Chapter 655 Flipping the Table

The next morning, the conference room at the headquarters of Momo Group in Jingzhou was filled with representatives from the three parties who would decide the future of the Momo OS system.

Cheng Yi represented Momo OS System Co., Ltd., Huang Wenrong represented Momo Group, Liu Guiwu represented Huaxia Software Group, and several provincial and municipal officials who came specifically to witness the event.

The company's incorporation documents were already prepared and lay quietly on the table, awaiting final confirmation and signing by both parties.

Huang Wenrong, as the Chief Financial Officer of Momo Group, stood up first and read out the finalized equity structure plan in a clear and steady voice.

"After friendly consultation among all parties and with the approval of relevant departments, the registered capital of Momo OS System Co., Ltd. is set at RMB 10 billion, and the specific equity division is as follows."

"First, Momo Group will contribute its existing operating system-related intellectual property rights, core technology team, and some fixed assets as equity, accounting for 40% of the new company's total share capital."

"Second, Mr. Cheng Yi personally invested 48 million RMB in cash, holding 4.8% of the shares."

"Third, Huaxia Software Group, invested 12 million Huaxia RMB in cash, accounting for 1.2% of the shares."

"In addition, Mr. Cheng Yi will personally bear 116 billion RMB of the repurchase cost, and Huaxia Software Group will bear 29 billion RMB of the repurchase cost, which will be paid in five years."

"In terms of the company's management structure, Mr. Cheng Yi serves as the chairman, Mr. Huang Ganping serves as the president, responsible for the company's daily operations and R&D management, and Mr. Liu Guiwu serves as the chairman of the supervisory board."

After the reading was completed, everyone in the meeting room immediately raised their hands to vote.

This shareholding structure is the result of careful consideration by all parties. Cheng Yi holds the largest share, ensuring his absolute say in future strategic decision-making for the company.

The technology investment from Momo Group ensured the stability of the company's later operations.

Although Huaxia Software Group's 12% stake is not a large percentage, it is of great significance. It represents the endorsement and deep involvement of state capital and serves as a passport to gain policy support and open up the government and enterprise market in the future.

Liu Guiwu was the first to express his opinion: "Our Huaxia Software Group fully agrees with this plan."

For him, seeing the field to which he had devoted half his life to be reborn in this way and regain control was the greatest comfort.

Without further debate, representatives from all parties signed the agreement.

Reporters from major media outlets and television stations vied to take photos, hoping to capture the most satisfying images.

They knew that this signing ceremony had acquired a certain historical weight.

When the last document was signed, enthusiastic applause immediately filled the conference room.

This applause wasn't to celebrate the signing of a business contract; it was more like welcoming a new era.

After the meeting, Huang Wenrong immediately began handling the subsequent business registration and asset transfer matters.

The operating system research center and all related technical teams within Momo Group were integrated into the newly established Momo OS System Co., Ltd.

The handover of personnel was smooth and quick. For these technical staff, it was just a change of company, but their sense of mission and belonging to their work increased dramatically.

The two-week preparation period was intense yet well-organized.

New company logo design, office layout, organizational structure establishment, R&D planning...

Everything is running at high speed.

During this period, Huang Ganping practically lived at the company, discussing the next steps for system optimization and ecosystem building strategies with his core technical staff day and night.

The members of Huang Ganping's operating system R&D center are mostly from Handong University. 70% of the students in the elite class of the School of Computer Science at Handong University have joined Huang Ganping's team.

Two weeks later, the auditorium of Handong University was brightly decorated, and a huge red backdrop clearly read: "[Inauguration Ceremony of Jingzhou Momo OS System Co., Ltd.]"

The auditorium was packed, with leaders from the National Information Industry Association, various levels of government in Handong Province, and Handong University all in attendance. Giants in the national internet industry were also invited to attend, and major mainstream media outlets were ready with their cameras and microphones.

The ceremony officially began at 9:00 a.m.

After a rousing welcoming song, the host began to solemnly introduce the main leaders and guests present.

