American History 1988
Chapter 415 - 404 The End is Approaching

Chapter 415: Chapter 404 The End is Approaching

Merrill pays for this? Dean was startled, then burst into laughter.

"OK, I have no problem with that." He knew the little tricks Jobs had up his sleeve.

It was simply because he worried that one day in the future, Dean might indirectly control Apple.

After all, with a net worth of nearly 40 billion US dollars, that was more than enough to buy over ten apples of today’s scale.

If he were to forcefully overbid for the shares of other stockholders, then Jobs might indeed have no way to stop him.

Since he had been away for too long, his influence on Apple was at an all-time low.

But if it were Merrill holding the shares instead, that would be different—it would be beneficial for cooperation between the two companies in the field of application software.

Although Dean was the major shareholder of Merrill, he still couldn’t dictate the company’s policies alone.

In the organizational structure of a listed company, the influence of the board is undeniable, and as Jobs knew, among Merrill’s shareholders were many Wall Street tycoons.

Changing the investor of Apple from an individual to a company clearly added a buffer zone for both parties.

Moreover, Jobs believed that Merrill’s resources, compared to Dean as an individual, could offer Apple much more help.

Their businesses did not conflict, but complemented each other, which was the main theme of their relationship.

Hearing Dean’s straightforward agreement to his conditions, Jobs finally showed a smile on his face.

"Dean, if I had to choose someone to get drunk with between you and Gates, I’d much rather choose you."

"Why? I’m not good at drinking." Dean shrugged his shoulders.

"Oh~ that’s precisely why I’d choose you," Jobs replied humorously.

"Haha," Dean laughed heartily, tilting his head back.

"Seriously though. It’s because in all our negotiations, I never once felt the slightest bit threatened."

If it weren’t for the sight of their respective assistants behind them, Jobs would have almost forgotten that they had just completed a transaction.

This felt nothing like a business negotiation, but more like friends making a decision casually.

However, his feeling from a few days ago with Gates was entirely different. Although their conversation didn’t touch on any issues regarding the delivery of Office software for Mac.

But Gates had hinted at the possibility of delaying, if Apple did not set Navigator as the default browser.

Jobs detested such indirect threats, especially during Apple’s precarious times.

Besides, as mentioned earlier, the relationship between Microsoft and Apple could hardly be described as cordial, each side despising the other for over a decade.

Jobs and Gates had even had several major quarrels, harboring longstanding resentments toward each other.

Jobs would never have dealt with Gates were Apple not on the verge of bankruptcy.

Now though, with Dean stepping in, Jobs didn’t hesitate to push Gates aside.

One offered abundant resources and a natural allegiance, the other a plagiarist that he had to deal with while holding his nose.

The choice was almost a no-brainer for Jobs.

"I’m glad you feel that way, Steve," Dean said as he stood up and shook hands with him. "There’s going to be a good show in a few days, don’t miss it."

"Countless people in Silicon Valley are looking forward to it," Jobs knew what he was referring to.

"Well then, I’ll see you in the future," Dean spoke with profound meaning.

Today, he was competing with Microsoft from Seattle, but might Apple become his opponent tomorrow?

Who knows~ Dean chuckled to himself internally.

But overall, this negotiation with Jobs had been quite fruitful.

Firstly, he had crushed Gates’s attempt to snatch away the browser market share of the Mac.

Secondly, Dean had turned the tables, taking away the Office software market from Microsoft on Apple computers.

And the last point, which is the easiest to overlook, Dean had foiled Microsoft’s attempts to alleviate the suspicion of their own monopolistic practices.

Yes, Gates’s meeting with Jobs wasn’t just about the browser market.

More importantly, he hoped to support Apple, to demonstrate to the Department of Justice that Microsoft didn’t intend to monopolize the computer market.

Whether Apple was now on its last leg because machines compatible with the Windows system had taken a large part of the personal computer market was being said by some, wasn’t it? Windows selling too well meant naturally, Mac’s market share would drop.

In the end, if Apple really went bankrupt as a result, that would just be another piece of evidence on Microsoft’s list of charges.

But the other way around, if Microsoft actively helped Apple survive, they could clear the suspicion of monopoly from themselves.

Look, my competitor is alive and well, and we even cooperate.

So-called monopoly is just absurd talk.

Too bad that Gates’s move of nurturing a force that might rise against him was intercepted by Dean. Apple could continue to live, but definitely not because of Microsoft.

It was the subversive forces launching a rebellion against Microsoft, uniting the forces beside them.

Helping those who were persecuted to survive, and then continuing the struggle against the evil power of monopoly.

See, the script has completely reversed, hasn’t it?

As for the 500 million US dollar investment in Apple, to Merrill that was practically just a drop in the bucket.

Based on Apple Inc.’s current market value of 2.8 billion US Dollars, Bit Corporation will hold 15.2% of Apple’s shares after this capital injection is completed.

