The Billion-Dollar Bargain
Oliver of Daytheon escorted Taesik to a five-star hotel and arranged to meet again the following day. The room, the first five-star accommodation Taesik had ever stepped into, was far more luxurious than he had imagined. After tossing his suitcase aside and taking a refreshing shower, he fell into a deep, dreamless sleep. When he woke the next morning, the tension that had gripped his body during the FBI interrogation had finally evaporated. Feeling a sudden pang of hunger, he ordered room service to satisfy his appetite.
“As expected of a five-star hotel, the meal is excellent……”
Since the ordeal of being suspected as a spy at the airport had actually led to a favorable outcome, Taesik pondered the price he should demand for his AESA Radar technology. With his laptop in hand, he headed down to the lobby where Oliver, the sales director, was waiting. As soon as Oliver spotted him, he led Taesik to a business meeting room adjacent to the lobby.
“Did you get enough rest?”
“After being interrogated by the FBI for so long, my body feels a bit stiff. If they hadn’t reported me as a spy, I would have entered the country much more comfortably……”
At Taesik’s complaint, Oliver wore an embarrassed expression.
“……American defense contractors are required to report anything suspicious. I apologize for the inconvenience.”
Following Oliver’s polite apology, Taesik straightened his posture and dove straight into the main topic.
“Since the FBI has guaranteed that I am not an industrial spy, I would like to hear Daytheon’s position. Do you have any intention of purchasing my technology?”
“First, I would like to ask about the technical feasibility. Is this technology truly capable of achieving the specifications listed in the proposal?”
“Doesn’t Daytheon have relevant engineers? You wouldn’t have come out here to buy my technology if you hadn’t reviewed it internally, would you?”
“……I would like to hear the developer’s opinion. Our competitor, Dastrop, is planning to equip the F-22 Raptor with an AESA Radar. The key is whether the technology we purchase can surpass them.”
“Are you perhaps eyeing the F-35 fighter jet? If you buy my technology, you’ll likely apply it to the F-15 as well.”
“I will not deny that.”
“The AESA Radar I developed will likely have performance similar to Dastrop’s. I cannot evaluate whether it is better or worse because I don’t know the exact specifications of Dastrop’s radar, but the AESA I developed is already capable of air-to-ground and air-to-sea modes.”
“Have you ever conducted system integration tests?”
Taesik couldn’t very well say that he had already finished the tests in Korea before his regression.
“The prototype verification is already complete. The prototype was destroyed for security reasons, but I am confident in the technology. If the performance does not meet the specifications, you may include a clause in the contract stating that I will compensate you with money.”
“Hmm… very well. How much do you want to sell it for?”
“Hahaha. Why don’t you make the first offer, Daytheon? If the price isn’t right, I’ll just go to another company.”
“……How about 100 million dollars?”
“My technology can implement more modes than Dastrop’s AESA. If Dastrop sees my technology, they will want to sign a contract immediately. It will take Daytheon a long time to catch up to Dastrop’s technology.”
“200 million dollars……!”
“As far as I know, the estimated price of an AESA Radar is 10 million dollars. Isn’t it a thief’s mentality to try to buy the technology for the price of 20 units? Once you secure AESA technology, it can be applied not only to aircraft but also to warships.”
“……Exactly how much do you want?”
“I think I should receive at least 1 billion dollars. However, if Daytheon shares the missile guidance technology you possess with the company I plan to establish in the future, I will be satisfied with 500 million dollars. I intend to pay the technology fees as you desire.”
“Hmm… this is not a matter I can decide on my own. Please take a moment to rest.”
Oliver picked up his phone and walked out with his subordinates, leaving Taesik alone in the business room to await the results.
If they don’t accept 500 million dollars, I’ll just go to another company.
Taesik comforted himself while he waited. A short while later, Oliver returned with a smile.
“We will accept your proposal. We will add a clause that prohibits you from selling the AESA technology you sold to us to other parties, on the condition that you refund the sale price if the performance is not met. Is that acceptable?”
“Only for the technology itself. Naturally, the AESA Radar produced domestically in Korea must be supplied to the Ministry of National Defense.”
“Very well. Let’s sign the contract. Now that you’ve become a billionaire, what are your plans for the future? Are you thinking of establishing a defense company in Korea?”
“First, I need to find companies in the U.S. worth acquiring before I return to Korea.”
“If you establish a defense company, let’s cooperate with us at Daytheon. I look forward to the items Mr. Kim will develop in the future. We will take responsibility for your current hotel stay until your business here is concluded.”
After finishing the contract with Oliver, Taesik activated his phone and went up to his room to call Brian at the FBI.
“This is Kim Taesik. Is this Brian?”
“Oh! Mr. Kim. Did you get the result you wanted?”
“I have completed the sales negotiations with Daytheon for 500 million dollars.”
“Congratulations on becoming a billionaire. Do you just need help with the remittance to Korea?”
“I want to invest in an American company, could you introduce me to a decent one?”
“If you’re investing in the U.S., I should certainly cooperate. What kind of company do you want?”
“I want a company that makes electronic maps. One with a lower corporate value than the money I have.”
“I’ll look into it and get back to you.”
