sjar Chapter 119 Kingsoft Software
Chapter 119 Kingsoft Software
At two o'clock in the afternoon, a dry and cold wind was blowing in Beijing. Ling Yun walked into an old office building. Cardboard boxes were piled up in the corridor, and faded promotional posters were pasted on the walls. On the third floor, the words "Kingsoft Corporation" were pasted on the glass door, the gold lettering already mottled.
The receptionist was a young woman playing Minesweeper on the computer. Seeing Ling Yun, she looked up and asked, "Who are you looking for?"
"My surname is Ling, and I had an appointment with Mr. Qiu for 2:30."
The girl glanced at the register: "Oh, Mr. Ling. Mr. Qiu is in his office. I'll take you there."
The office was small, about twenty square meters. The bookshelves were crammed with technical books and floppy disk cases, and a calligraphy scroll on the wall read: "Seek Truth and Innovation." Qiu Bojun, in his early forties, sat behind his desk, wearing a gray jacket, his hair somewhat thinning. He was looking at a report, his brow furrowed.
"Mr. Qiu, Mr. Ling has arrived," the receptionist said.
Qiu Bojun raised his head, stood up, and forced a smile: "President Ling, welcome. Please have a seat."
The two sat down on the sofa in the reception area. The girl poured tea; the tea leaves floated on the surface—it was ordinary jasmine tea.
"Please excuse the humble setting," said Qiu Bojun.
"That's how it is for startups." Ling Yun took the teacup. "I heard that Kingsoft hasn't been doing so well lately."
Qiu Bojun smiled wryly: "It's not just difficult. When Microsoft entered China last year, the Chinese version of Office 4.2 was cheaper than ours, and it was bundled with pre-installed products from manufacturers like Lenovo and Founder. WPS's monthly sales have plummeted from 30,000 sets at the beginning of last year to less than 8,000 sets now."
"What about market share?"
"At its peak, it exceeded 90%, but now... less than 40%, and it's still declining." Qiu Bojun picked up a report from the table. "This is last month's market survey. For enterprise procurement, 70% choose Office. Microsoft is also lobbying the government."
"Technically, WPS is no worse than Office," Lingyun said.
"Technology isn't the problem," Qiu Bojun shook his head. "The problem is the ecosystem. Office has Excel, PowerPoint, Access—a complete suite. WPS only has word processing. Users want a complete solution, not just a single tool."
"Has Kingsoft never considered making a suite?"
"I've thought about it, but I don't have the money," Qiu Bojun said bluntly. "The company lost more than four million last year. The shareholders have a lot of complaints, and some have suggested selling WPS and transforming into a system integration or agency business."
"How many did you sell?"
"Someone offered ten million to buy out the WPS brand and code," Qiu Bojun said. "I didn't agree. I built WPS from scratch; it's like my own child."
The office was silent for a few seconds. Then, the sound of employees discussing how to fix a certain program bug drifted down from the hallway.
"I'm here today to discuss cooperation," Ling Yun said.
"cooperate?"
"Spark Technology wants to acquire Kingsoft, taking a controlling stake," Ling Yun said calmly. "It's not a buyout of the brand, it's a complete acquisition. The team will be retained, and you will continue to be in charge."
Qiu Bojun leaned forward slightly: "The acquisition price?"
"Twenty million RMB for 100% equity," Ling Yun said. "After the acquisition, Kingsoft will operate independently, but its focus will shift to developing the Starry Sky system version of the office suite."
"The Star System..." Qiu Bojun pondered, "That new operating system? How many users does it have?"
"There aren't many now, but it will grow next year," Ling Yun said. "Dell, Compaq, and HP will all pre-install it. The government and education markets are also pushing for it. We need a localized, controllable office software, and WPS is the best choice."
"But the Star System market is too small, and making a special version would result in losses."
"So it's not just about making the StarOS version," Ling Yun said. "After the acquisition, Kingsoft will continue to maintain WPS for Windows while developing WPS for StarOS. The two versions share the core code, but the interface and optimization are independent. The Windows version can continue to be charged, while the StarOS version will be free in the early stages to capture the market and collect feedback."
"Free?" Qiu Bojun frowned. "Then where does the revenue come from?"
"Several aspects," Ling Yun counted on his fingers. "First, sales revenue from the Windows version. Second, customized development fees from governments and enterprises. Third, subscription fees for advanced features after the Starry Sky System ecosystem matures. Fourth, Spark Technology will provide Kingsoft with a research and development subsidy of at least three million yuan annually for three consecutive years."
