Aiming

High

A Biography of Masayoshi Son

by Atsuo Inoue
About Masayoshi Son

SoftBank’s founder, Masayoshi Son, was born on August 11, 1957 in Saga
Prefecture, Japan. In 1974, he ventured to the U.S. and entered Serramonte High
School and in 1980 graduated from the University of California, Berkeley with
an economics major.
Shortly after returning to Japan, in 1981 he established the current SoftBank
Corp., first launching a PC software distribution business as the company’s
Chairman & CEO. Following an initial public offering in 1994, in 1996
SoftBank established Yahoo Japan Corporation as a joint venture with U.S.-
based Yahoo! Inc.
With Son first acting as Yahoo Japan’s President & CEO and later Chairman
of the Board (to present), Yahoo Japan launched the leading portal site Yahoo!
JAPAN, the first commercial search site in Japan. Together with Yahoo Japan,
SoftBank rolled out Yahoo! BB, a low-cost ADSL service that was the fastest for
the time, marking SoftBank’s full-fledged entry into the communications
business.
SoftBank then acquired JAPAN TELECOM CO., LTD. (currently SoftBank
Telecom Corp.) in July 2004 and Vodafone K.K. (currently SoftBank Mobile
Corp.) in April 2006. In July 2013, Sprint Nextel Corporation (currently Sprint
Corporation) became a subsidiary of SoftBank, with Son assuming
Chairmanship.
Son currently serves as Chairman & CEO of SoftBank, SoftBank Mobile,
SoftBank BB, SoftBank Telecom and owner of the Fukuoka SoftBank HAWKS
baseball club, among other postings.
Since foundation, Son has operated SoftBank under the corporate philosophy
of “Information Revolution – Happiness for Everyone.” With the aim of making
SoftBank a thriving entity for the next 300 years and beyond, Son launched
SoftBank Academia to nurture future successors.
In response to the Great East Japan Earthquake, Son established the
Renewable Energy Council, the Great East Japan Earthquake Recovery
Initiatives Foundation and the Japan Renewable Energy Foundation. With the
establishment of SB Energy Corp. in October 2011, Son is also working to
promote the adoption of clean and safe energy.
About the Author

Atsuo Inoue (born July 15, 1947) is a Japanese writer and translator. He is
regarded as an expert on cinema and the works of Frank Capra, and the author of
Aiming High—A Biography of Masayoshi Son.
Inoue was born in Gifu Prefecture, Japan, during the baby boom that took
place after World War II. Many of his classes at Waseda University were
cancelled due to student protests.
Inoue began writing magazine articles while he was in college and drafted
articles for Weekly Playboy magazine, a leading magazine in Japan. Over the
course of his career, he lived in the U.S. and interviewed many celebrities,
including George Harrison, Jeffrey Archer, Brooke Shields, Muhammad Ali,
Irving Wallace and Jack Carter, the son of President Jimmy Carter. His articles
were published in Weekly Playboy. In 1987, he published Winning Young
Entrepreneurs, which is based on interviews with Bill Gates of Microsoft and
Ted Turner, the founder of CNN.
Upon returning to Japan, Inoue translated and published books of poetry
written by Nancy Wood, Dancing Moons and Shaman’s Circle. Inoue
interviewed the friends and family of Marilyn Monroe to publish Recollection of
Marilyn Monroe, which tells the life story of the world-famous actress. In 2004,
Inoue published the best seller Aiming High—A Biography of Masayoshi Son to
tell the story of the SoftBank Corp. founder. Inoue has also translated a great
number of literary works and biographies. These works include,
Dancing Moons by Nancy Wood, 2007 (Japanese translation)
Political Sex Appeal – U.S. President and Hollywood, published by Shincho
Shinsho, 2008
Michelle Obama – An American Story by David Colbert, 2009 (Japanese
translation)
Making it Happen: the New 30 Year Vision of Masayoshi Son, published by
Jitsugyo no Nihon Sha, 2010
How Wonderful, Frank Capra, published by Shueisha Shinsho, 2011
Fragments: Poems, Intimate Notes, Letters of Marilyn Monroe, published by
Seigensha Art Publishing, 2012 (Japanese translation)

http://www.ainoue.com/
Masayoshi Son Rediscovered

It has been over 20 years since I first met the author, Atsuo Inoue, back in
1987. I met him because he was one of the few Japanese writers who had
interviewed Bill Gates. Ever since our encounter, Mr. Inoue has continued to
watch over me with unfailing integrity.

I enjoyed reading Aiming High as it was being published as a monthly
magazine serial. I was highly impressed with Mr. Inoue’s passion towards
putting this book together. He interviewed my elementary school teacher in
Fukuoka Prefecture, who had a significant impact on my life, visited my alma
mater UC Berkeley many a time, and did research in Daegu, South Korea, where
my ancestors come from.

In this story, Mr. Inoue reveals many aspects of Masayoshi Son that I myself
was not aware of. I was able to enjoy such discoveries.

By re-reading the story in this form as a compilation, I am looking forward to
rediscovering new aspects of myself.

Masayoshi Son
Chairman and CEO of SoftBank Corp.
Preface – A Prophetic Dream

January 1, 2004 —A new year had arrived.

Son was sleeping in, unlike usual. Feeling refreshed, he arose at 10 a.m. and
went to his computer, as he habitually does first thing in the morning.
After responding to a number of emails, he checked the latest news and the
number of subscribers to the Yahoo! BB service.
Upon eating zoni (a traditional Japanese soup served to celebrate New Year’s
Day) prepared by his wife, Masami, Son went down to the golf simulator room
in his basement and completed the Augusta1 with a score of 71.
His pet dog, a three-year-old papillon named Mook, followed after him.
Son gazed at the zelkova trees in the garden from his study.
“The time has come for us to make a big leap,” he thought.
Toward the end of 2003, the number of households that subscribed to
broadband services in Japan had reached 14 million. Yahoo! BB, the broadband
service provided jointly by Son’s SoftBank BB and Yahoo! Japan, had greatly
contributed to the expansion of the market and had become the number one
provider of broadband service in the country.
Yahoo BB! was released in September 2001 and reached one million
subscribers a year later in September 2002, two million in February 2003, three
million in August of the same year and four million in March 2004.
Yahoo! BB had expanded its share in the market exponentially by adopting an
aggressive street campaign, defined by white parasols, troops of young
salesgirls, and by promoting the slogan “The World’s Cheapest & Fastest.”

However, the road thus far was not easy. Although subscribers reached two
million in the beginning of the previous year, it was unclear whether they would
reach the break-even point, whether the technology itself was good enough or
whether the entire service including the support system would function
sufficiently.
“After reaching two million, the prospects have become clearer,” Son said.
Without increasing any subscribers, Son’s company could make 90 billion
yen a year just with current cash flows. It was already a profitable business.
However, did this satisfy Son?
With a faint smile, he said, “I want to increase the number of subscribers to
five million, six million, seven million or even more.”
He felt he could reach greater heights.

“The real fun part is just about to begin. I’m going to expand the business by
creating various applications—through developing ‘broadband technology.’ I
will increase the number of content offerings for broadband. The time will soon
arrive in which we will compete on content.”

The prospect of rolling out and expanding the infrastructure was set before
him. Now, he had to dig deeper.

With good prospects before him, Son was able to spend the 2004 New Year’s
holiday relaxing at home. On New Year’s Eve, he watched the “NHK2 Year-end
Song Festival” and K-1 kickboxing match between Bob Sapp and former sumo
wrestler Akebono on television.
On the second day of the New Year, he watched with irrepressible excitement
a 12-hour television special based on his favorite book, Ryoma ga yuku (Ryoma
Goes) by Ryotaro Shiba. He recorded it onto five videotapes, labeling each one.
“This year was a good one. It was like a taiga drama.”3
Just like Ryoma Sakamoto, the protagonist of the film, Son saw the dawn of a
new era arriving.
 An Information Revolution was surely to come. Looking at the history of
human society, we evolved from an agricultural society to an industrial society,
and are now moving toward a society based on information technology. As a
truly digital, information society, we will be able to access the Internet 24 hours
a day, 365 days a year, whenever and wherever we might be.

“Just as we get water by turning on a tap, we will enjoy the benefits of IT
through ubiquitous computing. Such a time is about to come.”

The broadband business that Son was currently pursuing was to be the
foundational infrastructure for such a future. He had pioneered in this effort, and,
now, the entire country of Japan was connected through an IP network. Son and
his company had accomplished what no other in the world had accomplished.

“As long as we have an IP network infrastructure, the last mile can be
connected through ADSL, optical fiber cables, wireless LAN...”

As Son affirmed, all kinds of things will become possible in all areas, ranging
from personal computers to cellphones, household electronics, automobiles and
so on.

“In such a way, an age of ubiquitous computing will come. SoftBank was able
to pioneer in developing the infrastructure for such an age, which was our long-
cherished wish. And, now, the road ahead of us has become somewhat clearer.”

Son was currently preparing for a battle with Nippon Telegraph and
Telephone Corporation (NTT). It was a modern-day version of the ‘Battle of
Okehazama.’4 Just as Oda Nobunaga did, Son was about to launch a surprise
attack.

 “I’ve drafted a master plan to win the fight. I am now following that plan, step
by step, and am enjoying every step of the way.”

So, when will he triumph...?

“We’re advancing one step at a time. Perhaps it’ll be a long road to travel. We
may attain some small victories on the way, but may face bigger challenges on
other fronts. The only way forward is to develop steadily. We have to continue
marching forward until we win on all fronts.”

Since he was young, Son had a clear vision of what he wanted to do in his
life.

His 40s was to be a time for the greatest battle in his life. For three years since
he turned 44, he was waging a battle for laying out the infrastructure of the
future.

“At the climax of my life, a lot of restrictions are being removed, leaving
space for me to strike.”

Son had just then invested over 300 billion yen in developing broadband-
related technology.

“People, goods and money. The best IP technicians are coming to our
company. Content providers, such as Yahoo! and E-Trade (currently SBI
Holdings, Inc.), are also responding to us in an affirmative manner. We are very
lucky. It is as if I lived this long to see this moment.”

 In his 50s, he must win regional battles. In his 60s, he must continue to extend
his victory to all four corners of the country.
“I need to achieve continuous victories.”
Son envisions passing on some of his responsibilities to his successor during
his 60s, filling in any deficiencies in his enterprise during this time.

“I want the Group’s combined consolidated income to be stable in the trillions
(of yen). Then I need to pass it on to the next generation.”

As the founder of the SoftBank Group, Son made it through the first stretch.

“I envision the Group to endure at least 300 years. I am now sowing the seeds
for such a future vision. I must be the designer of the SoftBank Group’s DNA.”

When he hands over his enterprise to the next generation in his 60s, he
envisions the Group to be comprised of at least several thousand companies,
raising profit in the 10 trillions (of yen).

“It’s my job to develop the Group to that point before I hand it over to my
successor. Margin of errors do exist, but they’re minor. It’s a process. To me, the
ups and downs in the stock market, how much profit we made or didn’t make,
are all within the expected margin of error.”

Son’s vision reaches far beyond.

I (the author) first met Masayoshi Son on October 16, 1987. Since then, I had
a number of opportunities to interview this exceptional business revolutionary.
In one interview back in 1990, Son asserted that, “the IT industry will
indisputably be the number one industry. The combined market share of personal
and mainframe computers will be 10 times larger (than what it is now).”

Son had foreseen the arrival of the IT era when the computer industry was
still very small. It was a time when mainframe computers dominated and
hardware development was the mainstream, while software was almost a toy-
like accessory.

“We may say it’s about personal computers, software packages, etc. But, in
the end, it’s all about the digital information industry. I will become number one
in that industry by creating the infrastructure for an IT-based society. That is
what I am consistently pursuing.”

I have watched Son for over 20 years. Son had never wavered in his pursuit.
What attracted me to Masayoshi Son were the following words he uttered:

“Men have to be more than just wise. Unless you dig deeper with stubborn
honesty, one cannot become great.”

This man’s life started amidst hardships. Masayoshi Son was born to
Mitsunori Son and mother Tamako Lee on August 11, 1957, on Goken Road,
with no street number, in Tosu City, Saga Prefecture. He was the second of four
sons. This part of the neighborhood was filled with barracks inhabited by Korean
residents from before the World War. No house number existed. Tosu City was a
quiet city with no specialized local industry but agriculture.

Masayoshi is a third generation Korean immigrant to Japan (currently a
Japanese citizen). Son’s ancestors are said to have come from China. His
grandfather was the one who moved from Daegu, Korea, to the Kyushu Region,
Japan. His lineage includes many military generals and scholars.
 Son’s grandfather, Chongkyong Son, worked in a coalfield in Fukuoka
Prefecture. Mitsunori, Son’s father, worked ‘anyhow and everyhow.’ He made a
living selling fish, working at a swinery and, at times, engaging in production of
hard liquor for sale on the black market. Gradually, through succeeding in the
pachinko parlor, restaurant and real estate businesses, he was able to establish a
solid living for himself.
“Not only did my father, but my mother was also a busy bee when she
worked,” Son testified.
Son remembers the days he spent in Tosu. His grandmother, Wonjo Lee,
would take him everywhere on a wooden cart.

“It was slimy and disgusting. We would collect leftover food from our
neighbors to feed the livestock. It was just slimy. We were doing whatever we
could...I was doing whatever I could...”

Son cannot forget the sight of his grandmother working hard, towing the cart
from one place to another.
“Whatever pain or suffering you may experience, never hold grudges against
others,” she once told him.
To this day, Son remembers the words of his beloved grandmother deep in his
heart. He confessed,

“My grandmother would always say, ‘We owe it to everybody else.’ I used to
have a general feeling of resistance toward these words. ...But now, they are
finally sinking in.”

Watching his parents and grandparents working hard, the young Masayoshi
harbored a determination.

 “I wished to relieve everyone of this miserable state of life. I promised myself
I would succeed in order for my family to see the light of day and be recognized
one day.”

The Son family soon moved from Tosu to Kitakyushu City, and Masayoshi
started going to Hikino Elementary School. His grades were top in his class, but
he never brought home his textbooks. All he took to school was his lunch box
and his running shoes. Outside school, he would lead the kids in the
neighborhood to the hills or play soccer with them.
Masayoshi, however, did not go out to play with his friends for an entire year
during his second year in elementary school. He was fervently studying at home.
His teacher put up a large piece of graph paper on one wall of the classroom. He
would place a cherry blossom mark next to the student’s name, if the student had
completed a page’s worth of study on his or her own regardless of the subject
matter. Masayoshi had hardly any cherry blossoms next to his name. One day, he
decided he wanted to have the most number of cherry blossoms in the class, and
started dedicating most of his time to studying.
Masayoshi’s parents never told him to study. On the contrary, they would tell
him, “Don’t study too hard. You’ll never amount to anything if you study too
hard.”
Even when the whole family went away for a vacation, Masayoshi stayed at
home alone. Everyone wondered what had happened. But Masayoshi just wanted
to have the most number of cherry blossom marks.
Masayoshi disliked rote learning and memorization. Instead, he was very fond
of arts and crafts. He once dreamed of becoming an artist, painting on a white
canvas. Seeing his son’s creative side, his father, Mitsunori, often extolled him.
“Watching you, an extraordinary thought occurs to me,” he said.
“What is it?”
“You might be a genius. The smartest in the country!”
Mitsunori would often say, “You’ll be a big shot!”
It was beyond mere words of praise to a child. Mitsunori would praise him
with his entire being. Treated this way, Masayoshi started to think that his
father’s words might be true:

“I started to think I can do things if I try. I shouldn’t be satisfied with
mediocrity. I might be a genius.”

Once he believed so, Masayoshi advanced straight ahead with accelerated
speed. However, all he had at this point was a sense of confidence and a vague
dream. He had doubts whether he would be able to succeed in Japan as a Korean
national.
As a normal high school student, Masayoshi attended Kurume High School,
which ranked second in Kyushu after La Salle High School. In the summer of
his freshman year, he visited his parents’ home country Korea with his
grandmother. Once he returned from his trip, he insisted that he would go study
abroad in California. What was in young Masayoshi’s mind back then?
1 The Youth’s Departure

January 27, 1973. North Vietnam, South Vietnam, the United States and the
Provisional Revolutionary Government signed the Paris Peace Accords.
Although it was to be “an honorable end to the war,” the conflict between the
North and South raged for another two years after U.S. troops left.
That summer, one youth left for the U.S. for the first time in his life to study
English. The youth’s growing anticipation toward going to America was
shattered when he reached the Haneda Airport departure gate. He had to part
from his friends to stand in line with the foreigners. The airport had different
gates for Japanese and foreign travelers back then.
One friend wondered and asked, “Why are you not with us?”
Masayoshi pretended not to hear anything. It was a moment where he had to
confront the fact that he was a zainichi Korean (ethnic Korean resident).
Masayoshi was disappointed that his excitement had waned due to a trivial
event. On the plane, his friends were all in a euphoric state of mind, but
Masayoshi closed his eyes and fell asleep. His snoring could be heard. He was
quick to move on.
“Ahh, I slept well!” he said.
The plane soon arrived in San Francisco. The California sky seemed higher
and clearer than anything Masayoshi saw, different from Japan. As Masayoshi
took in a deep breath, both his physical and mental stress, coming from jetlag
and nervousness, eased. He had already forgotten the disappointment he felt at
the departure gate back at Haneda Airport.

The language program Masayoshi enrolled in took place in the classrooms at
University of California, Berkeley. He struggled with the pronunciation of “l”
and “r,” but what troubled him the most were the English names and words that
he was familiar with back in Japan. For example, the word “McDonald’s.” In
Japan, it would be pronounced [maw-koo-doh-naw-roo-doh], as opposed to
[mac-don-ld-z]. He was repeatedly corrected on his pronunciation. Today, Son
gives speeches in English in front of big audiences all over the world, but this
was where he started when he was 15 years old.

Although not in charge of his class, Victor Ohashi, a teacher and third
generation Japanese, took good care of Masayoshi. Besides studying, the
language students would go sightseeing at places such as the Grand Canyon and
Yosemite National Park. However, Masayoshi was struck by the shopping malls
and freeways more so than these natural spectacles.
“Everything is so large-scale compared to Japan! I want to know more about
America!” he exclaimed.
His personal problems seemed to be so small.
In the 1970s, protests against the Vietnam War often took place at UC
Berkeley. UC Berkeley was one of the top universities in the country
academically, producing many Nobel laureates.
After getting out of class, Masayoshi would walk around the campus with his
friends every day. He would hear some student giving a speech in the distance or
playing taiko drums. Some female students would lay on the lawn half naked,
reading books. Everyone was enjoying his or her student life in his or her own
way.
When passing the Doe Memorial Library, one could hear the bell ring on the
Sather Tower. The tower was one of the landmarks of the university. Masayoshi
was told to locate the tower whenever he got lost.
Masayoshi saw all kinds of different people on campus. They were of
different skin colors and ages. America was a melting pot of race and culture.
Although he read about it in books, it was eye-opening to actually see it. One
day, a giant man, who was curiously looking around, spoke to Masayoshi.
Masayoshi did not know what the man was trying to say, but figured out he was
speaking some language other than English. The man, wearing a psychedelic t-
shirt and a turban on his head, was speaking to him ardently. Here on campus in
America, it seemed as if they were all brethren. Race or nationality did not
matter. It was all about individual relationships. As Masayoshi spread out his
arms and passed by the Sather Tower, he felt encouraged. Although America was
in the midst of the Vietnam War, Masayoshi was glad he had come to this
country.

Upon returning from his four-week study abroad program, Masayoshi said
with a smile on his tanned face,
“I am thinking of quitting high school.”
He was met with strong opposition from his family, as they thought that it
was too early for him to do so. His relatives said,
“You studied hard to get into this high school. Why won’t you at least
graduate before you do whatever you want to?”
Masayoshi thought differently. He asserted that he wouldn’t be properly
recognized in Japan, so long as he is a Korean national.
“If I first succeed in America, then, my achievements will be recognized in
Japan,” he argued. He had a clear purpose in mind.
“Life is short. I will regret if I don’t act boldly when I am young,” he thought.
He remembered how the sky over Berkeley stretched as far as he could see.
“Because time is limited, we must live life to the fullest,” Masayoshi thought
to himself.
Across from the Sather Tower, students fervently studied, valuing each
minute of their time before the main library opened. As youthful Americans,
they were advancing toward their goals with great hopes for the future.
“I want to live my life like them,” Masayoshi thought.
His high school teacher, Itsuo Abe, just told him to wait until the athletic meet
in September was over. Masayoshi was thankful, not only for his understanding,
but also for his thoughtfulness. He wanted Masayoshi to have some good
memories with his Japanese classmates to look back on. Masayoshi held back
his tears at Abe’s deep consideration for his pupil.
“A man should never cry,” Masayoshi told himself.
 Masayoshi’s mother, however, cried. She was afraid she might never see her
beloved son again.
“Will you ever come back to us if you leave for America?” she cried.
Although Masayoshi never went back on his words, he deeply pondered
whether he should carry out his plan or not. His father had coughed up blood
some time earlier.
His family and relatives all said:
“Is it right for you to just think about yourself, when your father is ill?”
“Don’t you know how much your mother will miss you?”
“You’re saying you’re going to America, when the rest of the family is
struggling back home?”
Masayoshi was in the same frame of mind as the historical figure Ryoma
Sakamoto. Ryoma left the conservative Tosa clan. Leaving the clan was a major
crime, which affected the lives of one’s family and relations. However, Ryoma
believed in his mission. If Masayoshi gave up his study abroad in America now,
the path ahead would not open. In the pursuit of justice, one may, at times, cause
others to weep.
Masayoshi believed he would one day repay his depth of gratitude to his
family. But right now he had to move forward. Amidst all the opposition from
his relatives, the first person to accept Masayoshi’s decision was his father,
Mitsunori. Mitsunori, who was lying on a hospital bed with a torn duodenum,
demanded two things of his son:
“Come back to us once a year,” and “Choose an Asian woman as your wife.”
Feeling appreciation and sympathy for his father, Masayoshi gazed far out
into the future.

The world was in chaos. The fourth Arab-Israeli War led to an oil crisis,
causing toilet paper shortage panics and price rises in Japan. Political radicals
were gaining increasing influence, and, in Berkeley, the publishing magnate’s
granddaughter, Patricia Hearst, was kidnapped from her own home.
 In February 1974, Masayoshi left for California. His classmates threw a
farewell party for him at a public fitness center. They celebrated with soft drinks
and snacks and sang a theme song from the Japanese television series
Wakamono-tachi (Young People). The lyrics went, “Will you go, regardless of
everything...?” Tears welled up in Masayoshi’s eyes.
His family went to the airport with him to see him off.
“Promise me you will come back,” his mother said in a tearful voice, stroking
her son’s back.
“I promise,” he said indifferently in order to hide his emotions.
When the plane lifted off from the runway, various thoughts passed through
Masayoshi’s mind. However, he did not have time to be sentimental.
Masayoshi entered the English Language School at Holy Names College5 in
Oakland, which was not far from San Francisco. It was a Catholic university
established in 1868, notable for its nursing science and business degree
concentrations. Masayoshi studied English furiously. When asked in Japanese
whether he was from Japan, he answered in English. Because he refrained from
speaking in Japanese, his English language skills dramatically improved.
On campus, there were stone steps that led to a chapel balcony. On a clear
day, one can see the Richmond-San Rafael Bridge, Golden Gate Bridge, San
Mateo-Hayward Bridge and San Francisco-Oakland Bay Bridge. Further
beyond, one can see Silicon Valley, which is home to many technology
corporations. Masayoshi had no clue that Silicon Valley was where his destiny
was. The Pacific Ocean spread out far, and beyond the ocean was Japan. He
brought with him from Japan a dream to become a successful entrepreneur.
“I am going to conquer the world,” he thought.

Seven months later in September 1974, Masayoshi entered Serramonte High
School6 in Daily City, a four-year high school located south of San Francisco, as
a sophomore.
2 Grade Skipping

At that time, the youth may have been knocking on destiny’s door. The door
opened slowly.
On August 9, 1974, U.S. President Richard Nixon resigned as a result of the
Watergate scandal. On October 14, one of the greatest baseball players in Japan,
Shigeo Nagashima, retired from the Yomiuri Giants, remarking, “The Giant’s
will live on forever.”
In September of that year, a new semester was starting at the Serramonte High
School in the City of Daily, California. One morning, when the California sun
had not yet revealed its full force, a long-haired young man in a short-sleeve
shirt and jeans nervously knocked on the high school principal’s door.
“What’s the matter?” asked Principal Anthony Trujillo with a deep voice,
gazing at the affectionate-looking young man. Trujillo was a star football player
in college, who had maintained a strong physique. Because he always had a
smile on his face, he was popular among the students. He warmly encouraged
the young man to come in.
“I needed to see you,” said the young man.
The young man, who called himself Jeong-Eui Son after coming to the United
States, had just transferred to the school as a sophomore. For a week after his
transfer, almost everything appeared new and amusing to him. His classmates all
looked like Hollywood movie stars and they seemed to be enjoying their youth
to the fullest. Masayoshi got along well with his easy-going classmates. It was
the kind of life he dreamed of, coming to America.
However, Masayoshi started to think this was different from what he really
wanted. There was a gap between his academic level and his classmates’. Their
academic level was not higher, but lower than his.
“Can you make me a junior?” Masayoshi asked the principal.
The gentle principal’s eyes gleamed behind his glasses. The smile disappeared
from his face.
“Looking at your background...it appears that you have not graduated from
high school in Japan.”
“Yes, I decided to study abroad.”
“So, then...”
The principal was dumbfounded.
“You haven’t even completed your freshman year in Japan!” he cried.
The third and last year in junior high school in Japan corresponded to the
freshman year at Serramonte High. So having graduated from junior high school,
Masayoshi entered Serramonte as a sophomore.
“But I want to go to college as soon as possible,” he implored.
The principal was astounded by Masayoshi’s impetuousness. This young man
was unlike other Asians. He was not in any way modest or reserved.
The next day, Masayoshi joined the juniors in their classroom. For the
following five days, he studied furiously, never letting go of his textbook even
while eating or in the restroom. Seeing this, Principal Trujillo decided to make
an exception for Masayoshi and raised him to the senior class.
The next moment, Masayoshi made a reckless attempt. He decided to take the
college admissions test. In America, it is not unusual for students to go to college
before graduating from high school. However, finishing high school in three
weeks and passing the admissions test was almost unheard of. If one passed the
test, one was certified of having attained a high school-level education and was
able to apply for university, even if under 18. However, one had to pass all six
subjects: English, math, physics, chemistry, social sciences and geography. If
one failed in even one subject, he or she had to retake the test.
The principal decided to have an open mind and see how far Masayoshi could
go. Although he wrote the recommendation letter, knowing Masayoshi’s
language skills, the principal did not think he would pass the test. However, one
person did believe in passing the test –Masayoshi himself.

 The admissions test took place over three days, testing two subjects per day.
At 9 a.m., the test started. Masayoshi was shocked when he saw the questions. It
was completely different from Japan. The question and answer sheets were
stacked up in a daunting amount, somewhere between 20 to 30 pages.
“Hmmm...” Masayoshi thought.
If it were not Masayoshi Son, one would have at this moment regretted one’s
reckless decision. If Masayoshi failed this test, he would have to wait another
year to retake it.
“I don’t have such time to waste,” he thought. “One can think as much as one
likes. However, I need to act and follow through with my ambition. Because we
only live once, I want to do something that will be remembered by history. If I
do the same as others do, I will never be able to make history.” Masayoshi closed
his eyes and prayed. He did not pray to God. He made wishes for his own
destiny.
Making up his mind, Masayoshi asked the inspector to allow him to use the
dictionary and extend the test time.
“I am sorry, but I can’t make any exceptions for you,” the inspector said.
Masayoshi’s expression suddenly changed. No one knew the inner strength he
had in times of such crises. He does not remember whether he told the inspector
that he would make an appeal himself or not; however, he walked out of the
classroom straight toward the faculty room. He felt hot inside, but did not lose
his composure. This was one aspect of his remarkable nature.
The teachers in the faculty room gathered around Masayoshi in curiosity.
Some sympathized with him immediately. All reacted very frankly. The
atmosphere of the room was shifting. One of the teachers picked up the phone
and called the Board of Education. The Chairman of the Board, who received the
phone call, rather than deciding on the validity of the student’s plea, gave into
Masayoshi’s passionate appeal.
Son confesses with a laugh that he was putting forth a far-fetched argument to
the School Board at that time. But he was dead serious then. He needed to
somehow surmount this challenge. Whether he would achieve his aim of coming
to America largely depended on this test. The Chairman granted him an
exception.
 Masayoshi engrossed himself in each question until it was solved. As it was a
test for native English-speaking students, Masayoshi struggled with much of the
vocabulary that appeared. He did not understand what each question asked for
just by reading the lines and had to start from literally understanding the
meaning of the question. What was harder was writing the answers down in
correct English. Even if it was grammatically incorrect, the answers had to make
some sort of sense.
Many times, Masayoshi wondered whether his answers were correct. Trick
questions were hiding among them, and, therefore, Masayoshi read and reread
each question. At 3:00 pm, the inspector announced that the time was up. All the
students left the classroom, except for Masayoshi. That first day, when
Masayoshi completed his test, the clock hit 11 p.m. The inspector, who must
have been tired by then, said: “Well done.”
“Thank you,” Masayoshi replied with a smile.
He returned to his homestay house feeling drained. A song by the Beach Boys
played on the radio.
On the second day of the test, Masayoshi guessed most of the answers for
American history, but it was already past 11 p.m. when he finished.
On the third day of the test, he completed the physics test, feeling completely
exhausted. It was past midnight.
Two weeks later –Masayoshi received a letter from the State Board of
Education. His heart pounded as he opened the envelope. He almost scored
perfectly in math. His physics marks were relatively high as well, but they were
rather poor in English, chemistry, history and geography. However, the word
“accepted” caught his eyes and he cried out, “Banzai (hurray)!”
As he gave his best, he was willing to accept any result, without any regrets.
Young Masayoshi hated making excuses. And, he felt good being able to carry
through with his determination.
Thus, Masayoshi finished high school in just three weeks and became a
college student. Records from the high school secretary’s office show that Jeong-
Eui Son withdrew on October 23, 1974.
One of the staff members shared with me, “He may not have graduated from
Serramonte, but we are very proud of the fact that Mr. Son attended our school.”
3 Life-changing Encounters

After arriving in America, Masayoshi attended an English language school

(ELS) for six months before entering a local high school. Two or three weeks
had passed at ELS, when Masayoshi met a slender and long-haired Japanese girl.
Her name was Masami Ohno. He was attracted to her at first sight. His heart
leaped up whenever he saw her in the hallway.
“How beautiful she is!” he thought. “She is graceful. At the same time, she
possesses tremendous inner strength. I am such a fortunate man to be able to
meet her.”
The two started to study in the library together—half studying and half dating.
They would often have lunch together in the cafeteria. After his second date with
her, Masayoshi was already determined to marry her. He hadn’t even held her
hand yet, but he was convinced by his instincts.
As for Masami, her first impression of Masayoshi was: “A weird guy, whose
age was hard to guess.”
When Masayoshi entered Serramonte High School, Masami transferred to
Holy Names College. She was two years older than him, and he would be
separated from her for three full years if he had to go through high school. The
desire to study in the same environment as her was one of the driving forces
behind his grade-skipping. And, this was one of the important building blocks
that set the course of Masayoshi’s life.
Masayoshi called Masami and told her in a somewhat high-pitched voice,
“I’m going to the same college as you!”

There was another crucial encounter that determined his future direction. Life
consists of numerous unexpected encounters. Perhaps one good fortune leads to
another. His encounter with Masami must have led Masayoshi to his next
encounter. One day, Masayoshi picked up a copy of Popular Electronics7 at a
local supermarket. He was unable to take his eyes off of one particular picture in
the magazine. It was a magnified picture of the Intel 8080 microprocessor that
had just been released.
“Nothing moved me so much than to see that microchip for the first time in
my life,” Son recalls.
When imagining that this tiny little thing might completely change our future,
he felt as if the microchip was releasing a surge of energy.
Son recollects: “You know how both your hands quiver when you’re
watching a touching scene in a movie or listening to great music? It was the
same kind of feeling. Warm tears streamed down my face.”
When light was cast on the geometric chip carving, it reflected brilliantly. To
Masayoshi, the computer seemed to be some intelligent life form that
transcended humanity.
“It is the greatest invention in human history. How beautifully it shines!
Humanity might have opened up new possibilities that go beyond its intellectual
productivity,” he thought.
When Masayoshi was six or seven years old, he watched Osamu Tezuka’s
Astro Boy. In it were scenes in which Professor Ochanomizu, the Head of the
Ministry of Science, was operating on a huge computer with flashing lights.
“Before then,” Masayoshi says, “that was my image of what a computer was.”
However, now this intelligent being was shining prismatically in front of him.
Masayoshi cut out the picture and put it in a plastic file, taking it with him
wherever he went. He would never let go of it, even when going into the
restroom. He placed it under his pillow when he slept. Because he cherished it so
much, it got worn out half a year later. Around this time, Masayoshi started
thinking he wanted to do something with computers in the future.

At the same time, there was one American youth who was experiencing the
same exhilaration as Masayoshi was, upon seeing the single chip microcomputer.
His name was William Henry “Bill” Gates, the co-founder and chairman of
Microsoft Corporation. Born in Seattle, Washington, in 1955, Gates is a
computer genius who became one of the wealthiest men in the world.
 In 1974, Gates, a sophomore at Harvard University, was thrilled to see the
Popular Electronics magazine. He described to me the impact he felt then.

“I was moved. I felt that personal electronics would completely change the
relationship between human beings and computers.”

It was a very small article, which ordinary readers might have overlooked:
Micro Instrumentation and Telemetry Systems (MITS), an electronics company
in Albuquerque, New Mexico, had created a $350 microcomputer.
Gates got together with Paul Allen, another computer genius and friend from
high school. Gates and Allen attended Lakeside High School, an exclusive
preparatory school in Seattle, Washington, equipped with DEC PDP
minicomputers, which supported time sharing. The two have been fascinated by
computers since then. They wanted to be the first to write a BASIC language
program for the Altair computer. Their story is now a legend. In February and
March of 1975, Gates and Allen worked day and night to develop the Altair
BASIC interpreter in a small dorm room at Harvard. They could not afford time
to eat, washing down hamburgers with soda every day. They slept at their desks
whenever they needed to. This was their devotion in the springtime of their
youths, in the wake of the computer era.
The two young men believed that they were living in a defining moment of
time. It couldn’t be a year earlier or half a year later. They believed they would
make history. It was the dawn of the ‘Warring States Period,’8 or the war era, of
computers.
By March of that year, Altair BASIC was up and running. Gates was 19 and
Allen was 22. Allen resigned from Honeywell and Gates dropped out of
Harvard. On April 4, 1975, they started Microsoft in Albuquerque.
Around this time, other prominent figures appeared on the frontlines of the
battle in the Warring States Period of computers. Steve Jobs and Steve Wozniak
founded Apple Computer in 1976. Scott McNealy co-founded Sun Microsystems
in 1982. Masayoshi Son belonged to the same generation as these champions.
They were all young warriors who, in their late teens, appeared at the forefront
during the time of single-chip microcomputers.
 When we look at Japanese history during the late Tokugawa Shogunate, the
Black Ships9 acted as a catalyst for Ryoma and his comrades to carry out the
Meiji Restoration10 and open a new era for Japan. For Son and Gates, the
encounter with the single-chip microcomputer was the catalyst that led them to
open the doors to a new era. It was an inevitable event in the history of the
digital era. The current Information Revolution is being carried out by inspired
individuals, who experienced such life-changing encounters.

In September 1975, Masayoshi enrolled in Holy Names College.
“I need to study hardcore,” he said to himself.
Masayoshi was indeed hardcore. The first thing he did was to go to a furniture
store and purchase a door. He bought a door without a knob that was as high as
the ceiling. After bringing it back to his room, he placed it on top of two steel
cabinets. It was a customized desk. He placed all his textbooks, dictionaries,
books and other study materials on top of it. He lit up the desk from three
different angles.
With a roar, he started studying madly. He studied while eating and
showering. He held onto his textbooks even while bathing. He recorded lectures
on tape and listened to them in his car while driving. When he stopped at red
lights, he opened up his textbook, never wasting a minute. The car behind would
honk at him when the lights changed and Masayoshi would hastily step on the
gas. On some roads, he would place his textbook on top of the steering wheel
and drive, looking down at his textbook half of the time.
On campus, Masayoshi appeared in a bizarre fashion. He carried a yellow
backpack filled with a set of textbooks. He attached a big pocket on his trousers
and filled it with about 15 pens, a ruler and calculator. Between classes, he
noisily ran from classroom to classroom.
“Who the hell is that...?”
People would stare at him with curiosity.
The life-changing encounter with the unknown brought to him by the single-
chip microcomputer was driving the young man to study unyieldingly to reach
greater heights.
4 Maverick

On October 1, 1975, the heavyweight-boxing champion Muhammad Ali

fought Joe Frazier for the third time in Quezon City, Philippines. Ali landed a
fierce blow on Frazier, winning the match in the 14th round. He was “the
greatest.”
At the same time, another potentially “great” man, Masayoshi Son was
studying like a madman in America. Masayoshi was indeed out of the ordinary.
His average sleep schedule was 3 hours—5 hours at the most.
“I studied like Sontoku Ninomiya,” he recalls.
In the past, all elementary schools in Japan had a statue of a boy reading a
book, carrying firewood on his back. It was Sontoku Ninomiya, an agricultural
leader known by all Japanese. He was brought up in a poor family and devoted
every moment he could to reading and studying. This was how Masayoshi
studied.
Before the exam at Holy Names College, Masayoshi caught a cold. It
developed into a terrible flu. He was unable to get up from bed, due to a high
fever. He had no appetite at all. The exam date arrived when he was in this
condition, but Masayoshi was jumping for joy inside. While many students are
terrified of exams, Masayoshi was excited by them. Masami, who contracted the
same flu, watched him while lying in bed. The future Mrs. Son felt that he was a
dependable man, but was nonetheless stupefied at the same time. Masayoshi’s
test results during this exam period were better than ever, with straight A’s in all
courses. However, because his health did not improve even after the exams, with
constantly high body temperature, he visited the hospital. The doctor’s
countenance clouded: “Didn’t you realize you had a serious illness?”

Masayoshi’s grades were excellent. Together with several other students, he
received the Dean’s Award. It was an unprecedented achievement for a foreign
student. Dean Irene Woodward, who handed out the award, remarked, “We are
proud of Mr. Son.”
Holy Names College was a small liberal arts college, with the motto: Honor,
Nobility, Virtue. The design of the school coat of arms comes from an emblem
of a medieval period Sisterhood. The cross and lily in the center represent the
holy names of Jesus and Mary.
In 1971, four years before Masayoshi’s enrollment, the school became co-
educational. At the same time, they started accepting foreign students. In 1975,
when Masayoshi was enrolled, the number of students was approximately 800.
The average class size was 15 to 20 students. The tide of social reform around
the country affected the college as well. The college went through major
institutional change before Masayoshi entered. Although it was to remain strictly
a Catholic school, the sisters were no longer required to wear a habit and walked
around in ordinary clothes. In order to be more open, they decided not to force a
particular religion on their students, and left it to individuals to decide. Indeed it
was a challenge for many faculty and students to understand and accept different
cultures and religions.