With time to spare before Daytheon sent the money, Taesik decided to register for admission at MIT, as it might prove helpful if he conducted business in the U.S. in the future. Having been there once before his regression, he registered with ease. When he returned to New York, he received a call from Brian.
“I’ve collected information on the electronic map company you wanted. Should I send the data to your hotel? Or would you prefer to receive it via email?”
“Email is fine. My email address is……”
“I already know it. Since you’re investing in an American company, I’ll provide this information without a fee. Next time you request data, think carefully before you judge.”
At the firm attitude of Brian, the head of the FBI’s New York branch, Taesik promised to contact him only when it would be helpful to the U.S. and hung up. A short while later, he received word from Oliver, the sales director at Daytheon, that the AESA Radar sale proceeds had been deposited in a lump sum. Taesik decided to invest a portion of the 500 million dollars in a place he had in mind.
With the help of a hotel employee, Taesik headed to WP Morgan. He met the employee waiting for him in the lobby and headed to a conference room. The employee introduced himself as Luke and immediately asked a question.
“I was told you are planning a large-scale investment from your New York hotel… how much are you thinking of investing?”
Before the full-scale investment negotiations began, Luke asked about the investment amount with an inquisitive look.
“I’m thinking of 300 million dollars for now.”
Luke of WP Morgan was surprised by the larger-than-expected investment amount.
“300 million dollars? Where do you plan to invest?”
“I’m thinking of investing in crude oil futures.”
Luke glanced at his laptop for a moment at Taesik’s words.
“WTI (West Texas Intermediate) is at 23 dollars. While investment is the client’s decision, wouldn’t it be better to invest in stocks rather than crude oil in this era of low oil prices? I think this is a chance to sweep up decent companies that emerged after the dot-com bubble last year.”
Taesik had no interest in stocks before his regression and knew nothing about corporate information, so he decided to ignore Luke’s advice. The only information he possessed was that the Iraq War would break out in March 2003.
“I have no interest in companies. What kind of crude oil futures products do you have?”
“We have inverse, leverage x1, and x2 products. Which product should I invest in for you?”
Knowing that oil prices would rise due to the Iraq War next year, he asked an additional question to ensure he didn’t miss the opportunity.
“By any chance, can you design a leverage product of x2 or higher?”
“Hmm… I’d have to check with the product planning team, but it seems impossible. Since government approval is required to launch a product, it would likely take a considerable amount of time. It’s a bit risky, but you can invest up to 3 billion dollars in products using 300 million dollars as margin. However, there is a possibility of losing the entire cost if oil prices fall. Would you like to proceed with the investment?”
“That’s fine. I will invest 3 billion dollars using the 300 million dollars.”
Once the investment was finalized, Luke immediately printed the contract, handed it to Taesik, and offered his business card with both hands, thinking of the incentive he would receive for attracting a 300 million dollar investment.
“This is the largest contract I’ve ever closed. Please contact me anytime if you need investment consultation in the future.”
Having finished the bold investment, Taesik headed to LA to visit the company in the data Brian had provided. The largest electronic map company at the time was Navteq, held by a Japanese company, and since he couldn’t afford to buy it with the money he had, he decided to proceed with acquisition negotiations with a company that supplied tourist maps as an alternative. To avoid being looked down upon by the other party during the negotiation process, Taesik stopped by an LA department store to purchase a suit before heading to the tourist map company, The Map Network.
After being guided into the company by an employee, the president, Shane, greeted Taesik and offered him a seat.
“I heard you want to acquire our company. Shall I start with a company introduction?”
Although he already knew the company’s situation simply through the FBI report, Taesik received a briefing on the company as a whole at Shane’s suggestion.
“The company’s main revenue source is providing information on locations around exhibition halls, hotel locations, and surrounding restaurants to collect advertising revenue, so what did you see in us that made you want to acquire our company?”
“I plan to supply maps not just of tourist information, but of the United States—no, the world—to customers. If I acquire the company, I plan to supply much more information through large-scale investment.”
“It seems you’ve judged that our company is worth acquiring. However, the electronic map market is already led by Navteq.”
“Navteq is a good company, but they mainly provide road information. I want to put more information into maps than Navteq.”
“It seems your plan is to dominate the U.S. map market using our company. From the perspective of selling the company, you look like a decent acquirer. Since the continuity and professionalism of the work align, my worries about the employment of the current staff have also been eased. Now, let’s get to the point. What acquisition price did you have in mind when you came?”
“How about 30 million dollars on the condition of acquiring the entire stake?”
“Hmm… you’ve valued the company higher than I thought.”
“I intend to grow it into a company with much greater value than it has now. How much personal stake do you hold?”
“The stake I hold is a little over 30%.”
“If you take on the management, I will give you an additional 5 million dollars. Naturally, this is separate from the acquisition price.”
“Hahaha. I was thinking of traveling the world if I sold the company… I’d be a fool to refuse.”
“Will you accept the proposal?”
“Of course. Is there an opportunity to work as CEO while receiving incentives in addition to selling my stake? I will take responsibility for persuading the investors.”
“Then let’s finish the negotiations here and talk about future plans.”
At Taesik’s suggestion, Shane pulled his chair toward the table and focused to hear about the plans ahead.