Chapter 253: Stark (4)
After the meeting with Ha Si-heon.
Jackson, the CEO of Envid, urgently called a board meeting.
"Ha Si-heon has expressed his intention to join the board. If we refuse, he’s prepared to go head-to-head with us in a proxy battle at the shareholders' meeting."
For a moment, the entire conference room froze.
During a brief silence, the expressions of the directors began to change. At first, they looked dazed as if they couldn’t believe it, then gradually their faces turned to shock, and finally to fear.
“D-Did you just say... Ha Si-heon? That Ha Si-heon?”
"Yes."
“That Orca wants to fight us at the shareholders' meeting?”
Everyone was in shock.
Who was Ha Si-heon?
Wasn’t he the one who defeated China in the currency war?
And that wasn’t all.
The Delphi Institute he founded had accurately predicted global financial upheavals, from the MDB scandal to the Greek default crisis.
Calling it a “prediction” sounded nice...
But in truth, Ha Si-heon was practically a harbinger of disaster.
And now, that infamous Ha Si-heon was knocking on Envid’s door.
He was saying he wanted to come in and sit right at the heart of the company — the boardroom.
On top of that, he threatened an all-out war if they refused.
“A direct clash with Ha Si-heon... that's far too dangerous!”
“Y-Yes! If we provoke a fight we can’t handle, the damage could be catastrophic! Especially if it’s Ha Si-heon!”
The directors all reached the same conclusion.
Ha Si-heon was an opponent they simply could not beat.
If they could avoid disaster by giving up a single board seat, there was no reason to hesitate.
However, CEO Jackson alone firmly opposed this idea.
“Everyone, please calm down.”
“How can you stay so calm in a situation like this! Ha Si-heon has openly declared a proxy fight!”
“Have you forgotten about the Herbalife and Valeant incidents? If the same thing happens to us...”
Just imagining it was terrifying.
But Jackson remained unshaken.
“If we make a hasty decision out of fear, we will definitely regret it. In times like this, we need to stay calm and think rationally.”
His voice carried confidence.
“Ha Si-heon has always targeted only weak prey.”
As he said.
Activist funds like Ha Si-heon’s were predators drawn to the scent of blood.
Weak performance, shareholder distrust toward management, plunging corporate value.
They needed those vulnerabilities to justify an attack.
However, “At present, Envid has no such weaknesses.”
In November 2015, Envid was close to perfect.
Its dominance in the gaming GPU market was solid, and its data center business was growing rapidly. A strong financial structure, double-digit growth rates, and a stock price that had soared 40% in just one year.
There was nothing for Ha Si-heon to latch onto.
“Moreover, I have the deep trust and support of our shareholders.”
Jackson wasn’t an ordinary CEO.
He was Envid’s founder and a symbol of its innovation.
The reason the company had been able to move forward in the right direction was thanks to his vision and relentless innovation.
Jackson was the very heart of Envid.
Like Steve Jobs during Apple’s prime, he was the company’s identity and icon.
“Even if it comes down to a shareholder vote, we have more than a fair chance of winning.”
If the opponent were any ordinary hedge fund, all the directors would have nodded.
However, they were facing Ha Si-heon — the Orca.
The situation was completely different.
“Market logic doesn’t work on Ha Si-heon! Behind him stand fanatical followers!”
Behind Ha Si-heon was an army of retail investors who worshipped him like a god.
Normally, they would have scoffed at “just a bunch of small investors”...
But the influence of the ant army rallied around Ha Si-heon was not something to be taken lightly. They had already witnessed their power during the Herbalife incident and the recent currency war.
“Moreover, he has absolute trust from major institutions!”
In the end, what decided the outcome of a proxy battle was the choice of major shareholders.
But Ha Si-heon’s “Black Swan Prediction Algorithm” had earned immense trust among large institutional investors.
“No matter how solid a fortress Envid has built, if the opponent is Ha Si-heon...!”
Victory was not guaranteed.
Then, in the next moment.
Jackson looked around the room coldly and spoke.
“Fine. Let’s assume we give Ha Si-heon a seat on the board. Do you think he’ll just sit quietly?”
Everyone fell silent.
Seeing their reaction, Jackson’s eyes flashed.
