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CH165 | GSI
🕑 Added 2025-02-25 03:35:01 +0000 UTC“Do you think President Son will accept the proposal?”
Seok-won calmly replied as he received the drink Landon poured for him, sinking into the plush sofa.
“He’ll rack his brain for the next week, but in the end, he won’t have much choice but to go along with it.”
After seeing Masayoshi Son’s group off, the two moved to the hotel lounge bar.
Through the large windows, the beautiful view of the Han River stretched out before them, while the soft glow of the interior lights cast a warm ambience. A female pianist in an elegant dress was performing live, her music flowing gently through the space.
Being a weekday afternoon, the lounge had plenty of empty seats, making it the perfect setting for a conversation without worrying about eavesdroppers.
“But what if he partners with Lycos instead of Yahoo?”
“He could. But tell me, Landon—if you had to choose between Yahoo, which is already securing a firm position in the portal market, and Lycos, a latecomer, which one would you go with?”
“Well, Yahoo, of course.”
Seok-won took a sip of his whiskey on the rocks and continued.
“Exactly. That’s why SoftBank invested in Yahoo, not Lycos. They understand the power of being first in the market better than anyone. And as a businessman, you naturally want to bet on the option with even a 1% higher chance of success.”
Then, a knowing smile tugged at Seok-won’s lips.
“Still, just in case, it’s best to eliminate any potential variables.”
“What do you mean?”
Seok-won rolled the glass in his hand, letting the ice clink softly.
“Start acquiring SoftBank’s shares—up to 5%.”
“You want to put pressure on them?”
“That’s right.”
“That could backfire and provoke resistance.”
Landon voiced his concern.
Seok-won merely chuckled.
“Do you really think so?”
Landon looked at Seok-won with a puzzled expression. In response, Seok-won narrowed his eyes and said,
“Japan has a peculiar trait—they’re endlessly weak in front of those stronger than them but mercilessly ruthless toward the weak.”
A classic case of the strong preying on the weak.
It was a national characteristic that had persisted since the days when samurais roamed the land, wielding their swords.
“If we apply pressure half-heartedly, they’ll resist. But if we show them overwhelming strength, they’ll choose cooperation over confrontation.”
“I understand your point. But wouldn’t just acquiring shares be a bit too weak of a move?”
“Of course.”
Seok-won nodded in agreement.
“Microsoft requested a Mosaic license, and the negotiations are almost finalized, correct?”
“Yes.”
When Netscape went public on the Nasdaq and rapidly dominated the network market—previously centered on PC communications—Microsoft’s founder, Bill Gates, quickly recognized the importance of the internet.
However, having done little to prepare for the internet revolution, Microsoft scrambled to develop its own web browser, only to face significant difficulties.
‘Even at this time, Microsoft was a leading company in IT, but it wasn’t until much later that it grew into a tech giant with tens of thousands of developers. So, it’s understandable.’
Moreover, with all its resources and manpower poured into developing Windows 95, Microsoft had little room to focus on anything else.
‘Then Netscape made its aggressive push with its web browser, and suddenly, Microsoft found itself in a crisis.’
What truly alarmed Microsoft was the possibility that if Netscape were allowed to dominate the web browser market, it could evolve into a platform akin to an operating system, threatening Microsoft’s monopoly.
Since developing a high-quality web browser from scratch wasn’t feasible in the short term, Microsoft devised a backup plan—securing a licensing agreement for Mosaic-related patents and technology, which had also served as the foundation for Netscape.
Since the emergence of a powerful competitor would be a major concern for Netscape, Seok-won reached out to Tom Harper before negotiating with Microsoft to get his approval.
[I don’t mind. Do whatever you want.]
[Are you sure about this?]
[Of course. If there’s one thing they suck at, it’s web browser technology. Getting the Mosaic license might help them cobble something together, but it’ll still be leagues behind ours. Besides, it’s not like we’re just going to sit around and do nothing in the meantime.]
[Still, we’re talking about Microsoft.]
[That’s what makes it even better. Imagine how satisfying it’ll be to crush them.]
Tom Harper’s confidence was undeniable.
Knowing full well how Microsoft would eventually bring down Netscape, Seok-won felt uneasy, but he chose not to push the conversation further.
‘Even if we refuse to license Mosaic to Microsoft, it’s only a matter of time before they develop their own web browser anyway.’
If that was inevitable, it made more sense to sign the licensing deal and profit from it.
“Get in touch with Bill Gates and have him give Mr. Son a call,” Seok-won said as he took a sip of whiskey, finishing his brief recollection.
“SoftBank has been Microsoft’s exclusive software distributor in Japan for nearly a decade. Do you think he’ll really take our side?”
“They may have a long-standing partnership, but at the end of the day, SoftBank is just Microsoft’s exclusive distributor in Japan. Meanwhile, we hold the key web browser technology and patents they desperately need—and on top of that, we own 2% of Microsoft’s shares. If you were Bill Gates, which side would you consider more valuable?”
“He wouldn’t have a choice but to side with us.”
“Exactly.”
A satisfied smile formed on Seok-won’s lips.
“I’m sure he’s well aware that a significant portion of SoftBank’s revenue comes from their exclusive distribution of Microsoft’s software.”
