The Conglomerate Family Became A Villain [EN]: Chapter 155

155. Old Life in New York (4)

“Next are JP Morgan and Bank of America.”

Robert and Sarah straightened up at Jung Hyun-woo’s words.

“JP Morgan and Bank of America, huh? The real deal is here.”

“They’re not going to be easy opponents.”

The two companies held the key to Victoria Corporation’s IPO [Initial Public Offering, the first time a company offers shares to the public].

Jung Hyun-woo asked them,

“Which one should we target first?”

Robert twirled his pen at the question.

“Well, they’re not easy, but I don’t think we need to use the word ‘target,’ do we?”

Both JP Morgan and Bank of America had already agreed to Victoria Corporation’s IPO.

Robert thought they only needed to lightly adjust the detailed conditions.

But the ‘targeting’ Jung Hyun-woo mentioned wasn’t about that.

“We need the consent of both companies to negotiate with Citibank.”

Victoria Corporation had agreed to launch Citi Bank and Citi Service.

However, the details had not yet been agreed upon. In particular, aspects such as royalty payments required the consent of JP Morgan and Bank of America.

Robert realized what Jung Hyun-woo’s ‘targeting’ referred to.

“Oh, you mean the royalties.”

Sarah felt the air in the conference room rapidly cooling.

‘The royalty issue is definitely not going to be easy.’

She raised her hand halfway and asked,

“Charlie, shouldn’t we just impose higher royalties on Citibank?”

She thought that if the conditions were the same as Bank of America, the two companies, each holding 10% of the shares, would never agree.

Robert agreed with her.

“I don’t think Citibank can have the same conditions as the first two companies, as it is the third company to join.”

It wasn’t about penalizing Citibank. However, they couldn’t provide the service under the same conditions as the first two companies. He thought the differentiation was natural.

Soon, the two people’s gazes turned to Jung Hyun-woo. He took a deep breath and told them his thoughts.

“I want to offer Citibank the same conditions as Bank of America.”

Sarah and Robert exclaimed simultaneously.

“Oh, my God!”

“Charlie! That’s impossible.”

The two were certain that JP Morgan and Bank of America would not agree.

Of course, Jung Hyun-woo’s thoughts were different.

“Getting the consent of the two companies will definitely be difficult. But I don’t think it’s impossible.”

Robert shook his head at his words.

“Charlie, it’s not just difficult. They preempted the market and even have shares in our company. Are you saying they’ll accept the same conditions as a new market entrant? If I were an executive at JP Morgan, I would never agree.”

Sarah added,

“Charlie, JP Morgan is managing this IPO. If Citibank starts the service under the same conditions as them, they’ll think they’re at a disadvantage.”

Jung Hyun-woo nodded at Robert and Sarah’s words.

“Of course, they would.”

Robert’s voice grew louder as he readily acknowledged their words.

“Charlie, it’s not ‘Of course, they would.’ If you don’t get their consent, the deal with Citibank will fall apart. Do you know what will happen if the deal with Citibank falls apart?”

He thought it would be much easier to persuade Citibank.

‘Citibank is a follower, so they are more likely to accept penalties or additional burdens.’

Unlike Citibank, JP Morgan and Bank of America were market pioneers. In particular, when Bank of America entered the market, JP Morgan had fiercely opposed it, threatening to destroy Victoria Corporation.

‘They might react the same way this time.’

Jung Hyun-woo turned his gaze to Sarah. It meant that she could speak her mind like Robert if she had anything to say.

Rather than criticizing or refuting him, Sarah organized her thoughts and then asked a question.

“Hoo… Charlie, the reason you’re trying to improve Citibank’s conditions is to finish this deal before the IPO, right?”

Jung Hyun-woo shook his head from side to side at her question.

“No.”

It wasn’t a condition upgrade to speed up the deal. That’s how he answered.

Sarah had no choice but to ask again.

“If that’s not it, what’s your intention in offering Citibank such conditions?”

“It’s obviously for the future.”

For the future.

Sarah narrowed her brows as if she couldn’t understand.

“What does that mean? Conditions for the future? You’re not going to say something strange again, are you?”

Jung Hyun-woo stood up and slammed the table with both hands.

Thwack.

It lacked a bit of impact, but his posture was like that of an investigator or inspector from a TV drama.

“Sarah! Robert! I want this contract with Citibank to become the standard contract.”

Robert and Sarah widened their eyes at the same time.

“Standard contract?”

“If it’s a standard contract… are you saying you’ll offer the same conditions to every company we contract with in the future?”

Jung Hyun-woo nodded at Sarah’s question.

“That’s right.”

Sarah’s voice rose.

“Cha, Charlie, how can you think of such a thing?”

She thought it was an absurd condition.

