Chapter 45: Werewolf

Were the tactics used by Li Dongling and Larson brilliant? In truth, they were not brilliant at all. They simply stirred up public opinion and escalated it step by step, starting with examples of how software companies suffered when facing Microsoft.

Then, they turned the tables and instigated discord between the computer hardware industry and Microsoft, executing a strategy of killing with a borrowed knife!

If the relationship between Microsoft and the various hardware manufacturers had been good, this trick would never have worked. Both sides would have issued a joint statement, and the storm would have blown over. But was the relationship between Microsoft and computer manufacturers like HP, Compaq, Dell, and Apple really that good?!

Computer manufacturers had always guarded against Microsoft more than against a natural disaster. Any slight move by Microsoft in the hardware industry made computer manufacturers tense up, let alone with the preceding days laying out the miserable state of the software industry. This inevitably forced people to suspect whether other computer brands would even have a way to survive once Microsoft launched its own brand of computers.

Everyone understood the logic of being closely interdependent, like lips and teeth. Previously, because the knife had not yet fallen on the hardware companies, everyone pretended not to see Microsoft's soaring ambitions. However, following this report by the Daily News, the computer hardware industry was forced to respond because stock prices could no longer hold up!

"According to media reports, Microsoft intends to launch its own brand of hardware computers, with everything from operating systems and software to components independently researched and manufactured by Microsoft. Affected by this news, IBM's market value plummeted by over 4% today, losing more than 2.4 billion dollars!

In addition, the stock prices of HP, Compaq, Apple, Dell, and major computer suppliers such as Intel and AMD have all experienced significant drops!"

Watching the news on television, Larson waved his fist excitedly and shouted to Li Dongling, "Li, did you see that? We ignited this fire, and we pulled it off!"

Seeing the news that he and Li Dongling had single-handedly fabricated dragging all these giant companies into the fray, this feeling made Larson even more excited than bringing a minor star from New York back home.

Yao Luoying also looked at the television in astonishment. Although the evaporated 2.4 billion dollars were just numbers and not real physical cash, it still sounded terrifying. Converted into domestic currency, it was close to twenty billion, equivalent to wiping out the market value of all the prominent listed companies on the A-share market at once, such as Sichuan Changhong, Lujiazui, Maanshan Iron & Steel, and Huayi Group, within a single day!

Yet all of this was happening right before her eyes, entirely orchestrated by Li Dongling and Larson. If one added the evaporated market values of companies like HP, Dell, Apple, and Compaq, the total would likely be even more frightening. A single falling domino could cause an entire empire to collapse!

Li Dongling also watched the news on TV. The subsequent remarks made by HP CEO Pratt when speaking to the media made Li Dongling instinctively tighten his grip.

"Yes, I saw today's media news. HP has always cooperated very happily with Microsoft, and I hope this cooperation can be maintained continuously!"

If necessary, Pratt did not want to publicly blast Microsoft in front of the media. The major computer brands were not a monolithic bloc either; the most ferocious infighting occurred among themselves. For a long time, IBM had been the biggest rival to computer companies like HP, Dell, and Compaq.

Because of this, companies like HP turned a blind eye to Microsoft's minor maneuvers in the hardware industry. They still needed Microsoft to cause trouble for IBM, which was why they hadn't placed too many restrictions on Microsoft.

But now, that was no longer possible. HP's stock price had plummeted today as well, and many Wall Street institutions began selling off stocks of companies like HP to avoid risk, causing the HP board of directors to panic.

This now concerned the very lifeline of HP. Microsoft already had the potential to become HP's rival, and Pratt had no choice but to start blasting Microsoft to make his stance clear.

"However, if necessary, HP will never sit idly by and wait for death. HP will not be easily defeated; we also have alternative computer systems, software, and other suppliers!"

With this final sentence, Pratt bared his fangs. If Microsoft refused to know what was good for it and continued to be aggressive, HP would kick Microsoft out and choose other system software as the default factory operating system for HP computers.

On this day, the major computer manufacturers—who previously would fight each other tooth and nail—displayed remarkable tacit understanding. Following HP's stance, Dell, Apple, Compaq, IBM, Intel, AMD, and a host of large and small computer component factories all followed their big brothers in declaring their position: they would never enter into a dubious cooperation with Microsoft to the death!

"Following HP, computer manufacturers such as Dell and Compaq have successively issued statements announcing that they will carefully evaluate or reconsider their cooperative relationship with Microsoft. One computer company executive even stated directly that if Microsoft launches its own brand of computers, they will immediately sever all cooperation with Microsoft!

In addition, IBM, Lotus Development, Sun Microsystems, and several other companies have all declared their willingness to jointly develop a new generation of computer systems with computer manufacturers like HP!"

In the next day's edition of the Washington Post, the paper openly reported on the war between the computer hardware industry and Microsoft that could erupt like a collision between Mars and Earth at any moment.

