The Conglomerate Family Became A Villain [EN]: Chapter 77

77. The Counterattack of the Giant (1)

Four hours before Sarah called JP Morgan.

Jung Hyun-woo and she finished a short discussion and resumed negotiations with Bank of America.

“Now, let’s move on to the second agenda item.”

“Let’s do that.”

Lila Marin and Tony Allen also seemed to have had some conversations during the break.

‘It doesn’t seem like they had as intense a conversation as we did, but they seem to have sorted out their thoughts in their own way.’

Jung Hyun-woo didn’t think the second agenda item needed to be as sharply contested as the first.

‘We have to reach an agreement on this one anyway.’

He asked in a clear voice.

“Ms. Marin, the second agenda item is probably about JP Services, right?”

Lila Marin answered immediately, as if she had been waiting for the question.

“That’s right. We want to provide services like JP Services to Bank of America customers.”

This was an answer anyone could have predicted.

‘The question is, to what extent can we agree with Bank of America?’

An agreement must be reached.

However, we cannot unilaterally meet Bank of America’s demands.

This was Jung Hyun-woo’s position.

‘There are things we need to consider as well.’

He took a short, deep breath and said.

“Ms. Marin, I don’t think it will be easy to provide JP Services to Bank of America.”

Lila Marin raised her eyebrows as if she hadn’t expected that.

“Mr. Jung, you don’t think it will be easy to provide the service?”

She had given up on buying Victoria Corporation, but she expected it wouldn’t be difficult to secure services like JP Services.

However, Jung Hyun-woo’s answer was NO.

“If we provide services like JP Services to Bank of America, do you think JP Morgan will stand still?”

Lila Marin knew that too, which was why she had tried to acquire Victoria Corporation. Suddenly, her voice rose.

“If we can’t provide the service because of JP Morgan’s opposition, why did you come to this meeting? Did you call us all the way to LA just to refuse?”

She thought Jung Hyun-woo had deceived her.

‘This guy had no intention of making a deal with us from the start.’

Jung Hyun-woo looked at her angry face and raised his right hand.

“Ms. Marin, please hear me out.”

“Do you think there’s anything more to say at this point?”

Lila Marin’s voice was sharp.

Unlike her, Jung Hyun-woo didn’t get angry and spoke in a low voice.

“Ms. Marin, let’s reframe the situation. What does Victoria Corporation need to fight against JP Morgan’s pressure? A will for freedom? A progressive attitude for the future? I don’t think those alone can withstand JP Morgan’s pressure.”

Lila Marin slightly relaxed her narrowed brow after hearing Jung Hyun-woo’s explanation.

“In short, you’re saying you need funds to fight JP Morgan?”

“What a superstar needs when they’re in conflict with their club is a transfer fee or a buyout clause, right?”

[Transfer fees and buyout clauses are costs incurred when a player’s contract is bought out or they are transferred to another team in professional sports.]

“So, it’s money after all.”

Jung Hyun-woo calmly accepted her words.

“That’s right. The conclusion is always money.”

Lila Marin put her hands together and asked.

“So, how much do you want?”

Tell me the amount you want.

Jung Hyun-woo thought her question was too direct.

“Ms. Marin, you’re being too blunt.”

“Mr. Jung, didn’t you say it’s all about money in the end?”

“Victoria Corporation and Bank of America aren’t back alley mafias, are they?”

It was a request to show some courtesy, as it was a transaction between companies.

“You’re good at beating around the bush.”

Lila Marin clicked her tongue inwardly, looking at Jung Hyun-woo, who looked younger than her.

‘Tsk, I don’t know how he can be so sly at such a young age.’

Jung Hyun-woo remained unshaken by her sarcasm.

“Ms. Marin, if we were rude, I apologize. Let me say again, what we want is not to hand over the company for a large sum of money.”

Lila Marin released her clasped hands at his apology.

“Okay. Then let me rephrase the question. What kind of compensation can we provide to Victoria Corporation? This isn’t an inappropriate question, is it?”

“It’s certainly not an inappropriate question. I think the compensation you’re wondering about can be considered in several areas.”

“Instead of vaguely saying ‘several,’ please give me specific examples.”

Jung Hyun-woo nodded at her request.

“Okay. First, you can increase the amount of service royalties.”

An increase in royalties.

This was somewhat predictable.

“Are you saying you want us to raise it higher than the amount JP Morgan is paying now?”

“That’s right.”

“How much higher should we raise it?”

“How about 30%?”

30%.

The moment Sarah heard this, she realized what Jung Hyun-woo was planning.

‘Charlie is thinking of passing on the 30% received from Bank of America to JP Morgan.’

This way, Victoria Corporation could start a deal with Bank of America without taking a loss, and even get JP Morgan’s understanding.

‘That’s Charlie’s style.’

However, Lila Marin didn’t like the 30% figure.

“Isn’t 30% too much?”

Even though she made an unhappy expression, Jung Hyun-woo replied in a soft voice.