‘He’s completely ignoring JP Morgan and Bank of America.’

Jung Hyun-woo pressed down on the table with both hands and said,

“This condition is not the first idea that came to my mind.”

Robert narrowed his brows and asked,

“Did you perhaps get a hint from Atari’s third-party contract?”

Jung Hyun-woo turned his gaze to him and answered,

“It’s similar.”

“If it’s similar, where exactly did you get the hint from?”

“I got a hint from the report John uploaded.”

John River.

He was the head of the game business division and was working day and night.

“John?”

“To be exact, I got a hint from the report he uploaded on the deal with Nintendo.”

Nintendo created a more advanced third-party system than Atari and presented it to each company.

Jung Hyun-woo wanted to create a standard contract based on their proposal.

Robert relaxed his narrowed brows a little and said,

“So, the plan is to gather Wall Street’s financial companies like gathering third parties.”

Jung Hyun-woo nodded at his words.

“Bingo, dozens of companies will want to work with us in the future.”

Dozens of companies.

Sarah worried that Jung Hyun-woo might be swept up in optimism.

“We’re already struggling with the third company, how is dozens of companies possible?”

Jung Hyun-woo answered while pressing down on the table.

“We plan to modularize the program to increase efficiency.”

Sarah raised her eyebrows at the mention of modularizing the program.

“You’ve never told me that before.”

“Haven’t I mentioned it sometimes? I said I would improve the compatibility of the program.”

“Are you saying you chose modularization to improve compatibility?”

Jung Hyun-woo took his hands off the table and straightened his body. Then he raised his right index finger.

“If modularization is successful, we will be able to provide customized services to companies faster than ever before.”

Robert realized how Jung Hyun-woo was trying to improve JP Service.

‘He’s trying to introduce the modularization system used in the military to IT companies.’

He sighed briefly and said,

“Hoo… I trust Charlie on the technical aspects. But the standard contract is not a technical aspect.”

Jung Hyun-woo turned his gaze to Robert.

“Modularization is the answer to Sarah’s question. As Robert said, the standard contract is not a technical aspect. So, we need to persuade JP Morgan and Bank of America.”

Robert asked him,

“You must have a scenario for the persuasion, right?”

He was asking how to persuade the two companies.

Jung Hyun-woo nodded slightly.

“I have some planned out.”

Robert hoped that Jung Hyun-woo’s method wasn’t just empty talk.

* * *

San Francisco.

Robert and Sarah passed through the gate as soon as they got off the plane.

“Sarah, it’s been a while since this party.”

Robert and Sarah.

It had been a while since the two of them had gone on a business trip together, as he said.

“Charlie said he would take care of New York alone, so we have no choice.”

After sending Robert and Sarah to San Francisco, Jung Hyun-woo headed to New York with Anne.

“JP Morgan is the more difficult opponent, though.”

Robert was worried about Jung Hyun-woo, who had flown to New York.

“Charlie will do well.”

“Sarah, do you think Charlie’s plan is realistic?”

Sarah moved to the parking lot and answered.

“Charlie made millions of dollars in high school. Wouldn’t this be more realistic than that?”

It was an answer that he trusted Jung Hyun-woo.

“Even if it’s Charlie, won’t this be difficult?”

Robert was still negative.

“Robert.”

Sarah stopped walking, and he had no choice but to stop as well.

“Sarah, is there a problem?”

“If we doubt him, who will believe in Charlie?”

It meant that they should follow Jung Hyun-woo’s decision without questioning it.

“I understand what you mean. But this matter is…”

Sarah cut him off and said,

“This is San Francisco. Let’s not doubt Charlie’s words here.”

She wanted to put aside her complaints until she persuaded Bank of America.

Robert nodded at her words.

“I understand. Let’s talk about the rest on the way back.”

Sarah and Robert.

Around the time the two were moving to the parking lot.

Jung Hyun-woo was sitting at the same table as Henri Arnault, the head of JP Morgan Investment Bank.

“Mr. Jung, what brings you here this time?”

Jung Hyun-woo put his hands together at Henri Arnault’s question.

“I sent the meeting agenda by fax before the visit.”

“The fax only stated that it was a meeting necessary for the IPO.”

The IPO was being handled by JP Morgan, not Victoria Corporation.

Henri Arnault thought that Jung Hyun-woo had flown to New York because he was dissatisfied with the work.

‘The fact that a busy person flew all the way to New York means he has a big complaint.’

Before Jung Hyun-woo’s arrival, he had called the IPO team staff to check the situation.

‘We’re definitely prepared this time.’

Henri Arnault thought that there would be no mistakes like last time.

“I want to discuss the most necessary work for this IPO.”

“The most necessary work?”