Marguerite Kirk, an instructor and administration staff member at Holy
Names who has now retired, remembers Masayoshi clearly. She taught him
accounting from 1975 to 1976. The classes started at 8 a.m. on Mondays,
Wednesdays and Fridays. Masayoshi, in his sandals and custom-made trousers,
would come running down the 108 steps from the hill next to the chapel on
campus. Upon entering the classroom, he would always take a seat in the front
row.
“He really stood out. His eyes were shining,” Kirk recalls.
Students in her class were from many different countries: Japan, Indonesia,
Mexico, U.S., etc. Masayoshi, however, stood out among them. One of the
reasons Kirk remembered Masayoshi was that he would often come up to talk
with her and ask questions after class.
“I want to do business,” Masayoshi once said to his instructor. What he
studied in school had to be applied in real life. He further explained his plan: “I
want to start a business dealing with video games.” Kirk had no idea at the time
that Masayoshi would actually make video games popular. (A few years later, he
would carry out his plan and bring the Space Invaders game to America.) The
young instructor, in her late 30s, had just started working at the college part-
time. She was deeply impressed by Masayoshi’s passion and
straightforwardness.
Masayoshi’s desire to do business took shape early on, on a much smaller
scale. There was an open space in front of the cafeteria where students were able
to hang out. Although there was a small kitchen, it went unused most of the time.
Masayoshi saw potential in this underutilized space and decided to start up a
business with a friend. He negotiated with the school administration: “Please
lend us this space so that we can provide healthy and inexpensive snacks and
meals to students late at night.”
The administration agreed, and Masayoshi and his friend started handing out
flyers. It was a perfect location for business. The eatery was open two hours a
day, serving ethnic cuisine, such as Mongolian rice noodles, Japanese fried
noodles and wonton soup. Two student employees worked four hours a day,
handling everything from food preparation to clean up. They were paid $2.50 an
hour.
Masayoshi’s eatery soon became popular among the students; however, it was
not long before he was met with an unfortunate mishap. His friend, and co-
manager, was manipulating profits and pocketing money for himself. Masayoshi
was shocked when he found this out, as he fully trusted his friend. Within half a
year, Masayoshi’s eatery closed down, but he was able to gain precious
experience. Friendship may waver when money is involved. Masayoshi, at this
time, developed one of his core business philosophies: “Business cannot be done
alone, but you must be extra careful in choosing a partner.”

Masayoshi developed an aspiration to one day succeed in business, prior to
his study abroad in America. He studied to ultimately realize this goal. While in
Japan, Masayoshi read Yudaya no shōhō (The Jewish Way of Doing Business),
written by McDonald’s Japan founder, Den Fujita. He was a high school student
then and was so impressed by the book, he traveled all the way to Tokyo to ask
Fujita to meet with him. Fujita invited this daring young man into his office and
advised him, “If I were young, I would go into the computer business rather than
the food industry.” Masayoshi repeatedly read this book, even after his life-
changing encounter with the microcomputer. In it, Fujita stated, “There is neither
clean nor dirty money.” Masayoshi’s prior belief, somewhat based on Confucian
values, that moneymaking was a dirty thing, was shattered by these words.

Masayoshi completed his studies at Holy Names College in less than two
years and applied for a junior-level transfer to UC Berkeley. However, only 10%
of the students from his college were able to transfer to UC Berkeley. Ever since
he took an English language course as a high school student, Masayoshi had a
strong desire to study at this prestigious academic institution. Masayoshi called
the office of the Department of Economics. They told him that the faculty
council had decided to accept him first among all applicants. The admissions
office had only to process his documents. Thus, in 1977, Masayoshi entered the
Department of Economics at UC Berkeley. In the same year, Masami also
transferred to UC Berkeley’s Department of Astrophysics.

At this time, Bill Gates had already left Harvard to start Microsoft in
Albuquerque.
5 Master of Inventions

The California sun makes mellow wine. Its land cultivates geniuses. Across
Bay Bridge from San Francisco is the City of Berkeley. This is where the
University of California, Berkeley campus is located.
Founded in 1868, UC Berkeley is one of the most prestigious state
universities in America. It consists of 14 colleges and schools, and students from
over 100 countries come to study at this university. It covers 499 hectares with a
scenic view of the San Francisco Bay. Not only is the campus environment
splendid, the facilities are first-rate. It has 32 constituent and affiliated libraries,
with over 10 million volumes.

What attracted Masayoshi to UC Berkeley was not only the fact that it had
produced the greatest number of Nobel laureates in the world, but also that it had
a liberal atmosphere. All kinds of unique individuals gathered on campus. One
would see a group of female students in tank tops chatting on the grass or
encounter a mysterious guy wearing a cloak. Around the campus were a number
of bustling stores selling psychedelic t-shirts and incense.
Masayoshi had strange looking classmates as well. One guy wore a Spider-
Man costume and climbed building walls all day long. Another guy let his scalp
and facial hair grow on the right side, while shaving everything on the left,
including his eyebrows. This student’s math scores were always at the top of the
class.
“You’ve got the wrong formula,” he would call out from his seat and vex the
professor.
Masayoshi had also pointed out mistakes and typos in the textbooks; however,
people were impressed by this student’s intellect.
Masayoshi was also fascinated by Berkeley’s computing facility. Computer
rooms were open to students 24 hours a day. Each building on campus was
equipped with a computer terminal, and it was a magnificent sight to see several
hundred computers aligned in rows. Masayoshi used the facility extensively.

Masayoshi studied mathematics, physics, computer science and economics
especially hard among other subjects. He received A’s in all courses in these four
subjects. A’s were given to the top 5% of the class. Despite his language
deficiency, he took as many courses as possible.
Compared to Japan, universities in the U.S. are rather easy to get into, but
hard to graduate from. The average graduation rate is 25%. If a student is not
earning enough credits or receives a C grade, the university administration may,
at some point, send a notice or even force the student to leave. The student will
then have to withdraw or transfer to another school.
The evaluation of faculty members is also very strict. At the end of each
academic term, course evaluation forms are filled out by students anonymously.
The students evaluate the faculty’s preparation for classes, fairness of grading
and other factors often on a quantitative or qualitative scale. Faculty may
potentially be criticized for giving poor lectures or exams. In some universities,
the evaluations are summarized and published for sale on campus. Students may
decide on which classes to enroll in based on such general student feedback.
Faculty members who continue to have low student enrollments may, as a result,
be asked to leave the institution.
In America, a wide gap exists between students who study and those who
don’t. Those who do studied as madly as Masayoshi did. The professors, in
response, vigorously wrote on chalkboards, spluttering out while lecturing. Each
day was a challenge for both the student and the teacher.

While at Berkeley, Masayoshi’s girlfriend Masami was his greatest support.
One day, Masayoshi surprised Masami.
“Have your parents stop sending you money,” he said with a serious
expression on his face. “I will, too.”
Masami responded with astonishment. Behind those words was Masayoshi’s
strong determination to take her as his wife.
 “If I marry her, I will have to support her financially,” he thought.
He was planning to start a business after graduating from university. Of
course, it was a challenge for any student to do so right after graduation.
However, Masayoshi was confident. There was no way he wouldn’t succeed. He
knew he needed to prepare while in university.
Masayoshi felt he needed to at least make his own living. He had to become
financially independent, sooner or later. Masayoshi’s father Mitsunori was in the
hospital when he left for America. Masayoshi was concerned about his father’s
condition, as well as his family back in Japan. His family was sending him
$2,000 per month, which must have been a substantial burden to them. Certainly,
it was difficult for Masayoshi, who was still a university student with an
uncertain future, to stop receiving financial support from his family. He was also
firmly determined not to take on any part time jobs.
“What should I do?” he wondered.
He decided to allow himself five minutes every day to engage himself in work
other than studying. He did not need to make any excuse to spare himself such a
short amount of time. He had gotten used to his life at Berkeley and was no
longer as swamped as he was at the time he entered.
What he thought of then could be described as “astonishing.” He was looking
for a job that would pay at least $10,000 a month, working five minutes a day.
“It’s foolish,” said a friend dismissing his idea with a chuckle.
He may have found an illegal job that met his criteria in Oakland, where
alcohol addiction and drugs prevailed; or in San Francisco, notorious for its high
crime rate. However, Masayoshi had no interest in going into an illegal business.
Students from Japan were often engaged in manual labor, such as dish washing
and cleaning, or guiding Japanese tourists around. Masayoshi realized there were
limits to manual labor. He had no capital or business connections. He had to
strain his brain.
“That’s it!!” An idea flashed into his mind. He could only think of one way:
to invent and sell patents. Konosuke Matsushita, known as “the god of
management,” started his career from a small town factory. The invention of the
two-socket light fixture and bicycle lamp was his first step to becoming an
electronics magnate. Matsushita was one of the figures Masayoshi looked up to.
 “It’s not unprecedented. I’ll go with inventions!”
Indeed it was a bizarre idea, but once he decided that this was the only way,
he had only to go forward with it. Masayoshi started off immediately. Berkeley
had many fine bookstores. The used bookshops were filled with books left by
brilliant students who graduated from UC Berkeley. Masayoshi ran around town
to gather a bunch of books on patents.
Masayoshi had no experience in inventing anything. He liked arts and craft as
an elementary school boy and showed interest in creative activities. However,
“inventing” was a different matter. His challenge started once he got a general
idea of what kinds of inventions were granted patents.
“From today, I will come up with one idea for an invention a day. That will be
my quota,” he decided.
It was no joke to him. It was an achievable plan. One wonders whether
Thomas Edison, one of the most famous inventors in history, had come up with
one invention a day. In any case, it was an extraordinary idea. Masayoshi put his
ideas down in English in an ‘invention idea notebook’ (a.k.a. ‘idea bank’), which
he kept in place of a diary. Over 250 ideas were written in detail. Although he
was not able to come up with one invention a day, great inventions were born out
of his ‘idea bank.’
“I was able to develop great confidence in myself for continuing to write in
this notebook for a year,” he recalls.
Every day, he would set an alarm clock to go off in five minutes. In these five
minutes, Masayoshi invented very unique things. He realized that there were
largely three approaches to inventing.
The first approach was problem solving: to provide a solution in response to
some sort of trouble or difficulty. For example, a round pencil rolls off a desk.
When one considers this to be a “problem,” one can proceed to solve the
problem by creating a pencil that won’t roll, such as a square or hexagon-shaped
pencil. One would find a problem and come up with a solution through
deductive reasoning.
For Masayoshi, even the restroom was a breeding ground for invention. What
could be done about the filthy, unhygienic and cold toilet seats? In order to solve
this “problem,” Masayoshi came up with the idea of applying toilet seat covers
made of Styrofoam, which he often came across in the form of hamburger
containers. It was an invention he is still very fond of; however, he hesitated to
present it then as an invention by a man who was aggressively seeking to do
business on a global scale.
While the first approach embodied the principle, “necessity is the mother of
invention,” the second approach involved lateral thinking. It was a way of
thinking in reverse: making something round into square, turning red into white
or changing something big into small. Through this method, Masayoshi invented
a set of new traffic signal lights. He thought of displaying each signal not only in
color but in shape as well. Thus, “green-yellow-red” lights were shaped “circle-
triangle-square,” allowing color-blind people to distinguish between the signals.
The third approach involved mixing and matching. It was a way to combine
already existing products. For example, combining a radio and a tape recorder
would make a radio-cassette player. While in America, Masayoshi produced
many inventions through this third method. It allowed him to invent
systematically. Masayoshi was like “a fish in water”11 or a modern day
brontosaurus in the business world. The young master of inventions at last came
up with his ultimate invention.
6 Record Breaking

Nineteen years old. In the midst of their youths, many students spend their
days studying, playing sports or dating. However, in one’s life, what is the
significance of being 19 years old?
Masayoshi, a junior in college, had already established his life’s basic plan,
while perhaps many of his age had not. It was a “50-Year Life Plan.” In his 20s,
he would start some kind of business by any means to establish himself. In his
30s, he would raise at least 100 billion yen in ‘war funds.’ In his 40s, he would
make the bet of his life and start a grand enterprise. In his 50s, he would make
his enterprise successful and hand it over to his successor in his 60s. It was an
extraordinary and phenomenal life plan created by a 19-year old man.
Masayoshi questioned himself on what he needed to do right now in order to
follow his life plan.
“I will come up with one invention a day,” he thought.
Masayoshi acted on his determination. He came up with great inventions
through his combination method. Masayoshi randomly wrote down words that
crossed his mind on flash cards, for example, tangerine, nail, memory, etc. After
he filled out about 300 flash cards, he randomly pulled out three cards from the
pile. When combining the words written on three different cards, there was a
possibility of a new invention. A combination that did not seem to make any
sense brought to life bizarre ideas. The 19th century poet Comte de Lautréamont
(Isidore-Lucien Ducasse), often compared with Arthur Rimbaud, expressed a
unique idea by bringing together a sewing machine and umbrella on a dissecting
table. Hence, he was regarded as a precursor to Surrealism.
At the beginning, Masayoshi flipped the cards manually to come up with a
combination. However, he realized he could use a computer to systematically
match the words on the cards. He was convinced that he would be able come up
with ideas more easily and effectively, if he could acquire the necessary
computer skills.

A Japanese proverb says, “A fine horse runs a thousand ris.”12 However, only
a skilled rider can manage to ride such a fine horse. For a horse to be a fine
horse, the rider had to be a fine rider, as well.
Masayoshi started spending most of his time in the 24-hour computer room
studying. In the room, many students held discussions and exchanged
information. Masayoshi studied, washing down bread with milk and taking a nap
in a sleeping bag when he needed to. He considered the computer not as a
“computing machine,” but as a “creating machine.” First, he entered the cost of
each item in his inventory of words, using a computer program. Then, he entered
each item’s novelty factor using a scale of 1 to 10, the item’s size in a scale of 1
to 5, the amount of knowledge he had regarding the item in a scale of 1 to 30,
and a total of approximately forty scaled factors, including its likeliness of
becoming a part of a commercially viable invention.
His professor exclaimed, “I’ve never seen a student use a computer for such a
creative activity!”
Masayoshi submitted the results as part of his assignment and received an A
with extra pluses.
By selecting and combining three items from an inventory of 300 items,
Masayoshi was able to come up with millions of products. The computer
calculated the sum of the indicator values for each product. It displayed them in
order from the product with the highest value to the lowest. For Masayoshi, the
computer was a ‘fine horse’ that allowed him to reach further destinations. And
still, he spent only five minutes a day on inventing. Given this short time limit,
he focused on what came at the top of the list.
“Hmm... This is interesting!” he exclaimed.
He selected several product inventions and evaluated their feasibility at his
own discretion. He no longer had to struggle with paper cards and notebooks.
The decision Masayoshi came up with at this time was unique.
“I will go with one invention,” he decided and selected one idea out of the top
250. It was an “electronic speaking translator”—a combination of a ‘speech
synthesizer,’ ‘dictionary,’ and ‘LCD.’ Sharp Electronics Corporation later
commercialized the product, which became a predecessor to electronic
notebooks.

In 1978, Microsoft BASIC, created by Bill Gates, was released in Japan,
launching the computer era. At around the same time, Masayoshi, then a student
at UC Berkeley, was attempting to create the world’s first electronic speaking
translator—a pocket-sized computer with a full keyboard. However, in order to
carry out the project, it would take him 10 to 20 years just to develop the audio
feature on the computer system. If so, his 50-year plan would fall apart.
“I am an entrepreneur,” he thought. He assumed it would be wiser to bring
together professionals in the respective fields to collectively work on the project.
Life is short. He needed to use his time effectively.
Masayoshi’s project took off. He got a hold of the university’s professor
directory and started to make phone calls to professors and assistant professors
in the physics and computer science department on the pay phone at MLK Jr.
Student Union.
While Masayoshi was looking for experts in speech synthesizers, he came
across the same name many times. The very first person Masayoshi decided to
meet was Professor Forrest S. Mozer in the Space Physics Research Group at
UC Berkeley. Mozer was a world-renowned physicist, known for his pioneering
work in the field of speech synthesis.
After walking up a gradual slope from the UC Berkeley campus to the top of
a small hill, one would find the Space Sciences Laboratory surrounded by trees
and greenery. The lab was within the students’ jogging route.
“Excuse me...” pronounced a nervous young Asian man wearing a corduroy
jacket and a tie, knocking on the door of the professor’s office. The professor
removed his hands from his keyboard and looked at the door.
“Come in,” he said.
Although the student had not made an appointment prior to his visit, Professor
Mozer welcomed him. The student, who called himself Jeong, began pouring out
his ideas for an electronic speaking translator device. He passionately talked
about creating a nine-language translator device with speech synthesis
technology.
Mozer is very pleased with Masayoshi’s current success and told me he could
even rename his building the ‘Masayoshi Son Laboratory.’
“The idea itself was not new,” he shared, “but Masayoshi said he wanted to
sell them at airports and kiosks. Now that was unique.”
Mozer was 48 years old at the time and had already established himself as a
leading authority in physics. He listened to the student’s colossal plan and was
blown away.
“I am sorry, but...”
Mozer was busy.
Masayoshi was sweating as he fixed his tie awkwardly and tried to persuade
Mozer. He did not let Mozer finish.
“I want to use your speech synthesizer for this project. I need your help.”
Mozer listened quietly.
Masayoshi explained that he had no capital. He would pay him at a piece rate.
Once they developed a prototype, he would market the product, get a contract
with a company and eventually pay the professor. Masayoshi’s idea was indeed
out of the ordinary. The renowned professor, on his part, decided to make a bet
on this passionate youth, whom he met for the first time. If it were not for
Mozer, Masayoshi’s life might have turned out very differently.
7 Once in a Lifetime Encounter

“There’s a demanding customer!” a young waitress cried out to her manager,

Hong Lu.
There had never been any trouble at this ice cream shop in Oakland, located
south of Berkeley. Oakland, in the past, had areas famous for its high crime
rates, but was now developing as part of a business hub adjacent to Berkeley.
Using the Bay Area Rapid Transit (BART), Oakland was 10 minutes away from
San Francisco. BART was a subway system, which opened in 1974 in order to
relieve the heavy traffic in the Bay Area. Operating five lanes, it connected San
Francisco with the cities in the East Bay through an underwater tunnel.
“Ice Creamery” was a popular ice cream parlor in Oakland. Jim Bradley, a
graduate of UC Berkeley, opened the shop near Lakeshore in 1971. There were
22 tables, accommodating a maximum of one hundred customers. They served
light meals, such as clubhouse sandwiches, as well. The shop was open until
1:00 a.m. on weekends and was a popular hang-out spot for young people.
(Today, the creamery belongs to a different owner, but the recipe has been passed
on.)
Hong, a student at UC Berkeley who was paying his way through college,
started working at the creamery as a dishwasher and was, that night, on shift as a
manager.
“This guy says he won’t pay if the ice cream’s not served as he demands,”
exclaimed the waitress.
Hong was over six feet tall and had a strong build. He was not going to ignore
any complaints about the shop’s ice cream.
“What kind of guy?’ he asked.
“I think he’s Japanese...” answered the waitress.
This interested Hong. He had hardly seen any Japanese people on campus.
Moreover, he could not imagine a Japanese person making a complaint about ice
cream here in Oakland. There were approximately 3,000 customers a day, but no
one had ever complained.
“Who in the world...?” thought Hong, a little disturbed.
Are recent Japanese tourists to the West Coast so demanding that they would
complain about anything? Nonetheless, this was a ‘customer.’ Ice Creamery was
known as one of the best ice cream parlors in Oakland. Hong was proud to be its
manager. He was ready to meet any challenges made by his customers.
Hong saw that the customer was indeed a young Asian guy. He was asking for
an “extra thick milkshake.”
“Fine. I will make the milkshake just the way you want it. If you have a
problem with it, you don’t have to pay, but we will refuse your future visits to
the shop as well.”
Hong made the milkshake with extreme care and had the waitress take it to
the customer. He attentively watched the customer drink the milkshake, so as to
not miss the slightest change in his expression. Hong, with his large figure,
wearing a tie and apron, bent forward and asked the customer politely in
Japanese,
“How does it taste?”
“Mmmm... It’s delicious!” answered the customer.
The demanding customer, who turned out to be Masayoshi, responded with a
big smile. His girlfriend Masami had a suppressed smile, feeling embarrassed
about the fuss being made over Masayoshi’s order.
This was how Masayoshi met Hong Lu, his first business partner. Since their
first encounter at the ice cream parlor in Oakland back in 1977, their friendship
has since continued.

Hong Lu was born on November 3, 1954, in Taipei City. He was a star pitcher
in high school baseball. He later became the executive chairman of the
telecommunications equipment company, UTStarcom, Inc., a company that is
thriving both in the U.S. and China.
 For Hong to meet a native Japanese speaker was very special. His mother was
a Japan-born Chinese. Hong was born in Taiwan, but moved to Japan with his
parents when he was six years old. So he too was a native Japanese speaker.
After graduating from Jonan High School in Tokyo, he moved to San Francisco,
where his relatives lived, and started studying civil engineering at UC Berkeley.
He was another young man who came to America to pursue his dreams.
As he was educated in Japan, Hong spoke fluent Japanese, but he struggled in
speaking English, just as any other Japanese student. However, like Masayoshi,
he avoided speaking Japanese and worked hard to acquire native language skills.
He had never met any Japanese since entering college, and his encounter with
this peculiar customer at the ice cream parlor was his first.

A few months later—at the UC Berkeley campus...
Hong came across a student wearing sandals, carrying a backpack, who was
making his way through a crowd of people while reading a book. Hong noticed
it was the guy he met at the ice cream parlor and addressed him unintentionally.
“Hey, you’re...”
“Oh, you must be the manager from Ice Creamery,” Masayoshi responded.
They then formally introduced themselves for the first time.
“Are you also a student here?”
“So, you are, as well?”
They started conversing in Japanese.
Hong turned out to be two years older than Masayoshi. Once they found out
they were attending the same university, they easily got along with each other.
Since then, Masayoshi would often visit Hong’s ice cream parlor with his
girlfriend Masami.
Toward the end of 1977, Masayoshi asked Hong at Ice Creamery,
“Why won’t we do business together?”
“What kind of business?”
 “I have an idea. We’ll start up a company.”
“Huh...?” Hong could not believe his ears.
All this while, Hong worked part-time in order to pay for his college tuition
and living expenses. As graduation neared, he looked for jobs at top companies.
UC Berkeley’s Civil Engineering Department is ranked #1 in America, allowing
its alumni to work for any company they wished to. Masayoshi was still a
student. Yet, he was insisting on starting up a business with him.
Hong refrained from giving an immediate answer. He could not believe the
young man’s sudden and preposterous proposal.
“What a daring youth, speaking of doing business together so imprudently,”
he thought. “Maybe he intends to open a new ice cream parlor together...”
However, Masayoshi’s voice had a certain force. Hong was to find out that he
had a tremendous plan. However, the fact that Masayoshi was younger than him
and still a student at university bothered Hong.
“I don’t want to work for someone like him,” he thought.
However, he understood that Masayoshi was planning to do something
beyond his imagination.
“It was a new idea,” Hong recalls.
Masayoshi invited him to build a winning business together.
“He’s an honest guy,” Hong thought.
As he heard Masayoshi make his case over and over again, Hong’s feelings
started to change. What Masayoshi envisioned was completely different from
what he had planned to do in the future. Yet, Masayoshi’s ideas and passion
toward carrying out his plans deeply impressed him. Even if he was hoaxed, he
could start over again on his own. Hong decided to commit two years to
Masayoshi’s business.

The name of the company Masayoshi founded was M Speech System, Inc. M
stood for Professor Forrest Mozer. This was the very first company Masayoshi
founded. Not only Mozer and Hong, but everyone who joined the company was
older than Masayoshi. Masayoshi had already established a working group led
by Mozer, an authority in speech synthesis. This surprised Hong. The working
group was developing an electronic speaking translator.
Masayoshi shared his plans to start a big enterprise with the money he would
earn through patent monetization. Hong was soon drawn to Masayoshi and his
dreams, which he passionately spoke about. It was not just dreams, however.
Masayoshi’s plans had solid foundations. Masayoshi was planning to do
business, because he was confident of succeeding. Hong decided to give it a
shot. Masayoshi offered to pay him 20 thousand dollars a year. It was equivalent
to a university graduate’s starting pay.
“Can you really pay me?” asked Hong.
Masayoshi nodded with a big smile on his face.
The first company meeting took place at Masayoshi’s apartment in Oakland.
Masayoshi drew out the company structure as if drawing a picture. In it, he
wrote down Hong’s task as “miscellaneous work” in Japanese.
“What’s miscellaneous work?” Hong asked.
“I’ll have you do all kinds of things,” answered Masayoshi in a light tone.
Hong only had a rough idea of the company’s business. Nonetheless,
Masayoshi asked Hong to make a three-year plan. As unexpected as it was,
Hong immediately exerted himself to this work, just as he did with every other
task. No one could even predict what the political climate would be in three
years. The success of the translator was not guaranteed either.
Hong recalls the time with a bitter smile.
“I thought, and thought and thought about it. That was my job. To come up
with a three-year plan. Despite all the work I put into it, I don’t remember a
thing.”
It was their first attempt to capture the future.
From that day on, Hong started to go in and out of Masayoshi’s room.
Soon, he started to become worried. Would he really get paid?
8 A Commemorative Day

Masayoshi was all over the place. He attended all his classes and went to see
Professor Forrest Mozer at the Space Sciences Laboratory during his breaks.
From the lab, he would move to another location to meet with his project team.
Indeed, Masayoshi’s passion and promptness was moving the project forward.
As a manager, Hong Lu had to constantly look for and get a hold of
Masayoshi in order to keep up with the advancement of the project. One day,
tired of chasing Masayoshi around, Hong proposed to offer his home as an
office.
Hong had saved his earnings to buy a house on Tulip Avenue in Oakland. The
deposit was $8,000. It was not a small amount for a working student. However,
Hong was able to borrow money from the bank to purchase the property. Hong
was a prudent and reliable man, just as Masayoshi was. He rented out
unoccupied rooms in the house to pay back his loan.
The living room became the company’s office. Hong’s house was a 20-
minutes’ drive from UC Berkeley. It was a small but neat house about 1,300
square feet with three rooms. In the living room was a fabric sofa and coffee
table. It was a far cry from a company office, but was more than enough for
enthusiastic youths to gather.
On his first payday, Hong went to cash the $1,800 check he received from
Masayoshi.
“What!?”
Hong inadvertently raised his voice.
The check bounced.
“That’s impossible!” –So anyone would have thought.
However, Hong knew that Masayoshi would not give him a check, knowing
that it was uncashable. Or, so, he believed.
 However, on the next payday, the check bounced again for the second time in
a row.
Hong laughed out loud bitterly. He realized that Masayoshi probably had no
idea or interest in the balance left in his account. What came into Hong’s mind
was the sight of Masayoshi busily running around. He did not feel betrayed. At
this moment, Hong had a renewed sense of respect for Masayoshi. Although
there were times Masayoshi could not issue a check by the due date, from the
third payday on, the checks Hong received never bounced.
Masayoshi was indifferent to small-scale numbers. For him, there was
probably no difference between $1,800 and $180. As a young person, he was
adept at grasping huge numbers, but was uninterested in dealing with small
sums. He still has this uncommon mode of thinking. Masayoshi would at times
stride down the streets without any cash on him. In fact, he did not have the habit
of carrying a wallet.

It was a time before the electronic speaking translator device was invented. To
attain the exclusive rights to sell the speech synthesizer element in Japan was the
first practical step for Son’s business. Speech synthesizers would make possible
all kinds of things. For example, it could pronounce “welcome” and “thank
you,” as customers entered and left a building. This could enhance the quality
and trust in a store. No longer was there a need to manually turn the tape on for
the same effect.
Masayoshi went to negotiate with National Semiconductor Corporation,
which Mozer licensed the technology to, and, to his surprise, was granted the
exclusive right to sell the synthesizer.
Masayoshi immediately made an appeal: “We have speech-synthesizer chips.
Please sign a contract with us. Once you send the money, we will send you the
chip.”
There was a Japanese enclave, known as Japantown, in San Francisco, which
Japanese immigrants built in the 19th and early 20th century. Hong transcribed
Masayoshi’s words into business Japanese and sent it out to Japanese companies
in Japantown. Immediately, 20 to 30 companies, including some major
companies, responded, showing their interest in the $200~$300 chip. All of a
sudden, the chip was in great demand.
Masayoshi felt good. The responses exceeded his expectations.
“Please go out and get a contract,” urged Hong.
“I will go to Japan,” Masayoshi replied.
Masayoshi flew back to Japan immediately. He acted swiftly. He never
hesitated for a moment. This was one of Masayoshi’s basic principles of action.
Once he departed, he did not come back for three or four weeks. Hong shrieked.
During Masayoshi’s absence, Hong at times attended Masayoshi’s classes and
answered the attendance roll in his place. For Masayoshi, Hong was like a blood
brother.
Hong, too, believed his insights were correct.
“It was not a mistake to place my wholehearted trust in Masayoshi,” he
thought.
Although M Speech System struggled in the beginning, the company was
now making headway. However, the company soon suffered its first setback,
falling into a pitfall in an unexpected way. National Semiconductor Corporation
had regretted granting Masayoshi the rights to sell in Japan. It notified
Masayoshi’s company that they could not grant them the right without the
consent of its subsidiary, National Semiconductor Japan, Ltd. It was obviously
an excuse. It was an unfair and vicious move by National Semiconductor to take
over Masayoshi’s business plan. However, Masayoshi was still a novice in
business and allowed the other party to take advantage of him. Masayoshi had
little knowledge of contracts. He was still a student, and was not yet adept in
business dealings. He was almost unaware of the cunning side of business.
Masayoshi negotiated with National Semiconductor Japan, asserting that his
contract with the U.S. corporation was valid. The negotiations became strained.
National Semiconductor Japan maintained that, although he was granted the
sales rights, the contract was not official. In the end, they failed to come to an
agreement.
Masayoshi said with an unusually stern voice, “Let them do as they like,” and
backed out of the speech synthesizer marketing business. Through this bitter
experience, Masayoshi realized once again the importance of contracts.

With a great business opportunity falling through, Masayoshi had to hasten
the completion of the electronic speaking translator. Some people are defeated
with a single setback. However, some people do not regard obstacles as setbacks.
Masayoshi made a big bet on the electronic speaking translator.
Around this time, Charles W. Carlson joined the project team. Carlson was
interested in Masayoshi’s project and was encouraged by Mozer to join the team.
Carlson was a research physicist & senior space fellow at the university’s Space
Sciences Laboratory. He was an expert in hardware design and was involved in
developing a microcomputer installed in the Apollo spacecraft. Based on
Masayoshi’s ideas, he developed the hardware for the translator in four months.
Speech synthesizers back then were bulky and not suited for carrying around.
Masayoshi’s idea was to not only minimize and make the synthesizer portable,
but also to make it available in airports for a large number of people to use.
“That part was very unique. Jeong (Masayoshi) was an expert in marketing,”
recalls Carlson.
After Carlson got off work, Masayoshi would often come over to his
residence to discuss the project’s progress. Later on, a technician named Henry
D. Heetderks took over Carlson’s tasks. Carlson, who worked for Masayoshi for
$50 per hour back then, is amazed at, and at the same time, takes delight in
Masayoshi’s current success.

On that day, September 23, 1978, 12:00 p.m., Masayoshi hastened his way to
the Space Sciences Laboratory in his second hand Porsche 914. He approached
Mozer, and with a tender smile on his face, the professor pointed to the room
next door. Carlson was working on the device in a frenzy. They were waiting for
the completion of the German prototype of the translator. They were behind
schedule. Hence, Masayoshi appeared at the lab on that day.
“Yes! It works!” exclaimed Carlson.
He typed on the keyboard of the prototype black box. On the LCD screen
were the words, “Good Morning.” After pressing the “translate” button, the
words on the screen changed to the German “Guten Morgen.” The device then
pronounced the German words.
Masayoshi rejoiced, “This is amazing!!”
He patted Carlson’s shoulders. It was a day to commemorate.
However, for Masayoshi, this was a day to celebrate another completely
different occasion. Masayoshi shrieked. He and Masami were to take an oath.
Masayoshi looked at his watch. It was far past their appointment hour at 2:00
p.m.
Masami—a beautiful, but strong woman. A woman from Kumamoto, Japan,
the “Land of Fire.”
9 Wedding March

Masami had been waiting in front of the courthouse since 2:00 p.m. Autumn
leaves were whirling in the wind.
September 1978—California was in the midst of autumn. The hills were
ablaze with autumn tints.
Masayoshi was driving his Porsche 914 at full speed. After driving down the
sloping road, he made a left turn on Stadium Rim Way. Passing through the
north gate of the university, he hurried to the Berkeley Courthouse in downtown.
He ran through several red lights.
Masami worried that Masayoshi might be caught up in traffic or have gotten
into an accident. It was a 15-minute drive from the campus to the courthouse, but
it seemed to be one or two hours for Masayoshi.
After arriving at the courthouse, Masayoshi struggled to find a parking spot.
Once he got out of his car, Masayoshi rushed toward the building. When she
caught sight of Masayoshi, Masami felt relieved, but started to feel a little upset.
It was a special day for the two of them.
“What happened?” she inquired.
“I’m so, so sorry!” Masayoshi answered bowing his head down. He explained
to her that the pilot speaking translator was done and that he had lost track of
time. Masami was dumbstruck, but she did not reproach him any further. For
Masami, this was not a surprise. It was not unusual for Masayoshi to forget
about everything when he concentrated on certain things. His concentration
while studying was so great, that others would keep their distance from him. One
time he was so absorbed in thought, he walked into a telephone pole.
Masayoshi had extraordinary concentration and focus. He dedicated five
minutes a day to come up with an idea for an invention. Within such a short
time, Masayoshi was able to produce tangible results. When focusing his mind,
Bill Gates is said to forget about the existence of the person in front of him, as he
slightly jittered. Maybe geniuses follow a different train of thought from
ordinary people. Or, maybe it is because they consciously dive into such a
direction that they are different from ordinary people. Masami understood
Masayoshi more than anyone.
Masayoshi tried to open the heavy doors of the courthouse. It was slightly
past 5:00 p.m. The courthouse door was locked.
“Please open the door!” yelled Masayoshi.
A guard with a gun around his waist appeared.
“We are supposed to get married today. Can you please tell the court judge?”
Masayoshi pleaded.
“The judge already left. You should come back another time,” the guard
replied.
Masayoshi shrugged his shoulders and apologized to Masami, “I am so, so
sorry...”

Masayoshi rescheduled their courthouse appointment a week later on
September 30 at 3:00 p.m. Early on that day, Masayoshi told himself, “I will not
be late today,” as he glanced at his watch before entering the Space Science
Laboratory.
The prototype of the speaking translator was completed. However, Masayoshi
was not yet satisfied. The question was how he would market this to the world.
A heated discussion took place among the project members.
By the time he looked at his watch, it was already past 3:00 p.m. He knew
Masami would not forgive him this time.
When he arrived at the courthouse, Masami was waiting.
“You really forget about everything when you’re into something,” she said.
They entered the courthouse together. Masayoshi asked the female clerk at the
front desk,
“We’re a bit late, but can you ask the judge to conduct our marriage
ceremony?”
The clerk was astonished. No couple was ever late for their marriage
ceremony. Moreover, it was out of the question to miss an appointment with a
court judge. This couple was now late for the second time. However, the female
clerk was soon moved by Masayoshi’s sincere appeal. She went into another
room to ask the judge. Masayoshi looked around uneasily. The guard who turned
him away a week ago smiled at him. He, too, knew how desperate Masayoshi
was.
The female clerk returned.
“It seems like you’re excused for coming in late.”
Masayoshi and Masami walked past many rooms up to the second floor. The
judge in court dress, who was waiting in the chamber, asked the couple,
“Where are your witnesses?”
“Witnesses?”
Masayoshi did not understand what the judge was talking about. The judge
explained to him that two witnesses needed to sign the marriage register. It was
an unexpected revelation—Masayoshi had appeared in court, without a clue of
what he needed to get married at a courthouse in America. There was not enough
time to call his friend, Hong Lu, to come over. However, Masayoshi did not
waver.
“Please wait. I will bring them right now,” he told the judge and left the room.
He found the court guard and asked him,
“Can you please do us a favor and be a witness to our marriage?”
The guard warmly agreed.
Masayoshi then asked the female clerk at the front desk.
“Sure!”
She responded without hesitation.
In the chamber on the second floor, the judge read the vows and the couple
exchanged their vows with each other. At the end, the judge pounded the gavel
in approval. The guard and clerk, standing at a distance congratulated the two.
The newlywed couple came out of the courthouse. They were in high spirits.
They felt a surge of emotions rise up within. They first met at Holy Names
College and were now spending meaningful days together at UC Berkeley.
Masami had been supporting Masayoshi—both conspicuously and
inconspicuously, in light and in darkness. The two individuals chose each other
as husband and wife.
They got into the car.
“Let’s go on our honeymoon!”
“Where to?”
Masayoshi smiled at Masami, as he started the car. The cool evening air
caressed his face. Masayoshi felt like driving on forever. The Porsche 914,
which carried his newlywed wife, crossed the Bay Bridge and made its way
south on the 101 Freeway, overlooking San Francisco City on their right. They
passed through Silicon Valley, got on State Route 17, then passed through Santa
Cruz and drove south on the Pacific Coast Highway (PCH). The PCH travels
along the beautiful coastline of the west coast of the United States.
A special feeling took over them as they drove down the forever-continuing
coastline.
Masami’s smile was beautiful.
On her left ring finger shined a ring sent by Masayoshi’s grandmother.
Masayoshi was 21 and Masami was 23 then.
10 The Contract

A year before Masayoshi and Masami were married, Masayoshi sent out
letters to 50 consumer electronics companies in Japan, explaining the main
features of his electronic speaking translator. He planned to visit 10 companies
that responded, including Canon, Omron, Casio, Matsushita Electric Industrial
(currently Panasonic) and Sharp.
Masayoshi decided to visit Japan during his summer break together with
Mozer.
Masayoshi’s younger brother, Taizo, was not yet in elementary school, but
vividly remembers his brother’s visit back then. Masayoshi demonstrated the
prototype in front of his family.
“My brother entered “ko-n-ni-chi-wa” in Japanese. Then, the translator said,
‘hello.’ I was blown away. Our father was shocked, too,” recalls Taizo.
Masayoshi was a little nervous when he traveled from Kyushu to Tokyo,
carrying the prototype in a furoshiki (a traditional Japanese wrapping cloth).
Indeed, he was absolutely confident inside—he had invented the world’s first
speaking translator. It could translate Japanese into English and vice versa.
Although it was not yet ready to be marketed, it was a truly innovative invention.
Masayoshi needed to find a company that would make his prototype smaller,
lighter and cheaper in order to market it. At the time, Sharp and Casio were
ahead of Sony and Matsushita in terms of electronic calculator technology.
Masayoshi believed the two companies would be able to realize his ideas for the
translator. He chose Sharp among the two. Sharp had developed the first
electronic calculator in Japan. It was, indeed, a pioneer in the field of electronics.
Sharp was Masayoshi’s number one choice. But, should he approach his top
choice first?
Masayoshi had his own negotiation strategies. However, he had no experience
negotiating with giant firms. He felt a bit uncertain on whether he could
convince them that this was a promising innovation. Masayoshi was bold in
taking action, but put every possible thought and care into each step he took. He
thought through what kind of questions the companies would ask, how he would
convince them if they showed absolutely no interest in the product, and so forth.
He then concluded that he should rehearse a little before he challenged his top
choice.

The first and second companies he visited responded alike:
“We’ll think about it, when it’s in a little more proper form.”
Although he was prepared for such a reaction, Masayoshi started to feel a bit
discouraged. The third company he visited was a company he had respect for.
However, when they treated him with contempt, Masayoshi not only felt despair;
he also developed a feeling of contempt toward the company.
“This company will never understand the greatness of my invention,” he
thought.
The fourth company he visited was Canon. Seeing Mozer and recognizing the
members of the project team, they trusted Masayoshi. They also showed interest
in the prototype.
Next, he visited Casio, which was one of his top two choices. The manager
and deputy manager who received him tore apart the idea.
“Was it a mistake to put faith in them?” Masayoshi thought. “I shouldn’t be
upset, though. No matter how desperate matters are, anger will not bring about
anything.”
Masayoshi was able to control his feelings.
Nonetheless, Masayoshi was filled with disappointment at this visit.
Masayoshi recalls the incident later onHowever, when they disdained him,
“Casio gave me the most unexpected response. The manager turned me down
flat. They trashed the whole idea.”
Since then, Masayoshi never visited Casio again.

