Chapter 1395 – Suing Microsoft
Something drastic happened when Bill Gates thought he could use the Chinese market to suppress Lenovo Kingsoft with his acquired software companies.
“What are you doing?! How can you not sign a new contract with those companies’ elites when you acquire them? The valuation reports you have given us include the value of these people. Where are these people now?!”
Ballmer threw a stack of doc.u.ments on the floor. He will have thrown the doc.u.ments on that person’s face if it is not a crime.
They had spent a lot to acquire these overvalued companies because of the IT elites there, but all of them had quit!
They had wasted all their money. Without these elites, these companies’ value will be halved!
“I also did not expect their contracts will have this issue. Their compensation when they leave the company is very little.”
Chinese employees’ compensation to the company when they break their contract is very little compared to other countries. Furthermore, most of these software companies were set up by a group of friends. They didn’t need to compensate the company when they resign.
Many of the contracts didn’t even state the compensation amount when employees leave, and there are many loopholes.
It would not be a problem if Microsoft used these loopholes. But others are using the contracts’ loopholes to let Microsoft suffer losses.
Ballmer felt his future is gloomy. Bill Gates had supported him to be the President and CEO, but he should be losing one or even both positions now.
This will affect Ballmer’s income and future career prospects.
Who would hire someone that had made this grave mistake?
“President, I had asked my men to sign a new contract with them and managed to retain some of them. It’s mainly the Chinese companies that are poaching them, and I suspect they had planned it!”
“Even if they had planned it, it’s still your fault. Why didn’t you discover this earlier? If you had noticed this, will it happen? Also, why are you not in China to settle this crisis? Get back and start poaching people from Lenovo Kingsoft and other companies!”
“If you cannot even do this, you will be replaced with someone more capable!”
Microsoft China Branch had just expanded, and it will be a great loss if the person in charge loses his position. He immediately guarantees he complete this task and left.
…….
“Old Lei, how many people have we hired from Microsoft newly acquired companies? Did they implement any countermeasures?”
“They quickly sign new contracts with their employees and offered high salaries to retain some of the people we wanted. But this did not affect us much as we had hired almost one-third of the people we wanted.”
So fast? Feng Yu is satisfied with Lei Jun and the rest’s performance.
Of course, not only Lenovo Kingsoft is poaching these people. w.a.n.g Zhixi, Ma Huateng, Ma Yun, Li Yanhong, and the rest had also hired some internet experts from those companies.
Other than the staff of the acquired companies are leaving, some of Microsoft China Branch’s staff had also left after their contracts ended. They can’t stand those arrogant foreigners.
The almighty Microsoft had become a stepping stone and helped the Chinese companies groom talents.
Microsoft had spent a lot to acquire many IT companies but suffered a heavy loss.
Money cannot buy talents!
“Well done. Microsoft might have suffered losses, but don’t let down your guard. One billion USD is nothing to them and will not affect them. We must be careful of their retaliation.”
Microsoft will not accept defeat easily. They will surely come up with some countermeasures.
“Microsoft has started to poach our companies’ staff. But we are prepared, and our corporate culture has been good. Although a few staff had joined them, the core staff is still around. None of them had left!”
It’s not easy to retain all the core staff. Letting Qiu Bojun and Lei Jun manage Lenovo Kingsoft is right! They had set a target for the company and lead everyone to work towards it.
“Good. But Microsoft’s expansion in China is an issue for us. China is our base, and this will affect our share prices when we got listed.”
When Feng Yu and Liu Chuanzhi were discussing, the phone rang. Wilson is here.
Why is Wilson coming at this time?
Wilson immediately reported when he steps into Feng Yu’s office. “Boss, I noticed a problem and might help us to give Microsoft a heavy blow.”
Wilson had noticed a problem?! That means it must be a legal issue.
Feng Yu brightens up. If they can sue Microsoft and win, it will be a great blow to them.
“Tell us about it.”
“China had approved the anti-monopoly law yesterday, and there is a clause stating companies with dominant positions cannot eliminate or restrict compet.i.tion.”
Feng Yu is overjoyed. The anti-monopoly law has been approved.
If Feng Yu had not suggested this to the Government, who knows when this law will be implemented? The Leaders were surprised when they heard about this from Feng Yu because many of his companies are considered monopolies.
But after the Government studied overseas ant.i.trust laws and China’s situation, they did not find anything wrong with Feng Yu’s subsidiaries.
This law will help Feng Yu against Microsoft.
“Boss, Microsoft’s operating system will force the user to install IE browser and their video player. This is a way to eliminate compet.i.tion, and had broke China and the US laws.”
Microsoft was sued in Europe because of bundle sales, and this two software are free. But even if it is available to users for free, Microsoft profited from advertis.e.m.e.nts. There’s nothing wrong with calling it a bundle sale.
“Are you confident of winning?” Feng Yu asked.
“Yes. We can win this lawsuit. We can let the Chinese Government give them a hefty fine, at least. I believe that this will be a heavy blow to Microsoft in the Chinese market.” Wilson laughed.
Feng Yu patted Wilson’s back excitedly. “Good job! I will pay for this lawsuit! Sue them!”