Jung Hyun-woo asked him back.

“Mr. Arnault, what do you think the success of this IPO depends on?”

The success of the IPO.

Henri Arnault was not an amateur.

“Doesn’t the success or failure of an IPO depend on how well the company is packaged?”

Jung Hyun-woo shook his head.

“No.”

Henri Arnault clicked his tongue inwardly.

‘Tsk, it looks like the kid is trying to teach me again.’

He had a lot of complaints about Jung Hyun-woo’s attitude, but he didn’t show it outwardly.

“If that’s not what you think, what part do you think is the most important?”

Jung Hyun-woo answered in a clear voice.

“Citibank.”

Henri Arnault sighed deeply at his answer.

“Hoo… Haven’t you already started working on that side?”

He had agreed that they could negotiate with Citibank.

“Mr. Arnault, we haven’t discussed the terms of the negotiation.”

“If it’s the terms of the negotiation, shouldn’t we just raise it slightly higher than Bank of America?”

Henri Arnault’s judgment was no different from Robert’s.

“I’m going to do it under the same conditions as Bank of America.”

Instantly, a valley formed on Henri Arnault’s brow.

“What did you say?”

“It’s not just Citibank. I’m going to offer the same conditions to every company that does business with Victoria Corporation in the future.”

Henri Arnault narrowed his brows and asked.

“Charlie, how can you think of such a thing?”

He thought Jung Hyun-woo was crazy.

“This will also benefit JP Morgan.”

“What does that mean? How is it beneficial when competitors have the same weapons as us?”

If JP Service became universal, it would be like JP Morgan losing a big weapon.

‘It’s already unpleasant that Bank of America and Citibank have the same weapons as us, but every company?’

Henri Arnault thought that they should only allow up to Citibank.

Jung Hyun-woo answered his question.

“Mr. Arnault, our technological advantage will only last for a few years. Are you willing to give up $10 billion to have that few years of technological advantage?”

He was asking if having an advantage over other companies for a few years was worth $10 billion.

Henri Arnault stood up and raised his voice.

“Mr. Jung, are you saying that we can earn $10 billion if we give up our technological advantage?”

Jung Hyun-woo answered in a stiff voice.

“That’s right.”

Henri Arnault was still agitated.

“How can you earn billions of dollars?”

He thought Jung Hyun-woo was talking nonsense.

’10 billion dollars, there’s a limit to jokes.’

Jung Hyun-woo didn’t come to him to joke.

“If Victoria Corporation’s market capitalization reaches $100 billion, JP Morgan’s equity value will also be $10 billion.”

Henri Arnault laughed with a dumbfounded expression.

“Hahaha, $100 billion, you say?”

“Do you think it’s impossible?”

“Even $30 billion would only be possible with good luck.”

If it weren’t for the good news of Citibank, even $20 billion would have been difficult. But $100 billion.

‘It looks like his head is full of bubbles because things are going too well.’

Unlike Henri Arnault’s cold evaluation, Jung Hyun-woo believed that $100 billion was actually possible.

“Mr. Arnault, even if Victoria Corporation dominates Wall Street, do you still think $100 billion is impossible?”

“Dominate Wall Street?”

“Citibank is just the beginning. If dozens of securities companies in the East and West use the system we created, I think it’s definitely possible.”

Securities companies across the United States use the system created by Victoria Corporation.

‘Is such a thing possible?’

If it were possible, $50 billion could be exceeded, even if $100 billion wasn’t possible.

When the amount of $50 billion came to mind, Henri Arnault had no choice but to recalculate.

‘If Victoria Corporation’s market capitalization reaches $50 billion, the value of the shares we hold will increase to $5 billion.’

How many loans would we have to make to earn $5 billion in bank interest?

‘To achieve $5 billion in net profit, not revenue…’

Even based on 5 years, more than $50 billion in funds would be needed.

‘Is giving up a few years of technological advantage the same as managing $50 billion in funds?’

Jung Hyun-woo lowered his voice and said,

“Mr. Arnault, if we build a wall of monopoly, other companies will start creating their own programs. Even if they don’t achieve results right away, what will happen in 2 or 3 years? Will they still not be able to achieve results then?”

He was saying that they should monopolize the market before other companies achieve results.

Henri Arnault groaned lowly.

“Umm, can we really monopolize the market?”

He was persuaded by Jung Hyun-woo.

“It will be possible if JP Morgan helps.”

“Are you saying that we should allow other companies to contract under the same conditions as Bank of America?”

Jung Hyun-woo raised his right hand and took his words.

“There is one more request.”

“There is one more request?”

“JP Morgan must prevent the federal government from filing an antitrust lawsuit.”

To monopolize the market.

That was the same as suppressing the freedom of the market.