The next day, Masayoshi was at Sharp’s industrial equipment division in
Abeno, Osaka. Although he was extremely nervous, he calmly untied the
furoshiki that wrapped up the prototype. The manager, who brought with him
several of his men, said,
“There is potential, if we can commercialize it well.”
He hit on the core of the matter. Masayoshi was speechless for a moment.
Indeed, the invention had unknown market potential, and Masayoshi had a
strong desire to commercialize it. Sharp did not flatly reject the idea like some
other companies did. If he kept on negotiating with them, he would be able to
get his ideas across. As long as he took the time, they would be able to come to
an agreement.
However, Masayoshi was in a desperate situation. He flew to Japan as a
student. He could not lose any credits back at Berkeley. Every minute he spent
away from school was valuable. However, the companies had no idea of his
situation.
Seeing room for negotiation with Sharp, Masayoshi decided to go forward.
His experience back then formed the basic foundation for his business practices
today.
A Japanese proverb says, “If you wish to shoot the general, shoot his horse
first.” At times, it is more of a shortcut to deal with the surroundings first in
order to attain one’s goal. A Japanese frame of mind would have encouraged this
way. However, the young Masayoshi targeted the general first.
Masayoshi called the patent office in Osaka from a public phone. He wanted
to know a patent agent who was experienced in doing business with Sharp.
Who knows where fortune might lie.
Masayoshi called many places and, finally, through his connections, was
introduced to Nishida at the Nishida Patent Office, who had once belonged to
Sharp’s patent division. Masayoshi went straight to Nishida’s office in order to
find out whether the speaking translator could be granted a patent and who was
the key person at Sharp to negotiate with.
“Who should I talk to?” Masayoshi asked, getting right to the point.
Nishida gave out the name of the engineering manager, Tadashi Sasaki.
 “Can you please call him and tell him that he should meet with me?” asked
Masayoshi.
Sasaki was also the director of Sharp Central Research Laboratories at the
time. He was a leading figure in the development of the electronic calculator,
LCD display and solar batteries and was known as “the father of the electronics
industry.” He is one of the persons to whom Masayoshi is greatly indebted to
today.
Nishida, who just confirmed that he would be able to acquire a patent with the
translator, was not able to reject Masayoshi’s demand. Young Masayoshi was
ahead of the game.
“Mr. Sasaki says he will meet with you,” Nishida reported back to him.
Masayoshi felt like jumping for joy. However, he was calm enough to ask
Nishida to proceed with the application for the patent.
Masayoshi was finally able to meet with someone who would understand his
idea. His appointment with Sasaki was on the following day. Once he returned to
his hotel room, Masayoshi called his father, Mitsunori, back in Kyushu.
“I’m going to meet Mr. Sasaki at Sharp tomorrow.”
For Masayoshi back then, Sasaki was a man beyond his reach.
“Should I go with you?” Mitsunori asked excitedly.
Masayoshi was also trembling with excitement.
“Of course. You can introduce us at the beginning.”

The next day, Mitsunori arrived in Osaka. Masayoshi, together with his father,
went to the Sharp Central Research Laboratory in Amano City, Nara Prefecture.
“This is the device my son created,” said Mitsunori.
Being successful in the pachinko industry, Mitsunori was skilled at
communicating with others. He spoke very frankly with Sasaki, whom he met
for the first time.
Masayoshi carefully removed the furoshiki. Once Masayoshi started
explaining the device, Sasaki’s expression changed. He saw great potential in the
electronic speaking translator. He might have recognized Masayoshi’s greatness
at the same time.
“How interesting!” Sasaki exclaimed with beaming eyes.
Sasaki, who was an expert in computers, must have considered it an
innovative invention. Masayoshi added that the device needed further
improvement.
For Sasaki, who was in his 60s, Masayoshi must have appeared young.
However, Sasaki was able to perceive Masayoshi’s inner strength and potential.
Unlike the youth of the time, his thinking was solid and down to earth.
Sasaki recalls the young man’s serious expression:
“He was a bit down after visiting several companies and being rejected, but
once he started demonstrating the prototype, his expression changed. He had
strong convictions. I knew he wasn’t there for the money.”
There were no such youth then, and Sasaki felt the need to help foster this
young talent. In the eyes of Sasaki, who believed that “having a dream is the first
step to developing new products,” Masayoshi appeared to be a youth who had a
dream. He was also impressed by the fact that, although he was still a student,
Masayoshi had a good understanding of marketing.
“I’m going to give this guy a shot,” he thought.
Sasaki was captivated by the youth. As an agreement to sell Sharp the patent,
Masayoshi was to be paid 40 million yen on the spot.
The first ever contract was made. Seeing Mitsunori’s proud face, Masayoshi’s
joy multiplied. Both father and son were in high spirits.
Sasaki later requested Masayoshi to develop the software for German and
French. The contract amounted to approximately 100 million yen. However,
Masayoshi prefers to call it the “1 million dollar contract.” It was the first
amount of money Masayoshi had ever earned in Japan, paid from one of the top
companies in the nation.
It was the fruit of his tireless effort and youthful talent.
11 Masayoshi’s Pride

Mitsunori named his son Masayoshi13 with the hope that he would become a
man of justice. As if responding to his father’s wish, Masayoshi grew up to be an
honest and upright young man. Indeed, it was in his blood. Masayoshi’s
grandfather, Chongkyong, was from Daegu, Korea. Daegu is located in south-
eastern Korea. It has produced many politicians, including former President Taeu
No, and hosted the 2002 FIFA World Cup soccer games.
Chongkyong crossed the sea to Kyushu when he was 18 years old. He worked
at a coal mine in central Kyushu and later on moved to Tosu, where he worked
as a farm laborer. The Kagoshima Main Line and Nagasaki Main Line passed
through Tosu station. Masayoshi was born north of this station.
Chongkyong married Wonjo Lee from Gangwon Province, Korea, and had
seven children. The eldest son was Mitsunori, Masayoshi’s father.
The Son family lived with pride. They are said to be the descendants of the
military general Sonkan from the Goryeo Dynasty.14 Chongkyong was an 18th
generation descendant from Sonkan. Wonjo Lee was also from a family of high
social status. However, Masayoshi was told that, because their family became a
guarantor to an acquaintance, they’d become bankrupt.
Masayoshi’s father and mother were often out working, so his grandparents
brought him up. This is perhaps one important factor in understanding this man’s
personality.
Unlike his reticent grandfather, Masayoshi’s father, Mitsunori, was a carefree
man with a bright personality. He took pride in being different from others. He
saw value in living differently from other people. This undoubtedly had an
impact on Masayoshi. Doing something different and unique, however trivial a
matter— this creative inclination was passed onto Masayoshi.
Masayoshi looked up to his father, who started up a business from nothing.
He sometime calls himself the “1.5th generation.” He was not quite the second
generation who succeeded his father’s business. It was an expression of
Masayoshi’s respect for his father, as he inherited many things from him.
The father was also proud of his son, whom he named ‘Masayoshi,’ or
‘justice.’
“One is rewarded for doing the right thing. He is living up to his name,”
Mitsunori says.

Here, I would like to go back in time for a moment.
Masayoshi, who was in kindergarten, was growing up as a bright and honest
boy. One day, something very insulting to the child happened.
“Hey, you Korean!” shouted a kid in the same kindergarten, throwing a rock
at him. The rock hit his head and blood spattered all over the place.
“Why...?” thought Masayoshi, as large teardrops streamed down his cheeks.
He could not understand the cause for such irrational discrimination. He was told
that his grandparents were from Korea. What was wrong with that? His
grandparents were working hard in a foreign land in order to survive. Wasn’t that
respect-worthy? There was no reason to feel ashamed.
Masayoshi’s grandmother was always kind and had a smile on her face.
She would often say, “Masayoshi, we need to thank people by working. It’s
all because of others.”
Masayoshi felt pride in the country where his grandparents came from.
However, it was a taboo to talk about it in Japan. The young Masayoshi told
himself that, together with the incident, the fact that he was a Korean descendant
must be kept a secret. He tried to forget about it; however, even a while after he
grew up, on rainy days, his old wound ached. Did the boy who threw the rock
realize how much great he had caused?

Even after such a painful experience, Masayoshi did not lose his cheerfulness.
The young Masayoshi grew up freely and innocently.
One day, his father, Mitsunori, started to tell him, “You are a genius,” in a
rather serious tone. He saw in Masayoshi something different from other
children. It was not much of his character, as it was what he was aiming for. It
was not merely a biased observation made by a parent. Masayoshi, on his part,
started to think that he might be a genius as well. Once he believed so,
Masayoshi went forward with it. In such cases, even Mitsunori could not stop
him.
One time, Masayoshi inadvertently talked back to his grandmother.
His father scolded him, “Masayoshi, you wouldn’t be living in this world if it
weren’t for your grandma. You should never talk back to her.”
“All right,” Masayoshi responded, “I won’t talk back to her. But you can’t
either. I see you sometimes quarrel with her. Now, tell me that you won’t quarrel
with her anymore.”
No matter who it was, parent or child, Masayoshi demanded the same
standard of justice—this was what he strongly believed in.
Masayoshi followed Mitsunori, who refused to give him a clear answer, up to
the second floor. When Mitsunori looked behind him, Masayoshi seemed as big
as a solid rock mountain. Tears started welling up Mitsunori’s eyes.
“Shin yiyo (oh, dear God).”
He prayed deeply inside. This child was a blessing from God, he thought.
Masayoshi was not his child. He was to widely contribute to society. Therefore,
Mitsunori determined to give him the best education. Although Mitsunori never
told his son to study, Masayoshi’s grades were excellent. His only weakness was
in music.
Not only were his grades excellent, Masayoshi showed distinct leadership at
school. He was admirably called “Yassan” (which may be translated to “Mr.
Yasu.” “Yas” coming from his Japanese surname, Yasumoto, and “san” from the
Japanese honorific suffix). He was always kind to his classmates, never
discriminating against anyone. He would take on every “issue” and clarify the
problem, and, when he found fault in others, he patiently had dialogue with them
until they reached a common understanding.
“I learned many things in elementary school. One should not order others.
Instead, one should connect with others as comrades through developing a
shared goal.”
 His experience during elementary school helped him in practicing business
later on.
“As long as you can cultivate a sense of camaraderie in the relationship, I
think M&A is the greatest way to expand in terms of management,” Masayoshi
says.

Takashi Mikami, who was Masayoshi’s teacher at Hikino Elementary School
in Kita Kyushu City, put emphasis on ‘group education,’ in which students who
were divided into groups cooperated with each in order to achieve a goal.
Among the students, Masayoshi stood out as a leader. Being greatly influenced
by Mikami, Masayoshi aspired to be a teacher. He told his father and mother,
“I want to be an elementary school teacher.”
“Hmm...that isn’t possible,” answered his father.
“Why?”
“It’s a public sector job. You have to have Japanese nationality in order to
become a school teacher.”
“I just want to educate kids. Why should nationality matter?”
Masayoshi’s parents were troubled at this question. It was no longer an
individually solvable matter.
“Let us naturalize as Japanese citizens,” Masayoshi pressed his father.
“Masayoshi, you may not understand, but I believe that you are a genius. An
elementary school teacher is a noble job, indeed. But I think there’s something
out there that better suits you. You just don’t know your destiny yet.”
Masayoshi, who could not agree with his father, did not speak with him for a
week. He never told Mikami what had happened between him and his father.
In Mikami’s class, students exchanged a correspondence notebook. Eight
notebooks were filled by his students by the end of the year. A wide range of
topics was written on them. One entry by Masayoshi described his agony at not
being able to visit his mother in the hospital due to his busy extra-curricular
activities.

“My mother is in Nenkin Hospital. She seems to be very ill. But it is difficult
to say, “Please get well soon,” to her straightforwardly. I realized how grateful I
am to my mother. So, I am very worried about her. So, I try to say, “Mom, you’ll
be alright,” and am unable to, due to fear. What should I do?
“I myself think of her very deeply. The visiting hours for Nenkin Hospital end
at 6:00 p.m. But, after taking care of class matters and practicing soccer, I could
only come home at around 5:30 p.m. every day. I feel bad for others if I leave
practice early. And when I can’t go visit her for a few days, my brother tells me
that I am a ‘cold-hearted person.’ To be called so is the most painful thing for
me. Mr. Mikami, what should I do?”

A poem written by Masayoshi is found on the cover of one of the class
notebooks titled “The Pocket of Love.”

Friendship

Friendship is born when both become completely naked to each other
Friendship—friendship between guys is born when each thoroughly
understands the other’s weakness
Friendship—it is the proof of a human being, living as a human being
Friendship is not equal to mere sympathy
One steps into the other’s heart, because one wishes the other to stand up,
because one believes in the other!

Through this vivid poetry, one could grasp a sixth grader’s sentiment. One
could also see how this young man’s mentality led to the development of a
strong bond between Hong Lu and Professor Mozer in later years.
Masayoshi had written another poem.

Tears

Have you ever shed tears
“You”15
“You”16
Do you understand
how precious tears are?
It is an important thing
that shows a human being’s emotion
“Tears”
Are you ashamed of
shedding tears?
But nobody sheds tears because they want to
“A pure white pearl”
It is a precious thing for human beings
“It is a precious thing”
Even so, are you still ashamed?
“In times of agony”
“In times of sadness”
And
“In times of pity”
Your tears will flow, naturally
Even so, are you still ashamed?
 There are very cruel tears as well
That is
“Tears for being showered with tragic suffering from the atomic bomb”
“Tears of anger, caused by discrimination against African Americans”
“The massacre of Son My Village”17
All the people in the world will cry, now and in the future
In order to declaim such tragedy, tears are necessary
Even so, are you still ashamed?
“Tears are precious”

In his poem, the sensitive young Masayoshi brought up the atomic bomb,
racial discrimination in the U.S. and the Son My Massacre, which took place
during the Vietnam War. The young boy’s emotion, filled with a strong sense of
justice, is simply expressed in these lines. Masayoshi valued friendship and
loathed discrimination. Compassionate toward others, Masayoshi was a bright
and gentle youth, and many around him were fond of him.
12 Aspirations

March 31, 1970— The Japanese Red Army (JRA)18 hijacked Japan Airlines
Flight 351, Yodo-go. Nine JRA members freed all passengers at Gimpo Airport
in Seoul, South Korea, and took off to Pyongyang, North Korea, where they
were granted asylum.
Three months after releasing their final album, Let It Be, the Beatles split. On
April 10, Paul McCartney officially announced the dissolving of the rock band.
Paul left the group in order to spend more time with his family. Some say the
break-up was due to Yoko Ono’s involvement in the band.
On November 25, the popular Japanese author Yukio Mishima,19 known for
writing Confessions of a Mask and The Temple of the Golden Pavilion,
committed suicide by seppuku20 after barricading himself in the Japan’s Self-
Defense Forces’ camp in Ichigaya, Tokyo, with four members of the Tatenokai
(“shield society”), calling for a coup d’ état.
The times were rapidly changing.

That year, Masayoshi entered junior high school. He, too, was thrown into the
raging times.
As soon as school started, Masayoshi joined the soccer club. Realizing that he
had to work on strengthening his legs, he walked in a custom-made iron geta
(footwear resembling clogs or flip-flops).
In the 1970s, the baseball comic book series Kyojin no Hoshi (Star of the
Giants),, written by Ikki Kajiwara and illustrated by Noboru Kawasaki, was
popular among the youth. Many were taken by the dramatic father and son
relationship between Ittetsu and Hyuuma Hoshi, the protagonist
Every child aspired to Hyuuma. Masayoshi was no exception. Hyuuma
became a legendary pitcher by training his body, using custom training gear.
Masayoshi aspired to be a Hyuuma in soccer.
 The young man, who thoroughly carried out matters once he set his mind to
them, wondered if he could physically train himself while commuting to school
and came up with the idea of iron geta.
In time for the start of the second semester, the family moved within Fukuoka
City so that Masayoshi could enter a junior high school with higher academic
standards. We can see how much his parents were committed to Masayoshi’s
education through this move. As a result, Masayoshi was enrolled in Jonan
Junior High School in Jonan Ward. It was a high-ranking school, which led
many students into the prestigious Shuyukan High School.
Because there was no soccer club at Jonan Junior High, Masayoshi joined the
kendo club. Even at this new school, Masayoshi became a popular figure, not
only among the boys, but the girls as well. Masayoshi, however, remained
completely oblivious of this fact.
While he practiced kendo, some soul would be watching him from a distance.
Many girls were attracted to Masayoshi’s stateliness. He was a swordsman
wearing kendo gear, carrying a shinai (a fencing stick made of bamboo).
Although still young, Masayoshi had a strong fighting spirit and seemed to
already embody the heart of swordsmanship.
Masayoshi, who had moved from Kita Kyushu, had a different accent from
his peers, who spoke in Hakata dialect. For example, “Dou shita no (What
happened)?” in standard Japanese would be “Doshi-tan?” in Kita Kyushu dialect
and “Dou shita to?” in Hakata dialect. Masayoshi would pronounce “asoko
(there)” as “akko.” “Akko” is a common Japanese nickname for females named
Akiko. Therefore, the girls would tease him by saying, “who’s Akko?” But,
Masayoshi would just smile back. The girls perceived Masayoshi’s easy-going
character; at the same time, they felt something mysterious in him for he never
revealed his inner feelings. There must have been girls who secretly fell in love
with him.
Masayoshi’s commitment to justice grew stronger as he grew older. During
Japanese class in junior high school, the instructor imprudently called him “An-
pon.”21 The two Chinese characters which make up his surname, “yasu ()” and
“moto (),” can be respectively read as “an” and “pon.” Masayoshi was not upset
at this. He was not silent, either, and coolly spoke out.
“I don’t think that’s appropriate. Could you please pronounce it correctly?”
 The instructor tried to ignore his complaint, but all 45 classmates were behind
Masayoshi.
“Yasumoto is so cool,” they thought.
It wasn’t easy for a student to stand up for himself against a teacher.
The girls were once again drawn to his courage.
One day after school, a group of female students got themselves into trouble.
One of the female students ran back to school. Masayoshi happened to be in the
classroom alone.
“Help!” called out the girl.
Masayoshi ran to the site and shouted out to the offender, “Stop!”
As he intervened, he got hit in their stead. However, with his sacrifice, the
incident was settled.

Masayoshi hung out with his friends a lot. They would run up the hills along
the Muromi River on their bicycles and catch dark sleeper fish. Kazuo Koga was
one of the friends he would go fishing with and do sleepovers as well.
“Why won’t you come and sleep over tonight?” asked Masayoshi.
“Alright!” answered Koga and he walked over to Masayoshi’s house after
dinner.
Masayoshi and Koga talked and listened to music late into the night.
Other than the books that filled his shelves, Masayoshi’s room had no special
characteristics, but the big poster of the actress Shima Iwashita on the wall
caught the eyes of those who entered. Iwashita was in many films dealing with
social issues, such as The Shadow Within, written by Seicho Matsumoto. She
was an experienced actress at the age 29. This mature woman was Masayoshi’s
idol.
Masayoshi was also into bowling at this time. He sometimes appeared late for
school, for he bowled early in the morning before classes. It was indeed
Masayoshi’s nature to single-mindedly commit himself to a matter once he set
his mind to it.
In his second year of junior high school, Masayoshi ran for president of the
student council. Koga helped Masayoshi with the election posters.

In his third year of junior high school, Masayoshi started to devote himself to
studying. His grades were all five out of five in Kita Kyushu, but they all went
down to all two out of five in this prestigious junior high school in Fukuoka. He
asked his classmate, Takeyoshi Miki, who was the best in school, for advice.
“How can I strengthen my academic performance?” he asked.
“Go to Morita Cram School” was Miki’s answer. Masayoshi had some
resistance to going to cram school, but he decided that it was the quickest way to
achieve his aim. He went to Morita Cram School with his mother for an
interview. The Director, Yoshiyasu Morita, looked at Masayoshi’s report card for
a while and said,
“We won’t be able to accept you with these grades. Could you please find
another cram school?”
Needless to say, Masayoshi was not the kind of young man who would retreat
in such a situation.
Masayoshi consulted with his friend Takeyoshi’s mother, Toshiko.
“Can you please ask Mr. Morita for me?”
Seeing how serious Masayoshi was, Toshiko decided to lend him a hand.
Masayoshi once again visited Morita Cram School with Toshiko.
“This is my son’s friend, Masayoshi Yasumoto. He is a very fine young man.
Could you please take care of him?” she pleaded.
Morita, who was moved by their tenacity, accepted Masayoshi in. Masayoshi
started to study fervently. Although he was not able to keep up with the high
academic standards of the cram school at first, his grades eventually rose.
Masayoshi shared his thoughts with Toshiko later on.
“I am here today because of Miki-kun (Takeyoshi) and you. If I hadn’t met
Miki-kun, I would have been a gangster, deviating from the right path.”
As graduation neared, Masayoshi and his friends determined their respective
future paths, and they were to all go in different directions.
Masayoshi started to feel uneasy. There was one personal issue he had to take
care of before graduation.
One day, Masayoshi visited Tenjin22 together with Koga and other friends.
They entered a shop selling red bean cakes on the west avenue of Tenjin.
Masayoshi started to speak with his untouched bean cake in his hand.
“Um, actually...”
His friends looked at him intently.
“I haven’t told you all, but there is something I have to tell you,” he said with
a serious expression.
“I’m Korean...”
Choosing each word, he continued,
“I thought our friendship would fall apart if I told you this, so I wasn’t able to
say it for a long time. I’m sorry.”
At heart, his friends were surprised, but said nothing.
“It stopped raining,” one said.
“Let’s go,” said another.
The young men rode on their bicycles. The cool wind that caressed their
cheeks felt refreshing. Everyone’s face was shining as bright as the sky after the
rain.
13 A Samurai Spirit

The brave generals of the Sengoku Era (Warring States Period) inspired
Masayoshi. He was told by his father that Sonkan of the historic Goryeo Dynasty
was his ancestor. Due to such a background, he developed an interest in Japanese
history as well.
The rise and fall of various warriors and commanders marked Japanese
history. Among them, the stories of the great generals of the Sengoku Era, such
as Oda Nobunaga, Toyotomi Hideyoshi and Tokugawa Ieyasu, fascinated
Masayoshi the most. It was at the start of his junior high school years.
Among the warriors who appeared like shooting stars, Oda Nobunaga stood
out the most. He was fascinated by his radical way of living. He was called the
“fool of Owari Province” and, as a young person, he fought against notable
clans, such as the Uesugi, Takeda and Hojo. His father in law was the ferocious
Saito Dosan, also known as the “Serpent of Mino” for his cruelty. He
consistently challenged the existing feudal society that bound people. After
conquering the nation, he pursued revolutionary policies. He came up with new
policies one after another. For instance, he banned the sekisho (checkpoints for
controlling the movement of people and goods), promoted a free market system
through raku-ichi raku-za policies and allowed the propagation of the Christian
faith.
Masayoshi once shared with me his thoughts on warriors. He thinks
Nobunaga is the greatest. His favorite, however, is Ryoma Sakamoto.
“Because I wouldn’t easily be able to be like him, the more I feel he is great.
Liking someone is being able to relate with that person for his shortcomings and
humanness.”
In the world of management, Konosuke Matsushita would be great and
Soichiro Honda would be his favorite.
Masayoshi carefully learned from Nobunaga’s strategic perspectives.
 “In our times, we hardly see any entrepreneur who can strategically
revolutionize society like Nobunaga,” he says.

One author enhanced public interest in these historic figures. The literature
piece produced by this author had a significant impact on Masayoshi as well.
Ryotaro Shiba was a popular Japanese author, who represented the country,
known for his historical novels, essays and critiques. His masterpiece, Ryoma ga
yuku, is considered true popular literature and a modern classic. It is a
voluminous historical novel about the exquisite life of Ryoma Sakamoto, a
samurai warrior in the Bakumatsu Era.23
Masayoshi repeatedly read Ryoma ga yuku. He perused the book at least three
times. He first read the book at 15, a year before he decided to withdraw from
high school and go study abroad in America. Masayoshi, who was met with
opposition from his family to go abroad, compared himself with Ryoma, who
left the Tosa clan. The second time he read the book was after becoming an
entrepreneur, when he was hospitalized for a life or death situation. He worried
about tomorrow and felt resentment for his illness. However, reading the book
gave him courage. He realized how narrow-minded he was fretting about
himself. The third time he read the book was in June of 1994, when SoftBank
went public. Masayoshi, who was trying to acquire Comdex and Ziff Davis, was
criticized for what others saw as an over-adventurous investment. Again, Ryoma
encouraged him at this time.

“We only live once. I don’t want to have regrets. I am going to pursue my
own way. That would be more meaningful and interesting. I want to live my life
so that, at the moment of death, I can be satisfied.”

In Bakumatsu, the young Ryoma, burning with passion, left the Tosa clan,
becoming a masterless samurai. After his encounter with Kaishu Katsu, who had
just returned from America, he became Katsu’s protégé. He eventually became
the leading student at the Kobe Naval School, or Katsu Academy, supervising its
students. In 1865, he founded Kameyama Shachu, the private navy and trading
company, in Nagasaki, which was later renamed Kaientai (Ocean Support Fleet).
He forged an alliance between two former enemies, the Satsuma and Choshu
clan, in order to overthrow the Tokugawa shogunate (military dictatorship). He
contrived a way to open the Osaka Castle without shedding blood and helped
restore imperial rule. On October 14,1867, the 15th shogun (military
commander), Yoshinobu Tokugawa, returned governing power to the emperor,
which was accepted by the court the following day. It was then that military rule,
which continued for 700 years after the Kamakura Period (1185-1333), finally
ended.
However, a month later on November 15, Ryoma was assassinated by men,
allegedly from the Totsukawa area, during his meeting with Shintaro Nakaoka,
his associate. Masayoshi felt torn by Nobunaga’s defeat at the Honno-ji Incident
and Ryoma’s tragic death in Kyoto City. Was there any commonality between
Nobunaga and Ryoma other than their fateful death? Nay. Everything was
different, from their characters and innate dispositions to the actions they took.
However, it could be said that the two admired new things and departed from the
traditional Japanese way of thinking.
Day and night, Masayoshi was absorbed by Ryoma. Ryoma was a fashionable
man who wore Western-style boots and was also the first person in Japan to go
on a honeymoon. Masayoshi wanted to live his one-time life like Ryoma. Before
going to high school, Masayoshi seriously thought about his life and future. He
aspired to live a thrilling life like Nobunaga and Ryoma. Masayoshi took a
moment and looked around him. Japanese society was intoxicated with rapid
economic growth. The average annual household income increased largely by
12.5% from the previous year, exceeding 1 million yen for the first time. At the
same time, however, Japan was criticized from abroad as an “economic animal.”
Everyone was living a wealthy and comfortable life. But was this right?
Masayoshi did not wish to spend his life just being able to eat everyday and
die one day. He wanted to live life boldly with high aspirations—just as Ryoma
did. When he was a child, he dreamed of being a teacher, artist, businessman or
statesman. It was a common dream for a boy like him at the time. Each
occupation was significant, requiring creativity. However, as he entered junior
high school, he discovered that he wouldn’t be able to be a teacher, due to his
nationality. Therefore, he decided to become an entrepreneur. If he lived in
Bakumatsu like Ryoma did, he might have dedicated his life to politics.
However, Japanese politics then somewhat lacked the dynamism he wished to
see. If Ryoma were to live in his time, he would have committed his life to an
enterprise.
“I will become a business revolutionary,” Masayoshi decided.

His junior high school report card24 had three 5’s, 4’s and 3’s. He scored high
in English, math and the sciences. Although it did not show on his report card,
Masayoshi was a bright and diligent student.
Since entering Morita Cram School, which was one of the leading cram
schools for elites in the Hakata area, Masayoshi started concentrating on
academics. La Salle High School in Kagoshima Prefecture and Kurume
University Senior High School in Fukuoka Prefecture were the top two high
schools in the Kyushu Region that sent many students to Tokyo University.
Masayoshi was determined to get into either one.
However, Masayoshi was met with an unfortunate event. His father vomited a
washbowl-full of blood and was hospitalized. Due to his drinking habit and hard
labor, he had developed liver cirrhosis complicated by a duodenal ulcer. As his
father’s illness was serious, Masayoshi could not move to another prefecture.
After much contemplation, he decided to go to Kurume High, which was rather
closer to home. It was a prestigious boy’s school many physicians sent their sons
to.
As a result of his hard work, Masayoshi’s grades soared and were among the
top in his class. To be admitted to Kurume High, one had to be in the top 20 at
Jonan Junior High. The acceptance rate to Kurume was approximately 9%. The
high school indeed had a “narrow gate” for many students to enter. Even though
his grades were up in the top 20s, there was no guarantee that he would be
admitted. However, Masayoshi’s determination did not waver.
“If I don’t get in this year, I will try next year,” he declared publically in order
to push himself. Masayoshi was the kind of youth who came through under such
pressure.

In February 1973, the admission results were announced. Overcoming a high
hurdle, Masayoshi was accepted.
 On April 8, Masayoshi entered the gates of Kurume University Senior High
School. The rows of cherry blossom trees were in full bloom. Itsuo Abe, who
was in his third year teaching at Kurume High, was in charge of Masayoshi’s
class. He was 26 years old. Masayoshi had a great impression of Abe, who took
charge of a class for the first time that year. The quiet young man who was
always smiling visited the faculty room.
“Mr. Abe, I want to start a school. Could you please lend me a hand?” he
asked the teacher.
Masayoshi spoke in Hakata dialect when talking with his friends; but when
addressing his superiors, he spoke in a logical manner using standard Japanese.
Abe could not at once understand what Masayoshi was saying.
“Start a school?” he asked.
“I’ve already created the curriculum,” he said, as he handed a piece of paper
to him.
“In order to carry this out, I need a good teacher. I can’t be a teacher, so I
would like you to take part.”
Masayoshi was dead serious.
“Excuse me, but how much is your current salary?” he asked.
“What in the world...?” thought Abe.
Seeing him dumbstruck, Masayoshi told him that he would pay two or three
times the amount he earned now. As a teacher, he did not know how to respond
to this first-year student, who had just entered high school.
“I will carefully think about it,” was all Abe could say.
Masayoshi was headhunting talented candidates. We later find out that
Masayoshi had brought up the same conversation with the principal. Principal
Mitou Hara was a famous principal who had served at a public high school for a
long time before coming to Kurume High. Masayoshi was scolded by Principal
Hara, but he was, in all respects, seriously thinking of carrying out his plan to
establish a school. Hereabout, we may observe his entrepreneurial spirit
sprouting.
 Upon attending Kurume High, Masayoshi stayed at the residence of one of
the town’s authority figures, near Kurume Station on the West Japan Railway.
There was a jizo25 statue in front of the house. Masayoshi put his hands together
in front of the jizo statue every day and took a 25-minute walk to school.
Masayoshi thought as he walked.
“If I were Japanese, I could go to high school for three years, college for four
year and then start...” he pondered. However, he was Korean and had to think of
another way for himself.
Masayoshi wanted to do business. As he was interested in education, he
thought of establishing a cram school. He consulted with his friend Takeyoshi
Miki’s mother, Toshiko.
“I want to establish a cram school around here. Could you please look for a
good property?”
He conducted a market survey and saw potential for making a profit, seeing
the number of apartment complexes in the area.
“It’s not late to start even after you graduate from college.”
Although she advised him to take it easy, Toshiko never forgot Masayoshi’s
piercing eyes.
“He’s different from others,” she says.

In high school, Masayoshi did not necessarily busy himself with studies. On
the contrary, his daily life at school was rather relaxed. Because there were no
extracurricular activities then, he had much time to himself. He would read
Machiko Satonaka’s shojo comic26 series, which was popular back then, and
would go out to the busy quarters of the town with his friends on weekends.
There, he would watch movies and eat ramen noodles.
After exams at Kurume High, the top 15 students’ names would be posted on
the billboard, but Masayoshi’s name did not appear on the list. What he was
most interested in at this time was how to live his life--to live like Ryoma, like
the samurai of the Bakumatsu Era.
Masayoshi made a move. In July, he visited South Korea, where his
grandparents came from, together with his grandmother. He spent a month
during summer vacation to take an English language course in America. I have
already written that these events largely determined Masayoshi’s future path.
Masayoshi withdrew from a prestigious Japanese high school after the first
term and entered an American high school. He then went to UC Berkeley. As a
university student, he sold the patent for his electronic speaking translator and
won a 100 million yen contract.

Thus, Masayoshi embarked on the path to becoming a business revolutionary.
14 The Dreamer

What did Masayoshi’s business partner, Hong Lu, think about Masayoshi?
When I asked him, he answered,
“He is a gambler with a big dream. But he doesn’t play losing games.”
Even from a friend’s perspective, Masayoshi’s business sense was exquisite.
The former weekly magazine published in the U.S. on technology business
news, The Industry Standard, had Masayoshi on the cover of their September 4,
2000, issue with the title “The Gambling Man.” We can see how Masayoshi has
been ‘betting’ on the IT industry since then.
Everyone has a dream. However, in order to realize one’s dream, great talent
and perseverance is needed. One needs to, at times, take any kind of risk. He
proved he was capable of this while a student at Berkeley.
After successfully developing the prototype of the electronic speaking
translator, Masayoshi moved the company office from Hong’s residence to a
location near Oakland Airport. It was a 650 square foot space on the second
floor of a three-story building. He also changed the company name from M
SPEECH SYSTEM INC. to Unison World. It was a powerful company name,
being memorable to those who, even once, came across it.
Hong was promoted from a handler of miscellaneous affairs to a “Project
Manager”—although, his work became ever more complex and broadly
miscellaneous.
The company had become more company-like in both appearance and
substance.
One day, Masayoshi handed Hong an envelope.
“For your hard work,” he said.
Hong was surprised to find the company’s stock certificate inside the
envelope. It was not yet an official certificate, for the company, though it had
potential, was not listed on the stock exchange. It was as if he was handed a
blank piece of paper. Masayoshi, however, did not hand the “certificate” over as
a prank or joke. It meant that he would hand over 10% of the company’s shares
to his good friend. The shares increased to 20% later on. Hong thought he would
receive whatever he could and carefully stored the certificate.
In time, Tadashi Sasaki from Sharp visited Masayoshi in the U.S. Sasaki put
his trust in Masayoshi and entered into a contract with him for his creative
invention; however, he was not yet fully confident. He was afraid that his
company would incur a loss if things didn’t go well with the speaking translator.
As a prudent businessman, he wanted to check up on Masayoshi and his
company’s potential. Perhaps, he, too, was a gambler going after a big dream.
Sasaki was relieved to see 15 staff members consisting of researchers and part
time workers busily doing their jobs in the office. His expectations toward
Masayoshi increased all the more. The project team was developing a speaking
translator that would enable translation across five languages by inserting an
integrated circuit card. Later on, this was developed and released as Sharp’s IQ-
3100 Pocket Translator.

Masayoshi was indeed pursuing his dream. At this time, another big business
opportunity happened to arise. As Masayoshi traveled between Japan and the
U.S., he was exposed to trends in Japan. One day, Masayoshi came across a
small piece of news on the Space Invaders game, which became popular in Japan
between March and August of 1979. This year was the start of the personal-
computer boom. NEC released the PC-8001 and Sony introduced the Walkman.
The Space Invaders game was released by the Japanese company Taito the
previous year and was different from any other game in the past. Just as aliens
from outer space invade the earth in the world of science fiction, the ‘invaders’
came down to destroy the player’s camp. It was a new kind of game, in which
the player would control a laser cannon in order to shoot down the invaders. It
was indeed a simple but unprecedented idea.
Masayoshi looked at the game with the eyes of an entrepreneur. His
observation was clear and simple.
“This is only a temporary fad.”
 Players who are amused by shooting down the invaders will soon start
predicting their moves and win the game. Though the arcade machines are
selling for 1 million yen per machine, once the boom is over, “it is all that’s left
of ancient warriors’ dreams.”27
As Masayoshi predicted, the Space Invaders fever soon passed. However,
Masayoshi had further insight. He examined the human nature to be engrossed in
such a game. He observed that Japanese people easily lost interest in things as
much as they got into them. How about Americans...?
Masayoshi acted fast. He flew to Japan in order to buy the arcade machines.
He visited the company that produced the arcade games. He negotiated with the
representative to buy the 1 million yen machines for 50 thousand yen each. The
company representative laughed coolly. Masayoshi, however, did not back
down. It was at such a time, when the other responded mockingly, that the
success of the negotiation was determined. Masayoshi knew that if the arcade
games were kept in storage, the storage cost would only accumulate. He insisted
that he would buy 10 machines and pay in cash in three months.
“I give in,” agreed the representative at the end with a bitter smile on his face.
Masayoshi was 22 years old at that time. He was different from other youth.
Instead of sending the machines to America by sea, he decided to send them by
air. This idea was unique to Masayoshi. Upon importing outmoded machines
from Japan, most trading companies would ship them by sea. However,
Masayoshi decided to send them by air at a higher cost. By air, it would arrive
within three days, passing custom procedures, whereas, by sea, it would take
three months. This did not make any business sense to Masayoshi, who
possessed sharp business acumen. To be an outstanding businessman requires a
focused and clear judgment of matters.

When Masayoshi returned from his trip to Japan, Hong responded in
bewilderment.
“An arcade game??”
Hong, who had struggled through school in order to get a degree from one of
the top universities in America, had to now devote himself to importing arcade
games. Hong shrugged his shoulders. There were no stores that would accept the
arcade game. Masayoshi decided to go out to a restaurant for lunch with Hong
one day. After finishing their dishes, they asked for the manager. Masayoshi
asked the manager if they could place the arcade game in the restaurant.
“You don’t have to be so skeptical,” said Masayoshi. He started to explain
how popular the game was in Japan.
As the manager started to become interested, Masayoshi pressed him on,
“We’ll share the profit, 50/50. Just give it a try, and place the game machine
in your restaurant for three days.”
Son once told me,
“If you show how the other will benefit, they will think you are on their side.
Then, things will move forward more smoothly, and, in the end, it will come
back to you.”
This was his sound negotiation strategy.
Once Masayoshi negotiated, no restaurant or shop rejected him. In order to
look for an appropriate location, Masayoshi visited different restaurants every
day. One of them was Yoshi’s, a Japanese restaurant with live music and a dance
hall. Yoshi’s was a popular restaurant located on College Avenue, near campus,
and on Clement Avenue. The manager was at first surprised at the sudden
request made by the occasional customer, however, she was persuaded to place
two machines at the end.
Many years later, Yoshi’s manager, Yoshie Akiba, once again came across
Masayoshi. It was after Yoshi’s moved to Jackson Square in Oakland that a
familiar face visited the restaurant. The man was talking pleasantly with a white
haired gentleman. The man used to come to the restaurant with his girlfriend.
The white haired gentleman he was talking to was UC Berkeley’s Professor
Mozer, who had also visited the restaurant in the past.
Akiba addressed the familiar man.
“What are you doing now?” Akiba, who was ignorant of what was happening
in Japan and the business world in general, asked the small Japanese man.
“Well, I am doing okay. Thank you so much for your kindness back then.”
 Masayoshi, with a smile on his face, thanked her for placing the arcade
machines in the restaurant.
Later, Akiba was told that the student-like youth who visited the restaurant
and placed the arcade games turned out to be one of the most successful
entrepreneurs of the time and was amazed as she thought of him now and back
then.
15 Spring in Berkeley

The young Masayoshi was establishing himself as a distinguished

entrepreneur. Back in 1979, he was still a senior economics student at UC
Berkeley.
The idea to import the Space Invaders arcade game from Japan to America
may not be considered a unique business today. But, for a foreign student’s idea
back in the 1970s, it could be considered remarkable. There were indeed shops
that would refuse to place the arcade tables. However, Masayoshi forged his way
through despite all obstacles. Such courage was the key to being successful in
America. Masayoshi never gave in. He sometimes negotiated directly with
managers.
“What in the world are you talking about!?”
Some managers were taken aback.
“It’s simple. I just want to do business with you.”
Some restaurants claimed that the restaurant ambience would be spoiled if
they installed the arcade tabletops.
“I’ll tell you, that’s why you’re not very eager about your business.”
“What do you mean?”
“Victoria Station has our arcade.”
Masayoshi tactfully brought up that even the popular steakhouse Victoria
Station had placed the arcade game in their waiting room. Most shops yielded to
the young entrepreneur’s tenacity.
One day, Masayoshi unexpectedly received a phone call from Ice Creamery,
the ice cream parlor where Hong Lu served as manager about a year ago.
“Please come immediately! The arcade machine broke down and the
customers are complaining!”
 Masayoshi rushed to the shop. After hastily exchanging greetings with the
manager, Masayoshi ran to the arcade table. He tried pushing the buttons. The
screen did not change. Was it broken? Masayoshi became slightly worried. It
was a brand new machine. Were there any mishaps during the shipping process?
Despite such concern, the people who gathered around the machine were about
to witness an unbelievable sight. When Masayoshi opened the coin door, the box
was crammed full with coins. The machine was not broken down. Because the
coin box was full, it was unable to take any more coins! The audience broke into
laughter as if watching a scene from a comedy.
Ice Creamery was a popular parlor, busy with young people. We can say that
ice cream itself is a big part of American culture. Students from one of the top
universities in the country were absorbed in the Space Invaders game while
enjoying their ice cream. Masayoshi carefully took out the coins and passed
them to the manager. The manager, who was extremely delighted, made an on
the spot decision.
“Alright, let’s buy one more of your arcade tables!”
Starting with no capital, Masayoshi, a university student, was able to pay for
the cost of the machines as well as shipping fees in just two weeks. He imported
350 arcade tables in half a year and was able to make more than 1 million dollars
(100 million yen) in profit.
Masayoshi’s success was brought to the attention of other American
companies. Approximately one hundred companies entered the arcade game
industry in Northern California alone. However, Masayoshi never let others
assume his place at the top of the industry.