“That wouldn’t be a solution; it would be the true beginning of our problems. It would be like inviting disaster in out of fear.”
“But then, what on earth are we supposed to...”
Right at that moment.
A voice came from the speakerphone in the center of the conference table.
[Sir, I’ve connected you to the advisor you requested.]
“An advisor...?”
“Yes, I reached out because I thought there might be an expert who could help us in this situation.”
Jackson calmly answered and turned on the large screen on the wall.
The screen flickered briefly, and then a man’s face appeared clearly.
[Hello. This is Pierce from Goldman.]
Pierce was someone who had watched over Ha Si-heon since his early days as a rookie at Goldman.
Thus, he was the person most capable of deciphering Ha Si-heon’s behavioral patterns and thinking.
Rumor had it that whenever Wall Street faced issues involving Ha Si-heon, they sought Pierce’s advice first.
Without delay, Jackson got straight to the point.
“I assume you already know the situation. We desperately want to overcome this crisis — is there a way?”
“You’re looking for a way to stop Ha Si-heon.”
Pierce’s reply was concise yet firm.
“There is no such way.”
A deep wrinkle formed on Jackson’s forehead.
“If there’s no way, then there was no need to bother telling us this over a video call.”
“You misunderstood me. I didn’t mean there is no way at all. I meant you cannot stop him directly.”
“What do you mean...”
Seeing Jackson’s confusion, Pierce spoke in a resolute tone.
“Ha Si-heon is like a natural disaster. Do you think it’s possible for humans to stop a natural disaster?”
“It’s impossible. The more you try to resist, the greater the damage will become. So instead, just give him what he wants.”
“You mean... give Ha Si-heon a seat on the board?”
“Yes.”
Displeasure spread across Jackson’s face.
“I’m not sure who this advice is supposed to help.”
He was implying that Pierce might be favoring Ha Si-heon because of a special relationship.
Pierce briefly frowned as if dumbfounded, then quickly composed himself and continued.
“If Ha Si-heon has chosen Envid as his target, disaster is inevitable anyway. And if you try too hard to avoid it...”
A trace of deep fatigue briefly crossed Pierce’s face.
“Trying to block him will only backfire. The more you try to stop Ha Si-heon, the more he will expand the game in ways you can’t even imagine.”
The bitter smile on his lips was one only someone with firsthand experience could make.
But Pierce soon shook off his helplessness and regained his firm gaze.
“There’s only one way to deal with Ha Si-heon. Accept the disaster.”
“Of course, you’ll feel a natural instinct to reject it. But if you suppress that instinct and embrace him, you might even receive tremendous rewards. Look at the cases of Epicura and Allergan.”
Epicura and Allergan.
Both companies had once been caught in massive crises.
At first, it looked like a fatal blow...
But what happened after the storm had passed?
Epicura soared as the “second Chipotle,” continuing a remarkable rally, and CEO Whitmer became a regular guest on popular talk shows.
Allergan also built an image as an “honest company” and was enjoying a second golden age.
“You can’t avoid a typhoon. But whether you’re left with a desolate ruin afterward or a new golden era dawns — that depends on your choice right now.”
Pierce finished his words with a confident smile.
“I, Pierce, will help you usher in a brilliant new era.”
***
“Sean, these are the documents from Envid.”
Inside the black envelope that Nicole, my secretary, handed me was a thick stack of papers.
[Board Appointment Resolution]
You have been officially appointed as an outside director through a resolution of Envid’s board.
Please review and sign the following documents and return them.
1. Director contract
2. Conflict of interest pledge
These were the papers to finalize my board appointment.
I tilted my head without realizing it.
‘It’s too easy.’
A few days ago, CEO Jackson had personally called to inform me of my approval for the board position.
Honestly, I was skeptical.
Even though he said they accepted me, I thought they might be plotting something behind the scenes.
‘Normally, there should be a strict vetting process or interviews...’
A board made up of advanced technology experts would never warmly welcome someone like me from Wall Street.
Naturally, they would demand rigorous qualification checks.
They would throw tough technical questions at me on the spot, and if my answers were lacking, they’d use it as an excuse to filter me out.
That’s how it should have been...
But when I opened the lid, they had handed me the board seat without any resistance.
‘What is this?’
No matter how valuable my name had become, there was no way a blue-chip company like Envid would surrender so easily.
