The American Dream
Currently, no internet environment on PC surpasses the Android operating system. The ID Web Browser, completed in collaboration with Tim Berners-Lee, the creator of the World Wide Web, has held its overwhelming number-one position firmly even months after its release. Although the core function of rendering screens from HTML code has been made public, competitors still cannot match its overall convenience. Furthermore, with the launch of Android 1.0, multilingual support has been added, allowing text from research institute homepages around the world to display without corruption on any computer. Android had become the gateway to the vast sea of information known as the internet.
ID Technology's business was not limited to this. There was also Nextcom. Although it had begun aggressive marketing campaigns targeting not only the United States but the entire world, resulting in accumulating losses, Nextcom held limitless growth potential. ID Technology also owned ID Software, the world's premier game development company, and was leading the gaming market as a major revenue stream for the company.
"We have also launched an IT consulting business," Yoo Jae-won added, making sure not to omit the fact that he had supplied POS systems to Yukyeong Foods and Yukyeong Chicken in Korea. Lewis Preston nodded along with each new point, though his reactions suggested he was listening politely rather than fully grasping the details. Only when the conversation reached the POS system did his interest become visibly apparent. The idea of building custom systems for companies lacking their own IT development capabilities seemed to intrigue him. Still, he clearly did not fully comprehend the pricing Yoo Jae-won had quoted. To him, the internet remained an immature market that had yet to sprout, one that would require enormous investment in social infrastructure such as high-speed networks while offering uncertain returns.
"I have listened carefully to Chairman Jae's valuable insights. Hmm, indeed, there are reasons behind your position. The gap in our views is too wide for me to recommend pursuing an IPO at this moment."
"That is certainly true," Yoo Jae-won replied calmly, while Lewis Preston's face showed clear disappointment.
"Well, if I may offer one final piece of advice, the benefits of going public are not limited to raising massive capital."
"Is that so? Is there something more?"
"It is about becoming an icon of the era. Companies like Apple, Dell, HP, and Microsoft have all confirmed their success through listing. Just a year ago, Microsoft's presence was beyond question. Yet it was shattered upon encountering the unexpected rival that is ID Group. If ID Group's IPO succeeds after acquiring such a Microsoft, it will serve as a definitive declaration that the 1990s belong to ID Group."
This old man certainly had a strong closing argument. By the end of the conversation, Yoo Jae-won found himself able to agree with at least part of it. Of course, he did not agree completely. In his view, there was no need to go public just to earn the title of an icon of the era. If things continued as they were, ID Group would become not merely an icon of the times, but the very future of IT itself.
"As time passes, the valuation of the IT industry will change as well. Naturally, the calculation methods will shift, and the gap between the numbers we see will narrow. When that time comes, JP Morgan will be the first firm I consider."
Yoo Jae-won did not skimp on the pleasantries for Lewis Preston, who had flown all the way from the East Coast to the West. In reality, if an IPO were ever pursued, he would scrutinize every minor detail when selecting the lead underwriter. After all, going public was that important.
"Did you enjoy your tea time with the CEO of JP Morgan?"
When Yoo Jae-won returned to the office, Remington and Alan were waiting for him. Only Chief of Staff Choi Kang-wook was absent; he had returned to Korea to oversee operations there after the Android launch event. Had he still been in the United States, he would have been present as well. Although Yoo Jae-won had instructed them to wait, the atmosphere they gave off was that of children waiting for their father to come home with fried chicken. After all, while there had been no specific matter to wait for, the person Yoo Jae-won had met was none other than the CEO of JP Morgan. They must have been extremely curious about what had been discussed and what the outcome had been.
"Yes, it was quite pleasant. Contrary to the pressure one might expect from the title of JP Morgan CEO, Mr. Lewis turned out to be surprisingly friendly and kind."
Yoo Jae-won had a good impression of Lewis Preston. Based solely on his position, one might expect someone stiff and unyielding, but the Lewis Preston he had met at the café felt like a warm grandfather.
"However, nothing concrete was decided during the meeting. The agenda Mr. Lewis brought was an IPO and listing. Yet there was a significant gap between the total valuation he proposed and the market capitalization I had in mind."
"Is that so? He flew all the way from the East Coast to the West, yet the gift he brought was rather small. Well, that is how investment banks operate."
Alan nodded as if he understood, and Remington offered no objection. It seemed their perception of investment banks was not particularly favorable.