Make a profit of 1 million dollars from scratch.
“That’s impossible,” may be the common response.
Theodore A. Dolata, who once served as President of SoftBank America, Inc.
says,
“Mr. Son sometimes makes a lunch appointment in San Francisco and then
makes an appointment with another person in New York. This is impossible.
However, in pursuing his business, this is not impossible to him. He is an
exquisite man. The idea to have lunch at New York and San Francisco on the
same day occurs naturally to him.”
There are few Americans who understand Masayoshi as much as Dolata does.
People around them call him Masayoshi’s “American father.” This “American
father” attested to two of Masayoshi’s exceptional qualities. One is his
penetrating insight to grasp the nature of a problem. He quickly responded to
matters accordingly. The other quality is to work unbelievably hard. Although
there are many people who work hard, Masayoshi differentiates himself by
constantly adopting new ideas and perspectives along the way. He was superior
to others on this point.
These two abilities were well exercised when Masayoshi bought up an arcade
facility near the UC Berkeley campus. It was a perfect place for students to take
a break from their studies. On the same block was a bookstore and music shop.
Masayoshi decided to buy the arcade at this optimum location. As he was a
student, he did not have much capital, but was able to buy the place for $90,000.
He went directly to the bank to negotiate. He mortgaged Hong Lu’s house. As a
result of Masayoshi’s enthusiastic persuasion and their elaborate business plan,
they were able to borrow money at the prime rate. It was an exceptional loan
condition for a student.
This arcade facility came to be Masayoshi’s very first acquisition. He was
very confident of succeeding. In fact, he was overly confident. However, this
was based on what Dolata referred to as his keen insight and unbelievably hard
work. He was determined to triple profits in one month. In order to do so,
Masayoshi set out to completely rationalize the management of the facility. He
started by thoroughly researching and identifying the issues. He studied how
much profit each type of arcade machine made. There were cabinets that were
less popular than others. Some were popular when first installed, but grew
unpopular over time. As part of his strategy, Masayoshi studied the performance
of each machine every day. He created a graph displaying the profit generated by
each machine every day. By doing so, he was able to identify on which day the
machines reached the break-even point. He placed importance on analyzing the
cash flow. This was how Masayoshi came up with his original “daily balance
sheet,” which is part of his management strategy today.
To set a goal and to make steady progress toward it... Masayoshi’s greatness
lies in making painstaking efforts toward his set goal. As the Japanese proverb
goes, “geniuses are not made in a single day.”
As Masayoshi installed the arcade table machines in most of the notable
shops in Berkeley, he was able to readily introduce other new games. He had
only to exchange the circuit boards. Because circuit boards were small and light,
shipping costs were inexpensive. Masayoshi imported the software for all the
popular games back in Japan in the late 1970s, including Pacman, Galaxian and
Scramble.
Once Masayoshi started off, he would commit himself thoroughly. His
rationalization plan involved the selection of employees as well. On recruiting
part time employees, he only hired local people, for his target customers were
local people. In Berkeley, back then, there were many outdated hippies and drug
dealers, or people engaged in other shady businesses. Masayoshi hired people
indiscriminately, and among them were lazy employees, who were not up to the
work. Masayoshi watched them for three days. It was natural that one was
unable to do much on his or her own the very first day. The second day, people
start to get somewhat used to the routine job and get along with their coworkers.
Masayoshi dismissed those who did not exhibit any change on the third day.
Student employees who were game fans, in many cases, met Masayoshi’s
criteria. They worked hard, without anyone telling them to, and sales rose as a
result of their committed work.
The arcade facility Masayoshi acquired tripled its sales in a month. It was
made possible by Masayoshi’s exquisite entrepreneurial spirit.

Masayoshi was, however, deep in contemplation at the time.
He initially got the idea for his company name, Unison World, from UNIX.
His university developed a derivative of the UNIX operating system, originally
created by AT&T Bell Labs. Known as the Berkeley Software Distribution
(BSD), it continues to be widely used and developed throughout the world.
“Uni” comes from the Latin word ‘one’ or ‘single’ and “Son” from his surname
together created the word that meant harmony: “unison.” Masayoshi attached the
word “World” in order for his company to thrive worldwide.
One day, during the company’s second year, the harmony-valuing Masayoshi
surprised Hong. He suddenly appointed Hong as Vice President. He rewarded
him for his hard work.
“When do I start?”
“Right now.”
Masayoshi would occasionally surprise people with such swift decisions.
Hong was happy to be recognized highly by Masayoshi.
From this year in 1979 to 1980, Unison World’s sales steadily grew. However,
Masayoshi once again surprised Hong.
“I am going back to Japan.”
Hong was, again, speechless. The company was doing well. Moreover,
understanding Masayoshi’s way of doing business, Hong thought that he would
be more successful in America.
Masayoshi once shared with me his thoughts back then:
“Everyone told me I was a fool for leaving a company that was thriving.
Establishing Unison World was like a rehearsal to me. I was planning, in the first
place, to go back to Japan once I graduated.”
There was one more important thing:
“I made a promise to my mother. I keep my promises no matter what.”
This policy was not limited to his mother. The same could be said for his
friends. Smiling at me, he once said,
“For instance, if you betray a friend for just a 50 trillion yen or so matter, that
shows how little you’re worth. I don’t want to be such a person.”
This is Masayoshi’s principle.

In March of 1980, Masayoshi graduated from UC Berkeley. He learned
almost everything at Berkeley. It was where he developed the foundation for his
life.
Masayoshi spent much of his time at the computer room in Evans Hall. In the
1980s, the university campus already had a computer network, although small in
scope. Therefore, we can say that Evans Hall brought up Masayoshi.
There were many coffee shops on and off campus that Masayoshi went to.
Caffe Strada, in which the Japanese film Sotugyo (Graduation) was shot, and Au
Coquelet were part of Masayoshi’s youthful memories. He would visit these
places with his girlfriend and later his wife, Masami, and have cheeseburgers or
clubhouse sandwiches together.
Masayoshi, for a moment, looked back at his college life, feeling a bit
sentimental, but he was hopeful for the future more than ever.
“A part of me did want to stay in the States and continue Unison World. But I
wanted to go back to Japan and, once again, start from scratch and succeed. I
would then go out to the world. I believed, in time, I would come back to
America.”
“I shall return”—Masayoshi vowed.
In March of that year, Masayoshi flew back to Japan.
Now, Masayoshi’s aim was to be number one in Japan. However, although he
had high aspirations, in what field he would become number one, he did not yet
know.
16 A Don Quixote

Harvard, Yale and UC Berkeley are known as some of the best universities in
the United States. Getting into and graduating from UC Berkeley was itself an
achievement. Son was further encouraged to continue his studies in graduate
school at Harvard University. The Massachusetts Institute of Technology (MIT),
America’s top engineering school, was also eager to have him. His alma mater,
too, offered him a full scholarship to pursue graduate studies.
Son transferred to UC Berkeley as a junior and graduated after three years. He
spent an extra year because he took a leave of absence for one year in order to do
business. The year was spent developing a prototype of the speaking translator,
establishing a company, importing outmoded arcade tables and leasing them to
shops all around Northern California.
No ordinary student would take a leave of absence from school in order to get
a contract in Japan and purchase arcade games. Though Son was thriving as a
student entrepreneur, he did not neglect his studies, even while he was away
from school. No one was aware, except for his wife Masami, that he continued
to study furiously during his leave of absence. If he wished to go to graduate
school, any school would have welcomed him. Son would have been an
excellent researcher in whatever field he pursued.
However, Son did not desire to become a researcher. He says,
“The time I live in, no matter how modestly I look at it, has a golden
opportunity within it. It is as if the world is holding its hands out and waiting for
me.”
This fed the youth’s ambition. Business became exciting to him. He wanted to
see how capable he was. He did not think he was invincible. He was well aware
that the world of business was not that simple. His sound judgment, never
overtaken by emotion, allowed his ambitions to be more than just a daydream.
There was one more pressing reason he had to set out and succeed in this
world. While a junior in college, Son married Masami, whom he started dating
in language school. He believed that the greatest thing a man could do was to
make his wife happy.
In March 1980, Son graduated from UC Berkeley. However, he did not
receive his diploma. He returned to Japan a week before the commencement
ceremony.
In some aspects, this was his assertion that, “I went to college. But it wasn’t to
get a diploma.”
Long afterwards, when his daughter reached an age in which she questioned
everything, Son thought she might inquire as to whether he really graduated
from an American university. Upon flying to the States for making a contract
with Interactive Systems Corporation, he made a detour to UC Berkeley.
“Is my diploma still here?” he asked.
The female staff was at first dumbstruck, but immediately started searching
the database for his name.
“Yes, it’s here, Mr. Son.”
Still bewildered, she asked, “What took you so long?”
It was beyond her that a student would neglect to retrieve his or her diploma.
Son, on the other hand, was surprised that they had still kept his diploma. It had
been eight years since he graduated from UC Berkeley.

After six years of studying abroad, Son returned to Japan. He rented an office
near Ohashi station (South District, Fukuoka City) on the Omuta Line of the
Nishi-Nippon Railroad in order to establish a company. A year later in March
1981, he moved the office to Zasshonokuma (Hakata District, Fukuoka City) and
established his company, Unison World, that would work on market research. In
registering the company, he used his Korean surname Son to identify himself as
the CEO. Deciding not to use his Japanese surname Yasumoto expressed Son’s
strong inner determination. His relatives all opposed.
“You have no idea what it means to be a zainichi (ethnic Korean resident) in
Japanese society.”
 This was their argument.
“My relatives tried to persuade me, saying that no one would come work for
the company or that the banks would refuse to lend money. My father was just
listening. I understood what painful experiences they’d been through. But I
decided to openly use my real name. I believed that those people and banks who
accept me for who I am are the respectable people and banks. I didn’t want to
hide.”
It was an absolute disadvantage to use one’s Korean name in Japan, where,
although people opposed discrimination on the surface, insidious forms of
discrimination continued. Not to mention that it would be a great obstacle to
doing business. The relatives wanted to have this youth, who just came back
from America, to understand Japan’s closed sense of community. However, Son
was resolute. People in America, where he spent his adolescence, never cared
about another person’s nationality. There was nothing wrong about a Korean
man being aware of his family lineage. It was here in Japan where he had to
make this clear. Son, who immersed himself in the air of freedom in America,
was not afraid of anything.
Due to the inconvenience of traveling in and out of Japan as a Korean
resident, Son, later changed his nationality to Japanese. He explains,
“One’s nationality is like a symbol, but I pay taxes to the country of Japan. I
also have rights as one of its citizens.”
He also thought it would be better for his children in the future.
However, obtaining Japanese nationality was not simple. The Ministry of
Justice did not accept him. “Son” was not a Japanese surname. It was
unprecedented. If he wanted to be naturalized as a Japanese citizen, he had to
assume a Japanese name. Son came up with a plan. In Korea, husbands and
wives have different surnames, so his wife’s name remained “Ohno.” Therefore,
his wife, a Japanese citizen, went to court to change her name from “Ohno” to
“Son.” Son visited the Ministry of Justice and once again asked if there were any
Japanese nationals named “Son.” If there were precedence, the name would be
accepted.
The officer replied,
“There’s one. It’s your wife.”
 Thus, a Japanese named Masayoshi Son came to be.
“I finally got citizenship!”
As he returned to his office, Son showed the naturalization documents to his
employees with a big smile on his face.

Although Son established a company, it was a company that would determine
what field to pursue in the unpredictable Japanese market. It was a company still
without any achievements.
“If I am to do business here in Japan, I’m going to be number one by all
means,” he decided.
He gathered materials as he planned various matters. He instantly came up
with over 20 business ideas. It was time-consuming to explore and evaluate each
idea. Therefore, Son decided to hire one full-time and one part-time employee.
The company was on the second floor of a wooden construction. It was a jerry
built office complex with a tin roof, although rainwater did not leak in. The room
was 165 square feet at the most. The building structure squeaked when one
stepped on the stairs. There was no air conditioner. Once the fan was turned off,
one started to perspire. The wind from the fan blew away papers on the desk. It
was Son’s job to gather them.
Around this time, his first daughter was born. He was irrepressibly moved to
see the baby being caressed in his wife Masami’s arms. The joy of having a baby
with the woman he loved from college moved him. After coming back from
work late at night, his innocent daughter would be crying out loud. Son
sometimes changed her diapers.
All Son had was insuppressible energy.
Every morning, he drove his car to the office.
“I am going to start something,” he thought.
But what? He still hadn’t decided. He was anguished and grew impatient.
Son had no income at that time. This is not an overstatement. It was as if he
had entered a never ending tunnel. Once he decided which field to pursue, he
would never change direction. He wished to become number one in whatever
field he chose. Son carefully deliberated on his start. Where would he begin?
“I didn’t want to let things go by mere force of habit in determining my life’s
work. I didn’t want to make any half-way compromises.”
The options were unlimited. If he started with whatever came to mind, he
would reach the ceiling in ten years or so. He would have to change his business
every time he hit the ceiling. This he did not want to do. He picked up a
notebook. He wrote down everything that crossed his mind. It was a habit he
established during college. He started listing the conditions for choosing the type
of industry he would pursue.
- There is no meaning in doing business if it doesn’t yield a profit
- Is it an industry that will grow in the future?
- Will I be able to devote my heart and soul to it for the next 50 years?
- It should not require much capital
- Something that I can do because I am young
- Become one of the core companies in the industry in the future
- Do something unique that others won’t be able to imagine
- To be the top company, at least in Japan, in ten years at the most
- The key to succeeding is to uphold the idea that the business is for the
happiness of the people
- To set off into the world in the late 20th century
The list had 25 conditions, or criteria. Many appear to be generally
acknowledged business philosophies. What made Son unique was that he
attached a scale to each criterion.
The reports for each business idea became 15 inches thick. With 40 different
business ideas, the documents, when stacked, were well over 32 feet high.

Son was going to dedicate his life to the one business that had the highest
total value in his scaled criteria.
Under the tin-roofed company office— Son would set down an apple box as a
small podium. He would stand on it and passionately deliver a speech to his
employee and part-timer.
“Our sales will be 10 billion yen in 5 years, 50 billion yen in 10 years.”
“In the future, I would like to count them as 1 trillion, 2 trillion, like we count
tofu.”28
The two employees quietly listened. However, the speech was delivered every
single day. Before long, the employee and part-timer left the company. They
must have gotten tired of listening to Son’s ambitious speeches, delivered as if
he were possessed by some force.
Don Quixote— He was indeed a Don Quixote. However, he was a Don
Quixote in his youth. Son was burning with passion. He had just turned 24 years
old.
17 A Giant and a Genius

Bill Gates dropped out of Harvard University. The reason he dropped out—
developing computer software was more interesting than studying at school.
It is said that Gates scored 800 out of 800 in mathematics on the SAT
(formerly, Scholastic Assessment Test). We may say that he had the mind of a
genius. Scoring 800 and scoring 799 is as different as heaven and earth. Getting
799 points reveals the examinee’s limitations, but 800 signifies limitless
potential.
Son heard many of the young Bill Gates’ feats. One time, when he was invited
to Gates’ residence, their conversation touched upon his perfect SAT math score.
Gates shared,
“Getting an 800 on the SAT is not such a great feat. What really matters is
having penetrating insight into the future.”
That moment, Son reaffirmed his respect for Gates. Gates indeed perceived
the times with penetrating insight. Son, too, had eyes that foresaw the future. Of
this, he was confident.
A year and a half after he returned to Japan, Son was convinced that the
computer industry was the industry worth devoting his life to. He foresaw the
need for computers would eventually rise. In time, an Information Revolution
would take place, changing the fabric of society.

In 1981, Son was foreseeing the times ahead. In September of that year, he
established SOFTBANK Corp. Japan29 in Onojo City, south of Fukuoka City.
The company would distribute software programs for personal computers. In
other words it was a software wholesaler. The company name, SoftBank,
literally described what the company stood for. Son favored the idea of a ‘bank’
or ‘storehouse’ that stored things, including ideas and knowledge. While he was
a student, he wrote down his inventions in what he called an “idea bank.”
 SoftBank did not deal with operating systems, but strictly software
applications. The company had capital of 10 million yen.
Shortly after the company’s establishment, Son seized the chance of a
lifetime.
In October of every year, a household appliance and electronics exhibition
took place, known as the “Electronics Show.” In 1981, it was held in Osaka. Son
invested 8 million of his 10 million yen corporate fund on this exhibition.
What was his aim?
“Without having abundant software applications, we wouldn’t be able to open
and expand the distribution market. And vice versa, if there are no distribution
channels, there is no meaning in having abundant software. In any case, I wanted
to seize some kind of business opportunity at the exhibition.”
At the exhibition, Son rented a space as large as Matsushita (Panasonic) and
Sony, which were two companies beyond comparison. Not only was it bizarre
for such a small company to occupy such a large space, it was almost irrational
for them to use 80% of their capital on a single exhibition. The employees were
dumbstruck, but Son went out to negotiate with software companies one after
another. He offered to pay for their exhibition fees and decoration costs. In
return, he asked them to bring their software to the exhibition. Due to such
unconventional offers made by a young company president, the companies
responded with suspicion: it’s too good of a deal. Son explained how they would
attract attention at the exhibition.
“We will attract people’s attention by displaying your software at SoftBank’s
large booth with many other companies’ software.”
Most of the companies did not take him seriously at first. They saw him just
as a very eccentric person or a person with much capital to expend. However,
Son’s booth at the Electronics Show, beyond everyone’s expectations, turned out
to be a tremendous success. The booth was constantly busy with salespersons,
vendors and dealers from the industry.
Although SoftBank was only able to make a 300 thousand yen business deal,
the booth won first or second place in popularity. At the end of the exhibition,
interested clients went directly to each software company. Nonetheless, Son was
satisfied. He considered it a great success to have his company name get so
widely known.

After the success at the exhibition, Son held discussions with his employees,
which lasted until morning, day after day. It was as if they were in some kind of
training camp. They got a great idea from the Electronics Show. Here, we may
observe Son’s keen insight and sharp business acumen. Son and his employees
were pondering the idea of selling Sharp’s Pockecom Library (The Pocket
Computer Program Library), a directory of pocket computer programs, which
received much attention at the exhibition, to bookstores all over Japan.
Sharp Corporation, in which Tadashi Sasaki (whom Son was indebted to)
belonged to, was competing against NEC at the time. Sharp was anticipating the
time for microcomputers to rule. Japanese technicians were developing programs
on American products. Amateur radio operators were looking for something
interesting, as they longed for the directory to be published one day. Son
understood that there was a great business opportunity in computer related
publications; however, he had no experience in the field of publishing.

Through an acquaintance of Sasaki’s, Son was able to arrange a meeting with
a representative at the Asahiya Shoten (Asahiya Bookstore) general headquarters
in Akasaka, Tokyo. The executive director, Akira Tanabe, met with him. Tanabe,
in his 50s, wearing a fine navy suite, did not show much interest in Son, who,
although wearing a tie, seemed to be only 16 or 17 years old with his childlike
face. He was, in fact, disappointed that he had to talk about business with this
‘little boy.’
“I would like to publish this book,” Son said, handing him the book full of
numbers and tables.
“This is new...” commented Tanabe, who looked at the pages of numbers and
symbols in a grave manner, but was filled with loathing inside.
The cover page was printed in monochrome, designed by an amateur. On top
of that, the book was bound with a stapler.
“These are programs made by Pockecom (pocket computer) users,” Son
explained.
 “I am sorry, but we won’t be able to sell it like this.”
“Excuse me, may I borrow the phone for a moment?” Son abruptly asked.
“Would you stop the entire printing process?” he ordered over the phone.
Turning back to Tanabe, he insisted, “I am confident that the content is
excellent, though.”
He eagerly explained to him that the use of personal computers was spreading
in America at an incredible rate.
“I see. I understand your point. But, as a bookstore, we have to consider our
readership and look into the trends of what people are interested in. We cannot
jump to conclusions.”
“That’s my point, Mr. Tanabe. The readers’ interest will soon move toward
computers.”
Tanabe, who was the younger brother of the Akutagawa Prize-winning author
Seiko Tanabe, possessed well-refined senses. He acutely responded to Son’s
foresight on the proliferation of personal computers. Inspired by Son’s story of
Silicon Valley, he started to see potential in the book.
“The thing is...publication isn’t that simple.”
“That’s why I am asking for your help.”
“I see. What does your publishing agency say about this?”
Son wiped his face, as he was perspiring. He had absolutely no knowledge on
publishing a book. Tanabe was displeased for a moment, but took his time to
explain to him the rules in the world of publishing. He explained that one must
open an account with a publishing agency, that the publishing agency would
distribute the publication to the bookstores in the country and that the two major
agencies in the country were Tohan (Tohan Corp.) and Nippan (Nippon Shuppan
Hanbai, Inc.).
“Could you please take me to Tohan?” Masayoshi asked, without any
hesitation.
Tanabe, a rather small figure, was astounded. There was no way he would
take a guy whom he met for the first time to Tohan or Nippan. It was out of the
question. However, he was not able to deny the fact that, as an experienced
professional, he felt this young man, though he was convention-breaking, had
something that attracted others. One was unable to explain what exactly it was
that attracted people to him, but, perhaps, it was simply his personality.
Tanabe took Son to Tohan’s headquarters in Gokencho in Shinjuku Ward. The
general manager, who met with the two, looked at the copy of pages filled with
programming language. The manager looked at them with a bitter expression on
his face.
“Well, as long as you introduce him...” he said, looking at Tanabe.
Although not convinced, he opened an account for Son.
Son bowed to Tanabe and said,
“Can we go to Nippan next?”
Seeing Son say this with a big smile on his face, Tanabe was unable to say
‘no.’
“I’ve never met anyone like you. I guess it can’t be helped,” he said, a bit
reluctantly. “All right then, I’ll take you.”
It was a hot summer day. Tanabe got inside the taxi as he grumbled. It took
them 10 minutes to get to the Nippan headquarters in Kanda-Surugadai in
Chiyoda Ward. It was the first time for the representative at Nippan to deal with
a computer program publication, as well. He was at a loss, looking over the
pages full of numbers and symbols. Nonetheless, the representative agreed to
open an account for Son.
Tanabe’s intuition did not betray him. Son’s first publication, The Pockecom
Library, sold extensively, making SoftBank a name in the publication industry.
Son, later on, shared with me,
“That day marked the start of my involvement in the publishing business. I
was confident that publications would be one of the great media pillars that
would support the digital information society.”

When Son’s business in Japan started moving forward in 1981, Gates, too,
was opening doors to a successful career path. Significant events that marked the
start of the information era in the 1980s simultaneously took place in Japan and
America.
In the summer of 1980, Gates’ small company was negotiating a critical deal
with IBM. The CP/M OS was already up and running on 8-bit microprocessors.
IBM approached the company that developed the CP/M OS to develop a version
of the CP/M for their upcoming 16-bit processor; however, the company had
declined. IBM then turned to Microsoft. IBM was an unrivaled giant in the field
of computer hardware then, and owned 80% of the mainframe computer market.
It seemed that the IBM Empire was indomitable to the eyes of many.
However, IBM, too, had an Achilles’ heel. It was behind in the production of
microcomputers. They were hoping to release their new personal computer
within a year. Fierce competition was taking place on the frontlines. Once a
product was released, another new product appeared, equipped with superior
features. Therefore developers were required to respond swiftly. As a strategy to
win over the competition, IBM needed to refute the idea of traditional in-house
development, that their company alone should develop and process everything,
from beginning to end. IBM agreed that Microsoft would retain ownership of the
new OS.
Gates purchased a basic OS from a microcomputer hardware company, and
modified it. The transition from an 8-bit to a 16-bit OS was an accomplishment
that would lead the times. It transformed computers from mere ‘playthings’ into
real business equipment. It was Gates’ deep insight that personal computers
would create a thriving market that went beyond mainframes. Through its
brilliant decision to have an “open architecture,” allowing other companies to
produce clones and compatible software, IBM set forth the new industry
standard.
Gates developed the Microsoft Disc Operating System (MS-DOS), which
provided the foundation for Windows. IBM, which was the first to be licensed
MS-DOS, rebranded it PC-DOS. It was the birth of personal computers, or PCs.
In 1981, Gates made his first big step into the future.
Son and Gates, two comparable figures, who were on the opposite ends of the
Pacific Ocean, were emerging in the wake of the Information Revolution.
18 Making it Happen

The hustle and bustle toward the end of the year infused the city with lively
energy. Across the noisy street, the phone was ringing inside a small office
building.
Son’s company, SoftBank Japan, had moved its office from Fukuoka to
Tokyo. However, the new office, on the second floor of an office building owned
by the Japan Textile Finishers Association (Nihon Senshoku Kyokai), consisted
of only two desks in one corner of a business research institution. Returning
from his rounds in the afternoon, Son quickly picked up the phone.
In 1981, Japan was in the midst of economic prosperity. Akira Terao’s song,
Ruby no Yubiwa, won the Grand Record Prize that year. Premiums were placed
on the phenomenal anime Mobile Suit Gundam’s miniature figures and Dr.
Slump Arale-chan-related products, another very popular anime of the time, flew
off the shelves.
Son was running around in order to raise funds for his company. That year, he
spent 8 million out of his 10 million yen on the Electronics Show, which took
place in Osaka, and had only raised 300 thousand yen. He was gathering funds
all around Tokyo to tide the company over to the next year.
The speaker on the phone, who spoke the Osaka dialect, introduced himself as
Mutsuro Fujiwara.
“Do you know of Joshin Denki?” he inquired.
It was a company name unfamiliar to Son.
Fujiwara was somewhat disappointed by Son’s reply; however, he
immediately started explaining about his company. Joshin Denki had opened
Japan’s largest computer and software store, J&P Technoland, in Nipponbashi,
Osaka, on October 24 of that year, and was still having its grand opening sale.
Fujiwara decided to open the shop when the author Sakyo Komatsu brought it up
to him, “Microcomputers are selling tremendously in Tokyo. Why aren’t there
any in Osaka?” Under Fujiwara’s leadership, they raised 64 million yen in sales
in just 11 days, and, consequently, the media brought it to the attention of the
general public. The top-selling hardware was NEC’s PC-8001, Sharp’s MZ-80B
and Fujitsu’s FM-8.
Although this event took place in Osaka, anyone in the computer business
would have known about Joshin Denki’s accomplishment. Fujiwara was not only
disappointed, but was awed by Son’s ignorance.
Whereas conventional PC stores had a total sales area of 350 square feet at
most, J&P was 10,000 square feet wide, making it almost 30 times larger than
traditional stores. However, although it had a good hardware lineup, it did not
have a sufficient supply of software, which was to be the next major product
lineup. Fujiwara was looking for a company that would supply the store with
software.
Son was just overwhelmed. “Wow... That’s great...”
He half-doubted the idea of a 10,000-square-foot PC store. “Is this a scam...?”
he wondered.
Fujiwara heard from his acquaintance, Kozo Ike, that Son was in the business
of software distribution but hardly had any clients. Ike was a consultant who ran
a software firm. He knew about Son since the Osaka Electronics Show. It might
have been destiny that brought Son and Fujiwara together.
Fujiwara got a hold of Son’s contact information from Ike and called from
Osaka.
“What do you think, Mr. Son? Why won’t you come over to Osaka and take a
look at our place once,” Fujiwara suggested.
Masayoshi was taken aback by the unexpected invitation and responded
excitedly,
“Please, let me do so. I do want to come, but the thing is...”
He wanted to fly to Osaka at once, but he had a reason he couldn’t. He had
spent most of the company’s money on the exhibition and was broke paying for
the office rent and other miscellaneous fees. It was at the end of the year, and
this might be his first-ever contract. However, quite frankly, he couldn’t spend
any money for a trip down to Osaka.
“The thing is, I have a very tight schedule and...”
Fujiwara was, once again, let down by Son’s response.
“I will try to come over the next month,” Son added, and placed the phone
down.

Mutsuro Fujiwara started working after graduating from a high school in
Hiroshima. He was into amateur radio since junior high school and, therefore,
decided to work for an electronics company in Nipponbashi instead of going to
college.
The president of Joshin Denki was Hiromitsu Jougu. The company had 60
employees and earned 600 million yen a year. The Jougu’s were conferred with
their surname by the general, Oda Nobunaga, due to their exceptional
performance during the war. Hiromitsu was born on January 3, 1935. He
inherited his father’s business at age 13 and turned it into a company listed on
the stock exchange in one generation. He passed away at 50 years of age on
October 8, 1985. It happened to be during Son’s meeting with Joshin Denki’s
Fujiwara and NEC President Tadahiro Sekimoto. When the news reached Son,
he rushed to Jougu’s place and sat before the altar of the deceased for an hour.
Jougu did not attend high school and started his business at a small 30-square-
foot shop. He, too, was a man with high aspirations—a man fitting for the
turbulent times of the ‘warring states.’ Jougu’s questioned himself on what he
needed to do in order to win over big stores. Jougu was a practical thinker. The
solution he came up with was simple and to the point: to double the inventory
turnover rate.
What did he need in order to achieve a doubled turnover? Customers picked
out components for radios by themselves back then. Jougu decided to sell the
components in a package for the customers’ convenience. As a result, the
product turnover rate increased. The customers were satisfied as well. What he
did for the sake of the company benefited its customers. The company started to
get recognized as “a store with higher technical standards” and started to grow.
It was a matter of course that Fujiwara chose to work for Joshin Denki when
he decided to move to Nipponbashi, Osaka, to seek a career in the electronics
industry. During his interview, Jougu said to Fujiwara,
“In time, I want to make this electronics store number one in Japan. I want
you to help me.”
This, too, might have been an encounter that fate brought together. Fujiwara
was deeply moved. He declined the offer from all the other firms that accepted
him. His salary was 8,000 yen a month. It was low compared to the other
companies, but he felt there was potential for achieving something extraordinary
in time. At 18 years old, Fujiwara stood up, burning with passion inside.
After 20 years, Fujiwara had become Jougu’s right-hand man. Upon leaving
his day’s work, Jougu would come down from the President’s office on the 7th
floor to Fujiwara’s office on the 5th floor.
“How were today’s sales?”
“Pretty good.”
That night, he had just finished his conversation over the phone with Son.
“Mr. Jougu, there’s something more interesting. I just got off the phone with
this young guy doing business in Tokyo, and...”
Jougu keenly responded. If something attracted Fujiwara’s interest, it was
surely worthy of his attention. This was how much Jougu trusted Fujiwara.
“He’s such an interesting guy...!”
Fujiwara told Jougu that he had felt something different from this guy—
Masayoshi Son. He could not, however, explain how he was different.
Nevertheless, he definitely set himself apart from ordinary young people out
there. Within his words were surprising foresight and quickness of mind.
Fujiwara explained to Jougu that he got the impression that this man was just
‘extra-ordinary.’
During their conversation, Son’s point of argument was clear: it would be
cheaper to gather software applications from all around Japan through one
company. Son understood America’s economic and industrial strength, as well as
its potential for further growth. He fervently spoke of how things that were
successful in the States were introduced to Japan after a few years time lag. He
insisted that, “If you tie up with me, J&P will gain additional value.” This guy
knew no fear.
Fujiwara said, “If you say so, I’ll make a bet on you.”
Son responded that he was so delighted that tears came to his eyes, but that,
regretfully, he was not able to come over at the moment.
“He says he’s 24 years old, but he seems like some kind of a guy. He’s
different. He’s got a strong will. Mr. Jougu, would you please meet with him
sometime in the near future?” Fujiwara said to his boss.
“I am going to Tokyo tomorrow. Let me meet with him then.”
Jougu, who was the president of a leading stock-listed company, had felt that
there was something in this youth just by listening to Fujiwara’s story. No doubt,
he himself was a good judge of character. He never judged people based on their
age or social status. He looked at their personality and talent.
“Masayoshi Son seems interesting indeed. Let him know that I’m coming.”
The next day, Fujiwara called Son:
“Mr. Son. I have good news for you. Our company president is going over to
Tokyo today. Please meet up with him.”
Son felt like screaming with exhilaration. He felt it was fate. It was just as
Ryoma Sakamoto spoke, “The purpose of coming into the world is to
accomplish one’s duties.”
Son felt grateful for his fortune.
Jougu, who visited SoftBank Japan was astounded. Was this really an office?
Two desks were placed in a dead silent room.
“Are you the Mr. Son that Fujiwara mentioned?”
Son was resolved the moment he saw Jougu. It was meaningless to stretch
himself in front of such a man. He needed to reveal his true self and frankly
share his goals and aims with him. Son, too, was a sincere youth.
Son eagerly talked about his vision for the coming computer era. All he had
was enormous passion and hopes for the future.
 “Jeez! You really remind me of when I was young,” Jougu said to Son.
He found in Son something similar to him, when he was of the same age—
such passion incomparable to others and a strong conviction to succeed.
“I understand well. In any case, won’t you come over to see our store?”
It was at the very end of the year. Son rushed to Tokyo Station early in the
morning. He took the first bullet train to Osaka. As soon as he arrived at Osaka
Station, he went straight to Joshin Denki in Nipponbashi, which was an
‘electronics street’ equivalent to Akihabara in Tokyo. Son was shocked when he
saw J&P Technoland.
“This is really huge...I didn’t imagine it would be this big...!” Son exclaimed.
However, it was at this instant that Son’s entrepreneurial spirit shined
through.
“Will you give me an exclusive contract?” he suddenly asked.
“Fine. But, with a condition.”
Fujiwara asked Son to gather all types of software programs from all over the
country:
“I want you to get them together by January 31 of next year.”
There was only a month until January 31 of the next year, 1982. It was an
exacting condition.
“Deal. I’ll give my life to it.”
Without taking any holiday break, Son traveled all around Japan from
Hokkaido to Kyushu. Many of the notable software firms back then were located
in Hokkaido and Kyushu. His disposition to speedily take action allowed him, as
he promised, to collect various software applications and games from about 100
companies. He collected approximately 10 thousand software applications,
which amounted to 46 million yen.
Fujiwara, too, was an extra-ordinary man, who came up with extra-ordinary
ideas. He decided to openly display the software applications at their store.
Before then, software programs were usually displayed inside a glass showcase.
 “If you openly display them, won’t they get stolen?”— This was the common
concern among companies. However, LPs and cassette tapes were already
openly displayed on the walls of music shops. Fujiwara asserted that software
programs should be the same. When you think about it from a customer’s
perspective, it would be natural to do so. He believed that it would also enhance
sales efficiency. As a result of Fujiwara’s innovative ideas, J&P was able to
further increase its sales.
In return, Son was able to gain a foothold in the software distribution industry.
Just one phone call pulled his company back from the verge of a downfall. He
went around department stores and small shops to advertise:
“Joshin Denki is the biggest PC dealer in Japan, with the greatest collection of
software from all over the country. I have an exclusive contract with them. If you
want to succeed, please come to me.”

In the late 1970s, children in Japan were crazy about video games. After the
Space Invaders fever reached its peak, new types of games started coming out in
the 80s. The leading player in the game industry was Hudson Soft Company,
located in Hokkaido. Hudson had released major software games such as
Momotaro Densetsu (Momotaro Legend), Momotaro Dentetsu (Momotaro
Electric Railway), Lode Runner, Adventure Island and Star Soldier. Yuji Kudo
was the president of the company. Although Kudo declined Son’s request to
showcase their product at the Electronics Show, the young entrepreneur attracted
his interest. He asked his younger brother and vice president, Hiroshi, to meet up
with him.
“This guy named Son from Tokyo, he seems like an interesting guy. Why
don’t you go down to see him?”
For some reason, Son’s life is marked by many critical encounters. Looking
back, we can only say that he is a lucky man. However, his luck did not just pour
down from the sky.
In the autumn of 1981, Son met with Hiroshi Kudo at Hudson’s office in
Akasaka, Tokyo. At their first encounter, Son declared,
“I know this may be sudden, but I would like to have an exclusive contract
with your company.”
 Hiroshi could hardly believe his ears. Was he meeting with a con artist? Son’s
proposal was clear and simple. He asked Hiroshi’s company to go through
SoftBank to distribute its products to retail stores.
The two had only met a few minutes ago. They had hardly introduced
themselves and Son was already going into the business of an exclusive contract
—Hiroshi was caught off-guard.
Hudson was the greatest software company in Japan, run by the Kudo
brothers. The headquarters was located in Sapporo, and they had two distribution
channels: directly through mail order or through a logistics company.
In October 1977, when the Dempa Shimbun (Newspaper) started issuing their
monthly magazine My-Com,30 Hudson had inserted a hand-written ad in it. Soon,
Hudson started receiving a flood of orders from all over the country. Seeing this,
Dempa Shimbun decided to sell Hudson’s software applications through their
own network. Later, Nideco, a wholesaler of Sharp’s electronic components,
took over.
Hudson, on the other hand, was looking into organizing its own distribution
channel. This was a big theme for pioneering companies in the beginning of the
1980s, which they groped through with high hopes. SoftBank would be the third
company to distribute Hudson’s software, after Dempa Shimbun and Nideco.
However, Son had suddenly asked them for an exclusive contract. Hiroshi
asserted that, with an exclusive contract, their sales would go down. He
perceived things from a business perspective. Born in Sapporo, Hokkaido, he,
too, was a man of burning ambitions, who was constantly finding an outlet for
his overflowing passion. He looked down upon Tokyo from up north. He could
not possibly give into Son’s deal so easily.
Son, as if expecting Hiroshi’s response, imperturbably responded,
“We don’t do things half-heartedly. Your return will be 20, 30, or 40 times
more.”
Hiroshi listened to Son silently. Son continued.
“I am a genius.”
After meeting with him several times, Hiroshi, in fact, started to think Son
was “a genius.” He had just never met a man who would say so himself.
 “I want to make SoftBank the number one distribution firm in Japan.”
Although he received a phone call from Joshin Denki, Son and his company
had achieved nothing yet and had no capital. Great passion and a big dream were
all they had.
However, their dream to become number one in the country was not
necessarily a fantasy. Son’s negotiations technique and dynamic actions made it
an attainable goal.
This guy is marvelous—Hiroshi started to feel fascinated from the bottom of
his heart. The fact that there was such an outstanding entrepreneur in Tokyo
struck him.
“Please place a 30 million yen deposit to execute the exclusive contract,”
Hiroshi finally said.
Thirty million yen was equal to Hudson’s monthly sales.
However, Son did not waver.
“Yes, I will.”
He went asking his acquaintances, begging for money, and prepared the
agreed upon amount. It was fall when Son met with Hiroshi. The agreement to
have an exclusive contract with their company was made in the beginning of
winter. Son gathered 30 million yen in December, right before the given
deadline. However, he was now left with zero working capital.