Qiu Bojun did the math: "It sounds... but the shareholders might not agree. The company currently has seven shareholders, each with their own ideas. Some want to cash out and leave, some want to transform into hardware manufacturers, and some still want to take another gamble and compete head-on with Microsoft."
"Then we'll clear out the shareholders," Ling Yun said. "The acquisition price for Xinghuo Technology is 30% higher than the market price. Those willing to exit will be paid in cash. Those who want to stay can exchange their shares for Xinghuo Technology stock. But after the acquisition, Kingsoft must concentrate its shareholding and make efficient decisions."
"How do we concentrate?"
Ling Yun looked at him and said, "The other minority shareholders either take their money and leave, or they exchange their shares for indirect ownership. That way, you'll be in charge of Kingsoft, and Xinghuo Technology, as the major shareholder, will support you."
Qiu Bojun stood up and walked to the window. Outside the window was Zhongguancun Street, where traffic flowed slowly and bicycles shuttled back and forth.
"I started writing WPS in 1988, typing it out line by line," he said with his back to Lingyun. "At its peak, almost every computer in the country had WPS installed. Now... Microsoft has come, users have left, and shareholders are clamoring to sell the company."
He turned around: "The solution you mentioned is technically feasible. I'm familiar with WPS's code architecture, and porting it to the new system shouldn't be difficult. The team is still there; although a few core members have left, the backbone remains. The problem is..."
"What is it?"
"Dignity," Qiu Bojun said softly. "Kingsoft is a flagship of Chinese software. If it's acquired, it means it's been defeated by Microsoft."
Ling Yun also stood up: "President Qiu, the flag is important, but survival is more important. Microsoft's weapons are not just technology, but capital, ecosystem, and global strategy. Kingsoft has little chance of winning if it goes it alone. But if we unite, integrating hardware, operating systems, and office software, we have a chance to gain a foothold in the niche market."
He walked to the wall and pointed to the calligraphy that read "Seek Truth and Innovation".
"Being realistic means recognizing reality. Innovation is not about repeating the old path. The Star System is a new battlefield where Microsoft's absolute dominance does not exist. WPS is not a follower there, but a definer. We can redefine the rules: smaller file formats, faster startup, better suitability for Chinese typesetting, and better meeting the needs of governments and enterprises."
Qiu Bojun stared at the calligraphy for a long time.
"Will the team's compensation remain the same after the acquisition?" he asked.
"No change. Core staff will have stock options," Ling Yun said. "The increased R&D budget allows us to hire more people. The office suite will not only be for word processing, but also for spreadsheets, presentations, simple databases, and even collaborative editing."
"schedule?"
"If agreed, due diligence will begin next month. The agreement will be signed in March, and funding will be in place in April. WPS for StarOS 1.0 will be released before the end of this year," Ling Yun said. "Next year, a complete office suite will be launched."
Qiu Bojun walked back to his desk, picked up the report, and then put it down again.
"I need to talk to a few old buddies," he said. "The CTO, the marketing director, and two VPs who started the business with me. If they're willing to stay, this can be done."
"We're showing them the long term," Ling Yun said. "It's not about working for someone else; it's about participating in defining the next generation of office software. It's not about creating a replacement for Microsoft; it's about developing native applications for the Starry Sky system and enjoying the ecosystem's benefits."
"I'll give it a try," Qiu Bojun said. "I'll give you an answer in three days."
"Okay." Ling Yun walked to the door, then turned back. "President Qiu, it's 1997 now. The software industry is changing. The era of going it alone is over. Alliances, ecosystems, and integration—that's the future."
Qiu Bojun nodded without saying a word.
Leaving Kingsoft, the cardboard boxes were still in the hallway. Going down to the first floor, a cold wind hit me.
The phone rang; it was Li Mo.
"Mr. Ling, Dell has scheduled a conference call for next Wednesday at 10:00 AM. Miller said their vice president will participate and they want to discuss the possibility of exclusive supply of optical mice."
"Okay, prepare the data."
"Also, Zhao Weiguo's talks with the Wenzhou boss went well. The other party is willing to sign a comprehensive solution contract, with the first order worth 860,000 yuan."
"Tell him to sign it quickly."
After hanging up the phone, Lingyun stood on the street waiting for a car.
He understood Qiu Bojun's concerns: the pride of an entrepreneur, the succession of the company, and the future of the team.
Next, we await a reply.
Three days.