Golden Spoon Investment Portfolio - Chapter 165

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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165. Even leaving that much behind is already generous.

“Do you think President Jo will accept the proposal?”

Seok-won settled into the plush sofa and accepted the drink Landon Shore poured for him, speaking with calm composure.

“He’ll spend a week racking his brains, but ultimately he’ll have no choice but to accept the proposal as presented.”

After sending off Jo Jung-gwang and his party, the two men moved directly to the Hotel Lounge.
Beyond the expansive windows stretched a beautiful view of the Han River, while soft lighting illuminated the interior where a woman pianist in an evening gown performed live on the piano.
Being a weekday afternoon, there were plenty of empty seats, which was perfect for having a conversation without worrying about others listening in.

“Couldn’t we also join hands with Lycos instead of Yahoo?”
“Of course that’s possible. But even though we’re just starting out, Yahoo is already establishing a firm foothold in the portal service market, while Lycos is a latecomer. If you were in my position, which one would you want to partner with?”
“Yahoo would be the better choice.”

Seok-won took a sip of whiskey from his rocks glass and continued.

“That’s exactly why SoftBank invested in Yahoo instead of Lycos. They understand the first-mover advantage better than anyone, and any businessman would naturally want to bet on whichever option has even a 1% higher chance of success.”

As he spoke, Seok-won wore a meaningful smile at the corners of his mouth.

“Still, just to be safe, it would be good to eliminate any variables that might arise.”
“What do you mean?”

Seok-won rolled the rocks glass with ice in his hand as he spoke.

“Let’s accumulate up to 5% of SoftBank’s shares.”
“To apply pressure on them?”
“Exactly.”
“That could backfire and create unnecessary resistance.”

Landon Shore expressed mild concern.

“Do you really think so?”
“Sir?”

Landon Shore looked at me with a puzzled expression, and I narrowed my eyes as I replied.

“Japan’s defining characteristic is that they’re infinitely weak against stronger opponents, but ruthlessly domineering toward the weaker. It’s their nature.”

A classic case of bullying the weak while cowering before the strong.
It was a national trait passed down from the days when samurai roamed the streets wielding their blades.

“If you apply pressure clumsily, they’ll resist. But once they recognize that you’re far more powerful than them, they’ll choose cooperation over confrontation.”
“I understand what you’re saying. But wouldn’t simply accumulating stock be somewhat insufficient?”
“Of course it would be.”

I nodded in agreement.

“Microsoft is requesting a Mosaic license, and the negotiations are nearly finalized, aren’t they?”
“Yes.”

When Netscape went public on NASDAQ and rapidly dominated the PC-based network market, Christopher Alexander, Microsoft’s founder, immediately grasped the importance of the internet.
However, Microsoft, which had done virtually no preparation for the internet, belatedly began developing its own web browser but was facing considerable difficulties.

‘Even now, they’re a leading company in the IT industry, but their growth into a massive tech giant with tens of thousands of developers is still far in the future. It’s unavoidable.’

Moreover, they were pouring all their resources and manpower into Windows 95 development, leaving them no capacity to look elsewhere.

‘It wasn’t until they saw Netscape charging forward menacingly with their web browser that they felt the fire at their feet.’

What made Microsoft anxious was the fear that if they allowed Netscape to monopolize the web browser market, it could transform into something like an operating system and threaten their own monopolistic position.
Unable to quickly produce a high-quality web browser, Microsoft ultimately settled on a second-best solution: licensing agreements to use Mosaic-related patents and technology, which had formed the foundation of Netscape’s browser.
From Netscape’s perspective, a formidable competitor was emerging, so before negotiating with Microsoft, I first contacted Tom Harper to get his approval.

[I don’t care. Do whatever you want.]
[Are you really sure about this?]
[Of course. Those guys might not know much else, but their web browser technology is pathetic. They can produce something by licensing Mosaic, but it’ll fall far short compared to ours. Besides, we won’t just be sitting idle in the meantime.]
[Still, it’s Microsoft we’re talking about.]
[Exactly. That’s why it’s even better. How satisfying would it be to flatten their nose?]

Tom Harper displayed strong confidence as he spoke.
I knew all too well how Microsoft would eventually destroy Netscape, so I felt concerned, but I didn’t press the matter further.

‘Even if we don’t hand over the Mosaic-related licenses to Microsoft, it’s only a matter of time before they develop their own web browser.’

If that were the case, it would be far better to enter into a licensing agreement and profit from it.

“Contact Christopher Alexander and ask him to put through a call to President Jo for me.”

Seok-won finished his brief recollection and spoke while sipping his whiskey.

“We’ve maintained a cooperative relationship with SoftBank for nearly a decade under an exclusive software supply contract for Japan, but I’m not certain they’ll accede to our demands.”
“It’s true we’ve worked together for a long time, but if we compare SoftBank—merely a Japanese distributor holding exclusive rights—to us, who possess the web browser technology and patents most urgently needed right now, plus a 2% stake in Microsoft as a major shareholder, which side would Christopher Alexander consider more important?”
“Of course, he’d have no choice but to side with us.”
“Exactly.”

A smile played at the corners of Seok-won’s mouth.

“You should know that most of SoftBank’s revenue comes from exclusively distributing software created by Microsoft.”

Landon Shore nodded, having conducted thorough preliminary research on SoftBank the moment the meeting request arrived.
Seok-won watched the ice in his glass crack and melt as he spoke.