On December 12 of that year, Professor Kenichi Fukui of Kyoto University
received the Nobel Prize in Chemistry for his work on the “frontier orbitals.” He
was the sixth Japanese to receive a Nobel Prize.
19 Foresight

There is a Japanese idiom, to-shu ku-ken ( ), which means “with bare hands”
or “having nothing to start with.”
No track record. No social status or fame. No money to start with. Having
nothing at all.
In Greek mythology appear the brothers Prometheus and Epimetheus.
Prometheus was a titan of “foresight,” whereas Epimetheus was a titan of
“hindsight.” —Son was indeed a Prometheus. He possessed absolute confidence
in his talent and acted upon it. He was also a man with tremendous good fortune.
Many people who were moved by Son’s passion and his actions saved him in his
most critical moments.
Son struggled to gather 30 million yen for a down payment to Hudson Soft
Company, and was now out of working capital. The road to becoming Japan’s
number one software distributor seemed far away. Although he enthusiastically
explained his vision as a young entrepreneur, some major banks turned their
backs on Son, who did not have any significant business track record.
“How mortifying,” he thought.
However, Son constantly focused on the future. He decided to look ahead,
especially during such hard times.
Son told himself, “I must view this moment from 300 years into the future.
The time I envision will surely come.”
On the first month of 1982, Son attracted good fortune to himself. He was to
meet Dai-Ichi Kangyo Bank’s (now part of the current Mizuho Bank) Kojimachi
branch manager, Masayuki Gokitani. Gokitani had only moved to the Kojimachi
branch in Chiyoda Ward, Tokyo, in October of the previous year. Because the
Imperial Palace was in its vicinity, first-rate police officers were assigned to the
area and the firemen had the best fire extinguishing skills in the country.
However, the bank itself was in the upper middle or the lower top tier. Clients
and capital were limited. Japan was not yet moving toward its economic bubble.
Property value was slowly rising, but it was two to three more years for the price
of golf club memberships to skyrocket.
Son had borrowed money from other banks. When he reached Gokitani’s
branch in Kojimachi, Son was desperate. He appeared to be a proud 24-year old
rising entrepreneur, but, inside, he was strapped for cash. It was such a time of
destitution.
Son had no track record. He had no real estate either. His father Mitsunori’s
business was developing in many areas and he was quite a man of fortune, but
Son never brought this up when obtaining a loan. Son was an “empty-handed”
Prometheus then.
On one sunny day in January, Gokitani welcomed Son, who came by himself,
inside his office. Gokitani did not quite have the air of a bank manager. He was
very handsome and was obviously a ‘Keio boy.’31 He was wearing a sheik brown
suite and a stylish tie.
Gokitani started working at The Nippon Kangyo Bank after graduating from
Keio University. His wife, whom he dated since college, was working for Dai-
Ichi Bank. His colleagues looked at him with contempt, but when the two banks
consolidated (October 1971), they told him that he had “foresight.”
Son, too, was tightly dressed in American style. After politely introducing
himself, he started to talk very calmly, as he usually does, about his student life
in Berkeley, his business career then and how he started the software distribution
business after returning to Japan. He brought up specific company names, such
as Joshin Denki and Hudson. His voice rose unconsciously when he started
talking about his vision for the coming computing era.
“Japan will soon see the era of computers,” he proclaimed.
Son had determined three things when establishing SoftBank Japan.
- Specialize in the digital information industry
- Do something related to infrastructure
- Don’t go after single units, but go after the ‘herd’
Gokitani knew nothing of computers. However, he instantly understood what
this young man’s aims were.
Son explained that although currently he was dealing mainly with software
games, he was looking into handling more applications for businesses.
The young man went on talking about his dream.

Half an hour had passed. Gokitani was drawn to this youth’s passionate
speech. “If possible, I want to help him” –right when such a thought crossed his
mind, Son started to speak about finances.
“I need funding right now. If you think positively of my work...”
Son, once again, raised his voice and continued,
“I would like to ask you to lend us 100 million yen.”
The men under Gokitani were aware of their boss’s interest in Son’s business.
It was at this moment that they all started to take notes in their notebooks. If they
were to finance Son’s company, they would have to submit an application form
to the financial review committee at headquarters.
“Could you submit your company’s annual report, balance sheet and
statement of income for the past three years?” Gokitani asked.
“I don’t have any of those documents. All I have is a strong determination...”
answered Son very firmly. “I don’t have any mortgage. And, I dislike depending
on others.”
Son further added, “I don’t have any guarantee, but could you give me a
prime lending rate?”
Since the start of his business career at Berkeley, it had become Son’s policy
to borrow money at the prime rate. Gokitani never met anyone who would make
such a request at their first meeting. The consultee completely lacked common
sense. Did Gokitani feel unpleasant at this time? Intuition kicked in when
Gokitani judged business ventures. He valued his instinct as a financier. “This
young man talks very oddly, but he is quite out of the ordinary,” he thought. He
was easily able to grasp Son’s vision. Meeting with numerous clients from
different backgrounds every day, a talented banker possesses keen insights on
people. No matter how eloquently one spoke, the banker would instantly be able
to perceive whether the client is truly diligent or sincere.
Whatever branch of a bank one might belong to, a branch manager is
confident of his or her acumen and believes there could be no error in empirical
judgment. Moreover, Gokitani was not influenced by the client’s fame or past
career.
“Our next appointment is coming up...” one of the staff signaled that they had
exceeded their meeting time with Son.
Gokitani asked Son whether it was possible to do a credit check on him. Son
brought up the names of Sharp’s managing director Tadashi Sasaki and executive
figures at Joshin Denki.
“That’s fine. We will do some research and consider. Please give us a little
more time.”
Although Gokitani remained calm and composed as a professional banker,
inside, he was very much inclined to approve Son’s request. There was
something in Son that attracted him. When asked about his first impression of
Son, Gokitani stated,
“He was a very pleasant young man. I’d say he was slightly older than my
son. But, he spoke very politely and explained his business in a logical manner,
and was very clear to us.”
After his meeting with Son, Gokitani acted quickly. He called the Namba
branch manager, Kazuhiko Yamauchi, in Osaka.
“I’d like you to run a credit check on SoftBank Japan.”
Gokitani had visited Joshin Denki a few times when he was working at an
Osaka branch. Gokitani was a genuine Tokyoite.32 Not deviating from the
definition, he was an impatient man. If he were to fund Son, he wanted to
without a day’s delay; if he were to reject his request, he needed to inform him
by the next day. Was Son telling the truth or not? If he proved not to be
trustworthy, he would turn down his request outright. After his conversation with
Gokitani, Yamauchi immediately visited Joshin Denki.
The bank also referred to Tadashi Sasaki. Sasaki replied,
 “Please support him.”
As long as he said so, Sasaki was determined to give up all his fortune for this
man. It was Sasaki’s belief that that was what was expected of a true man putting
trust in another man.
Generally speaking, a bank branch manager, under his or her responsibility,
may make lending decisions of up to approximately 10 million yen. One
hundred million was well beyond Gokitani’s authority as a manager. The
decision to approve a loan for a venture business must undergo discreet
examination. Approval cannot be given based on the momentary passion or
dream the borrower exhibits. In regards to financing, Dai-ichi Kangyo Bank had
a Credit Department and a Business Banking Department. The latter would
oversee start-up companies like SoftBank Japan. Gokitani discussed it with the
director of the Business Banking Department.
“Hmm...This is difficult,” the director said as he knitted his brow.
They were unable to come up with a conclusion. At that moment, they could
not see a promising future in the company.
“Let’s have an open discussion,” suggested the director.
What would become of computers in the future—. No one was able to come
up with a definite conclusion. In fact, Gokitani had never even touched a
computer. However, he was persuaded by his talented subordinate Yoshimitsu
Arahata’s solid affirmation: “computers are now quietly flourishing. It’s a
promising industry.”
“Okay, let’s do it.”
Gokitani ordered Arahata to prepare the application forms to submit to
headquarters. They even requested a prime interest rate. As a rule, 0.5 % was
added to the interest of business loans, excluding major corporations. However,
Gokitani did not add this amount to SoftBank’s loan. He had a clear reason for
not doing so—to raise a venture business. He wished to support the undertaking
of a promising youth as much as possible. Moreover, it was not his intention to
impose additional charges that might drive the borrower to fall behind on his
payments. Such a decision might have also been drawn from Gokitani’s Tokyoite
nature.
 The chances of SoftBank passing the credit check were 50/50. Their interest
rate could have been modified. However, in no time, the 100 million yen loan
was approved without any mortgage or guarantor.
“Wow...I’m glad they approved it,” Gokitani heaved a sigh of relief.
Of course, Sasaki from Sharp and Jougu from Joshin Denki played a big part
in the bank’s decision-making process. However, it was Son’s unyielding passion
toward his work that moved people at the end. A week after their first meeting,
Son visited Gokitani once again at the Kojimachi branch.
“We will make a bet on your future.”
Was Gokitani not a Prometheus in the field of financing?
In later years, Son repeatedly expressed his gratitude toward Gokitani, saying,
“I am indebted to Mr. Gokitani,” and never saying “to the bank.”

In December of 1982, Steven Spielberg’s E.T. was released in Japan,
establishing a new box office attendance record of over 10 million.
20 Goro-chan

In 1982, SoftBank Japan, which was steadily increasing its sales, met with
adversity.
Son was trying to put an ad in the three major PC magazines, I/O, ASCII and
My-Com.33 Advertising was crucial for the company to expand its business.
However, all three magazines rejected him.
These magazines were called “the big three” of PC magazines. I/O was then
the longest-standing PC magazine, issued by Kohgakusha, which featured
articles contributed by its readers. ASCII, issued by ASCII Corporation, often
published information from the U.S., and My-Com, issued by Dempa Shimbun,
had abundant information on the industry. It is hard to believe that advertisement
space was fully reserved for issues months ahead for computer-related
magazines back then.
Although Son was met with an unexpected obstacle, he did not lose his calm.
The magazine companies were refusing to run SoftBank ads—this was obvious
to him. In fact, he heard so from one source. The reason the three companies
rejected printing SoftBank ads in their magazines was that they, too, were
considering going into the software distribution business. They wanted to oust
one of their strongest competitors.
Son was furious. Were they doing business, sincerely thinking of the future of
Japan’s computer industry? In America, people often talk about being “fair.”
Opportunity must be equal. However, Son was met with the Japanese small-
island-country mentality to eradicate a still very small rival force. Why would
they do something like this? Son could not tolerate such a jaundiced view and
conduct based on jealousy. He fiercely made objections against the three
companies. The two Chinese characters for Masayoshi ( ) stood for ‘justice.’
“I see. This is what Japan is today,” he pondered. “Have you guys forgotten
Ryoma Sakamoto, Takamori Saigo or Toshimichi Okubo’s spirit in the
Bakumatsu?”
 Seeing that the big three were unwilling to change, Masayoshi set his mind to
work.
“Fine. I have a strategy, too,” he quietly declared.
He was considering issuing his own publications at some point in the future,
but had decided to advance his plan. Son was suddenly determined to go into the
publishing industry.
The time was not yet ripe. However, Son was unable to just stand aside and
watch this outlandish situation. To create the best PC magazine in the country—
Son was once again burning with a fiery passion inside.
All three magazines were well-established publications, specializing in
computers. What could he do to compete and win over these three? SoftBank,
which was about to join the rivalry, lacked both publishing experience and talent.
In addition, late-starters required even more originality to set themselves apart
from the forerunners. But, late-starters had their strengths, as well: they were
able to set up a strategy with a clear idea of the game. Son’s strategy was
expansive. He decided to publish two magazines at the same time on a monthly
basis. This could be described as “dauntless,” but it was too reckless in the eyes
of many. No one around him then understood his daring strategy.
Generally speaking, if one aims to establish oneself as a major IT
infrastructure provider, one should maintain neutrality. One should not patronize
a certain brand or manufacturer. However, Son adopted the ‘Lanchester strategy,’
in which one concentrated one’s resources in a specific area within the shared
battlefield. It was a rather common strategy for the weak. Although he was not
aware of it, Son naturally came up with the idea.
“We wouldn’t possibly be able to win over those general PC magazines
(which claimed to be neutral), if we were to compete with them outright. Back
then, computers by different manufacturers weren’t compatible with each other,
so I decided to provide information for each model. This way, we were able to
win even with little force. I wanted to create magazines with intense content.”
According to Frederick W. Lanchester, the British engineer, a fleet with a
strong force and a weak force must take different strategies. In this case, Son
belonged to the latter. Breaking through from a single point of focus—it was a
bold, yet meticulously thought out strategy.

In May 1982, the first issues of Oh!PC and Oh!MZ were published. The first
Oh!PC featured NEC’s PC-8000, PC-8800 and PC-6000 series. Oh!MZ covered
Sharp’s MZ-80B, K/C and PO Pockecom series. Son had confidence. However,
the quality of the magazine was a far cry from those published in America,
where they are a big part of the culture.
“These might not sell well,” he thought.
Sure enough, mountains of issues were sent back two months later, an amount
beyond Son’s imagination. He had published 50 thousand copies of each issue
and over 85% were returned to the warehouse. The mountains of magazines
were soon shredded into pieces.
Every month, a mountain of return prints piled up. There is the phrase “three-
issue magazine.” After releasing the first issue, the second one must be released
in a month’s time. Right after releasing the second issue, the third one must be
edited. It is when the third issue is released that the sales result for the first
edition comes out. If deemed unsuccessful, the publication will cease at that
point, and all the efforts of the publishing company and editors will come to
nothing.
Despite such devastating results, the strategist Masayoshi Son did not admit
defeat. He devoted everything to his work. He devoted his whole heart and soul.
This in fact was one of Son’s best moments. Nevertheless, at their seventh issue
in November, they reached a record-breaking loss. The year 1982 was coming to
a close. Son decided to embark on a renewal project. He decided to respond to
all readers’ requests. In the reader surveys that he gathered, there were outspoken
and clear opinions. He changed the format and book size of Oh!PC and
advertised it on television. He doubled the print run and reduced the price from
680 yen to 480 yen. This went counter to common sense. And, in order to make
this uncommon strategy successful, Son needed the help of a talented person.

One day in the beginning of September 1982, one man, Goro Hashimoto, was
glancing at the job ads in the newspaper—“Editor Wanted. For publishing a
magazine specializing in PCs.” Hashimoto was out of work at that time. He had
quit as a publisher in the trading business and was looking for a new job. He was
37 years old with three children. He had struggled his way through life until
now. He wanted to find a company where he could find value and devote his life
to. Certainly, he wanted to challenge himself once again in the field of editing.
On September 6, Hashimoto went to the SoftBank office near Togo Park in
Yobancho, Chiyoda Ward, for an interview. The office was in a semi-basement
area. The air was hot and people were busily doing their work. The
representative who interviewed him told him that they were planning to publish
a new magazine in October. It was a quarterly issue on the 8-bit handheld
computer (notebook PC), titled Oh!HC.
“Can you start working for us from the day after tomorrow?”
Hashimoto liked to climb mountains and was planning to go hiking. He was
blown away by this request, as he imagined he would start working in perhaps
two weeks, at the earliest. Although he was interested in computers, he was not
an expert. However, Hashimoto loved magazines. His editor-spirit was calling.
His eyes beamed.
Hashimoto started working two days later on September 8. He started from
scratch and published the first issue of the magazine on October 12, as originally
planned. It received good reviews, too. As a result of this achievement,
Hashimoto was promoted to the new editor in chief and met with Son for the
first time. Hashimoto was shocked. He was a small-built figure, but Son was
even smaller. Son did not have a good complexion. Hashimoto later found out
that he was very ill during this time. However, he was radiating energy from his
entire being.
“We will run a TV ad,” Son said.
The magazines were returned in monumental numbers, but the company was
going to double the print run. Moreover, they would invest 100 million yen in
running a television ad. Hashimoto felt tremendous responsibility.
“I am going to bet on this man,” Hashimoto decided at that moment. He chose
to give all he had as an editor. That was how he was going to respond to Son’s
expectations.
Hashimoto changed the size of the magazine from an AB size variant in
saddle-stitched binding to an AB size in perfect binding, with a spine. He was
bold, yet skillful.
 However, no matter how good the magazine was, it would not sell if it was
little known. Son consulted with the advertisement company Dentsu, which
produced television ads. To advertise a magazine on television—this was itself
unusual. But was it worth advertising a failing magazine? Son believed it was
imperative for them, on the brink of a downfall, to advance their strategies rather
than to go on the defense. Son aggressively bargained with Dentsu and bought
an advertising spot worth 100 million yen for 60 million yen. After making a
deal with Dentsu, he directly went to NEC. He asked them to pay half of the 60
million yen he had just aggressively bargained for. Oh!PC was a magazine
dedicated to NEC’s PC series. Although he struggled, he was able to come to an
agreement at the end, with the help of NEC’s vice president, Atsuyoshi Ouchi.
Ouchi readily consented to Son’s request,
“Now, that’s interesting! Let’s do it together!”
He was one of the persons who believed in Son’s potential. Although Ouchi
passed away in 1996, he remains one of the people Son is greatly indebted to.
In February 1983, after the Oh!PC ads appeared on TV screens mounted on
the skyscrapers of the Shibuya crossroad, it was aired on all sorts of media
channels. One hundred thousand copies were sold in three days. Advertising
revenue rose and the editorial room suddenly started to get busy. The magazine
continued to increase its sales. It ended up selling 150 thousand copies. Oh!MZ
and OH!HC followed suit and steadily increased sales. They then published
Oh!FM, Oh!55, Oh!PASOPIA, Oh!HitBit and Oh!16, and, finally, increased their
lineup to four monthly magazines and four quarterly magazines.

One day, when Hashimoto visited the headquarters (the publication division
was located in Yobancho, but the headquarters moved to Kudanshita, due to the
company’s expansion) to attend to some matter, he was called on by Son in the
hallway.
“Goro-chan,”34 patting his shoulders lightly, Son talked to him in a friendly
manner, “Great job on Oh!PC. It’s great!”
“Thank you very much!” Hashimoto responded with an affable smile as he
bowed. He, too, was satisfied—he was able to find a job that was worth devoting
his life to. Moreover, he had finally met a man who he could devote his life to. In
the warm, early spring sunlight, Son’s beaming smile shone.

Hashimoto, who later became the executive director of the Publication
Division, is no longer present in this world. About Son, he stated thus,
“In regards to work, Mr. Son is truly strict. However, he is a tremendously
kind person. He is a digital person with an analogue heart. I cannot help but feel
very fortunate to live in the same time as Masayoshi Son. I am a very fortunate
guy.”
21 A Savage Cry

SoftBank Japan was on a roll. It was moving forward with irrepressible force.
A company that started with three people in 1981 had 30 employees and made 2
billion yen by the following year. In 1983, it rapidly grew, with 125 employees
making 4.5 billion yen.
Son was so busy that his head was constantly spinning around. Not taking
time off on weekends, he even cut his sleeping hours. His employees worked just
as hard as well. Some slept at the workplace, as they were unable to finish their
day’s work during working hours. They napped on the sofas or brought in a
sleeping bag. When Son concentrated on something, everything around him
became invisible. He devoted his entire being to work. There were days in which
he hardly ate any food as well.
Soon, he felt very languid, perhaps due to lack of sleep. Son attributed this to
his busy working schedule. It was then that SoftBank decided to provide a
periodical medical exam for its employees. Son took the exam as well and
received the results a week later. Son was struck to see the words: “re-
examination required.”
Son grew pale. He thought his lethargy was the result of overwork fatigue.
Indeed, it was not an ordinary fatigue he felt. He was, in fact, overcome by
lassitude. The results showed him that his extreme fatigue came from a
weakened liver function. The value of the e antigen was far off from average.
The e antigen was a wild strain of the hepatitis B virus (HBV), which appeared
during the time the virus reproduced itself in the blood. If the e antigen is greatly
positive, the virus inside is active as well.
Son immediately visited a prominent university hospital. The doctor‘s
revelation sounded merciless to him: “Chronic hepatitis. All work must be
cancelled.”
“Please admit yourself and concentrate on recovering your health.”
He was told that his life was at stake if he didn’t enter the hospital
immediately.
Son nervously asked, “How long will it take?”
The doctor’s countenance clouded. Chronic hepatitis was an incurable disease
back then, with no absolute form of treatment.
“If it develops into cirrhosis, it can lead to liver cancer.”
Son gasped at these words, but once again asked, “When will I...”
“We don’t know. But there is high possibility that it will develop into cirrhosis
within five years.”
Son was admitted to the hospital.

Masayoshi Son hospitalized with hepatitis—The news reached his friend
Hong Lu in America, who immediately flew to Japan to see him. Son’s wife,
Masami, was not able to hold back her tears, at the sight of their old friend. Her
husband was only 25 years old. The diagnosis of his incurable disease was a
harsh reality for her as well. That Son did not appear to be seriously ill was her
only relief.
Son was determined to share with Hong what he had in mind all the while. He
proposed to settle the accounts for Unison World and sell it to Hong for 200
million Japanese yen. Hong rounded out a 6’ 2” tall figure. He did not have
much money to spare at the moment. Son introduced him to a financer and
suggested he pay back gradually out of the company’s profit.
Although new software games always attracted user interest, their popularity
faded at the release of another new game. Hong, who became the owner of
Unison World, later on, withdrew from the game industry. It was a decision he
made after deep consideration. He wanted to develop software programs that
would be of more use to people. This was something he learned from Son. The
company released software applications for greeting cards and schedulers, which
became a major hit. There were applications that continued to be popular for
more than 10 years. Hong’s foresight is also worth commending.
Sound judgment and a strong sense of friendship were behind the selling of
the company’s ownership, as Son sincerely wanted Hong to open new horizons
for himself.

Son hid the fact that he was being hospitalized from his employees.
“Masayoshi Son” stood for “SoftBank.”
“The president is on a business trip to America”—Son’s long-term business
trip became the common understanding among all SoftBank employees,
excluding a small number of executive officers. Katsuyoshi Tateishi, Son’s right-
hand man and executive member, was informed of Son’s situation. Tateishi
joined SoftBank in 1982 and supported Son not only in management, financing
and purchasing, but also on all sorts of fronts. Because Son frequently flew to
America, not only the employees, but also domestic clients knew nothing of his
hospitalization. So long as his right-hand man, Tateishi, said so, they all believed
he was “on a business trip in America.”
Son occasionally slipped out of the hospital to appear in his workplace. When
he visited, he would always be smiling. There was a folding cot behind Son’s
desk, where he would rest when he was tired. When he was in the backseat of a
car with Tateishi, he would say “sorry,” to him and lie down, resting his legs on
top of Tateishi’s lap. As one close to Son, it was a painful sight for Tateishi to
see. Son was fighting for his life, all by himself—this disheartened him.
However, he believed that Son would be able to overcome the disease. He had
not sympathy, but absolute faith in Son.
Sure enough, the value of the e antigen started falling. He was discharged
from the hospital to continue treatment at home. After returning to his home in
Nando-cho, Shinjuku Ward, he placed a computer in his room and worked for
seven to eight hours a day. As a matter of course, his health condition failed
again, and he was sent back to the hospital.
Son was alone in the hospital room. His business was finally getting on track.
However, he did not know whether he could live for another five years. His
daughter was one and a half years old. He wished to live to see his second child
grow up as well. However, in reality, all he could do was lie on the hospital bed
and watch the intravenous drip being infused in his arm. Will he have to wait
like this until the last moment of his life? When that would be, he did not know.
Even if he were to be discharged again, he did not know when the disease would
relapse. He had to bear this anxiety and live circumstantially, wasting away his
life, little by little.

What is life?
Who am I living for? For myself? For my family?
Or is it for my employees or clients?
Can I not live a life of deeper meaning?
Can I not do something, not only for myself and family, but for the sake of the
greater population?
I can only live once.

Son was, at this time, a ‘seeker,’ who was searching for the meaning of life
with his entire being. He once shared with me his painful experience back then,
“At night, I cried alone in the hospital room. It was not because the treatment
was painful. My children were still very young and my company had just started
moving forward. I thought to myself, why do I need to die at such a time? I had
to keep my hospitalization a secret, or the banks would stop financing our
company. So I occasionally sneaked out of the hospital to attend important
meetings. It was during this time that I seriously started thinking about what I
am working for... My answer was that I was working to make people happy.”
He was constantly thinking about his business, even on a hospital bed. Son
had been asking Sharp’s Tadashi Sasaki to introduce him to a professional in
marketing and financing. When Sasaki had a meeting with the vice president of
Nihon Security Company (currently SECOM), Yasuhiko Omori, he invited Son.
Son met with Omori at Elmi Restaurant on the second basement floor of the
New Otani Hotel. Putting down his cutlery from time to time, Son talked about
his grand vision for the future.
“That is magnificent!”
“Thank you very much. It is an honor.”
Son was very meticulous in his work and dealt with things very carefully.
Although he had a very sound mind, when he found a kindred spirit in someone
he met for the first time, he tended to take that person’s words too literally. This
was one of Son’s virtues, but it also served as a weakness at times.
“The types of managers who start up companies tend to love new things, but
they grow tired of them as easily as they get into them. I knew that was my
drawback.”
Maybe he expected something from Omori that he himself did not have.
When Omori visited Son at the hospital, he asked,
“Can you please help run our company?”
Omori was 52 years old, 27 years older than Son. He joined Nomura
Securities Company after finishing his degree at the Economics Department at
Keio University. After becoming the director of the International Division, he
was appointed an advisor to Nihon Security Company, the first private security
company in the country, in 1975 and later became its vice president. He was very
experienced in the field of stocks and marketing. He was the right-hand man of
Makoto Iida, one of the most notable Japanese entrepreneurs who established
Nihon Security Company. Omori had widely acclaimed management skills and a
fine appearance. He was indeed impeccable. After much deliberation, Son
addressed Omori,
“I would like you to take on the position of SoftBank chief executive.”
Taking into consideration Omori’s standing at Nihon Security Company, Son
advised a scheme. Omori would first quit his company, and then register his
name at a headhunting firm. SoftBank would recruit him in a day. This process
revealed how much value Son put in Omori’s talent.
Omori became the chief executive of SoftBank and Son its chairman. It was
the start of a tandem ride. At Omori’s induction ceremony in April 1983, he and
Son delivered a speech together, both with smiles on their faces.
However, this was the beginning of Son’s long and hard-fought journey, along
with his battle against hepatitis.
22 The Ill Tiger Roars

How harsh life is—In 1983, when Son was suffering from hepatitis, one
talented man stood in his way. It was Kazuhiko Nishi from ASCII. The two
predestined rivals finally collided. “Nishi, the genius” vs. “Son, the prodigy.”
The magma that was boiling under their surface relationship finally exploded.
On June 16, 1983, two months after Yasuhiko Omori became SoftBank’s
chief executive, Nishi led Microsoft’s chairman, Bill Gates, and representatives
of 14 major computer and electronics manufacturers into a press conference,
elatedly.
“I would like to introduce MSX,” he announced.
Nishi proposed to standardize the architecture of home microcomputers with
MSX. Until then, different CPUs (Central Processing Unit) as well as
programming languages were used for different types of computers, requiring
each manufacturer to develop their own software applications. Even if the same
language was used, the computers were unique to each manufacturer, offering no
software compatibility.
In order to set an industry standard for home computers, the CPU,
programming language and development tools had to be unified. By doing so, a
single software program can operate on different types of hardware. Until
DOS/V (Disk Operating System/Video Graphics Array) was adopted by all
companies in the 1990s, such an incompatible environment lingered.
Nishi had proposed to standardize the OS with the introduction of MSX.
However, from an objective point of view, was this not coming from ASCII’s
desire to dominate the industry?
At that time, Son was lying on the hospital bed. The news stoked his hostility
toward Nishi. He was willing to accept standardization. However, he could not
tolerate Microsoft’s monopolization strategy. Nishi stood as a great rival. Such a
move by Microsoft would definitely affect Son’s global strategy.
 In fact, Son had foreseen standardization. The event meant much more than a
single company’s gain. It had far broader implications to Japan’s destiny. Son
had realized this firsthand.
However, to Son’s eyes, Nishi seemed to be leading the initiative for the
benefit of his own company. Microsoft charged 30 to 60 million yen for joining
the standardization process and a royalty of several thousand yen per single PC.
In opposition, SoftBank planned to offer a different standardization system for
several million yen, with a royalty of several hundred yen per computer. Son did
not approve of Nishi’s strategy. It was not fair. When considering the future of
computers, it must be avoided by all means. Son, from his hospital bed, was
determined to confront Nishi head on.

Kazuhiko Nishi was brought up in a very different environment than Son. He
was born in Kobe City in 1956 and is a year older than Son.
Nishi’s grandfather founded Suma Gakuen (Junior High and High School) in
Kobe City and his grandparents as well as his parents were all teachers who
taught at this school. Nishi was the eldest son and was raised in this kind of
academic environment. Until he failed Tokyo University’s entrance exam for the
second time, he knew no failure. On October 1976, a year after he entered the
Department of Science and Technology at Waseda University, he was invited by
Masaaki Hoshi, the editor of the computer magazine Interface, to create a new
magazine called I/O, together with Akio Gunji and Keiichiro Tsukamoto. The
first edition sold unexpectedly well. As a result, Hoshi started to concentrate on
publishing I/O.
Nishi was another adventurer, who appeared at the dawn of the computer era.
In June 1977, he invited Gunji and Tsukamoto to publish ASCII together. Nishi’s
big turning point came a year later. He picked up a journal at the university
library. On it was an article on the microcomputer software Bill Gates developed
using BASIC. Nishi became interested in BASIC and decided to go see Bill
Gates. In June 1978, Nishi met with Gates for the first time at a national
computer conference in Anaheim, California. This was a fateful encounter, as
well. Two young men, both 22 years old, who envisioned the arrival of the
personal computer era, got along with each other before long.
Later on, the two signed a contract, which would give Nishi the rights to sell
Microsoft BASIC in Japan. It was an exclusive distribution right that applied to
Japan and East Asia at large. This was granted to Nishi’s company. The two
arranged the contract without going through a lawyer, counter to the common
practice in the U.S.
Since then, Nishi, who obtained BASIC’s exclusive distribution rights, gained
an increasing presence in the Japanese personal computer industry. Household
electronics makers, who were very eager to join the market, started paying visits
to ASCII. Nishi was called the “Japanese Bill Gates.” He was, indeed, on
friendly terms with Gates, as they called each other by their nicknames, “Bill”
and “Kei.” Nishi soon became a popular figure of the times.

Son’s first meeting with Nishi took place back in the summer of 1977. Son
was still a student at UC Berkeley. They met at the headquarters of Matsushita
Electric Industrial Co. (currently Panasonic) through Kazuyasu Maeda, who was
then the director of the Department of Engineering. After entering into a contract
with Sharp for his electronic translator, Son was visiting Matsushita to settle an
agreement to develop another new product, a handheld computer-like device for
studying.
“There is an interesting guy...” Maeda said to Son, introducing Nishi. For
some reason, Maeda introduced them to each other in English. The two had only
briefly exchanged greetings at that time. The second time they met was four
years later in 1981. Son had just established SoftBank, whereas Nishi was
already an accomplished businessman, representing ASCII. On one occasion,
Son found a chance to catch Nishi. Nishi said, “Are you that guy who talked to
me in English?”
Although Son clearly remembered their first encounter, Nishi only had the
impression of meeting an interesting Korean guy, who was bragging about his
electronic translator. However, he did take notice of Son’s “sharpness.”
As Son’s SoftBank grew, the two often clashed. I have already written about
ASCII’s rejection of publishing SoftBank ads, along with two other major
magazines, I/O and My-Com. Son was mortified. His software distribution
business was developing quite smoothly until then. In order to open new retail
outlets and further expand the company, advertising was crucial. The refusal of
their ads in computer magazines could have been life-threatening. This
unexpected setback prompted Son to go into the publication business. It was a
significant turning point for Son. The feeling of indignation toward large
corporations’ ruthlessness and unfairness must have filled Son’s mind then.
What is more, ASCII, which was also developing software programs, refused
to supply its products to SoftBank. What they stated publicly did not match what
they thought internally. Son hated when people broke their promises. No matter
how trivial the matter, Son never broke his promises to others. He was not able
to put up with ASCII’s rejection of publishing ads and supplying Son’s company
with their software products. Son was unable to tolerate ASCII’s makeshift
response.
However, in time, ASCII’s Son-bashing escalated.

In 1983, Nishi and Son once again collided head-on over the MSX war.
Nishi’s MSX standardization proposal was a de facto monopolization scheme.
Son’s sense of ‘justice’ was once again inflamed. That the standardization was
not done openly was unacceptable to him. To take high royalty payments from
companies, which were struggling to get ahead, striving to develop new
software, day in and day out— couldn’t this be considered a corporation’s
egoism, or even ‘bullying’? What vexed Son the most was that these series of
events were happening outside of his knowledge.
On June 21, it was raining outside. Son sneaked out of his hospital room. His
health was not a concern at that moment. He was full of vitality. He strained his
voice in front of 21 personal computer manufacturers.
“We would like to propose a different type of standard.”
The announcement caused a stir in the room. No one would have imagined
that the man talking on stage was battling with a liver disease.
The night before he made the announcement, Son met with Nishi at a hotel.
“Let’s do this together. We will keep the royalties low. I will be waiting for
your call until 10:00 a.m. tomorrow morning,” Nishi said.
Son called Nishi.
“We’re going into an all out war with you.”
 The covert negotiations had failed.
After he made the announcement of his standardization plan, Son returned to
his hospital bed and collapsed. He was ready to shatter MSX even if he were to
cough up blood. Nishi, on the other hand, continued to hold his ground. A
director at Matsushita Electric Industrial came in between the two to mediate.
Son had no intention of getting into a fight with Nishi. He was only concerned
about the future of computers.
“Mr. Nishi’s MSX was a standardization proposal, which gave ASCII and
Microsoft an advantage over other companies, taking high royalties from both
software and hardware manufacturers. I asked Mr. Nishi to make it more open,
or else we would launch another standard.”
Fifteen days later, from late at night on June 26 to the following day, a second
summit meeting took place between Son and Nishi. Nishi made the following
concessions: to open specifications (CPU, user interface, memory size,
dimensions, etc.) to hardware manufacturers and system specifications to
software manufacturers.
The “prodigy,” Son, unyieldingly maintained his argument against Nishi, the
“genius.” Weren’t these labels attached by the media in reverse? The prodigy
Son was no ordinary person after he grew older.

In 1983, the annual shipments of personal computers exceeded 1 million for
the first time. The future Son had envisioned was about to unfold before him.
23 Leaving it to Fate

Even as the year 1983 came to a close, Son’s health showed no signs of
significant recovery, improving at times and worsening during others. Son gazed
squarely at his fate through the bleak windows of the hospital bedroom. Was he
to sit and wait for death’s arrival? Or was he to take a chance on an alternative
way forward?
Would he be able to see spring come once again? Even if he did, how would
he cope with the challenges that kept on rising before him with his weak
physical condition? He read research papers published by liver specialists
voraciously, searching for doctors or treatments that could cure his disease.
However, Son found what he was looking for in an unexpected way.
Did the love of his parents reach the heavens?
Son’s father, Mitsunori, one day came across an article on a new cure for
hepatitis on the newspaper. A doctor named Hiromitsu Kumada at Toranomon
Hospital presented break-through research at The Japan Society of Hepatology.
It was a new kind of treatment called “steroid desorption therapy.” It is unclear
how much Mitsunori understood the effectiveness of the treatment. However, he
immediately called his son.
“Why don’t you go see Dr. Kumada?”
Son felt like crying, touched by the depth of his father’s love.
“Isn’t it worth giving it a shot?”
Son decided to listen to his father.
The following year, in January 1984, Son went to see Dr. Kumada at
Toranomon Hospital.
“I read about your treatment in the newspaper. Will it cure my disease as
well?”
 There was a desperate tone in his words. Son huddled his body into the small
examination room. Although he was not famous, the young 37 year-old doctor
was full of confidence and passion.
“Let’s give it a try. We won’t know until we try.”
Kumada responded in a calm manner.
Back then, there was no established remedy for chronic hepatitis. Without any
effective treatment, it was considered an incurable disease, which developed to
cirrhosis and, later on, liver cancer.
Kumada looked at Son’s medical records. A healthy person would exhibit
zero e antigens. The e antigen was a riotous and impudent virus that damaged
and destroyed the liver. Levels can be categorized into low, medium and high.
Son’s level was over 200. It was indeed a high level. The disease developed from
a mild to severe hepatitis, cirrhosis and, finally, liver cancer. Son was on the
verge of developing cirrhosis. In fact, he was most likely to develop cirrhosis
within five years, suffering abdominal fluid retention.
Kumada was determined to take all possible measures to cure the disease. He
did not know that Son was a thriving entrepreneur at that time. To him, he was a
young person suffering with an incurable disease. However, in Son’s eyes, he
was able to perceive a strong determination to overcome the disease. Son’s
desperateness struck Kumada.

Kumada’s path hitherto as a doctor was not that seamless, either. He spent
elementary, junior high and high school in Gifu Prefecture. It was a matter of
course that the brilliant youth decided to attend medical school in the area he
grew up in. After graduating from the School of Medicine at Gifu University, he
joined a research group at the Science Department of Toranomon Hospital and
later became a clinician at the gastrointestinal division. In 1979, Kumada found
something odd in a 63 year-old female patient’s case. She had chronic hepatitis
and was treated with steroids, as it was the customary medial practice then.
However, Kumada observed a minor change in her condition. It was a minuscule
change, which may have been overlooked by anyone else, but it caught
Kumada’s attention. Finally, one day, the e antigen was completely gone from
her body.
 How was this possible? Kumada thoroughly reexamined her case. Was she
taking some sort of Chinese herbal medicine? After much research, he found out
that, although the patient took steroids while she was in the hospital, she quit
taking them once she was discharged. The e antigen disappeared through
quitting steroids—Why was that?
Kumada, as a researcher, was scrupulous and meticulous. Acute hepatitis was
curable, but chronic hepatitis was not. The female patient who was discharged
from the hospital may have developed immunity by quitting steroids. The
treatment Kumada came up with was to use steroids for a short period of time in
order to suppress the immune system and, afterwards, stop administering them.
The patient would develop acute hepatitis, which would then be treated
accordingly. The treatment was like a risky bet.
It was a shift of thinking to cure chronic hepatitis by changing it to acute
hepatitis. Until then, the treatment for chronic hepatitis was to prescribe steroids
forever so that the symptoms would not get worse. Such treatment was
mainstream worldwide. However, Kumada was willing to make the bet. His
treatment produced dramatic results.
Son listened to Kumada’s explanation quietly.
“This doctor has so much passion toward his work,” he thought. He was
deeply impressed by Kumada’s revolutionary remedy.

