Chapter 59

Bear Country is Now Chapter 59

Chapter 59: A Fair Price? / The White House's Decision

Nikolai and Denis were on their way to Apple's headquarters in Silicon Valley.

When the car stopped at a crossroads, Denis rolled down the window.

The warm September breeze blew in, but Nikolai, who had been enjoying the air conditioning, decided to leave it be, thinking it was fine.

“Michael Spindler, the CEO, tried to sell Apple for $2 billion. At $20 per share.”

“Isn’t the current CEO Gil Amelio?”

The CEO's name is different.

I asked because I thought I might have been mistaken, but it was Denis's mistake.

“Oh, sorry. That was last year. He tried to sell it to GE (General Electric), but they refused, saying it was too expensive.”

“How did you know that?”

Denis had been putting in a lot of effort lately.

His values had changed significantly, and most importantly, he had been bringing Nikolai a lot of new information.

“It was a rumor that spread throughout Wall Street. I think GE was the one who started it.”

“Apple's pride must have been completely crushed.”

Michael Spindler, the CEO, tried to sell Apple not only to GE but also to IBM, Sun Microsystems, and HP, but all of them refused.

Even when Apple, the world-renowned company, was put up for sale, these companies didn't even give it a second glance.

The rumor probably came from one of these companies.

“Wasn't it $1.20 when you checked in Russia? What is it today?”

“$1.10.”

Indeed, it's on a downward trend.

Apple's stock price had fallen to the $1 mark.

Thinking about how Apple's market capitalization would approach $3 trillion in the future, Nikolai let out a hollow laugh.

“Apple isn't really going to go bankrupt, is it?”

“That's why you want to go to Apple, right?”

“I trust your judgment. Still….”

Denis stopped speaking, thinking there must be a reason why Nikolai was interested in Apple.

“Oh, right. Do some lobbying with the influential members of the U.S. Congress and Senate.”

“I will.”

After that, there was no further conversation.

Nikolai was silent, thinking about which country to borrow the acquisition funds from, while Denis was silent, recalculating Apple's value.

When they arrived at Apple, an employee guided them.

Following her, they entered the CEO's office, where Gil Amelio, in his early 50s, stood up to greet them.

“Hello.”

“Pleased to meet you. I'm Nikolai.”

Nikolai also shook hands with a man who seemed to be of a similar age to Gil Amelio. He was a representative of Apple's board of directors.

“I didn't expect to hear from Blackhole Investment. I thought you mainly invested in startups.”

“Not necessarily.”

The atmosphere in the office was strange.

The age difference between the negotiators was significant, and it was even stranger because they were just looking at each other without bringing up the main topic.

Nikolai didn't want to be the first to speak, but fortunately, Gil Amelio brought up the main topic first.

“Since Mr. Denis has told you everything, shall we get straight to the important part?”

“Sure.”

“What do you think is the fair price for our Apple?”

“Shouldn't I be the one asking that?”

Nikolai reminded Gil Amelio that he, the buyer, was in control, and Gil Amelio awkwardly smiled.

“Oh, I apologize. I didn't mean anything by it. Let me tell you then. We are thinking of $1.1 billion.”

$1.1 billion was a price based on the current stock price, but it was difficult for Nikolai to accept.

It wasn't so much that he wanted to haggle, but rather that he judged it to be too high considering Apple's financial condition.

“Isn't the net loss for the first half of the year over $700 million? The company also laid off a third of its employees due to the increasing losses.”

And yet, you're asking for $1.1 billion?

Do you not want to sell?

Even without Nikolai explicitly saying it, they understood the implications.

“And, given how Apple has managed to survive so far, there must be some debt, right?”

“Hmm. Of course, if we proceed with the contract, all such details will be disclosed, but $1.1 billion is not….”

Nikolai cut him off and looked at the person next to Gil Amelio.

“If you really want to sell, the board members should be willing to take some losses, shouldn't they?”

This was a pointed remark directed at the board members who were more concerned about their own losses than the company's future.

The man flinched and replied.

“We have been considering that. How much do you think would be appropriate?”

“If the board members agree to pay off all of Apple's debts, I am willing to acquire it for $900 million.”

“Hmm….”

$900 million was equivalent to 45% of Apple's shares.

The remaining 55% were publicly traded.

While Apple shareholders were likely in a dire situation, the outcome of today's meeting would completely change their fortunes.

The most crucial part of today's meeting was ultimately about money.

How much would Blackhole buy?

At what price would Apple sell?

This was the core issue, and they had a lot of discussion about it.

However, the negotiation did not end easily.

After more than an hour, Nikolai stood up.

He didn't plan to sign a contract immediately, so he decided to take a few days.

“I think the board members can make a decision within two days, right?”

“...”

“I need to hear from you before I leave the country.”

“Understood. I will contact you within two days.”

Nikolai shook hands with the two men and headed to the hotel he had reserved with Denis.

* * *

That evening, while reading the newspaper in the hotel, Nikolai blinked.

‘This is the first time I'm seeing an American newspaper.’

【January 15, 1997: Steve Jobs returns to Apple. iMac sales of 8 million units lead to a stock price rebound in December.】

In the original history, Apple's stock price had averaged below $1 for the entire year of 1997.

