Chapter 45: Werewolf

The methods Li Dongling and Larson used were not clever at all—they merely stirred up public opinion, escalating step by step, starting with examples of how software companies suffered when facing Microsoft.

Then they turned their guns, sowing discord between the computer hardware industry and Microsoft, completing their scheme of using others’ hands to kill.

If Microsoft had maintained good relations with the hardware manufacturers, this tactic would have been useless—both sides could have issued a joint statement and the storm would have passed. But were Microsoft’s relations with HP, Compaq, Dell, Apple, and other computer manufacturers truly good?!

Computer manufacturers have always feared Microsoft more than they feared floods; any move Microsoft made in the hardware industry sent shivers down their spines, let alone the recent groundwork of the software industry’s suffering—no one could help but suspect: if Microsoft launched its own branded computers, would there be any room left for other brands?

Everyone understood the principle that when the lips are gone, the teeth grow cold—but until now, the knife had never fallen on the hardware companies, so they all pretended not to see Microsoft’s fierce ambitions. But with this report in the Daily News, the computer hardware industry was forced to respond, because their stock prices were collapsing!

“Media reports indicate Microsoft intends to launch its own branded hardware computers, developing and manufacturing everything from system software to components in-house. Affected by this news, IBM’s market value fell over 4% today, losing more than $2.4 billion!”

“Additionally, the stock prices of HP, Compaq, Apple, Dell, and major suppliers Intel and AMD all dropped significantly!”

Watching the news on TV, Larson waved his fists excitedly and shouted at Li Dongling, “Li, see that? This fire was lit by us—we did it!”

Watching the news he and Li Dongling had engineered, dragging in all these giants, filled Larson with a thrill greater than bringing a New York minor celebrity home.

Yao Luoying also stared in shock at the TV. Though the $2.4 billion evaporated was just a number—not real dollars—it still sounded terrifying; converted to domestic currency, it approached twenty billion, equivalent to wiping out the entire market value of today’s A-share giants like Changhong, Lujiazui, Magang, and Huayi Group in a single day!

Yet all this was happening right before her eyes, orchestrated entirely by Li Dongling and Larson. If you added the market value evaporated by HP, Dell, Apple, Compaq, and others, the figure would be even more terrifying—one domino could topple an empire!

Li Dongling also watched the news on TV, and then the words of HP’s CEO Platt during his media interview made Li Dongling clench his fists.

“Yes, I’ve seen today’s media reports. HP has always enjoyed a pleasant cooperation with Microsoft, and I hope this partnership continues indefinitely!”

Platt had no intention of publicly attacking Microsoft on camera; the major computer brands weren’t united—they tore into each other far more viciously. IBM had always been HP, Dell, and Compaq’s fiercest rival.

Thus, HP and others had turned a blind eye to Microsoft’s small moves in hardware—they still needed Microsoft to harass IBM—so they imposed no serious restrictions on Microsoft.

But now it was different: HP’s stock had plummeted today, and many Wall Street institutions, seeking to avoid risk, began selling HP’s shares. HP’s board was growing desperate.

This struck at HP’s lifeline—Microsoft had become a potential rival. Platt could only begin attacking Microsoft to make his stance clear.

“But if necessary, HP will not sit idle. HP will not be easily defeated—we have alternative computer systems and software suppliers!”

In those final words, Platt bared his fangs: if Microsoft still refused to back down and pressed forward aggressively, HP would kick Microsoft out and adopt another system software as its factory-default OS.

That day, the major computer manufacturers—who normally acted like idiots—showed remarkable coordination. After HP’s statement, Dell, Apple, Compaq, IBM, Intel, AMD, and countless smaller hardware component manufacturers followed their lead, vowing never to cooperate with Microsoft again!

“Following HP, Dell, Compaq, and other computer manufacturers issued statements announcing they would carefully reconsider—or even reevaluate—their cooperation with Microsoft. Some company executives even declared outright: if Microsoft launches its own branded computers, they will immediately sever all ties with Microsoft!”

“Additionally, IBM, Lotus, Sun Microsystems, and several other companies declared their willingness to jointly develop a new-generation computer system with HP and other hardware manufacturers!”

The Washington Post published an open report the next day on this war between the computer hardware industry and Microsoft—a conflict poised to explode like a collision of celestial bodies.