After the introductions, Han Zhenyu, President of the China Information Industry Association, took the stage to deliver a speech.

He stood at the podium, his gaze sweeping over the assembled industry elites below, and said in a deep voice: "Comrades, friends! Today, we gather at Handong University, a university with a long history and glorious tradition, to witness a moment of milestone significance for China's information industry."

"The operating system is the soul of the information industry and the foundational platform for cyberspace. For a long time, we were constrained by others in this field, with core technologies being held back and information security facing severe challenges. Today, through market-oriented and international commercial operations, combined with the guidance of national strategic capital, we have finally successfully taken a proven operating system firmly into our own hands!"

"I hope that Momo OS System Co., Ltd. can take this establishment as a new starting point, adhere to independent innovation and open cooperation, and build a healthy and prosperous industrial ecosystem as soon as possible, living up to the mission entrusted to us by the times..."

Chairman Han spoke at length, and his statement essentially gave the newly established Momo OS System Co., Ltd. a golden reputation.

……

The opening ceremony was not large in scale, with fewer than a hundred participants, but every single one of them was a prominent figure in China.

Related media reports were overwhelming and spread rapidly to every corner of the world.

[A game-changer emerges for domestically developed operating systems]

[Momo OS officially launched, laying a solid foundation for China's information industry]

Cheng Yi: Our goal is the stars and the sea.

The eye-catching headline quickly dominated the front pages of major portal websites and newspapers, sparking discussions among countless internet professionals.

While internet professionals across the country were all using the Momo operating system, the president's office at Microsoft Asia Group was eerily silent.

Waters stared at the television screen in front of him, which was replaying the grand opening ceremony of Momo OS Systems Co., Ltd.

Cheng Yi's confident face and the enthusiastic expressions of the familiar Chinese IT tycoons in the audience made Waters's expression increasingly unpleasant.

His assistant stood cautiously behind him, holding a newly compiled public opinion briefing and market share forecast report, hesitant to speak.

"No need to show me," Waters said in a low, hoarse voice without turning around. "I already know the result."

He turned off the television, and the office fell silent instantly. "We lost." Waters turned around, a hint of resentment and helplessness on his face, and said through gritted teeth, "In the Chinese market, the war over the operating system itself is completely over."

"With over 70% of the desktop market share, a near-monopoly on internet cafes, and now the official entry of their national team, their foundation is solid, and our dominance is over."

Upon hearing Waters's words, the executives all looked dejected.

They were so unwilling to accept their defeat.

Momo Group's clever manipulation rendered their price wars, channel squeezes, technological barriers, and even political pressure tactics completely ineffective.

Further aggressive attacks would come at a cost far exceeding any potential gains, and could potentially destroy their overall image and business environment in China.

One executive asked somewhat reluctantly, "Are we just going to give up like this? We still have a huge advantage in the enterprise market and in the high-end user segment..."

"Of course it's not giving up, it's just a strategic adjustment," Waters said coldly. "It's all that damn Johnson's fault. It's all his doing. If he hadn't led the negotiations and allowed Momo Group to monopolize the internet cafe market, we definitely wouldn't be in such a passive position!"

At this point, Waters, the firefighter, was also starting to get a little worked up.

How could humans cause such a huge disaster?
Johnson must be held accountable for his dereliction of duty!
However, Waters knew this was not the time to shirk responsibility. He said in a deep voice, "We have not completely failed. China is eager to go global and does not dare to shut us out. So we and Momo Group are still evenly matched."

It's a 50/50 chance...

Hearing this word made several executives feel somewhat uncomfortable.

In the IT industry, when have they ever used the term "50/50"?

Who can go toe-to-toe with them?

Waters said, "What we need to do now is design a special operating system version specifically for Chinese users. The original price is 2999, but it will be free for a limited time for one year. Many Chinese users trust our European and American products from the bottom of their hearts, so it shouldn't be a problem for us to regain some market share."

"In addition, other games should also be released as soon as possible."

"President, MSN is in a very bad situation right now. Isn't it too hasty to launch games now?" James, the head of the game division, questioned.

