Chapter 651 Crazy Plan

Just as Waters was burning with anger, good news finally arrived.

If he didn't come soon, he started to wonder if God had been invited for tea by the gods of China.

During this period, their lawsuit against Enze Capital also faced numerous obstacles. The European side clearly wanted to protect their own, and the lawsuit procedures alone took them more than ten days to resolve.

James practically jogged into his office, his face beaming with barely suppressed excitement as he shouted, “Mr. Waters! Great news! The US headquarters has used high-level channels to obtain crucial intelligence! Enze Capital has recently been secretly contacting several struggling European semiconductor equipment companies with the intention of acquiring them. Moreover, there are indications that some of the funds they are using for these acquisitions may be improperly circumventing regulations by exploiting loopholes in certain offshore financial centers.”

A glint of light flashed in Waters' eyes, and he asked, "Is the source reliable?"

“Absolutely reliable. Although there’s no direct chain of evidence yet, it’s enough for us to make a fuss about.” James said quickly. “Headquarters advised us to immediately report this to the European Competition Commission and the Financial Crimes Enforcement Network (FCN) under the U.S. Treasury Department. Acquiring sensitive technology and suspicious fund flows, these two things combined are enough to give Enze Capital a run for its money. As soon as the investigation starts, we’ll apply to freeze their funds. We’re not afraid they’ll back down.”

"Great, excellent!" Waters slammed his hand on the table and yelled, "We still need headquarters to step in!"

"Immediately mobilize all our media resources to create a global buzz. The headline should be: 'Mysterious Capital Enze Suspected of Irregular Operations, Global Tech Acquisition Strategy Hides Hidden Dangers.' Let's stir up the waters first." Waters revealed a long-lost smile and said, "I'll let that kid Cheng Yi know what our anger really means!"

Enze Capital has indeed been under tremendous pressure during this period; Microsoft's fury is no joke.

Mike, president of Enze Capital, has never experienced such a fierce capital shock.

Microsoft's offensive was relentless, wave after wave, each wave attempting to crush him on the beach.

The main problem is that it happened so suddenly. They were just at the crucial moment of acquiring several semiconductor companies when they were spotted by several business intelligence agencies.

Corporate acquisitions are never completely transparent and open; they involve many inside stories known only to insiders.

Each acquisition was negotiated on a case-by-case basis.

After being suddenly attacked by Microsoft for several days, Mike finally realized that the problem was on the Chinese side.

Don't ask, don't know, I'm startled when I ask.

Momo Group, a Chinese company, has surprisingly captured a large portion of Microsoft's operating system market.

It's no wonder Microsoft reacted so strongly.

After understanding the reason, Mike immediately called Cheng Yi and asked him to resolve the trouble with Microsoft as soon as possible. Otherwise, he would report to Mr. Lei Jun and make internal reforms to Momo Group.

Mike did this out of desperation; acquiring the semiconductor company was a death order from his boss, Lei Jun.

In addition, many semiconductor companies in Europe are being squeezed out of business by American companies.

Especially in CPUs, American companies have achieved an absolute monopoly.

For example, many CPU architectures are actually licensed from the British company ARM. Even companies like Intel use ARM licenses. They have the capability to produce CPUs, but they have to do the most basic work.

As a long-established industrial center, Europe has had its most core technologies largely taken by American companies.

Even now, many core components of Honor computers, such as CPUs and motherboard chipsets, are ordered from AMD, and there is always the risk of being cut off from their supply chain.

Therefore, integrating European semiconductor companies has become a top priority for Enze Capital in the past two years.

Through capital operations, they successively acquired controlling stakes in SiS, a company that produces motherboard chipsets, and VIA, a company that produces C-series processors. They then used European semiconductor technology and licensing to deeply transform both companies.

Hopefully, alternative products will emerge when Honor computers are sanctioned.

These were on the verge of success, but then Microsoft took notice.

This is really bad luck.

Cheng Yi understood Mike's attitude; after all, it was a direct order he had personally given Mike.

He certainly didn't expect Waters to bypass them and put pressure on Enze Capital directly.

