Chapter 88: Game Theory (5)

Money flows through the market.

Though money doesn't come with a tag, if you look closely, you can trace its path from where it comes and where it goes.

Alex analyzed the financial power of Continuity Capital.

"Was the Thomas Motors incident a means to raise acquisition funds?"

The profit from the investment at the time wouldn't have exceeded 10 billion dollars.

Then, how much was the initial capital?

"If he had more money, he would have invested more. The fact that he didn't suggests the initial capital wasn't much."

He probably didn't even have 500 million dollars when he first approached him.

He made a cold, clear judgment of the situation.

What is Continuity Capital's true objective?

Is it really to acquire CoolCloud, or is it to extort a settlement? From Alex's perspective, the best outcome is to reach a fair settlement.

If they want the settlement in the form of shares, he was willing to give up a certain portion. However, he had no intention of handing over the company.

It's a company whose value will rise over time, so he deliberately avoided taking investments and delayed going public.

Selling it at a low price now would be foolish.

The other party gave him four days.

This means they will launch an attack if he doesn't agree to the sale within four days.

Setting a deadline to pressure the other party is a common tactic used by private equity firms. Agreeing to negotiate within the deadline is already a sign of defeat.

Alex had no intention of being led by the other party.

Lawsuits and exposure are the strongest cards the other party can play. Once they play this card, the acquisition talks are over.

"If they really want to acquire, they won't expose even if the deadline passes."

Even if they do expose, if Rolf takes responsibility and leaves the company, that's it. In either case, the negotiation power will shift to CoolCloud.

While thinking about a response, he received a call from his sister.

"Hello, big brother."

"It's been a while."

Erica Preston spoke affectionately.

"I know you're busy, but come home sometimes. Mom is worried."

"Got it. I'll try to find some time."

"Remember the Korean you asked me to look into last time?"

"Is it Han Miru?"

At their first meeting, Alex felt a sense of unease and asked the family to investigate Han Miru. Initially, he thought Han Miru was an investor who provided funds to Continuity Capital, but surprisingly, he turned out to be an ordinary office worker.

"I was curious why you were interested in such a person, but I was shocked to see that he triggered the Thomas Motors incident. It seems you have a good instinct."

Alex smiled bitterly.

If he really had a good instinct, he wouldn't have missed Rolf's lies.

"The Thomas Motors incident was led by David Rockhart, right? He started the investigation and wrote the report."

"The decisive reason for the stock price drop was Huwan Energy breaking the agreement and selling all its shares. Could Han Miru have been the one who persuaded Huwan Energy?"

"What connection does Han Miru have with Huwan Energy?"

"I don't know, but isn't it more likely that Han Miru, rather than David Rockhart, persuaded them?"

After a moment's thought, he nodded.

"That could be possible."

After all, being a fellow Korean, it would have been easier to persuade.

"By the way, I found something interesting during the investigation."

"What is it?"

"Do you remember the plane accident at Atlanta Airport a while ago? Senator Mark Phillips was on that flight."

"I remember."

Every American would know about it.

At the time, a false report of a terrorist attack causing the plane to explode in mid-air sent the entire country into chaos, and the financial markets were also affected.

"What does that have to do with this?"

"Maybe it's related. Or should I stop?"

"No, continue."

"As you know, a Korean discovered an engine malfunction just before takeoff and had the plane return. Thanks to him, everyone on the flight, including Senator Phillips' family, survived. Who do you think it was?"

The moment he heard this, a face immediately came to mind.

"Could it be...?"

"It's Han Miru."

Alex was momentarily speechless.

"Is there any possibility he was involved in the explosion?"

She laughed slightly.

"Hehe, are you joking?"

It was a flight carrying a senator.

Of course, it would have been thoroughly investigated, and if there were any issues, they would have been revealed.

"Isn't it a bit too coincidental? If it's luck, it's incredible. I'd like to see this person myself."

After hanging up, Alex fell into thought.

He saved a senator's flight from a crisis?

"Is this even possible?"

But thinking about it, everything else seemed equally impossible. The other party had accomplished things that seemed impossible with ease.

What about this time?

It didn't feel right.

"I should cut Rolf out first."

It's not uncommon for founders to be ousted from their companies in Silicon Valley.

After a moment's thought, he called his partner.

After a long ring, Rolf answered.