Dean indeed cannot make all the decisions for Bit Corporation, but he can convince the board to hold Apple’s stock for the long term.

The way he saw it, the deal would not result in a loss after all, particularly considering that it indirectly gave him ownership of about 5.6% of Apple’s shares himself.

However, if Dean’s guess was right, the honeymoon period between the two parties would probably last only for the next couple of years.

Palm Inc. was on the move, and it was only a matter of time before they collided.

But this didn’t affect Dean’s investment; Palm was his business, and so was Apple.

Regardless, he wouldn’t lose much either way.

Of course, if the two could become the number one and number two in the market, that would be even more ideal.

Humph, Dean was certainly even-handed.

...

In mid-January of 1997, the Microsoft antitrust case that had captured the nation’s strong attention finally went to trial.

Both opponents and supporters of Microsoft, regardless of their previous positions, simultaneously toned down their activism.

They were waiting to see the ultimate direction of this antitrust battle.

Though opinions differed, one consensus emerged among all parties:

Microsoft’s tactics seemed to have crossed the line, using technological complementarity to impede the promotion of software that was popular with users.

Although some of these measures might not necessarily be illegal, their actions were indeed factual.

Gates’s maneuvers cast a shadow over Microsoft’s image in the IT industry.

Every successful company, every ambitious entrepreneur, and every venture capital firm was closely watching how events unfolded.

They hoped to deduce from it insights about Microsoft, about justice, and about the public perception of the matter.

If Gates didn’t like the potential market trajectory that new technologies might bring, then any attempt to explore the merits of such a technology was doomed, lacking even a chance to self-destruct.

It would be strangled in the cradle by Microsoft as long as Gates had his way, and he would intervene when possible.

The originality and potential of the technology, as well as the benefits to users, were irrelevant; what mattered was that it fit with Gates’s own interests.

Should such a scenario occur, it would undoubtedly be a devastating blow to America’s entrepreneurial environment, especially for the internet industry.

Similarly, this practice violated the consensus within the industry; no one wanted their hard-earned creativity to be easily harvested by a major industry player.

Ironically, Gates or Microsoft didn’t seem to realize this; they did not believe they had a duty as industry leaders.

In Gates’s view, safeguarding his own interests was the top priority, a principle that trumped everything else.

Then, unsurprisingly, the confrontation between Microsoft and the Prosecuting Attorney on the legal front fully erupted during the trial.

The Microsoft side believed that the Prosecuting Attorney’s suspicions were entirely unfounded, with no reason for further legal scrutiny of Microsoft.

This bold provocation undoubtedly infuriated the Prosecuting Attorney, let’s not forget he represented the federal government.

Consequently, evidence of Microsoft’s monopolistic guilt was made public one after another.

This included email after email sent by Gates, which were not only vulgar and selfish but also fanned the flames even higher.

These emails exposed Microsoft’s self-defense motives.

For instance, they included threat letters to Compaq and warning letters enforcing terms with HP.

Many of these contents, normally limited by legal processes and not publicly circulated, were now open to scrutiny the moment the public trial began.

For the first time, the public realized that Gates’s methods were not as honorable as they had been portrayed, nor was he the amiable nerd he appeared to be.

After several rounds of legal sparring, the Prosecuting Attorney managed to convince the presiding judge, Jackson, that Microsoft’s management had both the ability and the motive to eliminate competition.

In terms of motive, Microsoft had a subjective intent of self-defense, propelling it to employ various means to intervene in the competitive process.

These acted in their favor, contradicting the consensus of fair competition based on meritocracy.

In terms of ability, Microsoft held significant bargaining power, enough to influence the decisions of other companies in the industry, and Gates was relentless in wielding them.

This clearly violated the provisions of the antitrust laws, which were not allowed.

So after two weeks of hearings, the Federal Court issued its initial Findings of Fact.

It clearly recorded the various tactics employed by Microsoft to use its operating system’s monopoly position to restrict Netscape’s promotion of its browser.

Judge Jackson subsequently mediated between the Department of Justice and Microsoft, encouraging them to negotiate.

But considering Gates’s previous performance at the hearings and the recent lawyer conflicts, the so-called negotiations weren’t looking optimistic.

Besides, it wouldn’t be easy for Microsoft to come up with settlement terms that the Department of Justice could accept,

unless it self-dismembered like AT&T; otherwise, the antitrust litigation wouldn’t be easily halted.

It’s not to say that Microsoft stepping back in the browser market could settle the issue,

because it wasn’t Microsoft’s Navigator browser that was the object of the antitrust case, but Microsoft itself.

The root of it all was its operating system, and clearly, Microsoft would not give up its core business.

Therefore, continuing the lawsuit was almost inevitable, and Dean was very much looking forward to the final act.