American History 1988
Chapter 135 - 129 Snatching at the Last Moment

Chapter 135: Chapter 129 Snatching at the Last Moment

million US dollars? To be honest, that valuation was a bit higher than Glenn had anticipated; he had initially planned to offer 15 million US dollars for Byte Software.

However, after looking at the sales figures for Teams from the past month, Glenn felt that a price of 20 million US dollars was acceptable.

Software companies are different from other hardware manufacturing companies in that they have virtually no production costs, nor do they involve large scale investment.

Most crucially, Teams was already on the market, and all that was needed moving forward was to expand its distribution channels, leaving venture capital firms to simply wait for the profits.

This was a deal with virtually no risk; although the offer was a bit high, Glenn believed it was worth Mayfield’s wager.

After briefly pondering, Glenn picked up the phone to gather information. Having access to Teams’ sales figures, he naturally had channels to find out who had been in contact with Dean recently.

Silicon Valley was only so big, a small stir and everyone would hear some rumors, more or less.

Such as those law firms that had served Byte Software, those human resource companies, and some of the internal staff.

Even other investors could be sources of information. By piecing together these snippets of news, Glenn had roughly locked down his target range.

He picked up the phone on his desk and dialed a few numbers, "Hi~ David, it’s Glenn here."

"What’s up, Glenn? I’m a bit tied up." David was in his office drafting a contract with Morgan Tailer’s lawyers.

"Is it about Byte Software? You’ve struck a good deal there. I’ve been paying attention to them lately," Glenn started to beat around the bush with a chuckle.

"You’re well-informed, Glenn," David wasn’t too surprised by this. There are hardly any secrets in Silicon Valley.

"So is there still a chance for Mayfield? You know, David, we once worked together when Apple went public."

Why didn’t Silicon Valley have secrets? Because any two venture capital firms had, more or less, numerous entangled relationships with one another.

"Glenn," David turned to look at the lawyer who was waiting for him, "Morgan Tailer has already led the investment, and our agreement has even been drafted."

"OK, I’m not after Morgan Tailer’s spot, but is there a chance for Mayfield to follow on? Not getting the driver’s seat, hitching a ride is also fine. My demands are not high," Glenn said, optimistic about getting a piece of the action.

"You shouldn’t be asking me that. You could easily ask the people around you~" David found it strange that Glenn came to him just to inquire about a follow-on investment; there were more direct methods available to him.

"What do you mean, David?" Glenn keenly sensed he might have missed something.

"Jim Clark, isn’t he your partner? If I’m not mistaken, Glenn, you are currently a director at SGI, right?"

"Oh~!" Glenn exclaimed in surprise, his mouth agape, "David, are you saying that Jim... he..."

"He’s one of the follow-on investors in Byte Software, shouldn’t you be talking to him?" This was the source of David’s bewilderment—the other party had gone in a big circle just to find out something happening right beside him.

Maybe... David suddenly realized he might have interfered too much. "Glenn, I’ve got something to take care of here. We’ll talk later."

"Thank you, David." Glenn had acquired the information he wanted, and the news had taken him by surprise.

"Jim, you really took me by surprise; you almost had me fooled." Glenn got up from his seat with a beaming smile—he planned to pay a visit to his old friend, whose office was just down the hallway.

Like many times before, Glenn knocked on Clark’s office door and then casually pushed it open and walked in.

"Hey~ Glenn, you should have knocked." Clark was quite displeased with the other man’s rudeness. His good mood from acquiring a 5% stake in Byte Software had considerably dampened.

Grinning, Glenn pointed toward the doorway, "I just knocked, see?"

"You should have at least waited for my consent, OK?" Clark didn’t want to bother with him, as he had more important things to focus on.

"Wow~ you seem to be in a good mood?" Glenn maintained his smile, "Thinking about trying your hand at your first personal investment?"

Thud~ Clark’s expression suddenly turned cold, "What are you implying with that remark, Glenn?"

"Aha, I had someone try to introduce me to the founder of Byte Software. He refused, swearing it was to protect him. But guess what?" Glenn spread his hands, "The very person who swore to protect him is now plotting to take his shares."

"Glenn!" Clark stood up and stared at him coldly, "I’m engaged in a normal investment activity. It’s my prerogative. It seems you are meddling too much~!"

"Meddling?" Glenn’s smile disappeared, "OK, let’s talk business then. At the board meeting next week, I’ll call for a vote to fire you as CEO."

"F*ck you!" Clark, furious, pointed his finger at Glenn and cursed, "You don’t have the right to do that!"

"Ha~" Glenn laughed loudly and without restraint, "Clark, have you forgotten how many shares you have left? Mayfield is now the major shareholder of SGI!"