Thinking about it carefully, this move was indeed very effective. If he weren't the actual controller of Enze Capital, Enze Capital would definitely have compromised just from Microsoft's spending spree.

After putting down his phone, Cheng Yi fell into deep thought.

He knew that competing with a behemoth like Microsoft couldn't be limited to just products, markets, and technology.

When your opponent can't beat you within the rules, they might choose to flip the table.

We must plan ahead and find a way to fundamentally resolve the current crisis or even turn the tide.

After a long period of contemplation, an idea that had been brewing in his mind for over a year came to mind.

He quickly dialed Liu Guiwu's number.

As the vice president of the China Information Industry Association and general manager of Huaxia Software Group, Liu Guiwu wields significant influence both within the industry and the government, making him one of Momo Group's top officials at the official level.

Liu Guiwu has to step in on this matter.

The call was quickly answered, and Liu Guiwu's friendly voice came through: "What brings you to call me today? I heard you guys have been giving Microsoft a hard time lately."

Liu Guiwu's tone carried a hint of teasing.

Cheng Yi smiled and said, "Uncle Liu, I'm not in the mood for jokes anymore. I'm in a bit of trouble right now, so I wanted to report the situation to you and also find out what's going on up there."

He briefly reported to Liu Guiwu about the conflict with Microsoft, especially the risk of Microsoft using non-market means to suppress Enze Capital, but did not mention Huang Ganping's underhanded tactics. He only emphasized the extreme measures that Microsoft might take after losing in direct competition.

Liu Guiwu listened quietly on the other end of the phone, occasionally humming in agreement.

After listening, he pondered for a moment and said, "To be honest, there's nothing particularly noteworthy from above at the moment. In the eyes of many leaders, your Moc-os system is ultimately controlled by Enze Capital in terms of equity structure, registered in the Cayman Islands, and the actual controller is still an unidentified foreigner."

"As for Microsoft, it's a purely American company. Although they're cooperating with two state-owned enterprises, the core of your competition is actually the operating system. To put it bluntly, in many people's eyes, you two are just fighting like dogs, all tangled up together. As long as it doesn't affect the overall situation of domestic information security and industrial development, the higher-ups are happy to see market competition and survival of the fittest."

Liu Guiwu's words were straightforward and realistic. Cheng Yi understood very well that relying on the righteous cause of a national enterprise to obtain direct official protection was difficult under Moc-os's current shareholding structure.

Officials need to avoid any appearance of impropriety, and even more importantly, they need to weigh the pros and cons.

Cheng Yi took a deep breath and said, "Uncle Liu, I have a bold idea to report to you, and I hope to get the support of the association and Huaxia Software Group."

"Oh? What's your idea? Tell me about it." Liu Guiwu's tone carried a hint of curiosity.

Cheng Yi said, word by word, "I want to launch a buyback program for the Momo operating system."

The other end of the phone went silent instantly; even breathing seemed to stop.

Liu Guiwu was clearly taken aback by Cheng Yi's sudden suggestion.

Cheng Yi continued to explain: "I plan to establish a new company and jointly invest with Huaxia Software Group to repurchase 60% of the shares of Momo Operating System Company from Enze Capital. After the acquisition, we will divide the 60% shares in an 8:2 ratio to form a brand new joint venture with clear equity, with my company holding 80% and Huaxia Software Group holding 20%."

"In this way, the new company will be controlled by domestic capital, and we can completely develop it into a truly independent and controllable domestic operating system."

"..."

There was still a deathly silence on the other end of the phone.

A good dozen seconds passed before Liu Guiwu's incredulous voice came through: "Cheng...Cheng Yi, you're not joking with me, are you?"

Liu Guiwu's shock is completely understandable.

What is Moc-os?
It is now a behemoth that occupies 70% of the domestic desktop operating system market share.

It is a massive platform with nearly 70 million active users, and has built a complete ecosystem of games and applications.

Although it has never been profitable, its value cannot be simply measured in monetary terms. This may not mean much to Europe and America, but for China today, it is definitely a strategic asset.