In 1981, Kumada presented the “steroid desorption therapy,” an innovative
treatment for chronic hepatitis, at The Japan Society of Hepatology conference.
However, instead of being well-received, the participants bashed the idea. The
majority of them believed that “to stop medication and worsen the disease”
could not be considered a proper “treatment.” Although some took interest in
Kumada’s theory, it was largely rejected by The Japan Society of Hepatology.
The treatment that was in the middle of the heated debate was published in the
newspaper, which Mitsunori happened to come across.
Son, on his part, was reluctant to change hospitals. The doctors and nurses at
his current hospital were doing their best for his treatment. He entrusted his life
to them. The patient and doctor relationship was based on trust. Moreover, even
if he changed doctors, there was no guarantee he would get better.
 “Will you be able to cure my disease?” Son asked, straightening his posture.
“There is a 70 to 80% possibility you will be cured,” answered Kumada
resolutely.
The incurable chronic hepatitis will get cured—Son trembled with fascination
at this idea. In the current university hospital there was no absolute remedy. The
best they could do was to maintain his current condition. Should he continue the
treatment until the last moment of his life? Or, should he make a bet on a new
treatment?
“I don’t care how long it will take. Dr. Kumada, please cure my disease,” Son
implored.
“Let’s give it a try,” Kumada answered with a smile on his face.
At this instance, Son regained a solid sense of his life.
“It is an immovable reality that I am suffering from an incurable disease. I
don’t know whether I will live to see tomorrow. A completely different way of
thinking can change people’s lives. Am I not, at the heart of it, doing what Dr.
Kumada is doing?” he pondered.
—Moved by this realization, Son felt that his mind was refreshed. After
returning to the university hospital, he told his doctor that he would be
transferring out of the hospital. He did not say a word about Kumada, but, with
his unfailing sincerity, thanked his doctor for the committed treatment he had
received until then.
“I have decided to transfer. Thank you so much for everything.”
On March 13, 1984, Son transferred to Toranomon Hospital, Kawasaki
Branch. His wife, Masami, attended to him every single day. She would
encourage her husband, who was often dispirited. Son’s treatment started on
March 17. Upon quitting steroids after taking them for a short period of time, his
e antigen significantly decreased. The number clearly showed that the removal
of steroids elicited an immune response that allowed Son to fight the e antigens.
Son’s expression, however, was still gloomy.
When Kumada made his rounds of the inpatients, Son would desperately ask
him,
 “Will I get better?”
“How is the treatment going?”
Ever since Son entered the hospital, all Son inquired of was these two things.
With a smile on his face, Kumada would answer,
“Your levels are improving. It’s going good so far.”
Even at such response, Son never changed his expression. Once Kumada left
the room, he would pull the curtains and shut himself alone in the hospital room.
He would lie down on his bed and stare at the ceiling, as he sighed. This was to
continue for two years. He felt like he was in the midst of a deep darkness.

Daybreak arrived for Son after the Golden Week holidays35 on May 9. His e
antigen was below 50, close down to the average level.
“Dr. Kumada, is everything going well?” he asked.
“It’s good. We’re gonna make it!”
Whether the levels would increase or decrease from this point on was
decisive. In the customary practice, the patient would continue taking
medication, even after the e antigen value fell. However, the viruses would never
be completely eradicated through the continued use of steroids. It only remained
inactive. Whether the viruses would become active or not with the
discontinuation of the medication—this was the biggest bet.
“We’re gonna make it!”—Kumada’s words rung inside Son’s head. Son
continued to lie down on the hospital bed. He no longer sneaked out of the
hospital to work, like he used to. Everything depended on the treatment this
hospital provided.
During this time, Son read over three thousand books on various subjects,
ranging from comic books to history books. Lying on his hospital bed next to a
window looking south, he read, day after day. What absorbed him most was
Ryotaro Shiba’s Ryoma ga yuku, which had left a strong impression on him back
in junior high school. Son admired the thrilling life Ryoma led. Ryoma left the
Tosa clan. The death penalty was imposed on those who left the clan, and other
punishments were inflicted on their family members and relatives. Thus, his
second oldest sister committed suicide and his third oldest sister, whom he
brought up, was forced to divorce. After re-reading the story, Son realized
something that he had not quite understood before. Ryoma lived for a higher
calling. He was assassinated and died at only 33. However, life was not about
how long one lived. There was value in ‘how’ one lived; how much one devoted
his or her life to a cause. Son was once again greatly moved by Ryoma’s life.
It was important to leave his fate up to the heavens.
Son once again felt a zest for living. The strong rays of the afternoon sun
poured through the windows of the hospital bedroom.
24 A Zest for Life

In May 1984, the early summer sun casted its brilliant rays through the
hospital window.
Toranomon Hospital, Kawasaki Branch. In room #5030, which faced
southward, Son was dozing off with a book in his hand. When he opened his
eyes, he saw that he was in the same old room.
“Oh...I’m still alive,” he thought.
He was grateful for the sunlight. He felt blessed to be living.
Upon entering Toranomon Hospital, Son told Kumada,
“Dr. Kumada, I will give you all the time I have. Please cure my disease no
matter how long it takes.”
He had passed on his responsibility as chief executive of SoftBank and, in
turn, became its chairman. Right now, he had to concentrate on his treatment.
Son repeatedly told himself, “I will overcome my disease no matter what.”
Dr. Kumada came to see him once a week. Son never smiled. He would only
ask the same question over and over again.
“Is everything going well?”
Kumada would answer with a smile on his face.
“Yes, everything is going well.”
Every time he heard the same response, his trust in Kumada deepened.
Son realized the joy of living from the depths of his heart. Every single day
was a gift. Once he fully recovered, he would soar into the skies. He would
move about freely and vigorously.
Son, at this time, had a vast business project in mind, planned out for the
future. His company will go public and invest in new enterprises. Within the
scope of his expansion project was America. He wished to do business in
America, where he spent his college years. Everyone in that country dreamed of
success. He wanted to compete with them on equal terms and succeed. It was
not, by definition, impossible. In fact, he was confident of succeeding. However,
should success in America be his ultimate goal? Succeeding in the States was
only part of his goal. He would venture out into the world and succeed globally.
He was determined to make SoftBank Japan the “world’s SoftBank.”

When the appropriate conditions were met, Kumada started the steroid
desorption therapy. On March 17, he started administering steroids
(prednisolone). He administered 40 mg the first week and 30 mg the second
week. He lessened the dosage by degrees until, on April 5, he stopped
administering them. Although the GOT and GPT levels, indicating hepatic
dysfunction, were falling while on steroids, they rose greatly once the
medication was discontinued. Eleven days after the start of the desorption
process, on April 16, both the GOT and GPT levels reached their all-time high at
81 and 218, respectively.
“It’s a good sign,” Kumada said, smiling at Son.
The rise in e antigen pointed to the possibility that Son’s chronic hepatitis
turned into an acute hepatitis. It was just as Kumada anticipated. Kumada was
going to win the bet. Past cases show that the transition took place
approximately four months after the desorption process, six months at most.
However, Son’s e antigen rose a little after entering the second month. It was a
remarkable development.
After May 20, Son’s e antigen dropped. Even Kumada himself was surprised
at Son’s progress. On June 1, as Kumada was making his rounds, he said to Son
with a smile on his face,
“The e antigen is falling dramatically. It will disappear soon.”
“Oh, really,” Son briefly responded.
He couldn’t believe the sudden change that was taking place inside him. In
the past, there were moments in which he had lost hope. When he was on the
verge of life or death, and the doctors’ pronouncements, at times, were cruel.
Thus, the thought of being betrayed by Dr. Kumada crossed his mind.
 Kumada knew nothing of what Son did for a living. He was only a patient to
him. However, every time he saw him, he perceived a strong will in Son to
overcome his disease. The strength of Son’s determination, in fact, surpassed the
young doctor’s recognition. It even motivated the doctor. Son was, in this sense,
an exemplary patient.
Kumada smiled. Son’s e antigen steadily fell and was completely gone.
“Mr. Son. The e antigen is gone. You will be able to leave the hospital now.”
In his hospital bedroom, Son never showed a smile. Kumada remembers Son
always with a stone-like expression on his face.
It was at this moment that Kumada saw Son’s smile for the first time.
“Is that so, Dr. Kumada.”
Son, who was usually calm, spoke in a shrill voice. He grabbed Kumada’s
hands.
“Thank you very much, Dr. Kumada!”
Kumada’s hands were warm. Son owed his life to him.

How did his wife, Masami, see Son during this time—the three months at
Toranomon Hospital? The two and a half years leading up to his admission to
Toranomon was a struggle as well. When her husband was diagnosed with
chronic hepatitis, she thought he would not live long.
Kumada had saved Son, who was on the brink of falling into the depths of
despair.
What had supported Son throughout his battle with hepatitis was his family.
Masami, who was pregnant with their second child, committed herself
wholeheartedly to attending to her husband, even during times when she herself
was not feeling well.
“You will get better for sure,” she said.
Son was fighting against his disease with a strong desire to see his yet unborn
child and live for his family. His love toward his family gave him miraculous
strength to overcome his incurable disease. Masami prayed for his recovery
more than anyone. Son’s desire to overcome his disease was Masami’s wish
itself.
On June 7, the day he was discharged from Toranomon Hospital, Son, with a
smile on his face, thanked Kumada from the bottom of his heart.
“Dr. Kumada, I’m ready to go, right?”
Kumada’s response was the same for every patient leaving the hospital:
“I think so.”
Although he was better, he still had to be careful. No one knows what may
happen. The human body is unlike a computer.
Son followed Kumada’s instructions and visited him once every two months.
“You’re good to go.”
It was toward the end of 1984 that Kumada finally confirmed his full
recovery.
“Since you’re fully recovered, you can come in once every six months from
now on.”
Despite his busy schedule, Son made the time to go see Kumada. He had
absolute trust in him.
“I feel relieved whenever I see you, Dr. Kumada.”
Son went to see Dr. Kumada, more so than to receive a medical checkup. He
visited him to express his gratitude for saving his life.
Kumada, on his part, had much respect for Son.
“I believe that what ultimately cures the disease is the patient’s life force. I
feel that Mr. Son has a very strong life force.”
At long last, Son ended his three-year battle with hepatitis.

Once Son was discharged from the hospital, a huge problem awaited him at
work. For a person who had just recovered from a serious disease, it might have
been an enormous mental burden. While Son was away, SoftBank Japan, which
was once sailing forward smoothly, had become a shipwreck. Son did, by all
means, receive reports from his company while being hospitalized. Top
executives close to Son, who had shared his struggles building up the company,
had been dismissed. Katsuyoshi Tateishi, who was a front-line sales
representative since the founding of the company, was sent to the Osaka office at
this time. Now, the executive board consisted of members unfamiliar to Son.
SoftBank Japan was a company Son started alone, which rapidly developed.
Therefore, as an organization, there were, as a matter of fact, many
inconsistencies and contradictions. It was chaotic. However, this, in some ways,
served as a source of energy to grow.
While Son was gone, Tateishi did not interfere with and followed Omori’s
directions for personnel changes. He did so for he believed in Son.
“In some aspects, Mr. Omori looked down on Mr. Son. He was bringing in
professionals from the outside to get the company into shape. Many actually left
the company because of this. Although, for better or worse, it could be said that
Mr. Omori did get the company in shape...”
Goro Hashimoto in the publication department often heard the following
comment from his clients:
“Isn’t SoftBank recently a little off? We’re only keeping our relationship with
your company because it was founded by Mr. Son.”
The company’s way of developing was unacceptable even to the eyes of
Tadashi Sasaki at Sharp. He felt that something had to be done.
“Various reports reached Mr. Son in the hospital, giving him mental stress,”
Sasaki recalls.
Sasaki refrained from transmitting everything he knew and saw to Son, who
was fighting his disease, but the company’s plight was directly reported to him
by the executives who paid visits to the hospital. Son and his executives did
everything to raise profit and cut expenses. Everyone shared the same mindset as
the company grew rapidly. Son understood well what his fellow executives were
going through while he was away.
 Omori, who had only worked at giant corporations until then, wanted to
reshape SoftBank, which was thriving in name only, into a corporation based on
his vision. This puzzled executives who worked at the company since its
inception. Omori spoke ill of Son behind his back. Such information reached
Son at Toranomon Hospital. If there were any complaints about his position or
role, he wished to hear about them in person. There was no benefit or progress in
putting down or reproaching others. It was not his intent to contend or dispute
with others.
Such tribulations were bequeathed to Son, and he was willing to gratefully
welcome them. Son’s great mental fortitude allowed him to resolutely cope with
this complicated situation. Indomitable courage roused within him. He recalled
the time he started a business with his good friend, Hong Lu, back in Berkeley
and the time he established SoftBank after returning to Japan.
Son told me thus,
“I did not fully understand what Mr. Omori insisted on back then. Looking
back, however, I realize that I learned a lot from him. As time passes, the
stronger I feel so. I am very grateful.”
It was a natural remark coming from the humble entrepreneur, who never
blamed or criticized others under any circumstance.
After being discharged from the hospital, Son thought of coming into the
office three or four days a week; however, it proved to be difficult under the
current situation. This was not only about SoftBank, which was still a small
company. The times were changing dynamically. Son was seeing the arrival of
the digital information era. What will he do for such a time?
Son strongly declared at an executive meeting:
“Soon, we will be competing on content. Databases will be the key. We will
have to make a move right now, or else we won’t make it on time.”
However, the corporate executives argued that such an outlook was far out of
the company’s league. No matter how hard Son persuaded them, their attitude
never changed.

 In July of that year, the 1984 Summer Olympics Games were held in Los
Angeles, and Carl Lewis won four gold medals in track and field. Yasuhiro
Yamashita won the gold medal in the open-weight division judo match, despite
his right leg injury.
25 Determination

In 1982, the Yasuhiro Nakasone Cabinet set out the second extraordinary
administrative investigative committee, which submitted a report on various
topics, including two major issues involving the breakup and privatization of the
Japanese National Railways and the privatization of Nippon Telegraph and
Telephone Public Corporation.
On April 1, 1985, Nippon Telegraph and Telephone Public Corporation was
privatized, newly starting off as Nippon Telegraph and Telephone Corporation
(NTT). Son felt that the times were drastically changing. Thus, he needed to act
quickly. There was no time to hesitate.
In 1984, despite strong opposition from corporate executives, Son invested
100 million yen to start up a data network. Obviously, it was in preparation for
the coming digital information age that Son envisioned. He also started a new
catalog magazine, called TAG. However, contrary to his expectations, the
magazine did not sell well. They had instantly lost 100 million yen. Although
they invested in television ads and posters hung inside public transportation,
sales did not pick up. They tried out different ideas; however, the subscriptions
never went up. As he promised to discontinue the publication if it did not show
any signs of progress within half a year, Son ceased the publication of TAG.
“I will take full responsibility.”
Losses accumulated within the six months amounted to 600 million yen. The
expenses incurred in ceasing the publication amounted to 400 million yen. Son
took on a total debt of 1 billion yen upon himself.
Son, who returned to his home in Nando-cho, Shinjuku, told Masami. His
wife couldn’t believe her ears. SoftBank Japan had just recently generated 100
million yen in profits. They weren’t able to burden the company. Son decided to
sell all of his treasury stocks.
He had just recovered from his illness, and, now, he had incurred a debt that
he would hardly be able to pay off in his lifetime. An ordinary person would
have lost hope at this moment. However, Son was different. His mind was set.
He did not waver. On the contrary, he brought forth his true potential at such
times of hardship. He confronted all adversities with a positive mindset.
“I can make 1 billion. It’s not much.”
However, two days had gone by without his coming up with an idea to make
such an amount of money. Son decided to change his way of thinking. He
brought his attention to the newly established telecommunications firms that
stood up against NTT: Daini Denden (currently KDDI), Japan Telecom
(currently SoftBank Telecom) and Teleway Japan (currently KDDI), to name a
few.

Son met with a significant figure in the telecommunications industry. It was
Hideo Okubo at Shin Nihon Kohan (currently FORVAL Corporation), whom he
developed friendly relations with, which extended to their families. Okubo
founded a company that sold communication devices, such as telephones and fax
machines, at the age of 26. In 1988, when he was 34 years old, he was awarded
the first grand prize for “Most Excellent Entrepreneur” by The Tokyo New
Business Council. He was a rising entrepreneur, and, in the same year he
received the prize, his company was listed on the over-the-counter market. He
was three years older than Son. He aspired to be a lawyer but failed the bar exam
twice. He, too, was a man who had gone through much hardship as a young
person.
Although Shin Nihon Kohan purchased software from SoftBank, the two
never met in person until then. Son and Okubo decided to meet at Shin Nihon
Kohan’s headquarters in Shibuya, Tokyo. However, 20, 30 minutes had passed
since their appointment time without Son’s appearing. Although Son called to let
Okubo know that he was caught up in heavy traffic, he arrived 40 minutes after
their appointed meeting time. Okubo, who was a busy man himself, thought he
could not trust anyone who lacked punctuality.
Shortly after they exchanged greetings, Son addressed Okubo,
“I would like to ask you to do all transactions through us.”
He suddenly made this suggestion after coming in 40 minutes late.
 “Just like a male and female relationship, you wouldn’t want to commit
yourself fully if the other is seeing someone else at the same time, right? Mr.
Okubo, now is a great time. Let’s expand our business together.”
Son left after saying all he wanted to say. Somehow, Okubo felt refreshed
after their meeting. Son had a small figure, but was a great man. His mind was
set.

A few days later, Okubo suddenly received a call from Son.
“Are you available today? I really need to see you.”
“It’s impossible to make an appointment so suddenly, but...I am available
tonight.”
Son and Okubo quickly arranged their meeting time. They met at Nagata-cho,
Tokyo, near midnight. As soon as they met, Son suggested to Okubo,
“Why don’t we get married?”
There was no sign of joking in his expression.
Even Okubo, who was well-versed in business negotiations, was
dumbfounded.
“What in the world...?”
Okubo later shared with me:
“Under normal circumstances, I would have thought that he was messing
around with me. But, well, there is something wondrously fascinating about this
man.”
People who’ve met with Son, especially those who have had business
relations with him, often speak of Son’s “wondrousness.”
“Do you know about C&C (computers and communications)? I believe
SoftBank is number one in computers. In terms of communication, if we take
NTT out of the equation, you’re number one. We’re both number one! That’s
why I think it’s time for us to get married.”
Son went on,
 “Do you know about the new telecommunications firms that are sprouting
out? Isn’t this your field, Mr. Okubo? But, it has to come with computer
technology from now on. So, how about this. I have a great idea...”
At that time, the newly established telecommunications companies were
developing their facilities on one hand, while frantically fighting against NTT to
obtain a new customer base on the other. Since Son’s company was entering the
market later in the game, there were several major issues that needed to be
addressed. Prior to the introduction of “My Line” in 2001, one had to dial a
several digit prefix before the number being called in order to select and utilize
an inexpensive and alternative phone line to NTT. In some areas, those
alternative phone lines were not available, and in other areas, they cost more
than NTT. Although people knew the new telecommunications companies
offered competitive pricing, they had to look up which firm altogether provided
the cheapest calling cost for the area they were calling. Basically, without
removing such inconveniences, the customer base would not grow.
How could one address this situation?
The problem could be solved if one created an adapter that would
automatically select and connect to the cheapest line among the three new
telecommunications companies. It was a solution anyone could have come up
with. However, in order to realize it, there were countless obstacles.
Son and Okubo started meeting almost every night. It was as if they were a
couple, planning for their wedding. They met up after work, around 8:00 or 9:00
p.m. Some days, they would start meeting at 10 p.m. Every time they met, they
would have a heated discussion that lasted until 1:00 or 2:00 a.m. the next day.
To the people around them, it appeared as if they were shouting at and arguing
against each other. Son never gave in to Okubo. It seemed as if, at times, Okubo
was taken aback a little at Son’s audaciousness. In any case, the tense
atmosphere between them allowed no one else to interfere. The vice president of
Shin Nihon Kohan, at times, quietly served coffee for the two while they argued.
Once they came to an agreement, Son went directly to the patent office. Son
was undoubtedly experienced in this field. He immediately looked up whether a
patent had been issued on their proposed adapter or not. On the very same day,
Son put together a patent application with detailed ideas for the device. He also
met with the executives of the new telecommunications companies and, after
having them sign a non-disclosure agreement, explained his invention to them.
The executives were shocked at Son’s idea. Furthermore, Son declared that he
would develop the device in two and a half months. As promised, Son created
the world’s first such adapter in that short period of time.

On December 24, Christmas Eve, in 1986, Son, along with Okubo, took their
newly-made adapter “NCC BOX” to Kazuo Inamori, the Chairman of Kyocera
and owner of Daini Denden (DDI).
Inamori was born in Kagoshima in 1932. At the age 27, he established
Kyocera (formerly Kyoto Ceramics). While he manufactured a wide range of
products from semiconductors to electronic parts as well as core products, he
directed the Morikazu Academy in order to foster young business talent. He
withdrew from the frontlines of the business world at the age 65 and entered the
Rinzai school Buddhist priesthood at Enfukuji Temple. He was one of the most
significant entrepreneurs in Japan, the one who founded and developed Kyocera
and KDDI.
In the conference room at the Kyocera headquarters, Inamori, along with 20
or so senior executives, were in attendance. Son, 29 years old, and Okubo, 32
years old, sat across from Inamori, who was 54 years old then and one of the
leading figures for venture businesses. He had just been appointed chairman of
Kyocera. After listening to Son’s explanation, Inamori said,
“We will buy 500 thousand of them, so would you please sell them
exclusively to us?”
Though he appeared to be polite, there was a lot behind these words.
Moreover, Inamori’s suggestion went against Son and Okubo’s intent. Son was
planning to sell the adapter and charge royalties to other telecommunications
companies as well.
“DDI is ‘one of many.’ We made something that would benefit all
telecommunications companies,” Son elucidated.
However, DDI assertively insisted on buying the product exclusively. Their
negotiations went on without any compromise on either side. They lingered on
for 10 hours and the clock struck 9:00 p.m. Inamori, well-versed in business
negotiations, finally unmasked himself.
 “You men must be misunderstanding me.”
To buy 500 thousand adapters for 2 billion yen was possibly the most
generous offer Inamori could make. It was a condition based on his confidence
in SoftBank and Shin Nihon Kohan’s future. In the end, Son and Okubo were
pressured to sign a contract in which they promised to sell the adapters
exclusively. Son and Okubo were completely defeated.
On the city streets, Christmas carols were heard. Upon returning to his hotel
room, Son dropped his shoulders.
“How miserable this is, Mr. Okubo...”
They were unable to sleep that night.
The next morning, Son and Okubo visited Inamori’s residence.
“We thought about yesterday’s contract, and we would like to rescind it.”
Son quailed beneath Inamori’s glance. His voice was shaking. The two were
vexed at being forced to sign a contract and wanted to bet on the other two
telecommunications companies. Although Inamori severely reproached them, he
returned the contract to them.
On the bullet train from Kyoto back to Tokyo, the two youth hardly spoke.
“You can quit, if you want to,” Son said to Okubo quietly.
However, at the end, the two were able to sell their adapter to Japan Telecom
as an original equipment manufacturer (OEM). The adapter developed by Son
was sold under Japan Telecom’s brand name. DDI, as expected, soon developed
and released an adapter of their own.
Son and Shin Nihon Kohan started receiving several thousand million yen in
royalties. Son was instantly able to pay off his enormous debt. However, he was
more grateful for the lessons he learned from his negotiations with Inamori. It
trained him to become a ‘tough negotiator.’
26 Ready for Battle

His face is round. He has a childlike face. Always very friendly. Rather short
in height.
However, this man has an immeasurable life force, which can explode at
times.
Son had poured all of his passion and devoted his life to whatever he did. He
never neglected a single thing. Any entrepreneur would perhaps share that same
disposition as him. For Son, the publication business was an irreplaceable
enterprise and was itself proof of his existence in this world.
“We should withdraw from the publication business.”
—One of the members of the executive board raised the matter at a board
meeting.
As Son’s company grew, the board started to strictly examine the profit and
loss of each business unit. Between the two pillars of the software business and
the publication business, the latter had a cumulative loss of 200 million yen. The
topic of the meeting this day was, “the future of the publication business.”
Chairman Son and Chief Executive Omori sat side by side, observing the entire
meeting process.
“No matter what we do, their performance won’t improve. We should give
up,” articulated one member.
Omori, along with other board members, were opposed to the continuation of
the publication business. Son looked at them with piercing eyes. He held back
his emotions to refute them outright. He would not allow them to cut off his
publication business, which he worked so hard to start up, just before his eyes.
He started the publishing business from scratch and ran about everyday to
succeed. He opened an account with the two major publishing agencies, Tohan
and Nippan, and won support from Dentsu and NEC. He then released the
successful Oh!PC magazine. It was a matter of course that he had strong feelings
for the publication business. To him, it was like a child of his own creation.
We will be living in a digital information society in the near future. It was
approaching—about to arrive today or tomorrow. In order to seize the
momentum, publication was a critical pillar not only for the company, but
society at large. Son wished to provide meaningful information through the
means of publications for people to properly take in the vast amount of
information that would be making its way. He believed that the information they
provided would definitely be of merit to such a digital information society that
was to come. Did the board members understand this?
Son finally spoke out, “I am opposed to withdrawing from the publication
business. There is a problem with its management.”
The publication division had been generating profits until the year before. If
so, it should be able to raise its performance by implementing necessary reforms.
Son took the board members by surprise by becoming the deputy director of the
Publication Department.

A strong will to generate profits. One must start from changing one’s way of
thinking in order to succeed. Nothing could be accomplished without each
employee’s strong determination and firm resolve. Son first and foremost
gathered the editorial staff and chief accountant. Among them was Goro
Hashimoto. Although Hashimoto was the chief editor, the director and director-
general of the Publication Department were above him, limiting his overall
authority. He was often dismayed at not being able carry out matters as he
wished. Although Oh!PC, the magazine Hashimoto was in charge of, was
making a profit, one magazine wasn’t paying off as much and six others were
generating tremendous losses.
Son questioned Hashimoto and the others,
“I want you all to think why we are in this place now.”
Everyone’s expression changed at Son’s next proposal.
“If your losses don’t shrink, we will discontinue your magazines.”
Everyone froze at this pronouncement. They were surprised at such a tough
decision made by Son, who was always very kind and friendly to his
subordinates.
“We will match what comes into us with what goes out. In other words, we
will cut expenses and staff members, if necessary. From now on, we will ask the
chief editors to manage the accounts.”
Hashimoto and the others vehemently opposed workforce reductions.
“We are making great efforts, too. If our performance doesn’t improve, we
will accept both cost and staff reductions. But, we can’t do so this instant.”
Hashimoto, who was faithful to Son until then, objected to him outright. He
believed it was crucial now for all to unite under Son, who had finally returned
to the workplace. Voices of discontent rose in the room. Son’s calm voice soon
took on a sharp tone.
“I am the father of these magazines. How could a parent hate his own
children?”
Son only wished to rouse and motivate everybody.
Hashimoto, however, acting out of character, fired back at him.
“If you are the parent who gave birth to Oh!PC, I am the one who brought it
up. If you’re not willing to listen to us, we’re leaving.”
Hashimoto stood up. All in the room followed.
“Wait! We haven’t discussed anything yet. Let’s sit down and start our
conversation from the beginning,” Son shouted from behind.
These words struck a chord within Hashimoto.
“This man is great,” he thought. He was no longer able to walk away from
this man with nerves of steel.
Son, in fact, had expected Hashimoto’s objection. Such a confidant as
Hashimoto had expressed his objection outright. It was a good opportunity for
all to understand the gravity of the matter.
Son adopted every idea that would possibly turn the losses around. Although
the editors devoted themselves to creating good content, they were rather
indifferent to raising profit. Hashimoto and the other editors were interrogated
on their performance every week.
“How about this right here?”
At the meetings which were held once a week, Son did not overlook even the
slightest calculation error. Hashimoto and the others felt that the once a week
meeting was taking place every day. The performance and achievements of
every editorial division were made transparent. The staff took orders for
advertising space and reduced their expenditures, examining even the cost of
every single piece of stationary on their desks. It was not long until the results
showed in numbers. Within half a year, most of the magazines were generating
profits.
Son was reinstated as chief executive of SoftBank, and, on May 20, 1986, a
reception was held at the Palace Hotel to celebrate his reappointment. His wife,
Masami, who seldom appeared at public events, was present. With a smile on her
face, she greeted each guest carefully, together with Son.
“He never talks about work at home.”
As Masami testifies, Son drew a line between work and family. However,
only this time, he wanted to share this commemorative occasion with her.
At the Publication Department’s year-end party in 1986, Son made a brief
speech in front of his staff.
“I am grateful to all of you for putting in so much hard work,” he said in a
choked voice. Tears were welling up in his eyes. It was the first time ever that
the employees saw Son’s tears.

In 1987, Bill Gates and Kazuhiko Nishi broke off their business relations. The
PC industry was entering the ‘warring states period.’
—Why did Gates part with Nishi?
“ASCII’s goals started to diverge from what we were aiming for.”
In an interview Son had with Gates, Gates explained his parting with ASCII
thus,
 “Microsoft is focused on developing software. However, Kei (Nishi) wanted
to work more on hardware.”
Why did Son fly to the States to interview Gates?
In July of that year, Son flew to America to write a feature for the first edition
of his new magazine, THE COMPUTER. In the past, he had only published
technical magazines for computer users, whereas this was the first PC-related
‘business magazine.’ Although he was not able to get a confirmation for his
appointment with the interviewee at the time of departure, he nevertheless flew
to Seattle with the chief editor of the magazine, Toshio Inaba (later, Executive
Vice President of SoftBank Publishing). From his hotel room in Seattle, Son
called to confirm his appointment with Gates. He was able to get a positive
response.
Son met face-to-face with Bill Gates for the first time as an interviewer. There
were so many things Son wanted to ask Gates. Together with Inaba, he narrowed
down and organized his questions. “The Most Successful Person in the 80s—
Another Miracle is Born” was the title of the interview article Son wrote out
before his meeting with Gates. By having an assertive and ambitious tone, Son
might have been projecting his own dreams onto Gates.
At that time, Microsoft was making dynamic progress as one of the world’s
notable rising companies. Son was interested in how it would share its dreams
with Scott McNealy’s Sun Microsystems, who would undoubtedly be leading the
next generation of workstations.
The Microsoft headquarters is located in Redmond City, near Seattle,
Washington. Within the rich green forest was the beautiful office building.
Although it rained a lot in this region, a clear blue sky greeted Son on the day of
the interview. Son and Gates exchanged their greetings in a friendly manner.
Son, in a grey suit jacket, sat face to face with Gates, wearing a white and pink
striped shirt under a bordeaux sweater. Documents were piled up on Gates’ desk
with a globe and three computers—Windows, Mac Plus and Mac 2.
Son fired his questions at Gates: about the future of America’s computer
industry, the details on why Microsoft parted with ASCII, among others. Son
asked questions, scrupulously and persistently, as if he was a professional
journalist. Gates responded. It was a fierce clashing of arms in the form of
speech. Inaba held his breath and watched the two. Gates had a habit of shaking
his body when he was excited. Son raised questions one after another like a
machine-gun. Gates leaned forward and answered them. There were occasions in
which he seemed to be at a loss for an answer. They had gone well over their
one-hour appointment time.
Although Lotus Development Corporation was the leading software firm back
then, Microsoft had outperformed them in the past quarter. The employees
rejoiced over their accomplishment.
Gates gave Son a tour inside the company. Afterwards, the two shook hands
for the first time.

As Son and Inaba left the company building, the cool and fresh air felt
pleasant.
“Let’s go see Gates’ high school,” Son suggested.
Together with Naonori Kohira, the cameraman, the three grabbed a map and
looked for Lakeside High School. Driving the car at high speed, they reached the
high school near a lake with several yachts at anchor.
“We’re here!” exclaimed Son.
Deeply moved, he photographed the brick school building surrounded by
greenery and the vast athletic field with a beautiful grass surface. The July
Seattle sky was perfectly clear and blue.
A surge of emotions overcame Son. Did his encounter with Gates stir a sense
of rivalry within him? Or was it a resolve to shoulder the 21st century together
with the ‘most successful man’ of the decade?
Son pondered over what Gates said before they started the interview.
“Do you read the PC WEEK?”
“I do sometimes.”
“You should read each edition. It tells you everything that’s going on now in
the personal computer world.”
To acquire the rights for a Japanese edition of the PC WEEK—Son did not yet
share this determination of his with others.
27 The American Father

It is said that, historically, there are no ‘if’s. As a matter of fact, there is

hardly any point in discussing ‘if’s in terms of business. However, I dare say, if
Son had not met the man I am about to describe, his worldwide success today
might have not been possible.
He has a round face and wide forehead that resembles Professor Ochanomizu,
the creator of Astro Boy, in Osamu Tezuka’s comic, Astro Boy, or, perhaps,
Professor Egghead, the corporate logo of the once largest software retailer in
America, Egghead Software. Although the man always has a smile on his face,
his gaze can, at times, be piercing. He is a very wise man.
His name is Theodore Dolata.
Affectionately known as “Ted” by everyone around him, Dolata was the
driving force behind Son’s advancement into the limelight of the global business
world. Without his encounter with Dolata, Son’s global strategy would have
been more lenient, and, perhaps, different from what it is now. What kind of
person could have influenced Son so much in making his way onto the world
stage?
For Son, Dolata is his “American Father.” Son learned many things from this
man, from table manners to the American way of doing business.
In July 1988, Son founded SoftBank America. Ted Dolata was appointed
chief executive.
Son met with Dolata two years prior to this. Dolata was 52 years old then. As
a middle-aged American man, he had lived his life energetically, with much
perseverance. He was originally from Poland. After working in the technical
world for some time, he obtained a PhD degree. He was a capable man who had
succeeded in life. Such a man was searching for new opportunities as he was
reaching 50— the turning point of his life.
Dolata lived in California and worked for Interactive Systems, a major UNIX
vendor. It was yet a small company, and one of the many companies that
sprouted within the computer industry with unknown possibilities. Dolata was an
established engineer. However, he aspired to do something different in the
second chapter of his life. A burning passion motivated him, as well.

Dolata once worked at Bell Labs, one of the world’s prominent research and
development facilities. The lab was formally organized as a division of AT&T
and Western Electric. It was originally known as Alexander Graham Bell
Laboratory, founded by Alexander Graham Bell, the inventor of the telephone
system. The lab had approximately 30 thousand staff members in 25 countries
and had produced 11 Nobel Prize winners.
One of Dolata’s colleagues was sent to Tokyo and happened to meet with
Son. At the time, Son was looking for someone to work together with in
pursuing UNIX-related business.
“A man named Son is looking for someone like you,” his colleague said to
Dolata, “if you’re interested, why don’t you contact him?”
Dolata immediately called Son. He might have seen some potential in coming
into contact with this man.
Son quickly responded, “I have something important to discuss with you. Can
you come to Tokyo tomorrow?”
“That...would be a little difficult,” although dumbstruck, Dolata answered,
after putting some thought into it.
He was going to Australia for a business trip in two or three days.
“I shall stop by Tokyo on my way back from Australia.”
Dolata changed his flight schedule for one Japanese man he hardly knew of,
who lived on the other side of the Pacific Ocean.
Dolata flew to Japan.
Tokyo in 1986— One-length cut hairstyles, body-conscious tight dresses,
discos and billiard table bars were taking off as a trend among the public. In May
of that year, Prince Charles and Princess Diana visited Japan, stirring a “Diana
fever.”
The Palace Hotel— a first rate hotel, located in front of the Tokyo Imperial
Palace. Son came by himself exactly at the appointed hour. Such punctuality was
crucial when doing business with Americans. Son took many things into account
for his meeting with Dolata.
“Can you please come down to the lobby area? Me? You’ll find me easily.
I’m an Asian guy wearing a grey blazer jacket.”
Dolata came down to the lobby to find that the place was filled with Asian
men wearing grey blazers. Among them was a small but friendly man, smiling at
him. His eyes were shining rather remarkably.
At a Japanese restaurant on the second basement floor of the hotel, Son
shared his dream with Dolata while having sushi together. Dolata was captivated
by Son’s vision in an instant.

There are some humorous episodes between Son and Dolata. One such
episode took place at the Beverly Wilshire Hotel, a luxury hotel in the heart of
Beverly Hills, California. It is a distinguished hotel, where the members of the
Japanese Imperial Family, country Presidents and world-class VIPs stayed. It
was also one of the locations, in which “Pretty Woman,” starring Julia Roberts
and Richard Gere, was filmed. The Presidential Suite on the eighth floor was
known as the “Pretty Woman Suite” and cost $4,500 a night.
This day, Son greeted Dolata in front of the eighth floor elevator. However,
something unexpected happened. As Son left his room barefoot, the door behind
him closed. Even the calm Son panicked at this moment. His keys and shoes
were in the room. However, even at such times, Son did not forget his sense of
humor.
“Mommy!” he cried to Dolata, with an inquisitive expression on his face,
asking for help.
Dolata, at once, developed a sense of fondness toward Son.
The hotel manager ran to the scene. It was like a plot from a comedy play.
Dolata had to explain to the manager that this barefoot Asian man was the most
distinguished guest at this luxurious hotel in Beverly Hills. As one may
speculate from this episode, Son was rather careless with his personal
belongings, as well as of how he appeared to others. He had an easy-going and
innocent character. To allow Son back into his hotel room became Dolata’s first
work and accomplishment. No doubt, it is forever remembered as a funny
episode that actually happened.
About two or three weeks later, Dolata received a contract form at his place.
“Mr. Son. How much of my consulting time do you want?” Dolata asked.
“As much as possible,” answered Son.
“Okay,” Dolata accepted his request.
This was the moment that Dolata decided to commit himself to Son.
Although they developed a strong bond, Dolata never called Son by his first
name, quite to the contrary of American custom. He always called him, with
much respect, “Son-san.”36
Since 1987, Dolata started working for Son full-time. He often traveled
around the U.S. together with him. One day, the two dined at a first-class
restaurant. Son, who was honest with his wants, asked for a hamburger, but
Dolata admonished him.
“An established entrepreneur would never order such a meal at a first-class
restaurant.”
Although Son was taken aback, he decided to listen to Dolata’s advice.
Son spoke English quite fluently; however, sometimes he struggled to express
slight nuances. At such times, Dolata carefully corrected him. Dolata was born
in Poland and moved to America after the World War. He was a language expert
who spoke four different languages. He was especially strict in terms of English
grammar. When Son gave a speech in English at a conference for the first time,
he practiced in front of Dolata many times.
“Good evening, ladies and gentlemen!”
Son, who happened to be extremely nervous that day, stumbled over his
opening words many times. As Son frequently delivers his speech in English
now, it is difficult to imagine that there were such times.
Dolata was 53 years old when he started working for SoftBank. He was the
age of Son’s father. This “father and son” duo worked in concert to challenge the
global business world.