So I was sure there had to be something else.
That question was quickly answered.
Because Pierce came to my office in person.
“The GPU business... isn’t that outside your area of expertise?”
“So, you’re serving as Envid’s advisor.”
Pierce was still leading Goldman’s investment banking division.
And one of the main jobs of an investment bank was precisely this kind of “corporate defense” advisory.
To act as a shield for clients under external attack.
In other words, Envid had brought in Pierce as a shield against me.
“Did they give up the board seat so easily because of your advice?”
“Yes.”
“Thanks to you, they saved me some trouble.”
“I didn’t do it as a favor. I knew exactly what move you’d make if they refused.”
“Exactly what move?”
Pierce shrugged.
“The you I know wouldn’t have waited for the shareholders’ meeting. You would’ve threatened them right away. Something like, ‘I can withdraw my investment immediately and switch to a competitor.’”
For a moment, I was at a loss for words.
If Envid had rejected my demand, that’s exactly how I planned to “persuade” them.
If “Ha Si-heon” withdrew funds from Envid and invested in a competitor?
Envid would look like a sinking ship, while the competitor would seem like a rising star.
In that case, investors who followed me would rush out of Envid and support the competitor.
I had planned to highlight that and strengthen my position...
But Pierce had seen right through it before I even began.
It didn’t feel great.
Especially seeing Pierce’s oddly confident face.
“Am I wrong?”
“Yes, completely wrong. I never ‘threaten’ the other side. Although, I do get misunderstood sometimes...”
“Yeah, yeah, sure. Let’s say that’s true.”
Pierce cut me off firmly with a wave of his hand.
“The reason I came here today is to prevent such ‘misunderstandings.’ I heard you wanted to secure supply volumes for the startups you invested in...”
He got straight to the point.
Pierce’s role was that of an intermediary.
His job was to coordinate both sides’ interests and find a compromise.
“If supply is all you want, there’s no need for you to join the board. We can fully supply the volumes you need.”
“This isn’t just about the volumes I want to secure. I want to be involved in Envid’s entire product roadmap.”
“You don’t have to worry about that either.”
Pierce paused for a moment, took a breath, and then continued slowly.
“In the past, we couldn’t share all the details since you were an outsider. But now there’s no need to hide it. In fact, Jackson shares the same vision as you.”
“So, you’re saying they’re considering a transition into deep learning?”
“That’s right. Envid has already invested substantial capital into developing related products and plans to gradually launch them starting next year.”
According to Pierce, Envid was about to embark on a full-fledged pivot toward the AI market.
However, all of these plans were still confidential.
“When Envid announces this transition, it’s obvious that competitors will immediately follow. There’s no reason to allow that. Timing is critical.”
Thus, it had to be announced at a carefully calculated moment.
At the timing most favorable for Envid to dominate the market.
But that timing was the problem.
“When is the new product scheduled to launch?”
“Around summer, roughly. But if it’s for you, they said they could prioritize your supply in advance. What do you think?”
They were basically offering to meet my demands as much as possible if I’d just withdraw from joining the board.
But I firmly shook my head.
“That won’t work. I also want the next product’s launch schedule moved up to within this year.”
Pierce frowned and then spoke slowly.
“So, you’re saying you’ll keep up the pressure, not just this time but continuously.”
Exactly, what I wanted wasn’t a one-time supply guarantee.
Envid’s next product, and the one after that.
My goal was to move up the release schedules of all upcoming products beyond the existing plans.
“Even now, do you think I have no reason to join the board?”
At my question, Pierce let out a deep sigh and then opened his mouth.
“How about we have dinner together for the first time in a while?”
That wasn’t just an invitation to eat.
It meant he would probe Jackson’s intentions by dinner and deliver the result.
“Dinner...”
Honestly, I hated the idea.
From my previous meals with Pierce, I learned clearly that he lacked basic manners when it came to food.
When I ate with him, it made me lose my appetite.
“I already have other plans. But I can join you for a quick cocktail afterward.”
“Let’s do that, then.”
So, I enjoyed a pleasant dinner without Pierce.
Around 9 p.m.
I met Pierce again in a private room at a social club in New York.
Then, as soon as he saw me, he spoke unexpectedly.
“This time, I don’t think things will go your way.”