem to leave 15% of the shares before the company goes public.
Microsoft will definitely acquire other companies in the process of development, and acquisitions have always been part-cash and part-share acquisitions. Shareholders' shares will still be diluted, but the diluted shares will be relatively small at that time.
Therefore, Lin Baicheng believes that when Microsoft develops to a market value of hundreds of billions of dollars, he should still be able to hold 10% of Microsoft's shares, which is equivalent to assets of tens of billions of dollars, and he can safely pocket it.
Now, although Blue Software Company has also reached a cooperation with IBM, Lin Baicheng also holds 22% of the shares of Blue Software Company and is the company's major shareholder.
But the future has changed. Lin Baicheng is really not sure whether Blue Software Company can develop into another 'Microsoft' in the future. It's hard to say how much money his 22% stake will have left by then.
As for the company jointly established by New Century Software Company and Microsoft Corporation, Lin Baicheng was even less confident. He was not sure whether this company could compete with Blue Software Company, let alone develop this company into a giant.
Therefore, the stable assets of tens of billions of dollars have now become uncertain assets. In exchange, what anyone wants is the former. There are enough assets of tens of billions of dollars.
Unfortunately, everything has become a fait accompli. All Lin Baicheng can do is to keep operating system companies alive. He knows the future prospects of this industry, so as long as the company continues to survive, it may have a bright future.
Of course, survival is the bottom line. It is best for the company to develop into a giant and occupy the computer operating system market like Microsoft before its rebirth. Then Lin Baicheng will earn more from the shares he holds. If that were the case, he would have Bill Gates and Paul Allen to thank for kicking him out of Microsoft.
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