“Which means when Christopher Alexander makes that call, it will exert far greater pressure than our acquisition of SoftBank shares.”
“I’d certainly feel the pressure myself.”

Seok-won set his rocks glass down on the table with a soft clink and folded his hands together on his lap.

“President Jo is intelligent and quick with calculations—if he judges that fighting would yield nothing, he’ll accept our proposal.”
“That does seem certain.”

After a moment’s thought, Landon Shore posed another question.

“Christopher Alexander’s call alone should suffice to apply pressure—do we really need to acquire SoftBank shares as well?”
“Landon, do you know another characteristic of the Japanese?”
“I’m not sure.”
“Their outward appearance differs from their true nature. They may bow and submit when disadvantaged at first, but inwardly they sharpen their blades, ready to strike from behind at any moment. To prevent that, we must break their spirit completely from the start—make them too intimidated to even attempt retaliation.”
“So that’s what the SoftBank stake is for.”

Landon Shore blinked as he asked.

“Precisely. Five percent doesn’t threaten management control, but it’s an awkward enough stake that they can’t simply ignore it either.”

In fact, even though SoftBank was listed on the Japanese stock exchange, founder President Jo Jung-gwang still held nearly 30% of the company’s shares, maintaining firm control over management.

“But what if this new major shareholder could become hostile depending on the circumstances, and possesses both the capital and capability to wage a management rights dispute?”
“That would certainly be a source of considerable concern.”

Seok-won chuckled softly, as if to say, “Exactly.”

“The goal is to become an uncomfortable presence—like a thorn lodged in their throat. Even after we enter into a partnership, I’ll serve as a safety pin, ensuring SoftBank never entertains any second thoughts.”

I wondered if it was truly necessary to bind SoftBank so tightly with layer upon layer of constraints, but if Seok-won had determined it was essential, then following his directive was only natural.
Besides, as he said, there was no harm in having multiple safeguards in place.
When Landon Shore appeared to accept this reasoning, he smiled lightly and continued.

“And once we enter into a partnership and launch a portal service business in Japan, SoftBank’s stock price will soar far beyond its current level. It’s an investment with guaranteed returns—there’s no reason not to pursue it.”
“Now that you mention it, that’s certainly true.”

No matter how I looked at it, Seok-won’s approach ensured he never came out on the losing end. That was his true skill.

“We should have more than enough capital within Japan to acquire SoftBank shares, correct?”
“Of course.”

Seok-won nodded and posed another question.

“The Nikkei closed at 14,617 yesterday, didn’t it?”
“That’s correct. Given that we’ve seen sideways movement for several days without further decline, it appears we’ve confirmed the bottom.”
“I share that assessment. Since I shorted at 19,500, we’re looking at roughly a 25% profit.”

Landon Shore spoke with a smile spreading across his face.

“The exact figures won’t be certain until all settlements are finalized, but after deducting fees and principal, we’ve realized over 1.4 billion dollars in profits.”
“That’s not a bad result at all.”
“At any other firm, they would have already popped champagne and celebrated.”

Landon Shore shook his head as if at a loss for words.
Watching him earn more in a single bet than a top-tier hedge fund on Wall Street makes in an entire year, yet regard it with such calm indifference, left me feeling as though common sense had been turned on its head.
Based on the results Seok-won had demonstrated thus far, it seemed far more likely that this composure was genuine rather than mere bravado—which made it both impressive and utterly astounding.

“In any case, as you said, it seems unlikely to fall much further from here, so let’s close out all our positions.”
“Understood.”

Landon Shore responded immediately, as if he’d been waiting for this instruction.

“Combined principal and profits, we’re looking at just over two billion dollars.”
“That sounds about right.”

I paused to think for a moment, then continued.

“Then let’s use one billion dollars to buy Nikkei long options and put the rest toward acquiring SoftBank shares.”

Landon Shore leaned forward slightly in his seat.

“You’re reversing your position immediately?”
“Multiple factors converged to crash the Nikkei, but the biggest one was the yen appreciation, wasn’t it?”
“Exactly.”

Landon Shore nodded seriously.
When the yen strengthened, Japanese companies lost competitiveness, exports declined, and it became a headwind for the Japanese stock market.

“As I’ve mentioned several times, the yen appreciation is ending, and from now on the yen will continue to weaken. What do you think will happen to the Nikkei then?”

Landon Shore’s eyes lit up as he grasped my meaning.

“The headwind disappears, so the Nikkei will rise again.”

I smiled faintly and replied.

“Exactly right. If we pass up an opportunity to make money that’s staring us in the face, we’d be fools.”
“Haha, well said.”

Landon Shore laughed aloud and met my eyes.

“Let word leak to SoftBank about how much profit we’ve made this time.”
“You want to show them we have plenty of ammunition for a fight by flashing our deep pockets.”
“Bingo.”

I grinned wickedly, and Landon Shore mirrored my villainous expression.

“If we do that, even Jo Jung-gwang would have no choice but to throw in the towel.”

I sank back into the sofa as if to say it didn’t matter either way.

“If we establish a joint venture and dominate Japan’s portal service market, SoftBank can transcend its current role of merely distributing Microsoft software exclusively and leap to an even greater height. It would be mutually beneficial.”

I had claimed a substantial portion of what would have been entirely Jo Jung-gwang’s achievement, yet I felt not a shred of guilt.

‘At least I didn’t seize everything—leaving him this much was already generous.’

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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