"What's up?"

While Alex is cautious and serious, Rolf is cheerful and lively. But now, his voice lacked any strength.

Alex spoke soothingly.

"Transfer your shares to me until the situation is resolved."

Right now, Rolf's only ally is him. He thought Rolf would agree, but an unexpected answer came back.

"I can't do that."

"Why not? Don't you trust me?"

"No."

"Then transfer them to me. You don't want to deal with them directly, do you?"

"It's not that I don't want to; I can't."

"What do you mean?"

"I've already sold all my shares to Continuity Capital."

Alex was shocked.

"Is that true?"

It's only been a day.

And he already sold all his shares!

"How much?"

Did they offer an astronomical amount?

"1 billion dollars."

"1 billion dollars?"

For a moment, he thought he heard wrong or that Rolf said it wrong.

"How much?"

"I sold everything for 1 billion dollars."

The shares are worth over 3 billion dollars. No, he alone invested 900 million dollars. And he sold it for just 1 billion dollars?

"Why?"

"They said they would keep the secret and not sue if I did this."

"..."

Did he choose to sell at a low price rather than face the shame of the truth being revealed? It didn't make sense. Why was he so obsessed with his reputation?

"Do you believe them?"

"There's no reason not to."

Their goal is to acquire CoolCloud.

Now that they have the rights, revealing who the developer of Minerva is has no meaning. So, the secret might be kept.

Still, to sell all his shares!

Alex shouted.

"Damn! Do you even know what you've done?"

If he had at least secured his share, it wouldn't be so ridiculous. But 1 billion dollars!

"What's wrong with me disposing of my own shares?"

It's the owner's right to do as they please with their shares. But it's common courtesy to consult with a partner first.

"Is that what you call talking?"

He barely held back his anger.

"To be honest, weren't you planning to kick me out of the company?"

Alex felt a pang but remained calm.

"Who said that? Don't tell me you fell for what they said?"

"Then it's not true?"

"..."

In the current situation, saying it's not true wouldn't make a difference. And since he already sold his shares, it's too late.

There's no way to undo the contract now.

Alex thought rationally.

Rolf's shares are 31.16%. Less than a third. It's not enough to do anything.

Moreover, this contract means Continuity Capital has lost their most important card.

"They said they would keep the secret and not sue?"

The worst scenario Alex imagined was that the exposure and lawsuits would halt the use of Minerva. But now, due to the contract with Rolf, they can't sue or launch a public campaign.

Even if the rights are on their side, he can still reach a settlement by paying royalties.

"Was the goal always money?"

For Continuity Capital, acquiring 31.16% of CoolCloud at a low price and receiving a portion of the revenue as royalties is a great deal.

But...

Is this all there is to it?

As he thought, Rolf said something unexpected.

"I had no choice. Seed also went over to their side. What could I do?"

"What do you mean?"

"Exactly what I said. Continuity Capital and Seed are working together. Or maybe they were always on the same side."

Hearing this, Alex realized an important fact.

Originally, his shares were 38%, and PrestigeA PE's shares were 20%. Together, they had 58%, giving them a solid controlling stake.

But by increasing Seed Lucas's shares, his shares dropped to 32%, and PrestigeA PE's shares dropped to 16.84%.

Together, they have 48.84%.

On the other hand, Rolf and Seed together have 51.16%.

If Seed was on their side from the beginning, acquiring Rolf's shares would give them a majority and control over the company!

"It wasn't about taking Seed away."

They had no intention of recruiting Seed.

Their real goal was to increase Seed's shares and decrease his.

If this continues, he will be the one ousted from the company. But even if he is ousted, he still owns 48.84% of the shares.

"Does this mean they don't need to acquire my shares if they control the management?"

After a moment's thought, he realized that wasn't the case.

Even if they avoid lawsuits over the unauthorized use of Mimir, they still need to negotiate royalties. But if Continuity Capital controls CoolCloud, they can set the royalties as they please.

The high value of CoolCloud is not due to assets but the enormous future profits.

If Continuity Capital takes all those profits, the company's value will plummet. To avoid this, he would have to sell his shares.

He felt a sense of awe.

"Unbelievable! Did they plan this from the beginning? How many moves ahead did they think?"

He was completely outmaneuvered.

Realizing the truth, Alex let out a bitter laugh.

"Haha..."