"You can’t do that! I’m the founder of SGI!" Clark’s veins on his neck stood out. The opposition held the majority of the board seats—if Mayfield was truly intent on replacing him, then...

"So?" Glenn spread his hands confidently, seeing the sweat on Clark’s forehead. "Why can’t we do that?"

Clark’s throat moved as if he wanted to speak, but he said nothing.

"Of course, this decision is not set in stone. It could certainly change, but it would require a small condition in exchange," Glenn said, smiling once again like a gentleman.

"OK, state your terms." Clark forced himself to calm down; he didn’t want to become the next Jobs.

"A wise choice," Glenn’s threat had taken effect, although Mayfield didn’t truly intend to kick Clark out of the game.

It wasn’t because of Clark’s exceptional management abilities, but simply because founders, as mascots, have a positive effect on SGI’s stock market.

Nobody would argue with money if Clark benefitted SGI’s stocks. Mayfield wouldn’t mind him remaining as CEO, despite having little real power.

Now, with the shares in hand, Glenn could manipulate Clark however he wanted.

"Let’s return to the previous topic, how much of Byte Software’s follow-on stake did you take?"

Dammit! Clark knew they were after his stake.

"Let me remind you," Glenn sat down leisurely on the sofa opposite Clark, "I’ve contacted both Byte Software and Morgan Tailer; you’d better not lie to me again."

Fine, they knew about Morgan Tailer too; Clark sighed internally.

"5%," There was no need to hide anymore; their information was undoubtedly better, and they’d surely find out if they wanted to.

"Good!" Glenn was satisfied with the percentage, "So..."

Clark agonized for a while before sighing, "OK, you win, I’ll keep 2%, and the rest goes to Mayfield..."

"Wait a minute," Glenn interrupted Clark, "buddy, you don’t seem to understand what I’m saying."

"What?" Clark had a bad feeling.

"I mean all of it," Glenn said with a shrug, "it all goes to Mayfield, and you get none of it."

...

"Sorry, Mr. Clark. The funding proportions for Byte Software have been determined, and that’s the collective decision. So... you know..."

"Dean, I understand, but..." Clark stuttered over the phone, "is there really no way?"

"Perhaps you can wait for the next round of funding?" Byte Software wasn’t Dean’s authoritarian decision; he had to respect everyone’s opinions and follow the rules.

The next round of funding? Clark felt a pang of disappointment upon hearing this. The scale of the next round would only be larger, beyond his personal financial involvement.

"OK, thanks, Dean, I was asking too much..."

"Here’s the deal, Mr. Clark," Dean, sensing that Clark was about to hang up, came up with a compromise.

"Next time there’s funding if it’s beyond your means, I could personally resell some shares to you privately. Of course, there’s no percentage guarantee, just a certain number of shares..."

"OK! I accept!" Clark eagerly agreed, surprised, "Oh, Dean, thank you; I don’t know how to thank you~!"

"Mr. Clark, like I said, you’re a friend of Byte Software, but that’s all I can do," Dean’s network wasn’t widespread enough; he didn’t want to spoil the good relationship he’d built with Clark.

"Dean, it’s enough, thank you. I’m sure the SGI board won’t oppose Teams’ integration now, across all of Silicon Graphics’ global offices, I guarantee it."

Clark was very tactful in reciprocating the favor, now having no reason to oppose the initial decision to purchase Teams since Glenn had taken his share.

"Pleasure doing business~" Dean said with a smile before hanging up.

Honestly, Clark had not anticipated his investment stake to be hijacked.

But Dean wasn’t going to burst with righteous indignation demanding Mayfield return the shares, or use it as a threat; that would be foolish.

Byte Software was just stepping onto the funding stage, catching the eye of Silicon Valley venture capitalists.

Doing so would offend the myriad of investors behind Mayfield and leave a rash, tactless, and inept impression on the major venture capital firms.

It would be detrimental to Byte Software’s growth and lead others in Silicon Valley to doubt Dean’s capabilities as a founder.

Thus, Mayfield becoming the second-largest investor in Byte Software was an established fact, and Dean had no intention of changing that.

But with Clark, he still made some concessions. As mentioned before, with shallow foundations, Dean needed to nurture every bit of his network.

Although he had every right to ignore Clark’s complaints since Clark had lost his share on his own.

But if Dean played strictly by the rules, future relations with Clark would likely revert to mere acquaintances.

Putting thoughts aside, Dean turned to Anna, who was waiting by his side, "Have the people from Morgan Tailer and Mayfield arrived?"

"Yes, Boss, they’re waiting in the new office," she said.

"OK, time to welcome Byte Software’s first investment," Dean stood up and walked towards the door.