“I’m not in the mood for jokes right now,” Cheng Yi said in a deep voice. “I’ve thought it through. Only by truly establishing Moc-OS in China and gaining the status of a domestically developed system can we completely shed the suspicion of internal friction involving foreign companies, rightfully obtain full support from the national level, and fundamentally resist any unrestricted attacks that Microsoft might launch.”

He paused, then offered an even more enticing deal: "Moreover, I can negotiate a relatively reasonable price for this buyback. I will communicate with Enze Capital. Most importantly, if this deal goes through, you and Huaxia Software Group will be recorded in the history of China's information industry development as key promoters and participants!"

"To be recorded in history..." Liu Guiwu murmured, repeating these four words, his breathing becoming noticeably heavier.

For a pragmatic official like him, what could be more tempting than leaving a mark on history?

What a glorious achievement it would be to promote the creation of an operating system that is truly in the hands of the Chinese people and has a huge market base.
Moreover, this can completely change the situation in which China is subject to others in the field of basic software, and good software will no longer be subject to restrictions.

After the initial shock, Liu Guiwu forced himself to calm down, and his brain began to work at lightning speed.

This is a huge deal, involving enormous sums of money, complex international capital negotiations, sensitive technology transfer, and far-reaching industrial impact.

Liu Guiwu's voice still carried a hint of excitement as he said, "If it can really be done... this... this would indeed be a monumental achievement. However, will Lei Jun, that guy from Enze Capital, agree to this? This is no small sum of money."

Cheng Yi smiled confidently and said, "Right now, because of our acquisition of the Microsoft system, Enze Capital is under tremendous pressure, and they are also well aware that it will be difficult for our system to go abroad, because Microsoft will never allow the Momo system to go global."

“I will handle Mr. Lei Jun’s communication; I am at least 80% confident that I can persuade him. The most crucial thing now is for you and Huaxia Software Group to conduct an internal assessment as soon as possible and report to your superiors.”

Liu Guiwu immediately responded, "Okay, I will report to the group and the association immediately. If this is feasible, our Huaxia Software Group will do our best."

After hanging up the phone, Liu Guiwu sat in his office, unable to calm down for a long time.

He lit a cigarette, but his hand trembled slightly with excitement.

He seemed to already see how the domestically developed operating system he had personally promoted would overcome all obstacles in the national and even global markets, and his name would be closely linked to this great cause.

Imagining that in the future, when others talk about this system, saying that it was created by Liu Guiwu and his team in the 90s over eight years, Liu Guiwu felt even more excited.

Who knows, he might even be hailed as the father of the Moc system in the future.

"Damn, the more I think about it, the more excited I get." Liu Guiwu stubbed out his cigarette, his hands still trembling slightly with excitement.

At this moment, Cheng Yi, who had put down his phone, also showed a smile on his face.

He had been planning this move for over a year.

The localization of the Moc-OS system is not only to counter the threat from Microsoft, but also a crucial part of his long-term strategy.

Only by taking root in this land can one obtain the strongest nourishment and the most solid support.

Liu Guiwu's actions were extremely efficient.

Within just a few hours of speaking with Cheng Yi, he urgently convened a highly confidential closed-door meeting with the core senior executives of Huaxia Software Group and several senior experts from the Information Industry Association.

When Liu Guiwu revealed Cheng Yi's operating system buyback plan, the shockwave in the conference room was even greater than when he first received the call.

A mix of emotions, including surprise, doubt, excitement, and caution, were present.

"Mr. Liu, you're not kidding, are you? Buy back Moc-os from Enze Capital? How much money would that cost? How could they possibly agree to that?" A vice president stared wide-eyed.

"Is Cheng Yi's ambition too big? Is he really confident he can persuade that mysterious Lei Jun?" Another expert with a technical background also expressed his doubts.

This is a mature commercial system that can compete with Microsoft on equal footing, and it's exactly what they lack right now.

Everyone initially thought that Momo's system and Microsoft's system were fighting like dogs, but before the show was even over, Momo's system was about to become their prized possession?

If this were to actually succeed, it's unimaginable how huge a sensation it would cause in China.

(End of this chapter)

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