Dolata, who was loyal to Son, busily worked about. Dolata’s main task was to
bring SoftBank into the U.S. UNIX business. He worked at the SoftBank
Research Institute, which developed PC and UNIX technology, and also made
arrangements to do business with various U.S.-owned companies in Japan.
Another major task at this time was to negotiate with a publisher to obtain
copyrights for a U.S. computer magazine.
Son was determined to obtain the rights for the Japanese edition of PC
WEEK, when Gates recommended reading every issue. In March 1990, Son flew
to New York with Goro Hashimoto. He was to visit Ziff Davis, the world’s
leading publisher on computers and technology, which published PC WEEK. PC
WEEK was the dominant computer magazine in the world at the time. Everyone
in the industry read it.
Son met with William Ziff at their company headquarters on Fifth Street, New
York City. Their initial meeting time was 10 minutes long. However, their
conversation went on for an hour. Starting in May of that year, SoftBank was to
publish 50 thousand copies of the Japanese edition of PC WEEK on a weekly
basis.
Later, Ziff shared with Hashimoto.
“I’ve met three geniuses.”
He raised the names of Microsoft’s Bill Gates, Apple’s Steve Jobs and
Masayoshi Son.
Son said to Hashimoto, “Goro-chan, I hope we can buy Ziff Davis some day.”
Hashimoto thought Son was joking at the time. The idea itself was
preposterous. However, the genius’s eyes were not kidding. Son believed, more
than anyone, that the American dream would come true one day.
Five years later in November 1995, Son bought the Ziff Davis Publishing
Company.
28 Ride the Wind

January 7, 1989.
Despite all medical efforts, Emperor Showa passed away. The Showa Era
ended and the Heisei Era began. With the arrival of a new era, Japan was
experiencing an unprecedented economic bubble. In this year, Mitsubishi Estate
bought the Rockefeller Center in New York. Japan was making its way into the
global economic market on many fronts. On the other hand, the global market
was competing to enter the vast Japanese market. In terms of fashion, the
popular Italian brands, Armani and Versace, successfully made their way into
Japan. The leisure industry was also flourishing, and many companies sought
new business opportunities.
And, of course, the IT industry. Son’s SoftBank America finally started its
operations. Son already, at this point, had his next strategic step planned out. He
focused his target on Businessland Inc., which supplied computer hardware and
software to companies in America.
Son wanted to capture and ascend with the new current. In Japan back then,
the networking business, including local area networks (LANs), had not taken
off yet. A LAN is a network system that interconnects computers within a small
geographical area, such as a lab or office building. Son presumed that these types
of networks would soon be adopted and spread in Japan.
Son received a report from SoftBank America’s chief executive, Ted Dolata.
Businessland was making headway. Since 1982, the company, founded by David
A. Norman, had maintained a 70% growth rate every year and had raised 200
billion yen in annual sales. There was no way Son would have overlooked such
an accomplishment. He thought of coming into contact with this company some
day. However, in terms of sales, Son’s SoftBank and Businessland could be
compared to hiramaku (the lowest of the five ranks of the makuuchi division)
and yokozuna (the highest of ranks) in sumo. Despite such a gap, Son thought of
collaborating with Businessland to acquire LAN technology.
 In autumn of 1989, Son flew to America, where Dolata awaited, together with
the Software Business Department’s Purchasing Division manager, Ken
Miyauchi, and Sales Division manager, Takayuki Yabe.
Miyauchi joined SoftBank Japan in 1984. Since then, he had won Son’s trust
and confidence as his right-hand man. He is currently the Representative
Director and Senior Executive Vice President of SoftBank Corp.
and Representative Director and COO of SoftBank Mobile Corp., SoftBank BB
Corp. and SoftBank Telecom Corp. He is a shrewd businessman, who is able to
faithfully carry out Son’s vision, and at the same time, he possesses a
sensitive side, capable of mediating between Son and his employees.
Originally, the purpose of their trip was to better understand America’s
distribution industry by visiting a number of companies. However, as they
researched further, they started focusing on Businessland alone.
For Son, his visiting America was a big bet at the time. The ultimate purpose
of his visit was to meet David A. Norman of Businessland. If he were able to get
an appointment with Norman, half of his goal would be accomplished. He
believed that, if he could meet with him even once, he would be able to win over
his heart. However, contrary to his predictions, he was met with a cold attitude.
Son was not discouraged. He continued persuading him. Norman, who initially
thought very little of Son, slowly started to show an interest in him. He was
drawn to Son’s appeal, and, later on, came to an agreement on their partnership.
Son pressed further, “In order to expand LAN technology and products in
Japan, could you please introduce Ungermann-Bass to us?”
Son assumed that Norman would be able to connect him with one of the
major networking companies in the country, Ungermann-Bass, Inc. Son knew
there was no merit in being bashful or reserved, as Japanese persons tend to be,
during such negotiations. Put forward exactly what one is seeking for— this was
the American way of doing business. The response one would get was also clear:
‘yes’ or ‘no.’
Son’s speech was convincing. However, Norman’s answer was a ‘no.’
“You shouldn’t go to Ungermann-Bass,” he said strictly, and continued, “you
should go with Novell.”
It was a name unfamiliar to Son.
 Novell was a company that developed and sold Netware, a multi-platform
network operating system. It dominated approximately 65% of the market in the
U.S. Novell did not sell NetWare directly to its customers, but rather through
wholesale distributors. However, because the setup of the network required
technical skills, their distribution channels were limited to those equipped with
such capacity.
Son’s keen business acumen responded. If he were to persuade Norman now,
he would be able to promote the networking business in Japan. He would be able
to start a joint venture with major manufacturing companies.
“My proposal would be of merit to your company, as well.”
Son convinced Norman with sound reasoning and overflowing passion.
Norman finally nodded.
A few days later, Son and his men were invited to Norman’s residence. It is
not unusual for Americans to invite people whom they have met for the first time
to their residences. It is regarded as ‘hospitality.’ However, for Norman to invite
someone over to his mansion was exceptional. Here, Son was introduced to
Novell’s CEO, Ray Noorda.
Son told Noorda outright that he wanted to start a networking business in
Japan. He had good negotiation skills by nature. Noorda had the vast Japanese
market in mind, yet to be developed in terms of networks. He had been looking
for a chance to enter the market. This was the perfect opportunity. He nodded his
head in agreement to Son’s proposal.

After returning to Japan, Son immediately established Businessland Japan.
However, within a month, towards the end of December 1989, a piece of news
came in, surprising Son. Kanematsu Gosho (currently Kanematsu) negotiated a
tentative deal with Novell. Was this possible? Son was bewildered for a moment.
He recalled how Novell’s CEO affirmatively nodded his head while listening to
Son’s speech. It was a shrewd world. Novell had forsaken him. Son was deeply
disappointed. It was a betrayal. He came to understand firsthand the shrewdness
of the American way of doing business.
“I’m flying to America,” Son called out to his secretary.
 On his way to Narita Airport, he called Dolata in Los Angeles.
“I’m in the car on my way to the airport. I will be in San Francisco tomorrow
morning. I want to meet you there.”
Son even passed his flight number onto Dolata. This was unusual for Son,
who kept his travels to America top secret. It was unprecedented. Dolata realized
that this was an emergency.
“I want you to book me a flight to Salt Lake City,” Son continued.
“Why Salt Lake City?” Dolata asked, puzzled at his sudden request.
“I need to see Ray Noorda at Novell.”
“Okay. When are you meeting him?”
“What are you talking about, Ted? You’re the one who’s going to make the
appointment with him.”
Dolata was taken aback by Son’s intrepidness many times. However, this
time, he was flabbergasted. Novell’s CEO was a businessman who traveled all
around the world. Flying over to America, there was no guarantee one would
find him there.
Dolata, who finally understood what was going on, called Novell many times.
He tracked down in earnest where Noorda was and set up an appointment with
him. When reporting back to Son, he asked,
“By the way, did you know Mr. Noorda would be in the States?”
“No, I didn’t know,” Son replied soberly.
No matter what country Noorda was in, Son was going to go after him.
Although Son and Noorda greeted each other with a handshake and a smile,
their negotiations reached a deadlock before long. Smiles disappeared from their
faces. Neither gave in. Although Kanematsu was one of the largest trading
companies in Japan, they handled caviar and foie gras and were inexperienced
in handling computers. This was Son’s point of argument. He also insisted that
Noorda’s undertaking in Japan should be a joint venture.
“I could introduce you to very powerful partners in the business.”
 Noorda’s expression slightly changed at these words. Son did not fail to
notice this subtle change.
“Mr. Noorda, let’s fly to Japan tomorrow!”
Son later learned that, although Noorda was a multimillionaire, he was a very
frugal man. He only traveled on economy class on weekdays with a senior
citizen discount. Although Noorda disliked Japan in some ways, he said,
“Fine. I understand your point. I will send the executive vice president.”
Noorda was also quick in making a decision.
The next day, Son left America together with Novell’s vice president. On his
way to Japan, Son contacted NEC, Fujitsu, Toshiba, Canon, Sony and his other
business connections, asking for capital investment. The negotiation with each
company went through smoothly. Seeing this, the vice president advised Noorda
to immediately establish a partnership with SoftBank. This was the way business
was done at “lightning speed.” It was the moment in which an American
businessman was moved by Son’s masterful negotiation skills and abundant
business knowledge.
In the spring of 1990, Novell Japan was established, with SoftBank Japan and
Novell’s initial capital investment. Former NEC corporate officer, Kazuya
Watanabe, became its president.
In June of that year, major electronics companies decided to invest capital
funds in Businessland, Japan.
In July, SoftBank Japan renamed itself SoftBank.
That moment, the wind blew.
Son rode that wind.
29 Resolve

In 1990, the use of cellular phones began to spread and the TV animation
series Chibi Maruko-chan became a major hit, while Nintendo released their
Super Entertainment System.
In August, Son turned 33. In November, NEC, Fujitsu, Toshiba, Canon and
Sony decided to develop a partnership with Novell Japan. The joint venture,
which Son envisioned, was being realized.
Businessland Japan, led by Son, was also attracting much attention from the
industry. A year after its establishment, it was generating a surplus. It seemed as
if the company was in smooth sailing. As a young and spirited entrepreneur, Son
seemed to be invincible.
However—he was to be met with dark clouds on his voyage. A storm struck
him. If worst came to worse, the sails would be torn, the mast broken and the
crew thrown off the ship into the raging billows. Businessland, the parent
company of Businessland Japan, was on the brink of bankruptcy and was bought
by JWP, a computer systems company based in Purchase, N.Y. Son was caught
by surprise. The young warrior, who just launched an attack on his enemy’s
camp with great confidence, suddenly realized that his command post was
burning down. This was how Son felt. He needed to reshape his own camp at
once. If nothing were to be done, not only SoftBank, but all the other companies
that invested in Businessland Japan, would be forced to dissolve the merger with
accumulated debts. Son immediately flew to America to meet with Chairman
Norman. He had a strong resolve.
“You are to take responsibility for this liquidation. Please refund all the funds
that Japanese firms invested in the company.”
This was the way in which Son did business. As a Japanese, he was not able
to act as a bystander, just because it was not his fault. A strong sense of moral
responsibility moved Son. To him, it did not matter in which country one
practiced business. However, for Norman, an American businessman, no such
idea would even occur to him. It was beyond his conception.
Son continued to convince him. Toward the end of their meeting, Norman
accepted Son’s request. His firm resolve finally moved the elite American
businessman. If anything, it might have been the force of his spirit that allowed
Son to win him over. In the original contract, there was no line that required
“Businessland to make refunds if the merger were to dissolve.” However,
Norman agreed to fully pay back all the firms that invested in Businessland.
Son made a great sacrifice as well. Because SoftBank was a big part of this
joint venture, it was not able to turn a blind eye to this emergency. It decided to
pay in full for the losses accumulated up until then. The balance was paid to each
company. Although SoftBank had suffered a loss of over 200 million yen, Son,
to this day, believes that he was able to gain something even greater.
No matter what adversity he met, Son did not waver. He had a clear idea of
every move he made. This is consistent in Son’s business tactics and strategies.
Son, at this time, gained a valuable asset called trust. The executives at each
company hardly expected their investments to recover from a bankrupt company
in full. Son’s greatest strength was in transforming a situation which others
might consider a failure. Within failure was the key to success.
Evidently, he failed in the Businessland Japan venture. However, rather than
regretting his failure and fortuity, he looked at the brighter side of things.
Although he lost BusinessLand, he was able to establish Novell Japan along the
way. When put into perspective, this allowed SoftBank to establish the
foundation for pursuing the networking business, which was to be one of the
major pillars of the company. If one were to only pursue profit shortsightedly,
one would be unable to attain anything great. Son often makes the following
remark,
“Even if you are to incur a loss [son], you should maintain justice [seigi].”37

When one speaks of Son, one can never overlook the relationship that he has
with his family. Just as Mitsunori prided his ancestors, Son, too, was proud of his
family. He respected his father and mother, looked after his brothers, trusted his
friends and loved his own children. It was natural for him as a human being. Son
is looked up to by many young people in Japan, however, there is no merit in
imitating his lifestyle while disregarding his spirit.
One man received much influence from Son— Taizo, his brother, who was 15
years younger than Son. Son had three male siblings and especially cherished his
youngest brother. As his older brother, he sometimes treated him with the
strictness of a father. It was Son who named him Taizo. He named him after
Taizo Ishizaka, then chairman of Toshiba, who was much respected in the
business world. However, Taizo’s ‘zo’ [] consisted of the Chinese character for
“three,” and his brother was the fourth of the sons. Therefore, Son decided to
replace it with the Chinese character for “storehouse” [], which is also
pronounced ‘zo.’ He wished him to establish a ‘storehouse’ or ‘treasury’ in his
life.
In April 1991, Taizo started going to a cram school specializing in college
entrance exams in order to get into Tokyo University. Following his brother, he
studied at the prestigious Kurume University Senior High School, graduating
with excellent grades; however, he failed in the entrance exams. While studying
for the next round of university entrance exams, he started a jazz band and spent
a year quite carelessly. However, when he failed the exams for the second time,
he was overcome with a terrible anxiety that urged him to move to Tokyo and
attend cram school.
When he consulted his brother, Son reprimanded him severely,
“If you go on like this, you won’t be able to rid yourself of this sense of
failure. You will soon get used to failing.”
The little pride he had left was torn to pieces. However, just like his brother,
Taizo, who had a competitive nature, frantically started to make his study plan
for the entrance exams. Taizo confidently showed his study plan to Son. Again,
he was met with reprobation.
“What in the world are you thinking of!?”
The older brother started explaining what was wrong with his plan. A plan
shouldn’t be made of additions, but should be a result of unique divisions. First,
one must think of the one-year length of time. One should not divide this one
year into 12 months. No matter how scrupulously one sets up a plan, there is no
guarantee things will go as planned. Taizo’s brother taught him to divide 365
days, not into 12, but into 14. He taught him to finish a month’ work in 26 days,
or a fourteenth of a year. This way, he would be able to reserve four to five days
in a month, or approximately one extra day a week. This would give him spare
time both physically and mentally and enhance his overall work efficiency.
Furthermore, he taught him to assess whether an hour’s work could be
completed in 10 minutes or not. Son was meticulous not only in planning, but in
carrying out the plan as well.
Taizo commenced his studies for the exams, based on this new plan. The
areas in which he progressed as planned were marked green. The areas in which
he slacked off were red and the areas in which he progressed half way were
yellow. Taizo studied 18 hours a day. He knew that while his brother was at Holy
Names College and UC Berkeley he had devoted all his time to studying, except
for when he slept.
“I’m not going to lose to my brother,” he thought.
Taizo studied hard. At the beginning he had many red and yellow marks, but
green marks gradually increased. He showed Son his state of progress. His
brother glanced at his progress report and scolded him,
“You don’t understand what it means to study.”
Taizo was shocked. This time he was confident that he might be
complimented, but never scolded. He couldn’t understand why Son would
rebuke him.
“Yellow is the problem here, do you understand?”
Son did not take into consideration the red marks. No one is perfect all the
time. There are times when one can’t achieve one’s goals. Naturally, green marks
should dominate, as there are reserved days to catch up. The incomplete areas
marked as yellow were most important. Why was it incomplete? How much
progress was actually made? To make clear one’s tasks—this was a big part of
studying. In studying, results matter most. Thus one must plan to complete
everything within the given time.
Taizo nodded at Son’s words. Once he had control over his study plans,
Taizo’s grades soared. He was able to enter the highly competitive Economics
Department at Tokyo University.
This was Masayoshi Son’s greatness. Today, Son’s work schedule is kept in
five-minute intervals.

Taizo, who was brought up by his father, a talented businessman, and
benevolent mother, deeply respects his brother. He is honestly amazed at seeing
his brother dealing with several hundred million yen businesses. His brother had
a different scale of measurement. He felt he would never be able to exceed his
brother.
Nevertheless, Taizo started a business while in university as well. In February
1996, when he was 23 years old, he established Indigo Corporation, an
application service provider. His brother was 23 when he established SoftBank.
With regard to this point, Taizo compares with Son. His meeting with Yahoo! co-
founder Jerry Yang in December 1995 inspired him to bring Yahoo! into Japan
and, later, establish his own company.
Independence and self-respect run through Son’s family culture.
Son, who was fond of video games, would play Super Mario Bros. with his
brother Taizo, while teaching him business management and philosophy. How
could one obtain more mushrooms? How could one smoothly jump over the
turtles? If, for instance, one were to ask for solutions, one would instantly know
where the ‘warp pipes’ are and warp to the fourth stage. By any means, would it
be interesting to rise to a higher stage so effortlessly?
Normally, one would complete the first stage, fight a monster and then
advance to the second stage. The second stage is much harder than the first. One
advances to the third stage upon completing the second. Business is like a Super
Mario game, Son says. It is important to open the way forward, level by level,
with your own efforts.
When Taizo was a junior high school student, he once played a simulation
game called “Sekigahara”38 with his brother. It was a battle game between Ishida
Mitsunari and Tokugawa Ieyasu. Son attacked ceaselessly. He attacked Taizo’s
single army with six armies. He showed no mercy even to his dearest sibling.
Son, who has engaged in massive acquisitions, has a strong image of being on
the offense. Nevertheless, Son was bold and, yet, scrupulous.
“He is very prudent. But, if he decides to cross a bridge, he will do so even on
a dump truck,” Taizo says.
 This was what Taizo learned from his brother.
If one’s sets one’s mind to something, one can do anything.
—These are the words of Shoin Yoshida, a revolutionary during the
Bakumatsu Period. Shoin preached that, when one is firmly resolved, one can
overcome any kind of obstacle.
What does one pursue along with the success of one’s business?
What Son had cultivated during his adolescence was a strong resolve.
He had a high aim and great confidence that he could contribute to society
and its people in the coming digital information era.
On July 22, 1994, SoftBank Corp. entered the over-the-counter (OTC)
market.
30 Bold and Prudent

There is one unforgettable episode.

It took place on Wednesday, November 15, 1995. The executive officials of
the SoftBank Group gathered at Son’s suite at the Hilton Hotel in Las Vegas.
They were SoftBank America’s chief executives, Ted Dolata, David Bloomstein,
Ron Fisher and executive secretary Masahiro Inoue (later, CEO of Yahoo!
Japan), who accompanied Son from Japan. This year, Son had bought
COMDEX, the computer expo division owned by The Interface Group and Ziff
Davis.
There was a balcony on the 29th floor suite. However, Son never went out to
the balcony during his stay. He was afraid. He was scared of heights.
Son was about to make a bold decision. The men sat comfortably on the sofas
of the spacious hotel room.
“There is a very interesting Internet company called Yahoo! and I would like
to make an investment,” started Son.
Eric Hippeau, CEO of Ziff Davis, was calling for the investment. Ziff Davis
was planning to invest capital funds in Yahoo! when it was acquired by
SoftBank. As they were in the process of closing their accounts, they were
unable to make new investments until their asset assessment was completed.
Thus, they turned to Son. Son trusted Hippeau. The deadline was in two days on
Friday of that week.
“So, what do you think?” he asked in Japanese.
He was asking Inoue.
“An Internet company...I think it’s good” Inoue quickly responded.
Inoue was born in 1957, the same year as Son, and was half a year older than
Son. He started working for the Sord Computer Corporation in 1979 and joined
SoftBank Research Institute in 1987. He was transferred over to headquarters in
1992. Since then, Inoue was always next to Son. He worked as his executive
secretary and the head of the secretarial section, although he did not literally
carry his boss’s briefcase around. He learned much about management from Son
firsthand.
Inoue understood well that once Son set his mind to something, there was no
going back. Inoue had at times observed Son rather objectively. He had seen Son
so much absorbed in thought that he ran into a pole and went onto a jet plane
without wearing shoes. Although Ken Miyauchi heated up and cooled down in
sync with Son, Inoue remained calm and composed throughout. However, this
time, Inoue felt a stir of excitement within him. The Internet age would arrive.
Inoue was confident of Son’s decision.
They decided to procure 2 million dollars from COMDEX.
The following day, Son flew to Silicon Valley with Dolata. He met with
Yahoo! founders Jerry Yang and David Filo. It was at their small office in
Mountain View. As they were seeking capital funds, the two initially thought of
greeting Son at a French or Chinese restaurant. However, Son wanted to talk
freely and thoroughly with the two young men. In order to do so, takeout pizzas
and sodas were enough. Holding high aspirations, he wished to discuss the future
of the Internet. That was his single desire.
“Talking with Jerry Yang and David Filo, I thought they were the ones. I
decided to bet everything on them,” Son recalls.
SoftBank invested 2 million dollars in Yahoo!. When they issued an IPO on
NASDAQ, SoftBank took on the third-party allocation of new shares and
invested 10 billion yen. SoftBank’s ownership ratio of Yahoo! later became 35%.

When SoftBank decided to invest in Yahoo!, there were several firms in Japan
that were considering forming a joint venture with Yahoo!. In December of that
year, Inoue went to see Yang to discuss the establishment of Yahoo! Japan.
Inoue clearly remembers when he met with Yang,
“The reason we became the partner of the joint venture was not because we
made a huge investment. The other companies interested in the joint venture
were trapped in the old business custom of “taking their time.” However, both of
us agreed that speed was critical in pursuing the Internet business. That’s why
we decided to start the company in March.”
Inside Yahoo!’s office were stacks of proposals for the joint venture made by
other Japanese companies. Inoue glanced at the stack of documents.
“We’ve received many proposals and were wondering what to do with them,”
Yang, in his polo shirt, said.
Inoue, for a moment, thought he should have brought a proposal with him. He
came empty-handed.
“Let’s create Yahoo! Japan,” Inoue started.
“That’s a good idea. How do you think we should start?” asked Yang.
“We could start with two or three people and, if necessary, add more and more
people,” Inoue answered.
“We should start from wherever we can,” he added.
Yang nodded at these words, “You’re right. Speed is important.”
As engineers, they were on the same wavelength.
They also discussed how everything would be in Japanese. Inoue had already
grasped the crux of the matter. There was great cultural gap between Japan and
the U.S. Since there was no Japanese precedent, Inoue wanted to think freely and
open-mindedly.
“Anyhow, let’s get started!”
Inoue and Yang shook hands.
December 20. There was a plaza in front of the Fairmont Hotel in San Jose,
the largest city within Silicon Valley. The colorful lights on the Christmas tree,
decorated by the children in the nearby neighborhood, were shining brightly.
After having sushi, Inoue and everyone walked outside.
“The Christmas decorations were beautiful,” recalls Takumi Kageyama, who
accompanied Inoue, remembering this day with special fondness. He felt he
received a big Christmas present that day.
Inoue and his men put together a report on their flight back to Japan and
inside of the car from Narita Airport to the SoftBank headquarters in Nihonbashi
Hama-cho, Tokyo.
“Great,” Son said with a big smile on his face.
In January 1996, Yahoo! Japan was established. On January 8, Son gathered
the executives and issued a manifesto.
“This year will be the first year of the Internet era. We will go all out in the
Internet business.”
On January 12, Yang visited Japan. They were to start providing their services
on April 1. SoftBank was practicing their ‘daily balancing of accounts.’
Operating results were not significant by any means. However, amidst this
busyness, someone had to get down to the project as soon as possible. Inoue
called on the Personnel Department.
“We have to act fast! Or else we’re in big trouble.”
Inoue prompted the Personnel Department to endorse the “Yahoo! Startup
Project.”
One of the central figures in carrying out the project was Takumi Kageyama.
Kageyama was the editor in chief of the magazine, UNIX USER. He joined
SoftBank a year after its establishment. He was a man of few words, who
worked his way by studying computers and editing, and had a strong sense of
responsibility, more so than others. Kageyama’s title on his business card was
“Editor in Chief.” He had much pride in his eyes for editing. Kageyama was
ready to respond with unyielding efforts to Son’s passion and careful
consideration for others. He recalls the moment he saw Son’s most
compassionate side.
“At a year-end party one time, there was one employee that we had to let go
for the sake of downsizing. Mr. Son wept in front of everybody.”
Inoue and Kageyama had largely three tasks. First, they needed to organize
the directory. Second, they needed to allow the search function to work in
Japanese. Finally, they needed to gather websites that corresponded to the search
terms. Certainly, there was much more work to be done, such as determining the
search engine specifications, adapting the search engine under Yahoo! systems,
gathering ads, and so on. Two or three people undertook all of this. No particular
room was assigned to the project team, so they worked at one of the corners of
the President’s office or at their own desks, communicating through email.
Gathering websites was the most difficult task.
“Let’s get 30 thousand.”
However, Inoue was inexperienced with regard to gathering websites, and the
two struggled in reaching their goal. Kageyama persistently searched and
gathered 15 thousand sites. They set up an automatic registering system, which
gathered websites around the clock. Son’s brother, Taizo, and his friends took
over and managed this task.
Starting in July 1996, Inoue became Yahoo! Japan’s president, replacing Son.
Since then, Yahoo! Japan users have increased phenomenally. In January 1997,
Yahoo! Japan had 5 million page views per day, and reached 10 million in June
1998. In July 2000, they had 100 million page views per day, 300 million in May
2002 and 700 million in March 2004. Yahoo! Japan currently provides various
services, from search, content, communities, e-commerce to mobile applications.

Inoue remembers the first time he conversed with Son.
In 1988, Inoue participated in SoftBank Research Institute’s recreational trip.
While bathing in the hot springs of Hakone, Son and Inoue talked about the
prospects of 32-bit PC software. Five years later in 1992, when he was
transferred to the SoftBank headquarters, Inoue started taking an interest in Son.
Before then, working at a subsidiary, all that was accounted for were numbers
and results. Therefore, Inoue had often felt ill at ease dealing with the head of
the Group.
“It’s true I felt annoyed at times. He’s really finicky when it comes to
numbers. He asks “why, why, why?” Especially when we’re in the red.”
Son persisted in generating even one-yen’s worth of profit.
However, Inoue started to see Son’s astuteness and greatness as a general
manager.
“He is very bold, yet meticulous when it comes to matters such as numbers.
It’s great that he has both sides to him. Many people have only one.”
 Although his core focus does not largely move, Son, too, makes mistakes.
“He tends to fail in businesses that he starts half-heartedly. But, he never
stops something once he sets his mind to it. So, at such times, I just wait.”
Nonetheless, Inoue deeply understands that Son, at any given time, forges on
with high aspirations.
“He advances, setting his goals and aspirations at a high level,” comments
Inoue.
Son had often talked to Inoue about his dream of developing communication
infrastructure just like NTT. This dream was finally about to be realized.
April 2001. On the eighth floor of the Yahoo! Japan headquarters on
Omotesando, Inoue made the following announcement.
“I’ve talked with Mr. Son, and we’ve made a decision. Yahoo! Japan will start
a new challenge.”
Inoue announced that they would start developing a broadband network.
In the past, there were projects that Son discarded because his interest as well
as concentration did not last. Inoue, comments with a laugh,
“But Yahoo! BB will continue. For a long, long time.”
There were three main anchors for Yahoo! BB, which both Son and Inoue
intensely worked on. First was Internet access. Second was BB phone. And,
third was BB television. SoftBank was going to bring about a sensation through
this new infrastructure. The infrastructure was going to develop in many other
dimensions. This was only the beginning.
Inoue understands his differences with Son, as well.
“For example, I would not bet everything on one thing. Maybe I am a better
gambler than he is. If we were to do it 100 times, I would probably win.”
Inoue added, again laughing,
“But, the good part of him is that he gets tired of things at the third try or so.
So, he’s usually able to triumph by the third try. Son-san seriously contemplates
how he will be able to make profit. He studies a lot, and his learning ability is
exceptional.”
The gentle man’s eyes shined as he talked about Son.
Inoue is now known as a charismatic businessman himself, and Son trusts him
entirely. Inoue is a man of grace with as much dauntlessness as Son. The two
share a strong bond.

The Christmas tree in Silicon Valley will be beautifully decorated by the
hands of the children this year as well.
31 Aiming High

A man moves. A wind blows.

Son was forging ahead at the forefront of the rapidly changing times. Just as a
new current forms and spreads from an advancing ship as it cuts through the
water, whenever Son made a move, new winds blew as they invited more new
winds. At times, revolutionary winds blew, causing sensations.
In April 1995, SoftBank bought the world’s largest computer exposition,
COMDEX. In November of the same year, it bought Ziff Davis Publishing
Company, the world’s largest publisher of computer magazines.
In January 1996, it bought shares of America’s largest search engine, Yahoo!,
and became its largest shareholder. In June of that year, it joined News
Corporation, led by Australia’s media tycoon Rupert Murdoch, in a Japanese
satellite broadcasting venture (Japan Sky Broadcasting). It also announced its
intent to buy Asahi National Broadcasting Corporation’s shares (which was later
dismissed).
On January 16, 1998, SoftBank was listed on the first section of the Tokyo
Stock Exchange. Only four years had passed since its stocks were traded over-
the-counter (OTC). On the first day of the exchange, there was overwhelming
demand for SoftBank stocks from the opening bell. The opening market price
was 3,700 yen, 100 yen higher than the closing price of OTC, and the closing
price that day was 3,870 yen.
In June 1999, SoftBank entered into an agreement with the U.S. National
Association of Securities Dealers, Inc. to establish Nasdaq Japan. In 2000, it
acquired The Nippon Credit Bank, Ltd. (currently Aozora Bank).
The revolutionary Son took everybody by surprise in whatever business he
did. Wherever he appeared, a strong wind followed.

However, no matter how strong the wind would blow, one could find short
moments of tranquility and stillness. What brought this moment to Son was a
once-in-a-600-year tea ceremony held by the Sohen school of tea ceremony. It
was indeed a once-in-a-lifetime event.
The Sohen school was founded 350 years ago by Sohen, the top disciple of
the grandson of Sen no Rikyu,39 Sen Sotan.
There is one anecdote on the revenge of the Forty-seven Ronin, which took
place in the early 18th century.40 In 1701, while lordless samurai from the Ako
Domain (the Forty-seven Ronin) were working their way assiduously to exact
revenge for their lord’s death, one of them, named Otaka Gengo, who was well
versed in poetry, entered the Sohen school. Sohen, who sensed his affliction,
secretly told him the date of the tea ceremony that was to take place at the Kira
residence.41
Sohen Yamada was the current head of the Sohen school. Due to his
predecessor’s sudden death, he assumed the 11th generation Sohen name at 21
when he was still a student.
In July 1997, the Sohen school held a tea party. Sohen Yamada, who studied
at Sophia University followed traditional Japanese customs while, at the same
time, cultivating a modern esthetic sense. Using his extensive personal
connections, Sohen held a “Dai-ryu-kai” (Gathering of the Great Dragon), which
integrated Zen with tea ceremony. The gathering was initially proposed by
Professor Seiichiro Yonekura at the Institute of Innovation Research at
Hitotsubashi University, with the intention of inviting the leaders of various
disciplines, the modern samurai who “make tomorrow,” in order to transmit the
heart of tea ceremony to the next generation.
In autumn of this year, Sohen was to hold a commemorative tea ceremony for
the 600th anniversary of Kinkakuji (Temple of the Golden Pavilion) in Kyoto.
Hosting this once-in-a-600-year tea ceremony was by far the most significant
event in the history of the Sohen school. It was to be a once in a lifetime
opportunity for those invited, as well. Only a selected few were allowed to
attend this special ceremony. It was a solemn honor.
The head of the Sohen school asked for Yonekura’s advice. Yonekura
specialized in business history and was also knowledgeable about the computer
industry.

“We tend to look at thriving new companies with skeptical or perhaps half-
envious eyes. However, because we’re in such times, we shouldn’t wish for their
failure, but sincerely support them and make it our culture to foster the next
generation of Sony’s or Honda’s.”

—This was Yonekura’s view. He was a critic, who argued against the so-
called ‘Son-bashing.’ And, he was well versed in the Way of Tea. Yonekura,
without any hesitation, recommended Masayoshi Son as one of the participants
of the tea ceremony.
“Tea ceremonies in modern days should be conducted among people who
have great influence in the society. Moreover, businessmen who are succeeding
abroad must understand firsthand the art of the Japanese tea ceremony,” he
insisted.
This was how the two unique individuals, Sohen Yamada and Masayoshi Son,
came to meet each other. Although Son had an extremely tight work schedule, he
readily accepted this wonderful and unexpected invitation. However, he had
never before in his life participated in a tea ceremony.

The residence of the head of the Sohen school in Jyomyoji Temple,
Kamakura, was surrounded by two and a half acres of thick greenery. A small
stream ran through the property, which was partially designated as a national
Important Cultural Property. The building was established by the court noble
Ichijo Akiyoshi and the tea ceremony master Sowa Kanemori in the Edo era.
Kanemori had also created a tea ceremony room in Kinkakuji Temple. The
commemorative tea ceremony was entrusted to Sohen, due to this connection
with Kanemori.
On that day, Son drove from Tokyo to be in Kyoto at 4:30 p.m. He seemed a
little nervous after changing into the kimono and hakama (traditional Japanese
clothing) prepared for him. It was not that he had absolutely no interest in the
Way of Tea.

 “I was interested in the Way of Tea, which is worlds apart from what I do for
work. To have tea in a natural environment is like spending time in another
universe. The busier I am, the more I need to reflect upon myself. I was seeking
something other than karaoke or golf.”

Son often went to concerts with his family, but was not particularly fond of
singing in front of others when invited out for karaoke.
Just as Rikyu and his disciple Oribe Furuta provided mental support to
Nobunaga and Hideyoshi during the Warring States Period, did not Sohen
capture Son’s heart?
In a small 75 square foot room named Fushin-an, strong green tea was served.
Son seemed to be in pain somewhat while sitting in seiza, folding his legs
underneath his thighs, at the tea ceremony floor.
“Please have this tea, imagining that you are general Nobunaga.”
As Sohen said this, the tension in Son’s lips naturally eased. Where to set
one’s mind is important in the Way of Tea. Son, in one mind with the Sengoku
warriors, concentrated on his tea bowl.
It was getting slightly dark outside by the time the ceremony ended. Son felt
his heart was soothed by the warm light from the wood-framed oil lampstand in
the room.
He felt a mix of tension and relaxation.
“I feel very calm,” Son quietly commented.
After moving to another room, an evening meal was served. Son, who rarely
drank, placed his hands on a sake cup.
“It tastes very good.”
He drank two or three times from the small sake cup.
In honor of Gates, who is a Coke-lover, Son drank Coke, but hardly drank
alcohol. In order to persuade his father, who suffered cirrhosis and duodenal
ulcer, to stop drinking, he promised himself he would not drink.
 When all were at ease, Sohen asked Son,
“What is the Internet?”
Son responded calmly, “In Japan, if a politician is able to use the Internet, he
is typically looked upon as a mere stripling, but that is not right. The Internet is
like the spread of the telephone system. It is only one type of infrastructure. The
important thing is how one uses this tool; how happy one becomes as a result of
it.”
Son’s words were convincing. He believed this from the bottom of his heart.
There was no impurity here.
Sohen, who aimed to unite tradition with modern culture, was of the same
mind as Son.

“If all had the same aspirations as Mr. Son and the same level of intellect, the
plans pictured in his mind would easily be realized. But, ordinary people cannot
see the future Mr. Son sees. He is said to change his remarks often, but this may
be because we ordinary people are unable to catch up with his processing
speed.”

Sohen felt that Son’s words were at one with his physical body. This was at
the heart of the Way of Tea. Son had already embodied the spirit of the Way of
Tea.

Two years later, at a tea gathering on a cold winter’s night. A memo was
passed onto the tea ceremony room.
“Emergency. Call Immediately” were the words written on the note.
Sohen hesitated about bringing secular affairs into the tea ceremony room;
however, he asked Son,
“Mr. Son, would you like us to bring your cell phone?”
“It is very kind of you to ask. Could you please do so?”
 Son apologized for leaving his seat in the middle of the ceremony, and made a
call from the washing area adjacent to the tea ceremony room. Quite some time
passed. One of Sohen’s leading disciples happened to see this sight. Son
repeatedly bowed his head down to the person on the other side of the phone
line.
“No, I am truly sorry. I am still young, but I will sincerely do my best. Please
believe in me.”
Sohen’s disciple, who saw “non-arrogance,” the ideal state of Sohen school’s
‘beauty of simplicity,’ in Son’s modest attitude, instantly became Son’s
supporter.
Sohen once studied under the political science professor, Jiro Yamaguchi,
who specialized in English politics at Hokkaido University. He taught that
“aspiration” and “ambition” are essentially the same. These days, we see no
politicians with ambition. Because they lack aspiration and ambition, they have
no vision. Because they have no vision, things become dysfunctional. The word
aspiration refers to something more spiritual and has little to do with ‘money-
making.’
Once one holds an aspiration, one should live by it no matter what others may
say. On enduring criticisms and obstacles, one is able to polish one’s character
and, in the end, win people’s support.
According to the teachings of Zen, one should take on hardships cheerfully, or
else one cannot grow as a human being. In this respect, Son is an exemplary
figure upholding his high aspirations. Although Son is often criticized, he never
gets discouraged.
Each participant transcribes his or her thoughts in written form after the tea
gathering. This “postscript” reveals one’s true nature.
Son wrote serenely the word “wind.”
Within was Son’s strong desire to be the wind itself.
The tea reflects the inner state of the participant.
“A pure, clear tea.”
So Son appeared to Sohen.
32 Pulsing with Excitement

January 20, 2000.

Tokyo’s Roppongi district was redressing itself for a dazzling night. The short
man who stepped out of a prestigious car in front of the television station seemed
to be an ordinary man you would find on the streets. However, he was emanating
fresh and lively energy from across his entire body. Once the friendly-faced man
entered the studio, the entire atmosphere became tense. Maybe it was this man’s
aura that caused the tension.
“Hi, I’m here. I’m looking forward to the show.”
This man, Masayoshi Son, put himself forth in a polite manner.
“How would you like to introduce yourself?” asked Hiroshi Kume, the top
news anchor of the long-run News Station, who just came back after taking a
sudden break from the news world.
“A guy who’s into the Internet, maybe?”
It could be considered a plain answer; however, there was no better
expression that summarized his being. Within those words were the depths
reached by philosophers at the end of their philosophical quest.
Without a moment’s pause, Kume asked,
“You wouldn’t mind spending all your fortune on the Internet?”
“No, I wouldn’t mind.”
Son’s gentle face shined. Of course he would spend all his fortune. He argued
back with silence.
SoftBank was aiming to be an Internet conglomerate. Toward this end, it had
come up with new schemes, one after another. It had established an international
stock market, Nasdaq Japan, for venture companies and bought The Nippon
Credit Bank. In terms of online business, it had launched Yahoo! Japan, sold cars
and books over the Internet, and started up its broadband business, greatly
impacting the Japanese economy. At this point, Son was said to be the wealthiest
man in Japan. SoftBank’s market capitalization (share price times number of
shares outstanding) was approximately 10 trillion yen. It was among the top five
companies in Japan.
That night, Kume had resumed his sharp line of questioning as an anchorman.
“About a year ago, it wasn’t clear to me what you were doing...I thought that,
perhaps, you might be an entrepreneurial charlatan.”
“Well, I’m still called a ‘bubble-man’ by some,” Son answered with a smile,
but his eyes were serious.