“Considering the effort and time JP Morgan put into developing the JP series, and even their potential backlash, I don’t think it’s an entirely unreasonable amount.”

It meant that the amount included the system development cost, patent usage fees, and the difficulties Victoria Corporation would face in fighting JP Morgan.

Lila Marin still thought 30% was excessive. However, considering everything mentioned earlier, she thought it was worth about 20%.

‘Is there a difference of about 10%?’

She decided to listen to the next method.

“What’s the second method?”

“The second is for Bank of America to bear the cost of obtaining JP Morgan’s consent.”

“A kind of buyout amount burden?”

“You could see it that way. But we can’t predict how much the amount will be, or whether it’s even possible.”

Lila Marin thought there was a high possibility that JP Morgan would not allow Victoria Corporation to provide the service.

‘They’re not people who would release the service for money.’

She nodded slightly as if she understood.

“I don’t think that side will be easy.”

Jung Hyun-woo also agreed with her opinion.

“I also don’t think the second method is an easy path.”

“What’s the third method?”

“You might consider purchasing Victoria Corporation’s patent rights and some shares.”

Lila Marin seemed to understand Jung Hyun-woo’s intentions a little.

‘Patent rights and share purchase. You’re saying we should invest directly in Victoria Corporation to minimize JP Morgan’s interference.’

This method was worse than the first method if the share price was too high.

“The share price will be expensive, right?”

Jung Hyun-woo asked her in return.

“I think I mentioned the price earlier?”

He had presented her with an astronomical sum of $10 billion.

“From the beginning, there was only one viable option here.”

The only option worth choosing was the first method.

Sarah also thought that Jung Hyun-woo had guided Lila Marin in that direction.

‘Charlie thought the first method was the cleanest.’

Jung Hyun-woo played dumb and said.

“How could that be? I didn’t say that with that one option in mind. Wouldn’t there be other options that Bank of America can offer?”

“Are you saying we can make a counter-proposal?”

“That’s right.”

Lila Marin put her hands together and supported her chin.

“The cards we can offer aren’t much different from what Mr. Jung said. But if I were to pick the first card, I’m concerned about the number 30%.”

“If you can’t decide right now, you can decide at the next meeting.”

Saying he would give her time to think.

“It sounds like you don’t necessarily need our help.”

Jung Hyun-woo nodded at her words.

“Bank of America’s cooperation proposal is attractive, but we have to bear a considerable burden as well.”

“You’re afraid of JP Morgan.”

“It would be a lie if I said I wasn’t afraid.”

It was when there was a slight tension between the two.

Sarah intervened between the two.

“Um, you two… I think we should end the meeting here today.”

Lila Marin raised her eyebrows and asked.

“Do you have another appointment?”

“I have a dinner appointment.”

Lila Marin lowered her hands, which had been supporting her chin, below the table and let out a long sigh.

“Hoo… I understand.”

“Ms. Marin, let’s see each other again tomorrow.”

“What time would be good?”

Sarah checked her watch and said.

“Lunch would be possible.”

“You don’t have an appointment at 2 or 3 o’clock, do you?”

“I don’t have any schedule until dinner time.”

“Okay. Then let’s see each other at lunchtime.”

Lila Marin suggested 12 o’clock, and Sarah accepted it, ending the first meeting with Bank of America.

* * *

“Is it the third meeting now?”

Sarah raised her voice as she opened the driver’s side door.

“Charlie, are you okay?”

The meeting with Bank of America was more intense and longer than she had expected.

‘He must be tired after meeting with difficult opponents in a row.’

Sarah thought she might cancel the third meeting depending on Jung Hyun-woo’s answer.

“I’m okay. Let’s go as planned.”

Jung Hyun-woo had no intention of postponing the third meeting until tomorrow.

“The third one is with the gaming side.”

“Activision?”

Sarah’s eyes widened.

“How did you know?”

“I thought they might want to see me because the negotiations with Robert aren’t going well.”

“I think so too.”

Activision thought Robert held a grudge and was trying to cut the price significantly. So, they wanted to have a direct meeting with Victoria Corporation’s owner, Jung Hyun-woo.

“Does Robert know about this meeting?”

Jung Hyun-woo had entrusted the Activision matter to Robert.

“He knows.”

“But he managed to agree to this meeting.”

“Activision’s will was so strong.”

Jung Hyun-woo sighed briefly.

“Hoo… It seems the relationship between the two sides isn’t good.”

“They didn’t part on good terms.”

“That’s true too.”

It was common for both the fired and the firing side to be awkward. Jung Hyun-woo stroked his chin and thought.

‘Did I think wrong?’

He judged that Robert could make a good deal because he was familiar with Activision’s situation. However, Activision strongly resisted Robert’s demands. And finally, they requested a meeting with Jung Hyun-woo.

“Where is this meeting taking place?”

“The hotel we’re staying at.”

“Hoo, I can finally unload the luggage.”

Jung Hyun-woo’s carrier was still in the car trunk.

