The Beginning of the Browser War

"Tom hit the nail on the head." Nakayama Takuya set down his fountain pen. "Microsoft already has Spyglass's technical foundation in hand. Even if IE 1.0 is only half-finished, as long as it's preinstalled for free in Windows 95, ordinary users simply won't go to the trouble of downloading Netscape's browser separately. Especially with new computers—OEMs will definitely accept IE being bundled in order to preinstall Windows."

Frank fell silent on the other end for a moment. "Boss, you mean Netscape won't last long?"

"In the short term, Netscape's IPO will definitely create a batch of multimillionaires. Wall Street needs a standard-bearer for the Internet concept.

"Netscape is that perfect target." Nakayama Takuya analyzed the situation. "But in the long run, when Microsoft's war chariot comes rolling over, a business model that relies solely on selling browser software licenses won't work."

"Then what should Silicon Valley Online do?" Frank asked.

"Two things." Takuya raised two fingers, though the other man couldn't see them. "First, the technical cooperation Silicon Valley Online previously reached with Netscape must be implemented as quickly as possible. Get what we need into our hands, whether it's the underlying architecture or compatibility protocols, and make sure our social platform and game business aren't affected. Second, keep a close eye on Netscape's IPO."

Nakayama Takuya paused, his tone turning serious. "On Netscape's first day of listing, the share price will definitely surge to an absurd height. Don't be attached to it at all. Pick the right timing and sell off the Netscape equity we hold in batches to cash out."

"Sell it all?" Frank was a little surprised. "The analysts over at Morgan Stanley believe Netscape's market cap still has room to multiply several times over in the next few years."

"Just hear what Morgan Stanley and Hambrecht