This meant that the situation would be even worse over the next year.

After seeing the future newspaper, Nikolai thought about waiting until next year to acquire Apple but shook his head.

‘If Steve Jobs returns in January next year, will he really be willing to sell Apple?’

It was three months from now, in September.

There wasn't much time left.

Considering his well-known personality and his dedication to Apple, he would likely oppose it strongly.

Most importantly, the iMac would be released when he returned.

In other words, while Apple's situation would be tough in 1997, it would also give them hope.

‘Now is the right time. If I get too greedy, things might go wrong.’

Nikolai made this judgment and called Moscow at 11 PM.

He needed Yuri Yusufov's help with the acquisition funds.

* * *

The next afternoon at the White House.

In the President's office, the CIA Director, who had attended President Zahir's inauguration in Russia, was present.

President Clinton frowned after reading the documents.

“Nikolai from Blackhole….”

“The funds are definitely not from the Russian government.”

“Can Gazprom's funds be used to invest in so many companies?”

“It doesn't seem impossible. Nikolai's business isn't limited to Gazprom.”

“Why does he seem interested in Apple?”

“Given the companies he has invested in so far, Apple is also an IT company.”

“Is it because his interests are in IT?”

“Considering the results of his investments, there doesn't seem to be any other reason….”

Clinton also didn't see anything particularly suspicious.

However, there was one thing that bothered him.

“Apple is different from other companies. It was once a symbol of American IT. If such a company falls into the hands of a Russian, it’s….”

He paused in thought, and the CIA Director asked cautiously.

“Are you thinking of intervening at the government level?”

“Do you think Congress would approve a special budget for this?”

“It's highly unlikely.”

“I agree.”

In the original history, Apple didn't receive any government assistance.

If the situation had become even more difficult, it might have gone bankrupt.

It wasn't unusual for a foreign businessman to acquire a company.

Another major factor prevented Clinton from intervening.

“And there's another thing that bothers me.”

It was a diplomatic issue.

“Nikolai is President Zahir's grandson and his economic advisor.”

“As I said, it doesn't seem to be from the Russian government.”

“It's not that, but if we intervene in Apple, it could strain our good relations with Russia. It will inevitably reach President Zahir's ears.”

“It's highly likely.”

As the President and CIA Director, they had to consider the diplomatic implications first.

There were many companies like Apple in the U.S., so they didn't want to take the risk of intervening.

“Let's leave it alone. Apple is going to go bankrupt anyway, right? It might be better if someone acquires it. After all, Blackhole is technically a British company. Let's pretend we don't know.”

If this were the era when Nikolai was a journalist, it would be a different story, but it was 1996, 27 years ago.

“Understood.”

“And I'd like to meet Mr. Nikolai before he leaves the U.S.”

“I'll arrange it.”

Apple's fate had changed.

Because of President Clinton and the CIA Director's decision.

* * *

-Borrow money from Indonesian and Thai banks?

Yuri Yusufov, who received the call at home, thought for a moment about why it wasn't a domestic bank, and why specifically Indonesian and Thai banks.

-Are you sure it's Indonesian and Thai banks?

“Yes, if we set Gazprom as collateral, won't they lend us the money without hesitation?

-If it's Gazprom, they will lend it without hesitation. But why not use a domestic bank?

“I can't explain in detail, but we need to prevent Russian funds from leaving the country as much as possible right now.”

The Asian financial crisis is coming soon.

We can't export internal funds with such a major risk ahead.

And since we will borrow in the currencies of Indonesia and Thailand, we can repay in those currencies later.

This means.

‘We won't lose as much as we borrow; we might even gain.’

The value of the two countries' currencies will hit rock bottom in a few months, so we can repay at that lower value.

-Are you going to keep it a secret from me too?

“I'm sorry.”

-Haha, no. When you're doing big business, you can't reveal secrets easily, even to me.

“Is it possible?”

-Understood. The amount is quite large, but since we're using Gazprom as collateral and borrowing from two countries' banks, it should be fine. I'll process it as quickly as possible.

“Thank you, Grandfather.”

-By the way, I heard from my in-law that Tony Blair, the leader of the British Labour Party, proposed a match for you at the inauguration. With someone from the royal family. You said no, right?

President Zahir also wanted to see his great-grandson as soon as possible, so he mentioned it to Yuri Yusufov.

He thought his grandfather's words would carry more weight than his maternal grandfather's.

-Do you really have no interest?

“Grandfather, let's talk about it when I come over.”

-Okay. Come over with your parents.

“Hasn't Mother been visiting you much lately?”

-There's a lot for my in-law to do. I understand, so don't say anything else. Just come and see me.

“I will.”

Nikolai's mother, Maria, was doing a lot as the First Lady.

Since President Zahir's wife was not around, his only daughter had to take on the role.

I thought Ivan would be struggling because Maria was so busy, but he actually liked it.

Although his wife couldn't take care of many things directly, she could do more as the First Lady.

“I'll come over with my parents to greet you.”

-Understood. Take care of yourself.

* * *

Before the two days were up, a call came from Apple's CEO, Gil Amelio.