“There’s nothing perishable inside, is there?”

“Of course not.”

The car left the parking lot and headed to the Sheraton Hotel, Jung Hyun-woo and Sarah’s accommodation.

“I didn’t know Charlie would make such a demand to Bank of America.”

Jung Hyun-woo tilted his head at Sarah’s words.

“What demand are you talking about?”

“30%.”

“Ah, I think that’s a reasonable demand.”

“You think it’s reasonable?”

“Bank of America was the one who wanted JP Services.”

If they didn’t want JP Services, Victoria Corporation wouldn’t have had a conflict with JP Morgan.

‘Of course, there’s a big opportunity in that conflict.’

Sarah turned the steering wheel and asked.

“Do you think Bank of America will agree?”

She thought the 30% amount was a bit excessive.

“You’re not sure either, Charlie?”

“Sarah, I’m not a prophet.”

“What if they offer to compromise at 20%?”

Jung Hyun-woo crossed his arms and pondered. Then Sarah asked again.

“You can’t answer right away, so you must be worried?”

“I have no choice but to worry. 10% is a considerable amount.”

Assuming Bank of America has 1 million customers, that 10% is $1.5 million per month.

’12 months is $18 million.’

With $18 million, you could sweep away all of Activision’s IPs [Intellectual Properties, referring to their games and franchises].

‘And that’s not all.’

When the corporate value is low like now, you could acquire Activision itself.

‘Acquire Activision? That’s not a bad thing.’

He smiled without realizing it.

Sarah couldn’t see his smile because she was driving.

“Charlie, do you have an answer?”

Jung Hyun-woo asked her back.

“What would you do, Sarah?”

“Me? If it were me, I would do it.”

“You’d agree to 20%?”

Sarah nodded and replied.

“We already have a network all over the United States. Even if we start Bank of America’s service, the initial cost will be less than JP Services.”

She thought that Victoria Corporation’s profitability could increase due to the decrease in initial investment costs.

‘If profits increase, we can handle some costs.’

Jung Hyun-woo sighed deeply and accepted her words.

“Hoo… I think I would too.”

“At 20%?”

“It’s much more profitable to do it.”

If it wasn’t for JP Morgan, there was no reason to refuse Bank of America’s offer.

“Since we said we’d pass 30% to JP Morgan, we’ll have to bear 10%.”

“We’ll have to. Of course, the best thing is for Bank of America to agree to 30%.”

“That’s right. That’s the best thing.”

If Bank of America bears all of JP Morgan’s costs, Victoria Corporation could double its sales and profits without much burden.

‘If that happens, a market capitalization of $10 billion isn’t a dream.’

$10 billion was larger than the combined market capitalization of the top 5 groups in Korea.

‘Grandpa would be surprised if he knew.’

What kind of expression would he make if he knew his grandson was much richer than him?

What was clear was that he wouldn’t be entirely happy.

* * *

2 hours later.

Jung Hyun-woo and Sarah sat face to face with Activision’s CEO, Jerome Nell. He was wearing a gray suit and a blue tie, and he looked very thin.

“I’m Charlie Jung from Victoria Corporation. This is CFO, Ms. Hilton.”

Sarah smiled brightly and extended her hand.

“I’m Sarah Hilton.”

Jerome Nell bowed slightly and took Sarah’s hand.

“Nice to meet you. I’m Jerome Nell from Activision.”

Three Activision executives took their seats next to him. Jerome Nell introduced them each and then sat down.

Jung Hyun-woo scanned them and thought.

‘They brought a lot of people. Are they planning to win with numbers?’

Of course, no one would think this way in a negotiation between companies.

Activision thought it was necessary for this negotiation and brought three executives with them.

“I think the collaboration between Activision and Victoria Corporation has been successful so far.”

It was Vice President Camille Henderson who started the story first. He wasn’t making up a story. Victoria Corporation and Jung Hyun-woo supplied the Zero series to Activision, and Activision was able to make a large profit by selling the Zero series.

In addition, Victoria Corporation invested some of the proceeds when Activision went public, becoming partners.

“The two companies can be said to have developed together.”

Camille Henderson smiled when Jung Hyun-woo agreed.

“Thank you for recognizing that.”

He had previously had a heated argument with Robert.

This time, Activision CEO Jerome Nell spoke to Jung Hyun-woo.

“As everyone knows, the North American game industry is facing a major crisis.”

Jung Hyun-woo sighed briefly at his words.

“Hoo… This recession can be said to be a great crisis. Victoria Corporation’s sales have also decreased significantly.”

In fact, there were almost no sales in the gaming sector.

“Activision has received several IP sales proposals from Victoria Corporation.”

Jung Hyun-woo did not deny this fact.

“It is true that we proposed a deal for IPs including Zero Space.”

Jerome Nell raised his right hand lightly and said.

“Activision is hoping for a more serious negotiation on this.”

Serious negotiation.

This was to talk about a proper price. Of course, Jung Hyun-woo had no intention of offering as good a price as they thought.