The attitudes of major computer giants like HP, Dell, and Compaq were very clear: if Microsoft dared to cross even a single step over the boundary, they would completely break ties with Microsoft. Even if it ultimately benefited IBM and meant using IBM's systems, they would never use Microsoft's systems again!

The tough stance of the major computer manufacturers and the media's stoking of the flames brought about an immediate consequence: right at the market opening, Microsoft's stock price plummeted all the way from 17 dollars to 15.7 dollars, a massive drop of over 7%. Clearly, Wall Street and everyone who bought Microsoft stock were voting with their feet.

Whether Microsoft launching its own brand of computers could succeed was something no one knew, and Wall Street did not dare to gamble. However, the effect of companies like HP severing cooperation with Microsoft was immediate. Next quarter—no, not even next quarter, but next month—Microsoft's performance would collapse. Building a city might take decades, but making it disappear only required a single mushroom cloud.

"Intel will never betray its allies. HP, Dell, and overseas computer companies like Sony will all be Intel's allies!"

Grove, the current emperor of Intel who held absolute sway within the company and whose decisions no one dared to oppose, was also forced to make his stance known the next day. Faced with the choice of whether to support hardware allies like HP or maintain the relationship between Microsoft and Intel that had begun 14 years ago, Grove made his choice with some irritation.

One's position dictates one's perspective. The alliance between Microsoft and Intel had achieved mutual success, but under today's circumstances, Grove had no choice but to side with the major patrons who bought his chips.

"Bill, why couldn't such a major matter be notified to me in advance? This puts me in a very passive position, do you understand?!"

Others might fear Bill Gates, the emperor of Microsoft, but Grove was the emperor of Intel in his own right. Grove angrily went to Bill Gates to call him to account.

Although 39-year-old Bill Gates appeared humble, amiable, and a leader in the tech industry in the eyes of outsiders—seemingly possessing a completely different personality from Steve Jobs, who was born in the same year and rumored to be hot-tempered and fiercely competitive—inside Microsoft, those who genuinely worked under Bill Gates were actually terrified of this Microsoft emperor. When working at Microsoft, Bill Gates was no better than Jobs; he was similarly harsh, ruthless, and even arrogant, and no one dared to talk back to this emperor of the empire!

"Grove, if I tell you that I only just found out about this matter too, would you believe it?!"

Through the phone, Grove could feel Bill Gates's suppressed fury.

With a slight flicker in his eyes, the old hand Grove quickly caught the scent of a conspiracy. "It seems, Bill, you have some trouble to handle. I only need to remind you that if you want to maintain the alliance between Microsoft and Intel, you must handle your relationship with those computer manufacturers like HP!"

"Respected gentlemen, what on earth is going on? Who is targeting Microsoft? Can someone give me an answer!"

After hanging up Grove's phone, Bill Gates could no longer suppress his anger as he roared at the various Microsoft executives in the conference room.

Microsoft was being targeted, and someone was deliberately provoking disputes with computer manufacturers like HP; everyone within Microsoft could see this by now. However, they could not figure out who the opponent was, simply because Microsoft had far too many enemies. IBM and Lotus Development were possibilities, and it was even possible that HP and the other companies were staging a self-directed play just to give Microsoft a warning shot.

Spencer, who was also in the conference room, felt an absurd notion rise in his mind: could this matter have been stirred up by that Dongling Hi-Tech? But he immediately dismissed the feeling as impossible. This public opinion war targeting Microsoft had been fought with such tacit coordination that it completely staged a game of Mafia among these American tech companies. By simply lighting a single fire and leveraging the suspicions between Microsoft, HP, and other companies, it had made them hack at each other.

None of the executives in the office spoke up, which only made Bill Gates even more furious. At that moment, the phone of Grant, the head of the Public Relations Department, rang.

Under Bill Gates's icy gaze, Grant bit the bullet and answered the phone. His expression then shifted as he walked over to Bill Gates and murmured a few words.

"I have noticed the public opinion surrounding Microsoft, and I believe that this behemoth's appetite has completely become a bottomless pit. Once Microsoft launches its own computer brand, it will truly monopolize the entire tech industry!

It is time to break it up. I believe Microsoft should be split into three businesses: computer systems, office software, and hardware business. Eliminating this evil dragon before it can unleash disaster upon the human world is the best choice.

I will propose to the California Federal Judicial Bureau to launch an antitrust investigation against Microsoft..."

Looking at the remarks made by the head of the California Federal Judicial Bureau, a man named Green, during a television interview, Bill Gates's face turned ashen.

"Gentlemen, please put an end to this farce. By whatever means necessary, I do not want any state to launch an antitrust investigation against Microsoft!"

Bill Gates said to Grant, legal department head Jon, and everyone else. A smile still lingered on his face, but his eyes were filled with utter dissatisfaction. It was clear that if Grant and the others failed to handle the matter properly, Bill Gates would make them roll out of Microsoft.