Golden Spoon Investment Portfolio - Chapter 313

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

313. I’d prefer if the acquisition payment were made in stock.

Seok-won emerged from the Penthouse and rode the Elevator down with his entourage, heading directly to the Plaza Hotel Business Meeting Room where today’s meeting would take place.
Upon arriving at the Business Meeting Room—elegantly appointed with expansive floor-to-ceiling windows overlooking Central Park and solid wood furnishings—Landon Shore was already there with the Investment Fund’s Counsel Lawyer.
After sitting with the windows at my back and waiting briefly, Microsoft executives appeared under the guidance of MacGregor, the Plaza Hotel’s General Manager.
Rising to my feet, I approached Christopher Alexander, the tall representative wearing gold-rimmed glasses, and greeted him with a smile.

“Welcome. I apologize for bringing you all the way to New York.”

Representative Alexander grasped the hand I offered and smiled faintly.

“Not at all. But I’m curious—did you manage to handle that urgent matter you mentioned?”

To Alexander’s barbed remark delivered with a smile, I responded smoothly without so much as raising an eyebrow.

“Yes. Thanks to your understanding, we were able to achieve an excellent outcome.”

Representative Alexander, having tested the waters with a light provocation, inwardly clicked his tongue at my unwavering composure.

‘Indeed, a formidable opponent despite his youth.’

He instinctively sensed that this negotiation would not be easy.
After exchanging pleasantries, both sides took their seats facing each other across a long wooden table.
Once the uniformed Hotel Staff Members brought tea and departed with MacGregor, closing the door behind them, I opened the discussion with an air of composure.

“Shall we get straight to business since you’re busy?”
“Let’s do that.”

Representative Alexander across from me gave a small nod in response.

“You wish to acquire Hotmail.”

I asked, leaning back in my chair with my hands clasped together.

“As outlined in the proposal I sent, I wish to purchase 100% of Hotmail’s shares for 300 million dollars.”

Unlike Korea, where acquiring a company meant purchasing only the controlling shareholder’s stake, the United States required the buyer to acquire all shares.

“First, we are viewing the sale of the company positively.”
“That’s reassuring.”
“However, the price needs to be right before we can sign the contract.”

Christopher Alexander spoke as if he had expected exactly this.

“It seems our proposed acquisition price doesn’t meet your expectations.”
“Honestly, it doesn’t.”
“Then tell me—what figure are you looking for?”

Seok-won answered as if he had been waiting for this moment.

“I believe we need at least 500 million dollars.”

Unlike Landon Shore and the others who had heard the figure beforehand and remained composed, the Microsoft representatives couldn’t hide their shock at Seok-won’s words.

“500 million dollars…”
“Huh.”

CFO Alvin in particular wore an expression of disbelief, while Christopher Alexander himself furrowed his brow and made his displeasure evident.

“You’re being far too greedy.”

The atmosphere in the Business Meeting Room sank in an instant, but Seok-won remained unfazed.

“Is that what you think?”
“For a venture company that hasn’t even been around for two years, a valuation of 500 million dollars—I suspect anyone would say the same thing.”

Christopher Alexander responded with a hardened expression.
Then Seok-won shrugged as if surprised by the remark.

“I must say, I’m rather taken aback hearing this from Christopher Alexander himself, the founder of Microsoft.”

At this cryptic response, Christopher Alexander’s eyebrows twitched.

“Netscape was also a fledgling venture that had only recently been founded, but when it went public on NASDAQ, it was valued at 1.2 billion dollars. Of course, its market capitalization has grown exponentially since then.”
“….”
“Yahoo also saw its stock price skyrocket, reaching a market capitalization of 848 million dollars on its first day of trading.”

Seok-won continued, meeting Christopher Alexander’s gaze directly.

“I believe Hotmail is a promising company that stands shoulder to shoulder with the two firms I just mentioned. That’s precisely why Microsoft is rushing to acquire Hotmail before its valuation climbs even higher, isn’t it?”

If he denied it now, he’d be admitting poor judgment. If he acknowledged it, he’d have no choice but to raise the acquisition price. It was a perfect trap.
Christopher Alexander realized he’d been ensnared by Seok-won’s subtle rhetoric from the very beginning, and he couldn’t help but smile bitterly to himself.
But he couldn’t afford to be led around like this, so Christopher Alexander responded calmly.

“I’ll grant that Hotmail is a good company, but 500 million dollars is still a difficult figure to justify.”
“I respectfully disagree. I believe it could command that valuation even if we went public right now.”

Alvin, the CFO sitting nearby, could no longer contain himself and interjected.

“That’s merely your personal opinion. The market’s assessment is quite different, wouldn’t you say?”
“Is that so?”

Seok-won’s lips curled into a knowing smirk.
As Christopher Alexander’s expression hardened at the cryptic remark, an agitated Alvin leaned forward and pressed the issue.

“Are you saying there are other potential buyers?”
“I’m afraid I can’t answer that.”

Seok-won replied with composure to Alvin’s hasty question.
Seeing his demeanor, Christopher Alexander and the Microsoft representatives immediately concluded that Netscape had indeed entered the bidding war.

“Would 350 million dollars be acceptable?”

As Christopher Alexander made the new proposal, biting his lower lip, Seok-won’s expression turned serious.

“I was quite clear that the figure is 500 million dollars.”

His tone made it clear he wouldn’t budge below that price, and Christopher Alexander let out an incredulous laugh.

