Apple and KiShin Alliance

In the CEO's office at Apple, Steve Jobs and Shin discussed the potential partnership between KiShin and Apple.

After a while, Steve Jobs asked Shin, "Why do you want to partner with our company?" He paused and continued, "KiShin is clearly focused on video game consoles and games, whereas Apple is more focused on computers, software, and operating systems. We're centered on different aspects, and I don't see why KiShin would assist us in competing with Microsoft in the operating system realm."

Shin smiled as he sipped the black coffee Steve Jobs had provided. Honestly, he didn't like black coffee, but since Steve Jobs appeared to be a minimalist, Shin refrained from complaining. He then said, "Although KiShin and Apple specialize in different areas, they share similarities..." He paused, observing the furrowed brows of Steve Jobs, and continued, "For instance, Apple's QuickDraw development; I believe it would be crucial for the programs KiShin is developing. QuickDraw, being a graphics API, has been immensely helpful for our KiShin employees in video game creation. Yes, we used Apple's Macintosh for game development... There are various reasons, but in essence, the video game and computer software industries are interconnected, as video games wouldn't be possible without them," Shin explained in a series of words.

Steve Jobs nodded in agreement with what Shin had said, "I can see that. The proposal from KiShin involving 2D games, text-based games, and joint research on computers, GPU, and QuickDraw— in terms of research, KiShin would likely benefit the most. In my opinion, your company doesn't have much expertise in computer, software, and GPU development. KiShin might not contribute much to the joint research, and that's why I am hesitant about whether to agree or not."

Shin nodded in understanding and replied, "Certainly, KiShin wouldn't be the sole beneficiary. Apple would also gain from the joint research with KiShin." Shin smiled, noticing the confusion on Steve Jobs' face, as if prompting him to continue. Shin added, "I can inform you that KiShin has expertise in CPU and GPU technologies. Though we're still catching up with established companies in these fields, we do possess some expertise."

Steve Jobs was quite astonished when he heard that and remarked, "KiShin is developing its own CPU and GPU?" Seeing Shin nod, Steve Jobs couldn't help but chuckle as he continued, "Don't tell me KiShin is planning to enter the computer industry?" Though he said this in a light tone, he was actually quite vigilant. After all, if KiShin intended to partner with Apple, they might seek Apple's expertise in these computer technologies to enhance their own capabilities and potentially enter the computer industry.

Steve Jobs' vigilance wasn't unfounded. Given that KiShin was expanding into industries beyond video games, it would be reasonable to suspect that they might genuinely aim to enter the computer industry using the knowledge gained through collaboration with Apple. In Steve Jobs' view, KiShin seemed to be leveraging proposals related to video games and ideas for a partnership with Apple as a means to engage in joint research and acquire crucial expertise.

Although Shin appeared to be sipping the black coffee, he was secretly observing Steve Jobs' expression. He noticed Steve Jobs' eyes briefly turning vigilant before returning to normal.

With a smile, Shin said, "Entering the computer industry was indeed tempting, but no, KiShin isn't planning to compete in the computer industry. We're planning to compete in..." Shin paused and continued, "the processor market."

Steve Jobs felt a bit relieved upon hearing that Shin didn't plan to enter the computer industry, which Apple currently focuses its business on. However, he wasn't entirely sure whether to trust KiShin. The proof of KiShin's developments in CPU and GPU technologies was uncertain. Moreover, CPU research was time-consuming and expensive, requiring a team of engineers, scientists, and access to manufacturing facilities. Even for Apple, developing their own CPU was inconvenient, leading Steve Jobs to doubt whether Shinro Suzuki was telling the truth.

Sensing Steve Jobs' lingering skepticism, Shin delivered a final point, stating, "Not only that, but KiShin also specializes in cellular phone technologies. KiShin and Apple could collaborate on joint research for cellular phone developments."

When Steve Jobs heard that, he paused, setting down his Pinot Noir wine. He was astonished that Shinro Suzuki proposed a joint research for their cellular phones.

To be completely honest, Steve Jobs had been quite interested in the cellular phone industry. However, given that Apple was primarily focused on computer and software development, and lacked sufficient funds to venture into the cellular phone industry, as their funds were allocated for the development of computers, software, and operating systems.

But now, the founder and CEO of KiShin was voluntarily offering them an opportunity to acquire cellular phone technologies through a potential joint research between KiShin and Apple. Steve Jobs believed KiShin had expertise in cellular phone development, especially considering that he was currently using the KRS 1 phone.

With that, Shin and Steve Jobs delved deeper into the potential partnership between KiShin and Apple. Now, with Shin proposing a joint research initiative on cellular phones, Steve Jobs was almost convinced. Even if KiShin planned to enter the computer industry, he found genuine interest in the KiShin and Apple alliance, particularly due to the joint research on cellular phones.

Alliances between American companies and Japanese or other Asian companies weren't uncommon; IBM, for instance, was currently in alliance with Mitsubishi.

While Shin and Steve Jobs were in discussion, Steve Jobs remained unaware that KiShin was covertly acquiring shares from significant stakeholders. Even if Steve Jobs were to disagree with the partnership, KiShin and Apple would still be bound in an alliance.

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Orio Masayoshi, along with individuals entrusted by Shin to approach Apple stakeholders for share acquisition, is currently engaged in a "tender offer." This process is being carried out without the CEO's awareness, as the stakeholders discreetly sell their shares.

Big and small stakeholders have already initiated discussions regarding the acquisition of their shares by KiShin. Orio Masayoshi and the team encountered some challenges negotiating with the larger stakeholders, but a few agreed, leading to KiShin successfully acquiring their shares. Some of these stakeholders even held positions on the board of directors, potentially altering the composition of the board.

Now holding a significant stake of 7.2%, KiShin has the potential to influence the board of directors. This influence is likely to grow, considering that KiShin is still in negotiations with other stakeholders.