readsfreenovel Chapter 234 Ballmer's Pressure
Chapter 234 Ballmer's Pressure
10:00 AM, Dulles, Virginia, AOL headquarters.
CEO Steve Case and Barry Schuler sat in the conference room, looking at the news summary displayed on the large screen on the wall.
"Four hundred and thirty million," Case shook his head. "Microsoft really went all out."
"We successfully raised the price by at least a hundred million," Barry Schuler smiled, "and without getting ourselves into a trap. ICQ's current valuation is already a huge bubble; let Microsoft digest it slowly."
"How's the data from Xingyu?" Case asked.
"Growth is rapid, especially among gamers. But the total user base is still smaller than ICQ's. After Microsoft's acquisition, they will definitely promote it heavily, putting a lot of pressure on Xingyu." Barry pulled up a report, "However, Xingchen Technology's ecosystem strategy is very clever. The gaming platform drives communication, and communication, in turn, supports the platform. Their user stickiness may be higher than ICQ's."
"Where is our AIM (AOL Instant Messenger)?"
"Steady growth, but mainly relying on AOL dial-up users, with low penetration among non-AOL users."
"Accelerate the development of AIM's standalone client, optimize the user experience, and also contact StarCraft Technology," Case said.
Barry Schuler was taken aback: "Contact them? Discuss what?"
"There might be room for cooperation. The enemy of my enemy doesn't necessarily have to be a friend, but it doesn't have to be an enemy for the time being." Case interlaced his fingers. "StarCraft needs to deal with the pressure from Microsoft, and we also need to maintain our presence in the emerging instant messaging market. Perhaps, on some level, such as the anti-Microsoft alliance, or on technical standards, we can have some contact."
"Understood. I'll arrange it."
"Proceed discreetly."
"it is good."
11:00 AM, Microsoft headquarters in Seattle.
A small media briefing was held in the conference room. Ballmer, Mafie, and the three founders of ICQ were present.
With a smile and an enthusiastic tone, Ballmer stated, "The acquisition of ICQ is a significant step in Microsoft's accelerated internet strategy. Instant messaging is a core link connecting people and services. We will combine ICQ's excellent user experience with Microsoft's powerful technology platform and global user base to create the next generation of communication services..."
Q&A session with reporters.
A New York Times reporter asked, "Mr. Ballmer, the $430 million acquisition price far exceeds market expectations. How will you justify this investment to shareholders? When will ICQ become profitable?"
Ballmer: "The price reflects ICQ's strategic value, user growth potential, and technological leadership. Profitability is not a short-term goal; our focus is on expanding our user base, improving the experience, and exploring synergies with other Microsoft services."
Wall Street Journal reporter: "Is this acquisition primarily aimed at countering competitive pressure from Starry Sky Technology's 'Star Language'?"
Ballmer: "Microsoft always pays attention to market competition, but our decisions are based on long-term strategy. ICQ is a leading global instant messaging brand with tens of millions of loyal users. The acquisition is to strengthen our leadership in this key area and provide users with more choices."
A reporter from the San Jose Mercury News asked: "After the acquisition, will ICQ continue to operate independently? How long will the founding team stay? How will you deal with potential cultural conflicts and talent loss?"
Ballmer: "ICQ will operate as an independent business unit within Microsoft, maintaining its innovative vitality. The founding team has agreed to remain and will continue to lead product development. Microsoft has extensive integration experience, we respect ICQ's culture, and we believe we can achieve a good integration."
The meeting lasted forty minutes. After it ended, Ballmer returned to his office, his smile vanishing instantly.
Jim Olson was already waiting for him in his office.
"How's the media reaction?" Jim asked.
"What else can we say? Expensive, defensive, anxiety." Ballmer loosened his tie. "The stock opened down two percent. The analyst reports are out, half skeptical, half hesitant."
"What about inside?"
"Maffei is preparing a detailed investment value report, which will be presented to the board next week. The ICQ team will be coming to Redmond to begin integration planning." Ballmer sat down, rubbing his temples. "Jim, I need you to focus on one thing now: ensure a smooth integration and quickly launch a deeply integrated version of ICQ for Windows. At the same time, develop a competitive strategy against Star Language. I want to see a rapid increase in user growth data and suppress Star's momentum."
"I understand. But..." Jim hesitated for a moment, "The price of 430 million leaves us no room for error. If the integration doesn't go smoothly, or if Xingyu continues its rapid growth, the pressure will be immense."
"So we can't afford to make mistakes." Ballmer stared at Jim. "Mobilize all resources. Windows team, marketing department, all cooperate. The money's already been spent; I need to see results."
"Yes."
After Jim left, Ballmer turned on his computer to check the stock price. Microsoft's stock price had briefly fallen in the morning session and had now recovered slightly, but was still below yesterday's closing price.
He opened an email he had just received from a representative of a large institutional shareholder. The email was polite but direct, inquiring about the detailed financial model and expected returns for the acquisition of ICQ.
Ballmer had no intention of explaining the main strategic purpose of the acquisition to him. Was spending so much money to buy ICQ just to make money from this software? If it were a matter of money, Microsoft wouldn't care at all. Microsoft could simply ignore it and let ICQ and Xingyu compete. The main problem now is that instant messaging software is too sticky. Disrupting the ecosystem of the Xingchen system is Microsoft's main objective.
The pressure that StarCraft is putting on Microsoft is growing. StarCraft is choosing angles that Microsoft hasn't yet established, and these breakthroughs bring StarCraft a great deal of benefit.
Ballmer closed the email and looked out the window.
Seattle was shrouded in continuous rain, with Mount Rainier appearing and disappearing in the clouds in the distance.
Four hundred and thirty million—this number kept swirling in his mind.
He knew that from this day forward, all eyes would be on ICQ's performance. Success would prove his vision and decisiveness. Failure, on the other hand, could become a stain on his career and even shake his position within the company.
The person who started all this, that young man far away in Silicon Valley, is probably watching the news right now, calculating the gains and losses.
Ballmer clenched his fist.