“At that rate, we might as well invest more heavily in Microsoft Network instead.”
“Perhaps. But while you’re doing that, your competitors will have moved several steps ahead, making it all the harder to catch up.”

Seok-won shifted his relaxed posture and continued speaking.

“You understand far better than I do, but the IT industry is precisely the sector that develops at a breathtaking pace with each passing day. And once you seize market dominance, reclaiming it requires exponentially more effort and capital.”
“….”
“The problem is that even with such investments, there’s no guarantee of achieving the desired results.”

Seok-won tilted his chin slightly upward, his gaze sharp and commanding, making it abundantly clear that he held the upper hand in this negotiation.

“Once the scales tip decisively in one direction and market control is established, second and third place become utterly meaningless—something you must already understand intimately from your experience with computer operating systems.”

When Seok-won pointedly referenced how Microsoft had grown into the colossal IT enterprise it was today by defeating Apple, which had led with Macintosh, and nearly monopolizing the operating system market, Christopher Alexander’s expression darkened with frustration, unable to mount any counterargument.
Though he had initially dismissed the figure as outrageous, Alexander knew better than anyone what happened when the market tilted and control slipped away—and that knowledge kept him rooted to his seat.
The Microsoft executives who had accompanied him wore equally uncomfortable expressions.
As the silence stretched, Seok-won maintained his unhurried composure, lifting his teacup to sip his coffee.
Then, observing Alexander’s troubled expression, he dangled an enticing proposition.

“If the acquisition amount presents a burden, there is one method to ease the strain.”

As expected, Alexander’s eyes flickered with interest.

“What would that be?”
“Replace a portion of the acquisition payment with Microsoft stock.”

At these words, Alexander’s brow furrowed.

“Given the current market boom riding the IT wave, even if Microsoft issues several hundred million dollars in new shares to raise M&A funds, it won’t impact the stock price whatsoever.”
“….”
“Your shareholders won’t oppose it—quite the opposite. They’ll enthusiastically welcome the acquisition of Hotmail, which is growing at such a remarkable pace. After all, it significantly elevates Microsoft’s valuation.”

It was a reasonable proposal, but remembering that Seok-won was also a major shareholder of Microsoft, Alexander narrowed his eyes suspiciously, wondering if there was some hidden agenda.
As if sensing this doubt, Seok-won chuckled softly and added clarification.

“To prevent any misunderstanding, I’ll state plainly: even if my Microsoft stake increases through this transaction, I will remain an investor as I have been, without interfering in management.”

While it was true that Seok-won had never involved himself in the management of companies he had invested in thus far, Alexander couldn’t be certain this would continue indefinitely, so his suspicious gaze lingered.
After staring at Seok-won intently for a moment, Alexander spoke in a slightly subdued voice.

“This seems like a matter too important to decide immediately. Perhaps we should take a day to consider our position and reconvene tomorrow to discuss further.”

Seok-won didn’t expect to reach a decision today either, so he nodded readily.

“Of course.”
“Then I’ll be in touch.”

Christopher Alexander rose first as he spoke.
After Christopher Alexander and the Microsoft executives exchanged greetings in turn and left the Business Meeting Room, Landon Shore watched Seok-won settle back into his seat and asked.

“Do you think Christopher Alexander will accept the terms?”

Seok-won glanced at the door through which the other party had just exited, then turned his gaze back.

“He’ll be conflicted, but knowing the price is steep, he’ll have no choice but to acquire Hotmail in the end.”

Landon Shore’s eyes gleamed at the confident tone.

“So you’re saying he’ll do it precisely to prevent Netscape, his competitor, from acquiring Hotmail.”

Seok-won smiled faintly and nodded.

“Exactly. Christopher Alexander would know that the internet market will generate far more profit in the future than the operating system they currently monopolize. He simply can’t help but be greedy.”
“To multiply nine million dollars into two hundred million in just two years—I can only say it’s remarkable.”

Landon Shore marveled with an impressed expression, but Seok-won replied calmly without excitement.

“We haven’t signed the contract yet, so we don’t know how much profit we’ll actually make.”
“From Microsoft’s perspective, they’ll have no choice but to acquire Hotmail to prevent it from going to a competitor. Even with some negotiation, shouldn’t we be able to earn at least fifteen times the initial investment?”

Landon Shore spoke with eyes full of confidence, and Seok-won didn’t particularly deny it.

“If we replace part of the acquisition price with stock as you suggested, your Microsoft shares would increase considerably.”
“I’d rather see it grow further—it’s not a stock that will decline. I have nothing to lose, but I’m not sure if Christopher Alexander will agree to it.”

Landon Shore, catching the implication, nodded slightly.

“You mean he’ll be reluctant to see your shareholding increase due to control of management.”

Seok-won leaned back and continued.

“And Microsoft isn’t exactly a company without cash reserves either. They might prefer not to dilute their founder’s stake unnecessarily.”

If they proceeded with a paid-in capital increase, the founder’s shareholding ratio would inevitably decline unless Christopher Alexander himself invested his personal funds to participate.

“You make a fair point when you put it that way.”

Regardless of which path they chose, it would be advantageous for me, so I allowed myself a relaxed expression.
Yet at the same time, Seok-won found himself recalling how, a few years down the line, Microsoft would ride the IT bubble to record a market capitalization exceeding five hundred billion dollars, surpassing IBM to become the world’s most valuable company—and he couldn’t help but savor the thought with a quiet murmur.

‘I’d prefer if they settled the acquisition price in stock.’

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