“It is precisely at times like these that we cannot afford to hesitate,” Waters said in a deep voice. “We need games to maintain the system’s ecosystem right now. If I’m not mistaken, it won’t be long before Momo’s apps are removed from our system. We must plan ahead.”

"Leave our system? Our legitimate users are all elites in China. Are they willing to abandon these users?" James said in a trembling voice.

"The first thing Momo OS System Company will do after its establishment is to continue to seize the operating system market. The fastest way I can think of is to get their applications to voluntarily withdraw from our system."

“Then they would be suspected of monopolistic practices,” James said in a deep voice.

“They can say that our market share is too low, and these software companies are unwilling to bear the development and maintenance costs, so they are withdrawing,” said Sarah, the marketing director. “Unless there is no explicit proof that Momo Group forced us to choose one of them, we have no recourse.”

Just as Waters predicted, before the excitement of establishing Momo OS Systems Co., Ltd. had even died down, a withdrawal operation targeting Microsoft systems had already quietly begun.

There were no public statements, and no fierce confrontations.

There were only casual conversations over tea and subtle hints.

Tencent was the first to take action.

Six days after the establishment of Momo OS, Tencent officially released an announcement regarding the optimization of product lines and resource investment.

The announcement stated that, in order to concentrate R&D efforts, better serve users of mainstream operating system platforms, and ensure the continued leading product experience, Tencent has decided to gradually cease updates and maintenance of its core products, including QQ and QQ Games, on Microsoft Windows systems starting in 30 days.

Following suit, companies such as Xinlang, Souhu, and Wangyi quickly announced that their games and online applications would prioritize the user experience on the Momo platform, which has a large market share, and would adjust their support for other platforms as needed.

The most fatal blow came from Momo Games.

Almost simultaneously, games such as *Honghuang Zhanji*, *World of Warcraft*, *Bubble Fighter*, and *Legend of Mir*, which occupy an absolute share of the domestic online game market, released almost identical announcements: "[To improve game security and anti-cheat capabilities, and optimize the underlying technical architecture, we will soon complete a major upgrade to the game engine. The new engine will no longer support some operating system environments with security vulnerabilities...]"

Although Waters had anticipated this series of attacks, he couldn't find any way to retaliate.

Because these companies' reasons sound very high-sounding, such as optimizing resources, improving the user experience, and ensuring safety, which are all normal business decisions and completely avoid the legal risks of being forced to choose one of two options.

Although it's obvious to anyone with eyes to see, these giants in the Momo ecosystem are collectively discouraging users who are still using Microsoft systems in a peculiar way.

This news caused an immediate uproar on major BBS forums and gaming communities.

"What do you mean? You can't use QQ anymore?"

"Holy crap! Even Primordial Era is abandoning Windows? What will happen to my equipment?"

"I heard it's a seamless migration."

"This is forcing us to switch systems!"

"Damn it, how did Microsoft systems become known to have security vulnerabilities?"

"Don't you understand? Momo OS Company has been established; this is a purge."

The panic caused by the announcement began to spread, and countless game users began to download the Momo OS system. This also led to a surge in inquiries and installations of the Momo OS system at major computer malls and Hasee flagship stores.

However, this evacuation plan is a double-edged sword.

QQ's removal from the Microsoft system also halted MSN's previously sharp decline in online traffic.

In particular, some users who are used to Microsoft systems and some users with special needs have always stuck with the Microsoft ecosystem.

Just as Momo's operating system was shining brightly in China, a closed-door meeting that would determine the future landscape of the global PC industry was underway in a highly confidential conference room at Intel's headquarters in Santa Clara, California.

A few people sat around the oval conference table, but each of them was a figure who could wield considerable influence in the global technology world.

Seated at the head of the table was Intel CEO Craig Barrett, and to his left was Microsoft CEO Steve Ballmer. Ballmer, who was no longer the passionate man he used to be, had a furrowed brow and a barely suppressed anger in his eyes.

On the right are several core technology and strategy executives from Intel and Microsoft.

(End of this chapter)

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