The stance of HP, Dell, Compaq, and other computer giants was crystal clear: if Microsoft dared cross the line, they would sever all ties with Microsoft entirely—even if it meant switching to IBM’s system, they would never again use Microsoft’s.

The hardline stance of the computer manufacturers, combined with media incitement, had an immediate effect: Microsoft’s stock price plunged from $17 at market open to $15.7, a drop of over 7%. Clearly, Wall Street and all who held Microsoft stock were voting with their feet.

No one knew whether Microsoft’s own branded computer would succeed, and Wall Street dared not gamble—but the moment HP and others severed ties with Microsoft, the effect was immediate: next quarter, even next month, Microsoft’s earnings would collapse. Building a city might take decades; destroying it requires only one mushroom bomb.

“Intel will never betray its allies. HP, Dell, and overseas computer companies like Sony will remain Intel’s allies!”

Grove, the emperor of Intel, whose word was law and who brooked no opposition, was forced to declare his position the next day. Faced with the choice between supporting HP and other hardware allies or preserving the Microsoft-Intel alliance that had lasted fourteen years, Grove made a furious decision.

Your butt decides your head—Microsoft and Intel had each other’s backs, but at this moment, Grove could only choose the big client buying his chips.

“Bill, how could you not inform me of something this big? This leaves me in an impossible position—do you understand?!”

Others feared Bill Gates, Microsoft’s emperor, but Grove was still the emperor of Intel. Furious, Grove confronted Bill Gates.

At 39, Bill Gates appeared humble and easygoing to outsiders, a leader of the tech industry, seemingly the opposite of Steve Jobs, his contemporary, known for his volatile, combative personality.

But among those who actually worked under Bill Gates inside Microsoft, this emperor was deeply feared. In Microsoft, Bill Gates was no less harsh, ruthless, or arrogant than Jobs—no one dared defy the empire’s emperor!

“Grove, if I told you I only just learned about this myself, would you believe me?!”

Across the phone, Grove could feel Bill Gates’ suppressed rage.

His eyes flickered slightly; the seasoned veteran immediately sensed a conspiracy. “It seems, Bill, you have trouble to handle. But I must remind you: to preserve the Microsoft-Intel alliance, you must resolve your relationship with HP and the other computer manufacturers!”

“Gentlemen, what exactly is going on? Who is targeting Microsoft? Can someone give me an answer?!”

After hanging up with Grove, Bill Gates could no longer contain his fury, roaring at the Microsoft executives in the conference room.

Microsoft had been targeted—someone deliberately provoked conflict with HP and other computer manufacturers. Everyone at Microsoft realized this. But who was the enemy? No one could tell. Microsoft had too many enemies: IBM, Lotus, even HP and others themselves might be staging this to give Microsoft a warning.

Spencer, also in the conference room, entertained a ridiculous thought: could this be the work of Dongling High-Tech? He quickly dismissed it—this media campaign against Microsoft was too perfectly coordinated, turning the American tech giants into a game of Werewolf. One spark, and the mutual suspicion between Microsoft and HP and others ignited a bloodbath.

The office remained silent, making Bill Gates even angrier. Then the phone of Grant, head of PR, rang.

Under Bill Gates’ icy gaze, Grant gritted his teeth and answered. His face changed as he stepped closer and whispered a few words to Bill Gates.

“I’ve noticed the media coverage concerning Microsoft. I believe this behemoth’s appetite has become insatiable. If Microsoft launches its own computer brand, it will truly monopolize the entire tech industry!”

“It’s time to break it up. I propose splitting Microsoft into three divisions: computer systems, office software, and hardware. It’s best to eliminate the dragon before it unleashes disaster upon the earth.”

“I will recommend to the California State Federal Justice Bureau that they initiate an antitrust investigation against Microsoft...”

Watching the TV screen as Grant, head of the California State Federal Justice Bureau, spoke to the media, Bill Gates’ face turned ashen.

“Gentlemen, end this farce. No matter what method, I will not tolerate any state launching an antitrust investigation against Microsoft!”

Bill Gates told Grant, Jon from Legal, and the others, smiling on his face but his eyes filled with menace—he made it clear: if they failed to handle this, they would be fired from Microsoft.