Having conducted a thorough investigation of SoftBank before the meeting request came in, Landon nodded in agreement.
Seok-won swirled the ice in his glass, listening to the soft clinking sound as it melted.
“That’s why a call from Bill Gates will be an even bigger pressure on them than our stock acquisition.”
“I’d certainly feel the heat if I were in their position.”
Seok-won set his glass down on the table with a soft thud, then interlocked his fingers and rested his hands on his knee.
“Mr. Son is smart and quick-witted. If he realizes that fighting us won’t benefit him, he’ll accept our proposal.”
"That does make sense."
After a brief moment of thought, Landon posed another question.
"But wouldn’t Bill Gates’s call be enough to apply pressure? Is there really a need to buy SoftBank’s shares as well?"
Seok-won smirked.
"Landon, do you know another key trait of the Japanese?"
"I'm not sure."
"They’re two-faced. When they’re at a disadvantage, they’ll bow their heads as if they’re conceding—but behind the scenes, they’re sharpening their knives, waiting for the right moment to stab you in the back. If you don’t want to fall victim to that, you need to break their spirit from the start—so thoroughly that they wouldn’t even dare to think about turning on you."
"You mean by acquiring SoftBank’s shares?"
Landon blinked in realization.
"Exactly. A 5% stake isn’t enough to threaten their control, but it’s also not insignificant enough to ignore."
Even though SoftBank was a publicly traded company, its founder, Masayoshi Son, still held nearly 30% of the shares, maintaining a firm grip on management.
"But what if a new major shareholder comes in—one with the capital and capability to become a hostile adversary and challenge the company’s control?"
"That would be impossible to ignore."
Seok-won chuckled knowingly.
"Our goal is to be a thorn in their side. Even after we become business partners, that stake will serve as a safeguard—ensuring SoftBank never gets any funny ideas."
Landon wondered if such an extensive web of control was truly necessary, but if Seok-won had deemed it so, then it was best to follow orders.
Besides, having multiple safety measures in place was never a bad idea.
Seeing Landon’s subtle nod of agreement, Seok-won smiled lightly.
"And once we enter the portal service business in Japan as partners, SoftBank's stock price will likely surge. It’s a guaranteed profitable investment—there’s no reason not to do it."
"Now that you put it that way, I see your point."
Indeed, Seok-won never made a move unless it was a sure win.
"The funds we have in Japan should be enough to acquire the SoftBank shares, right?"
"Of course."
Seok-won nodded, then asked,
"Yesterday’s Nikkei closing price was 14,617, correct?"
"That’s right. The market has been moving sideways without further declines, so it seems we’ve hit the bottom."
"I think so too. We shorted at 19,500, so that’s about a 25% gain."
Landon grinned from ear to ear.
"Once everything is settled, we’ll have made over $1.4 billion in profit, even after accounting for fees and principal."
"Not bad at all."
"Any other company would’ve been popping champagne by now."
Landon shook his head in disbelief.
Watching Seok-won remain completely unfazed—even after making more money in a single bet than most top-tier hedge funds on Wall Street did in an entire year—felt almost surreal.
Given Seok-won’s track record, it wasn’t arrogance but sheer confidence in his abilities. Landon found it both impressive and, in some ways, utterly mind-boggling.
"Anyway, just as you said, it’s unlikely to drop any further. Let’s close out our positions here."
"Understood."
Landon responded immediately, as if he had been waiting for this.
"That puts our total—principal plus profit—at just over $2 billion."
"That sounds about right."
Seok-won paused to calculate something in his head before continuing.
"Then, let's use $1 billion to buy Nikkei long options and allocate the rest to acquiring SoftBank shares."
Landon leaned slightly forward.
"You're switching positions right away?"
"The Nikkei crashed due to several factors, but a major one was the yen’s appreciation, wasn’t it?"
"That’s correct."
Landon nodded with a serious expression.
A stronger yen made Japanese companies less competitive, reducing exports and negatively impacting the stock market.
"I’ve said this before, but the yen’s appreciation is over. From now on, it's only going to weaken. And what happens to the Nikkei when that happens?"
Understanding dawned on Landon’s face, his eyes lighting up.
"With that headwind gone, the Nikkei will rise again."
Seok-won gave a slow, knowing smile.
"Exactly. If an opportunity to make money is staring you right in the face, you’d be a fool to ignore it."
"Haha! I couldn’t agree more."
Landon laughed out loud, locking eyes with him.
"Let’s make sure SoftBank gets wind of how much profit we just made."
"So they’ll know we have more than enough firepower if a fight breaks out?"
"That’s right."
As Seok-won smirked, Landon mirrored his expression with a mischievous, almost villainous grin.
"If I were President Son, I’d have no choice but to throw in the towel as well."
Seok-won leaned back into the sofa, completely at ease.
"Once we establish the joint venture and dominate Japan’s portal service market, SoftBank will go beyond just being a distributor for Microsoft software. It’ll be a major leap forward for them as well—this is a win-win."
SoftBank—or rather, President Son—would be giving up a significant portion of what would have been his achievement, but Seok-won felt no guilt whatsoever.
'He should be grateful I’m leaving him with anything at all.'