"I doubt CEO Lewis expected a deal to be struck during our first meeting either."
Then Remington took it a step further. So he had not come expecting Yoo Jae-won's acceptance? What did that mean?
"JP Morgan has its own investment system, but that is not the whole story. It seems there were some major investors who wanted to acquire shares in ID Group. ID Group has been generating quite a bit of heat lately, after all."
In other words, the visit had been a show of force to demonstrate that JP Morgan was effectively handling requests from its big clients. While the interpretation was somewhat of a stretch, it sounded plausible enough. Still, Lewis Preston's effort in flying from the East Coast to the West Coast was undeniably impressive. That was why Yoo Jae-won had met him face-to-face and treated him courteously; if it had been a phone call or fax, there would have been no response at all.
"Would anyone here prefer stock options instead of cash bonuses?"
The mention of an IPO naturally brought stock options to Yoo Jae-won's mind. In Silicon Valley, stock options were a standard system, especially for IT companies going public. After all, Silicon Valley firms often lacked capital yet needed to attract high-caliber talent. Among policies that retained such talent while providing perfect motivation, nothing matched stock options. Even if a company went bankrupt without achieving anything, like most Silicon Valley startups, one would not be left in debt, allowing for a clean liquidation. And if, by some chance, the company succeeded, the rewards could be shared fairly without distribution issues.
In contrast, ID Group, with its abundant capital, paid bonuses primarily in cash. While some employees at ID Software had received cars as bonuses, the majority received cash deposits. The reason was the same as what he had explained to Lewis Preston. If success was uncertain, stocks were no different from lottery tickets. Since the odds of winning were extremely low, it was more advantageous to offer stocks and hire expensive talent. But ID Group was like a winning lottery ticket.
"Not at all. If our company were still a venture, it might be different, but now that we are on a solid track, what right would I have to ask for stock options? Besides, receiving stock options would only bring headaches. I would be anxious about when we might list, and my heart would race every time the stock price rose or fell."
That was Remington for you. At the same time, Yoo Jae-won felt a laugh trying to escape. This was the same man who had gone bankrupt from a failed investment in his previous life, yet here he was showing such clear understanding of stocks. Then again, there were people who knew the theory well but were weak in practice, so perhaps President Remington was one of them.
Alan's thoughts seemed slightly different. He looked tempted by the word "stock options." Contrary to appearances, he seemed to have a risk-seeking nature when it came to investments. However, he soon shook his head. If Yoo Jae-won ever implemented a stock option policy, all the practical and legal work would fall on him. With his already overwhelming workload, adding another task would be too much for both him and the legal team to handle.
"By the way, why did you call us here?"
At the right moment, Remington asked the question.
"Ah, there are two matters. One is the establishment of a new company called ID High Tech, and the other is our response to Russia. I would like you to find an expert who is well-versed in Russia."
ID High Tech. It would be Yoo Jae-won's third company. As the name suggested, it would specialize in cutting-edge technologies several years ahead of the current state of the art. He planned to gather the technologies he had diligently collected through ID Investment, organize them into a single entity, and create significant synergy. It would also serve as the place to develop the prototypes that existed only in his mind.
Both Remington and Alan nodded in understanding at Yoo Jae-won's explanation. They already knew that the chairman had been actively shopping in Silicon Valley. They were confident that if he organized these acquisitions into a company and managed it directly instead of leaving them idle, it would produce remarkable results just like ID Technology.
"Russia? You mean the Soviet Union? Surely you are not planning to expand there?"
Remington jumped at the idea. Alan reacted the same way. Until the end of World War II, the Soviet Union had been an ally, but through the Cold War it had become America's greatest enemy. Remington and Alan shared this view. While they had not openly celebrated the dissolution of the Soviet Union and the failed coup attempt, they had found it satisfying. The idea of Yoo Jae-won reaching out to the Soviet Union—or rather, Russia—felt like sheer recklessness to them.
"Ah, I am not planning to expand there immediately. When a country's situation becomes difficult, its national talent will face hardships as well. The Soviet Union has dissolved, and even a coup attempt failed. It must be extremely chaotic. I want to take advantage of this opportunity to recruit valuable talent first."
At Yoo Jae-won's continued explanation, their expressions softened. That much was feasible. Yet their faces did not fully relax. Even without saying it outright, their expressions were filled with doubt about whether Russian people could truly be trusted.