What kind of man was Masayoshi Son?
How did he become one of the wealthiest men in the world?
It was difficult to grasp what SoftBank Corp., led by Son, actually did. It did
not produce anything in particular. It was an intangible entity that frequently
made investments and bought up other businesses. It appeared to the general
public that SoftBank did not do any business in particular, but was a holding
company that integrated and managed its subsidiaries and affiliates.
In 1996, together with the media mogul Rupert Murdoch, SoftBank
announced that it would purchase 21.4% of Asahi National Broadcasting’s share;
however, all of a sudden they renounced their call. Son explained the reason
behind this to Kume.
“Asahi Shimbun (a national newspaper) wanted to keep TV Asahi as its
subsidiary. It wanted to redeem its shares, and we did not wish to wrestle with
them, so...”
SoftBank invested in new companies and profited as the stocks were traded
on a formal exchange.
“Are you saying that, you would invest in, for example, 100 companies and
have one major hit but you wouldn’t mind if the other 99 failed?” Kume asked
sagaciously.
 “I wouldn’t go that far, but the actual numbers show that that is possible, that
there would be enough return.”
Kume suddenly changed topics.
“How much is the chief executive’s salary?”
“About 5 million yen a month, I’d say. I don’t remember clearly,” Son
answered carelessly, without moving an eyebrow.
“You don’t look at your paychecks?”
“No, I don’t.”
He is least concerned with his personal earnings. On the day SoftBank made
its initial public offering, Son purchased a 300 thousand yen golf club set, but
that was perhaps the most amount of money he spent on himself. He wore the
same watch as long as it worked and sometimes ate ready-made food sold at
convenience stores together with his employees. Because Son responded so
plainly, Kume was half dumbstruck.
Kume shrewdly asked whether SoftBank’s high market capitalization was due
to a ‘bubble’ valuation, lacking substance. Unperturbed, Son answered,
“The economic bubble goes up and up, and comes down. When things go up
and up and up, we call it growth. I think there is a big difference here.”
Fifty years, one hundred years into the future, the Internet will be an integral
part of our lives eternally. This was only the beginning. —Son’s explanation was
convincing.
Just as we look at the industrial society in the 20th century as an era of cars,
TVs and telephones, the 21st century would be looked back upon as the era of
Internet some day. The Internet revolution had just started. It was the time we
live in.
“Do you consider yourself surpassing Bill Gates within this year...?” Kume
asked.
“That would be absolutely daring. I would be reproached. That would not
happen.”
Although Son answered with all seriousness, this perhaps did not reflect the
workings in his mind. Was it I alone who felt that he suppressed his impulse to
answer, “Of course, we will surpass them and become number one”?
In the end, Kume asked,
“What is your goal this year?”
“To pursue the Internet even more.”
Even if he were to be criticized as a charlatan or a gambler, Son persistently
pursued the path he believed in. It is my life. I should not regret anything— This
was how he constantly encouraged himself. The confident man answered the last
question with a big smile on his face.
Ten months after Son’s interview with Kume, which drew much public
attention, I met with Son in Las Vegas. There was always a smile on his face and
a crowd of people wherever he went.

It was November 12, 7:00 p.m. at the COMDEX/Fall 2000. As a roar of
applause rose in the MGM Grand Garden Arena in Las Vegas, Bill Gates
appeared on the front stage, in a jacket with no tie. This was the man who drove
the worldwide computer industry. The 12 thousand person audience in the arena
concentrated their gaze on this man. Countless cameramen from the press set off
their flashes. The crowd broke into loud cheers when the tall Gates appeared on
the giant screen monitors. Gates introduced online shopping through a simple
performance and demonstrated the ease of using the new “tablet PC” by holding
a drinking bottle in one hand.
“We are at a big turning point in PC technology, and my greatest job now is to
determine which technology Microsoft is going to bet on,” Gates stressed.
Son earnestly listened to the keynote speaker from the front seat of the arena.
At times, he applauded, laughing out loud.
Gates and Son had met the previous day and played at a first-class golf course
in Vegas. It had become a routine event in the past few years. Son, who played
on even par in the past, plays dynamically. It was his hobby.
“I have to win at least in golf,” he says.
 One saw his confidence behind these words.
What did the two, who called each other “Masa” and “Bill,” talk about as they
made their rounds?
On many occasions, Son mentions, “I respect Bill.”
Gate’s keynote speech that day confirmed Son’s vision of the Information
Revolution in the 21st century.

In April 1995, Son, who bought COMDEX from The Interface Group for 800
million dollars, raised the amount by generating 18.1 billion yen through issuing
additional stock at a 9,696-yen public offering price and by generating 10 billion
yen through straight corporate bonds. For the other 50 billion yen, he paid for it
by borrowing from financial institutions. Many Japanese banks had offered to
finance him.
On the first day of the COMDEX trade show in Las Vegas on November 13
of that year, Son delivered a powerful opening speech in English, as the owner of
the exhibition. His speech was followed by IBM Chairman and CEO Louis
Gerstner’s keynote address. After his speech, Son and Gerstner shook hands on
stage. COMDEX became the springboard for Son to enter the global stage.
Therefore, Son trembled with excitement whenever he visited Las Vegas.
“Las Vegas is one of my favorite cities,” he says.
At the trade show in November 2000, Gates finished his speech and left the
stage amidst thunderous applause.
When Son, in a navy blazer with no tie, stood up from his front row seat, a
crowd of people instantly surrounded him. Among those who sought a
handshake were Microsoft CEO Ballmer and other leading figures in the
industry. Son was equally the star of the night as much as Gates was. At the
monumental convention that night, Son renewed his sense of respect and
admiration for Gates, and, perhaps, deepened his sense of rivalry.
While at UC Berkeley, Son gambled in Las Vegas one time. He lost all his
money. Ever since then, he has never gambled. However, his everyday work
entails more thrill and risk-taking than any game in a casino.
 Since age 19, Son consistently pursued the Information Revolution. That
revolution had started. There was no doubt that he would be one of the figures
leading the 21st century in the front together with Bill Gates.

In June 1998, Son and Gates met with the Korean President Kim Dae-jung.
Korea was in the middle of a financial crisis then. The President asked Son,
“What do you think we need to do in order to rebuild our economy?”
Son, glanced at Gates, who sat next to him, and answered,
“Mr. President. There are three things. First of all, broadband. Second,
broadband. Third, broadband. There can be nothing else. Korea becomes the
world’s number one in broadband. If you do this, you will be able to restore your
country’s standing.”
Broadband was the basic infrastructure for all kinds of electronic
developments, and if Korea extended this infrastructure throughout its country,
various electronic industries would blossom around it.
“You must become the first President in the world who is determined to
become number one in broadband,” Son continued.
“I understand,” replied the President, “so, what is broadband?”
Son carefully explained to the President, who asked frankly,
“Plainly put, it is ultra high-speed Internet. You should create this ultra high-
speed Internet infrastructure through executive order. You should pledge to
become number one in the Internet. You should order this.”
“Okay. I don’t exactly understand what it is, but I understand your point. I
understand that broadband is very important,” the President responded and
turned to Gates.
“Mr. Gates, do you agree with what Mr. Son said?”
“I agree 100%.”
“Okay. Since the both of you say so, I believe in it as well. I don’t quite get it,
but I will order so.”
 The next month, an executive order was issued by President Kim: set up
broadband network at all schools in the country; remove any regulations that
interfered with or delayed the process; modify fiscal budgets, human resources
and legal systems in order to successfully roll out broadband infrastructure
throughout the nation.
As a result, Korea’s broadband coverage is currently 75%, which is number
one in the world. Japan’s coverage is 25% and U.S. remains at a mere 5%.

Son describes Gates as follows,
“Gates surpasses great historical figures like Edison, Rockefeller and
Carnegie. His name will surely be recorded in history.”
He is sharp in mind, has a challenger’s spirit and is very sensitive at the same
time. Sensitivity in the right cerebral hemisphere and reason in the left both
operate at an extremely high dimension.
“Fortunately, Bill’s the one who develops new technologies and I’m the one
who sets up the infrastructure. The two do not collide, but they compensate for
each other. We communicate with each other often so that we don’t come into
conflict with each other in starting a new enterprise.”
Son cherishes a book sent to him by Gates. Inside Gates’ first book, Bill Gates
The Road Ahead, is a hand-written message to him:
“You are a RISK TAKER as much as I am.”
Son, shared it with me, with a smile on his face,
“I’m happy to be called a ‘risk-taker.’ It’s an honor. Bill understands me
well.”
33 Takes a Genius to Know a Genius

Has his lordship gone mad?

January 2001.
“Past noon today, I won’t return to the President’s Office. Cancel all my
appointments. I won’t meet any clients. I won’t see any employees. I’m going to
concentrate on broadband!”
When Son declared so, all the secretaries must have thought their master had
gone mad. Company presidents of the Group also could not believe their ears
when they heard the news. Were they being fooled by somebody?
Son headed to a small building on the opposite side of the SoftBank
headquarters. The purpose was to see one man. The man was called a “mad
scientist.” However, his expression and speech was as calm as the spring
sunshine.
Son addressed the man,
“Why aren’t you making progress? I’m telling you that broadband is our top
priority. Why aren’t you getting anywhere?”
“I can’t...well...write a proposal,” the scientist answered in a meek voice, as if
he were a shy child. His eyes behind his glasses were gentle. He had never
written a proposal. Because no proposal was submitted or approved, he had no
budget to buy the necessary equipment.
Son was furious. He was angry with the men around him, who did not allow
him to proceed with his project because he had no proposal. He had strictly
ordered that the broadband project be a top priority.
“This man is an absolute genius!”
The name of the man Son calls a genius was Takashi Tsutsui.
He was born in Osaka in 1960. He is currently the chief scientist, senior vice
president and director of SoftBank BB.
“No proposals necessary. Bring in all the necessary equipment. Gather 100
support staff by tomorrow”—Son ordered.
“That’s impossible...!”
In order to do work fast, a great number of staff were needed. What Son had
in mind was a pure Internet Protocol (IP) network that connected the entire
country. He was trying to create something unprecedented in the world. In order
to do so, he was going to give his all, together with this “mad scientist.”
Son was convinced. The Asynchronous Transfer Mode (ATM) was deployed
as a broadband network worldwide. Certainly, the technical stability of ATM
networks was proven. The IP network that Tsutsui conceived of, broadband
purely and completely based on IP, was unprecedented. However, ATM’s data
transmission capacity was 53 bytes, whereas IP’s was 500 bytes. The latter can
transmit 10 times more information than the former.
To pour one’s heart and soul into something without any certainty might
appear as a huge gamble. An ordinary person might have recoiled.
“This project is top secret and no other entity shall take notice,” Son thought,
and he retreated into one room from morning till night. He never appeared at
headquarters. This caused a great commotion in the company. SoftBank invested
in approximately 800 companies around the world. In other words, Son was
responsible for managing these 800 companies and held their future in his hands.
However, his lordship says,
“I don’t want to hear about it!”
These were the words from the head of the Group. Son’s men found
themselves in great trouble.
“I don’t care. Do it all yourselves. I am going to concentrate on this!”
Son suddenly declared that he would leave everything up to everyone else and
would not be concerned in any matters except for his top priority.

Son concentrated everything into the broadband networking business, which
had unknown potential for success. It would appear to others, naturally, that “his
lordship has gone mad.”
By all means, Son was not mad. What Son pursued was not merely
developing a high-speed Internet, or broadband business. He was going to
transform all forms of media. To change the telephone system, our basic
communication network, to an IP based system was his true aim. He would
completely transform the broadcasting, film or video content industry by
creating a new television broadcasting and video-on-demand system. Through
the new network system, he would be able to distribute thousands and millions
of audio files and software games. It would revolutionize the current software
industry, as well as people’s lifestyles. All kinds of software would circulate
around the world through this IP network. “SoftBank” would be the company
that would support such infrastructure, as well as be the storehouse for abundant
software application programs.
Son was determined to make the Information Revolution happen. In order to
do so, he needed to succeed in making a completely pure IP network system, a
task which no one had ever undertaken. This was a vision shared by Son and
Tsutsui, the “mad scientist.” Son had a strong resolve to instigate the revolution
together with Tsutsui.
Surely, upon working with him, Son had thoroughly assessed Tsutsui’s
talents. He let Tsutsui clash with the world’s top engineers and chief technology
officers (CTOs).
“That’s impossible. You’re mistaken,” was the common response from all of
them. Tsutsui furiously argued in defense of his idea. The heated debate took
place over three days.
The CTOs understood the overall concept, but there was no precedence. It
was too dangerous a bet. Tsutsui was completely unequipped to realize his
proposed enterprise. Moreover, SoftBank had never handled such network
infrastructure operations. It was reckless to carry out an enterprise with so many
risk factors. They were not ready to take part in such a reckless bet.
The final decision was left to Son.
“Fine. You do not have to take part in this. I am ready to die with Tsutsui. I
support his idea 100%,” he declared.
 Son, more than anybody, understood where Tsutsui was coming from. He
knew him since he was a student, 20 years ago. Tsutsui was a member of the
My-Com club at Tokyo University back then. Son, who recognized the
importance of UNIX, visited America many times together with Tsutsui, a UNIX
expert, in order to do research on the latest developments.
“He is a true genius. He was developing legendary software by himself while
still a college student. Bill Gates developed the BASIC interpreter while in
college, but Tsutsui developed a more complex C language compiler (source
code translator) all by himself. He has great talent!”
Tsutsui’s mother, who saw her son as obsessed with computers, worried about
his future. Her son listened to her advice and transferred from the Engineering
Department at Tokyo University to the Medical School at Kyoto University.
Although he obtained a doctor’s license, he was more interested in cutting-edge
information technology than in medical practice. After graduating from medical
school, he started a small software company and researched the potential of
ADSL.
“Would you join a revolution that could influence thousands and millions
more lives than a doctor?”
When starting up his broadband enterprise, Son asked Tsutsui, who was then
a lecturer at a university.
“You don’t have time to waste in college. I’m going to start broadband, so
quit your job and come over.”
As a result of Son’s persuasion, Tsutsui joined SoftBank in April 2000.
However, no one understood Tsutsui’s talents, and disputes at times occurred
inside the company. His advanced ideas were incomprehensible to ordinary
people.
“Are you going to take Tsutsui’s side or ours? If you say you’re going to do it
Tsutsui’s way, we’re all going to quit,” they pressed him.
It was an uprising of engineers. Son asserted,
“Fine. If you disagree so much, go ahead and quit. I will take Tsutsui alone. I
don’t mind.”
 Some actually quit.
Half a year later, half the engineers who remained with the company admitted
to Tsutsui’s correctness.

Son does not hold back compliments when it comes to Tsutsui.
“He talks about the essentials. I don’t care about verbal expressions or
appearances. No matter how ragged one’s clothes or whatever the description,
that doesn’t matter. The essence of technology that Tsutsui talks about is
absolutely correct.”
All the world’s network infrastructure companies developed broadband using
ATM.
“However, this does not allow for a revolutionary network service. ATM is a
technology that forcibly combined analog phones with the Internet. In other
words, ATM is a pseudo-IP. The true IP principle could only be realized through
an IP network.”
A true revolution would not occur if it weren’t for a network technology that
embraced pure IP technology.
“Tsutsui’s greatness, his excellence, is that he thinks purely technologically
and that he is not bound by any customary thoughts or practices. It is the same as
the world of mathematics. What we call pure mathematics is beautiful. Simple
and beautiful.”
On the other hand, ATM technology was not beautiful. It was a patch-work
and an application of past analog technology which piggy-backed on the
transition to what was to come next.
Son served as a board member of Cisco Systems, which was the world’s
leading manufacturer of IP networking equipment. He also started a joint venture
with Novell, the world’s leading software services company that produced the
LAN operating system. Through partnering with such companies, Son had been
studying network infrastructure. This was why he was convinced that the time
would arrive for an IP-based network infrastructure.
“My basic notion that the time would soon arrive for us to develop an
Internet-based network completely coincided with Tsutsui’s architectural concept
—his ideas for structure and composition—of realizing such a network.”

Microsoft, Novell and Cisco gave shape to Son’s vision of electronic products
and operating systems. It was Tsutsui who further designed a nation-wide
network that would serve as the foundation for all these technological
applications, the first in the world. Now, everything would fall into place. There
was nothing complicated about IP. It was simple architecture.
When he was 17 or 18, Son, who was greatly moved, shed tears at the beauty
of a computer chip.
“I feel the same kind of sensation now. IP is incredibly beautiful.”
An architecture that followed a fundamental principle—this was the complete
IP network system. It was extremely inexpensive and extremely high
performance. It cost one tenth and performed ten times better. Its cost-
performance was 100 times that of ATM. If users increased, the cost would go
down even more.
Tsutsui says about Son,

“Mr. Son is a businessman, but he is also a CTO. He deeply understands the
technical side. His understanding surpasses mine. I am just serving him. I knew
an IP phone would be technically possible, but it was Mr. Son who made it a
reality. Once he insists we must do something, we have to follow his orders. He
has outstanding decision making power.”

What would be possible from now on?
One would be able to access the Internet from mobile devices. The service
could be provided with a low flat rate or, perhaps, through usage-based charges
with no basic fees.
“Solar power-charged devices will connect to the Internet. The time for
ubiquitous computing will arrive—in the very near future,” says Tsutsui.
 The 21st century will be an age of ubiquitous computing. The historical
turning point took place in 2001, the first year of the broadband age. It was at
this time that two geniuses together opened the doors to a new era.

On September 11 of that year, a series of terrorist attacks were launched,
shocking the world over.
Drastic changes were starting to take place in society.
34 A Greater Vision

One should never challenge NTT, the telecommunications giant.

However, there was one man who dared to challenge the giant.
“There was nothing more difficult ever since the start of our company.”
SoftBank was established on September 1981. Its shares continued falling
after reaching their peak on February 2000. The Japan Credit Rating Agency
(JCR) rated SoftBank as ‘BB’—speculative. The prospect of receiving new
funds vanished. Apparently, SoftBank was driven into a corner. Its market
capitalization decreased to one-fortieth.
On January 6, 2001, the Basic Law on the Formation of an Advanced
Information and Telecommunications Network Society (IT Basic Law) was
enacted. The law introduced anti-trust laws and deregulation.
“The time has come. I was waiting for this day. I thought that we could enter
the market.”
Son decided to invest all his corporate resources on the broadband enterprise.
However, the broadband business that was making its way was met with huge
obstacles put up by NTT. Complaints flooded in from registered users who were
unable to connect to the service.
“Twenty years since its founding, SoftBank has never engaged itself in such
reckless competition.”
Son always thoroughly prepared, and, when he was at a disadvantage, he
refrained from engaging in a fight as much as possible. However, this time, Son
dared to challenge NTT, an opponent with an exceedingly greater force than
SoftBank. Although they been had separated into East and West after their
privatization in 1985, they both belonged to a giant holding company and, in
essence, remained the old Nippon Telegraph and Telephone Public Corporation,
which monopolized the industry. They continued monopolizing the conduit
lines, telegraph poles and wire centers. This had a negative impact on various
areas.
NTT impeded SoftBank’s construction activities within the wire centers to set
up Yahoo! BB connections. In order to install external network devices, one had
to spend a considerable amount of time filing out complicated application forms.
When the registered name for the phone line was different from the registered
name for BB service, the customer was bound to wait forever. NTT also
monopolized telegraph poles, which were public property. This was NTT’s
“slow-motion” strategy.42 The conditions for placing new network devices in the
wire centers and the usage of dark fiber (unused optical fiber) were also
extremely unfair to newcomers.
NTT was a monopoly that was privatized in name only. The grounds for fair
competition were not yet realized. Son expressed his indignation.
“We cannot avoid this battle.”
This may be likened to Nobunaga’s Battle of Okehazama. Even though the
odds were against him, he had to fight this battle.

On June 29, 2001, Son marched into the Ministry of Internal Affairs and
Communications. He was ready to die for the cause.
“NTT keeps on lying. They say there is no dark fiber when there is.”
Son tried to connect the dark fibers between the wire centers to form a loop,
but was unable to. He called and visited the Ministry to complain many times,
but the officer in charge just listened to him and did not do anything to solve the
problem.
That day, Son made his final decision.
“You have a 100-yen lighter with you, right? Give it to me for a second.”
“What? How come?”
The government official, who was Son’s age, raised his voice in surprise.
“I’m going to light myself on fire.”
It was not a performance. He was dead serious.
 Because Yahoo! BB was successful in its final network performance test in
the Tokyo area, SoftBank decided to accept customer registrations while still in
the process of installing network devices in NTT wire centers. In two weeks,
about 500 thousand people registered. However, because NTT was unwilling to
yield its dark fibers, the broadband network was forever under construction.
They also asserted that there was no power source for Yahoo! BB to set up any
network devices.
“I don’t think you guys are superior or anything, but you do have
authorization power. Unless you warn them, we won’t be able to go forward.”
Son pressed the official.
“I can’t let my customers wait any longer. As an entrepreneur, to say, ‘oh,
please re-register with NTT’s broadband service’ to our customers is worse
suffering than death. If this situation continues, it means the end of my business,
and I will hold a press conference to announce that SoftBank is quitting Yahoo!
BB. After that, I will come here and light myself on fire,” Son snapped at the
official vehemently.
The official answered in a shaky voice.
“We will investigate.”
That night, Son received a phone call from the government official.
“Several dark fibers were found from NTT East.”
NTT also contacted Son to arrange a meeting with him.
Son was enraged with NTT’s bureaucratic nature. It made customers wait.
“What was most difficult for us was not developing and testing the network
technology, but the filing of documents for NTT. If you mistype one letter, for
example, we were made to wait for two months. They have power sources, but
told us they didn’t. So, we installed power sources on our own. By doing so, we
had to completely redesign our plan, but were able to finish everything in two
weeks. However, they asserted that it would take us at least three months if we
did it on our own. How absurd!”
An everyday battle with NTT—. Son worked until 3:00 or 4:00 a.m.
everyday, even on Saturdays and Sundays, with no New Year or Bon vacation43
breaks. Son had a sense of elation, just as he had 20 years ago, when he started
up SoftBank.
“I devote my life to my company at all times. I needed to forge on, because
my customers were waiting. It was not a matter of money. Not even about loss or
gain. I didn’t care how much we lost in terms of money.”

Amidst all this, the September 11 attacks took place, shaking the world in
terror. The airport systems went down, and the delivery of some parts were
delayed, making it necessary for Son to redesign his plan again.
During this time, Son did not engage in his one and only hobby, golf. He
completely dedicated himself to this project.
Because they had to set up new devices based on a new plan, the network
system went down at times.
“The system went down!”
When he received such report, Son immediately flew to the site. He drove
himself all the way down to Nagoya more than once or twice. His cell phone was
always turned on. He made himself available to the engineers 24 hours a day.
“My mind was hazy all the time,” Son recalls.
But, he had no sense of lament.
In fact, Son was enjoying, more than ever, his battle with NTT. Although it
was painful, it was fun. He was able to find what he wanted to do. To be able to
give his all, until he passed out, was fun.
Son was battling with NTT, or, in some aspects, the country, its largest
shareholder.
“We could only forge on with persistence. This meant bringing them down,
one by one. Just as the Choshu, Tosa or Satsuma clan of the Bakumatsu era, we
are a small force with little capital and no vested interest. However, we got a
hold of the new weapon before them. The opponents made their way, shouting
with armors and swords, but were shot with the latest guns. The small force was
able to win over at the end. We, too, may not appear to be great, but we were
fighting with the latest weapon called IP technology.”
State-of-the-art technology and a burning passion—that was what they fought
with.
A revolution does not occur amidst an ordinary state of affairs. About once in
100 years, it transforms our foundations with a violent rumbling from the
ground.
NTT Group, whose consolidated profit surpassed 1 trillion yen, for the first
time since its founding, had lower annual sales from the previous year. Although
its reduction was only 2 or 3%, the public “felt sorry for” NTT.

“Feel sorry for NTT’s downturn in sales? Give me a break! We’re
experiencing the greatest losses in the history of our company. We’ve lost 100
billion yen. We have nothing and are still persevering. To fight with what little
money and force one has is indeed irrational. But, those leading luxurious lives
do not necessarily win all the time.”

Son was going after NTT in the ADSL business, putting forth its software-
driven broadband service; looking ahead at customer needs for the broadband
era.

“I wouldn’t engage myself in a business in which I’m not able to be number
one. I don’t fight losing battles, and I make a battle stance for absolute victory.”

On September 5, 2003, SoftBank sold its Aozora Bank (former Nippon Credit
Bank) shares. Voices of criticism reached Son as well.

“Retreating requires ten times the courage of advancing one’s forces. Sound
decision-making is also required. If we pursue this and that, we would fall
between two stools. Since the very first day of establishment, SoftBank has
strived for the sake of the digital information era. This is our starting point for
everything. It’s our principal axis. Therefore, I am afraid that, in order to endure
the winter while continuing the fight, we had to shed our leaves and branches.
One has to win.”

Son received criticism even from those who were his strongest supporters.

“In the passing years, they have all come to understand, and I remain grateful
to them. In a short span of time, there are many twists and turns. But, I think it’s
okay if we are understood in 50 or 100 years hence, when people look back.”

Son’s determination does not waver. He is a positive thinker: “We only live
once. There’s no point if one’s mind is wavering.”
The reason for selling Aozora Bank shares was clear.

“We needed to raise capital. In order to continue fighting, we neededed war
funds. We needed to buy weapons; gather soldiers. Therefore, logically, we
needed to let go of our shares. It was only emotionally difficult for I felt really
sorry for our partner.”

Son valued a fair and open process.

“If I were scared, I think I would simply submit to hatred or lose my dignity
as a man. I certainly hope to give back one day. Even if others do something out
of obligation, I would repay them.”

On May 19, 2002, despite the fact that he had to announce SoftBank’s 88.7
billion yen losses, Son kept a smile on his face throughout the financial
reporting. At their next financial reporting, on May 9, 2003, the company
announced a 92 billion yen loss, resulting mainly from the broadband network
enterprise.

“I am excited about waking up in the morning. My aspirations are much,
much bigger. In time, we will present something much more surprising, so
please look forward to it. A lot of things will come out of our treasure chest.”

Nobunaga’s aim was to conquer the nation through force of arms. To be a
catalyst for the digital information era—Son’s aim never wavered under any
circumstance.
On August 8, 2003, at their financial reporting for the first quarter—
“The Yahoo! BB enterprise, when putting aside the cost of customer
acquisition, is now in the black within such a short period of time.”
The number of registered members of Yahoo! BB reached 3 million before
Son celebrated his 46th birthday that same month.
35 Keeping One’s Word

Shocking news made its way.

Personally identifiable information on approximately 4.52 million broadband
subscribers was stolen from one of the leading ADSL providers, Yahoo! BB,
resulting in attempted extortion.
On January 19, 2004, in the 17th floor office at the SoftBank headquarters—
Upon receiving a report from Ken Miyauchi, vice president and COO of
SoftBank BB, Son picked up the phone and made a call.
“My name is Son of SoftBank Corporation...”
He was calling the high-tech operations center at the Tokyo Metropolitan
Police Department.
It all began on January 7. One of the client companies of SoftBank’s
subsidiary was shown personal information on eight individuals by a man with
the initials T. Y. (later arrested on charges of blackmailing). By January 14, the
company verified the information was taken from an authentic source.
On January 16, Son who was informed by Miyauchi, immediately formed an
investigation committee and on January 19 called the investigative authority
himself.
January 20— T. Y. called one of the executive officials at a SoftBank
subsidiary, telling him that his acquaintance possessed personal data on several
million BB subscribers.
January 21— The company received a list of information on 130 users. At the
same time, they were threatened “to invest several billion yen in a consolidated
firm overseas.”
January 23—After consulting with police authorities, a SoftBank official met
with T. Y. at a hotel in Tokyo and received a disc, which included information on
4.6 million subscribers and handed it directly over to the police.
 January 24— SoftBank received a second email from a man by the handle
fuufuu, who had sent them a list of information on 104 subscribers a week
earlier. fuufuu put forward the conditions for returning the information and
designated his point of contact.
February 11— SoftBank received a report from the police that they had
arrested T. Y. and ‘fuufuu,’ identified as Y. K. The authorities prohibited the
disclosure of any information, including the fact that they had apprehended two
suspects, as they were still under investigation. On February 12 and thereafter,
SoftBank continued cooperating with the police in its investigation.
However, on February 24, the Yomiuri Shimbun (a national newspaper) broke
the news on their evening edition. At 4 p.m. the news was reported to the
Ministry of Internal Affairs and Communications.
Early morning on February 25, the police started verifying the subscriber
information T.Y. possessed.
February 26—Son returned from his trip to Europe. Upon arriving at the
airport, he went directly to the company headquarters and gathered the executive
officials. He postulated on the worst-case scenario, in which someone in the
company would be arrested for the leakage of personal information. They settled
on a proposal to reduce Son’s salary by 50% for six months, which was by far
the strictest penalty imposed on him in past similar cases.
On February 27, before daybreak, the leakage of the data of 4.52 million
current and former broadband subscribers was confirmed. At 10 a.m., a CEO
meeting was held, involving the entire SoftBank Group. They discussed the
compensation for the 5.9 million subscribers, including 1.4 million who were
unaffected. One foreign board member raised that, in America, there was no
precedence of sending money or other articles as an expression of apology, for it
would encourage more criminal acts. As a result of a heated discussion, they
settled on sending a 500-yen postal money order to all subscribers as a form of
apology. This amounted to 4 billion yen. The reason they made the 500-yen
compensation through postal orders, instead in the form of gift cards issued by
credit companies, was that they wanted to benefit society, even under such
circumstances. Money orders that are not cashed within the fixed time period
would be returned to the company. This would then be put into an “Information
Security Fund (TBD)” that would contribute to the enhancement of the society’s
overall information security and promotion of broadband networks for disabled
persons.
At 5:30 p.m. on the same day, a press conference was held at a hotel in
Tokyo. Unlike usual, Son had a stern look on his face. He never bowed his head
down even when the company had large losses, but this day, he bowed deeply in
front of everyone.
“I am truly sorry for the trouble we’ve caused our customers”
He took questions himself over the following two hours. The reporters asked
how he would take responsibility as chairman and CEO of the SoftBank Group.
Son made it clear,
“I will be promoting the broadband revolution even further.”
After the incident was publicized, Son did everything in his power to prevent
further leakage of customer information over the Internet or to personal
information handling companies.
What led to the leakage of information? He needed to wait for the results of
the investigation.
“It is true that, while we were pursuing customer satisfaction, we somewhat
neglected the management of our database. Believing in the innate goodness of
human beings, we hadn’t been strictly supervising those who operated the
system.”
However, from this point on, Son decided to swing the pendulum in the other
direction and adopted the view that humans are inherently evil, laying out a
stringent data management policy. For example, the entire floor of the support
center, which handled customer information, would be designated as a “high-
security floor” and would monitor the entry and exit of employees. Those with
access to this floor are prohibited from putting anything in their pockets.
Employee IDs were encrypted. A fingerprint entry system, together with a metal
detector, was put in place. A 24-hour surveillance camera was installed.
Employees were prohibited from bringing in cell phones or notepads and were to
enter strictly empty-handed. Certainly, the terminals were not connectable to
external memory units, making any form of digital copying impossible. The
number of people with access to customer information were also largely reduced
from 135 to merely three. When they entered the support center, their user ID,
time of entry and duration of use were recorded 24/7 and kept semi-permanently.
“We will make the world’s best security system.”
The worst-case scenario was avoided. Henceforth, they had to learn their
lesson and move past this catastrophe.
“I have no intent of modifying our goal to reach 6 million subscribers by the
end of September 2005,” Son said during the press conference.
When the number of Yahoo! BB subscribers reached 6 million, the company’s
annual operating profit would be 120 billion yen.
Son had experienced and overcome many difficult situations; for example, at
the time the broadband enterprise took off in January 2001, he continued to
receive complaints from subscribers that they were unable to connect to the
network for days after their registration.
Now, some reports showed that SoftBank had higher ratings than their
competitors.
“I never run away. I deal with difficult situations straightforwardly and
sincerely.”
All his life, Son had transformed negative situations into springboards to
advance forward. It was his life’s principle.
“Just as we get water by turning on the faucet, broadband will be a part of our
lives.”
The times were shifting from narrowband to broadband. It was the arrival of a
new era.

“I want to change people’s lifestyles. I am aiming for a ‘lifestyle company.’ I
want to develop society’s infrastructure. I want to revolutionize people’s minds
and lives through our Information Revolution.”

Utility computing, such as the IP phones made possible by broadband, will
change our lifestyles. Herein was Son’s mission.

“A corporation can exist far beyond one founder’s life. I want SoftBank to
continue to grow, even 200 or 300 years after I pass. To design the DNA for such
a corporation—this is the matter of utmost concern for me.”

Son, who constantly challenged himself to do something new, at times,
received criticism from conservatives. Many often claimed that SoftBank was
not producing anything, not engaged in any business-like business, wasn’t
operating, was only doing “digital activities” and that it was only gambling.

“If one built a factory and produced things, then would that automatically
make the business valid and manager great? I do understand how that is
important. But was there any entrepreneur, in the 100 to 200-year economic
history of Japan, who led the world by being the first to invent, develop and
provide such an infrastructure that would revolutionize people’s lifestyles?
“There are countless (Japanese) corporations that refined, made cheaper or
better distributed products that were invented in Europe and America, such as
automobiles, various household electronics and so on. But those are just
imitations and not original.”44

Son had always envisioned himself as a business revolutionary.

“For me, to being a business revolutionary means developing society’s
infrastructure, such as roads or electric grids. In other words it means
transforming society’s framework.”

This is what Son lived for. It was his joy and what excited him most in life.
The joy of making the world’s first or breaking new ground was irreplaceable.

 In 1876, Graham Bell invented the world’s first telephone. Since then,
America led the world in telecommunications-related infrastructure. By making
numerous inventions through applying Edison’s electrical power, America had
become the world’s largest economic power and IT nation.

“If Japan were to once more lead the world in technology and were to some
day lead the world’s economy, I believe it could only happen in the field of
information technology.”

As a business revolutionary, Son wanted to transform Japan’s infrastructure.
He wished to equip Japan with state-of-the-art infrastructure that was most
appropriate for a digital information society. Korea was leading the world in the
spread of broadband networks; however, Japan had surpassed them in the
absolute number of lines. It exceeded 14 million. The average speed was three
times faster than Korea and was, moreover, cheaper. The connection speed was
number one in the world. It was 10 times faster than in the U.S. and 30 times
faster than in Europe.

“Japan’s network could connect 10 times faster than the U.S.’s.
Metaphorically speaking, U.S. vehicles run at 10 miles per hour, while Japanese
vehicles run 100 miles per hour. I would like to ask whether there were times in
the past that we exceeded the U.S. in this way. Moreover, we’re able to provide
the service at the lowest price in the world. Japan can revive itself through this
technology.”

However, some speculate that, in the future, optical fiber would outstrip
ADSL.

“ADSL technology is also evolving. There is hardly any content that can only
be accessed by fiber. Certainly, we, too, are considering our strategy for fiber.
But, technology has to be right for the place and time. At this point, ADSL is the
best.”

What, then, would be the government’s role?
Son answered with a serious look on his face.

“There’s only one thing: to not interfere. Regulations in Japan meant blocking
new entries into the market. Regulations in the U.S. restricted monopolies and
encouraged new entry.”

Criticism reaches Son from all corners. However, to him, it sounds like cheers
of encouragement.

“They say this and that, that I am cold-hearted and ungrateful. But, they will
see. In 100 years, they will look back and realize. My mission—our company’s
mission—is to carry out the Information Revolution. This is the greatest cause,
and, without it, there is nothing to be done.”

The type of businessman who establishes corporations creates a growth
scenario after balanced contraction, and, thus, leads the entire nation once again
to an expanded equilibrium.

“If not, it would be dark and boring and sad. A true leader, or a true captain,
does not consult with everybody in deciding on the destination. On a ship that is
sinking, a captain has to maybe give someone a blow, cut off a mast or two with
a saw, or, if there is a sailor who didn’t listen, tell them, ‘you jump off the ship,
then, you fool.’ But, at the end, he has to send the remaining majority of
crewmembers back to land, no matter what.”

This was leadership, or the power to uphold a great cause, in Son’s view.
After reaching land, they could, once again look for money and treasure, acquire
vast lands, cultivate it, raise their offspring and greatly prosper.

“It doesn’t matter if there are some twists and turns along the way. The
important thing is to arrive at the destination. It’s to possess the power to, once
again, lead everyone to an expanded equilibrium. Superficial kindness means
nothing to me. Popularity—meaningless.”

Ryoma Sakamoto, the hero during the tumultuous Bakumatsu times, held on
to his ideals.
“I intend to give Japan a good scrubbing once again,” were his famous words.
Son shared the same spirit as Ryoma. The power to contain the entire nation,
the entire society and to encompass the entire infrastructure— This is what one
should aspire to and have equal opportunity of achieving. The establishment of a
fair, free and rich society, in which everyone could challenge themselves; a
society in which one can live merrily, happily and lead a joyful life—this is how
we should be.
In Japan, unfairness still remains. There are many defective frameworks.
Poverty still exists in no small amount. And, many obstacles remain in starting
up a new enterprise. Japan has to once again build up its strength to compete on
the international stage.

“To design a huge master plan in order to recreate the framework itself. This
can only be done by carrying out one’s words.”

All roads lead to Rome. Rome established the world’s first road infrastructure.
Through its shipbuilding industry, England developed maritime infrastructure in
the form of sea routes, thereby establishing the British Empire. America laid out
the infrastructure for electrical power, telecommunications and automobile
transportation. The country that is able to physically develop state-of-the-art
technology into its infrastructure—that country would possess the most
competitive power of the time.

“Japan rapidly grew until around 1980 as a result of the postwar
reconstruction effort. However, it couldn’t reach the top. It ended, at best, in
second place. Upon the arrival of the digital information era, Japan, which
continues to develop the world’s first, cheapest and fastest IP technology, has a
big chance now.”

The major theme for the 21st century is to create the world’s best IT
infrastructure. Japan has a great chance of succeeding on this front.

“The three most important factors are: First, to have firm resolve and an ideal.
Second, to have a vision. Third is strategy.”

Son strongly articulated,

“Japan can absolutely be number one.”
36 Indomitable Resolve

In the 2006 Winter Olympics Games in Torino, the Japanese female figure
skater, Shizuka Arakawa, performed an Ina Bauer45 before a three-jump
combination, fascinating the audiences and winning the gold medal. In the World
Baseball Classic, the Japanese team, led by Sadaharu Oh, won the first world
championship after a miraculous come-from-behind victory, uplifting the entire
nation.
On March 17 of that year— It was early in the spring and high winds lashed
Tokyo. “SoftBank will buy Vodafone Japan”— At the press conference held at
5:00 p.m. following the announcement, the CEO of SoftBank had not yet
appeared at the fixed hour.
Inside the president’s office at the company headquarters in Shiodome,
Tokyo, Son was engaged in intense negotiations with the Vodafone
representatives in finalizing their agreement. The very few who were concerned
in the process busily entered and exited the room. It was an enormous contract.
The attorney checked the contract word by word. Certainly, it took time. It was a
1.75 trillion yen deal. When the amount was rounded, it was a 2 trillion yen deal.
It was the second largest purchase at that time.
Was Son fixated on making a financially enormous deal?

“No, I believe the cost of the acquisition is only part of the overall
assessment. The most important thing was not the magnitude of the cost, but
whether, after the merger, we would be able to keep the 15 million (Vodafone)
customers, whether subscribers would go down or whether we would be able to
increase them. Such speculation was the most important thing.”

In October of that year, the mobile number portability (MNP) system was
about to take off. There were concerns that the number of customers would
sharply decrease as a result. Vodafone had many issues. To begin with, its
mobile phones had trouble connecting. The handsets were unfashionable, not
meeting the Japanese customers’ taste. Other mobile phone operators, such as
NTT DoCoMo and au, provided better content. Vodafone also had very poor
management and marketing capacity. Some research showed that the number of
customers would fall by 30% after the MNP. Vodafone was barely making a
profit, so if 30% were to leave, they would at once be operating at a loss, as
fixed costs would remain unchanged.
There are largely two forms of acquisitions: by exchanging shares and by
paying cash. If one were confident of succeeding after the acquisition, paying
cash is considered cheaper. Contrarily, if one lacked confidence, it would be
much safer to exchange shares. One’s debt won’t go on increasing limitlessly.
Which way was Son to proceed?
Son was considering the more venturesome way of paying cash. Vodafone
was called a “sinking ship.” Son was concentrating his senses on determining
whether he would be able to repair the ship or not. He needed to figure out how
much he needed to invest in order to overcome the connection problem to match
the level of service provided by its competitors, and, in the future, outstrip them.
He speculated on the coverage of the 3G network, how many base stations they
had and where to set up more pylons. How much capital expenditure was
necessary for future growth— would 200 billion yen be enough? Or 600 billion?
Would it cost as much as one trillion? —This, he had to decide on.
He had also to reconsider the brand name.
“We couldn’t go on with ‘Vodafone,’ and I didn’t wish to either. It was a
tarnished brand name. We had to start spinning the other way around.”
Strikingly, Son never marketed his company products to general customers
under the name “SoftBank.” The company started off as a software wholesaler,
intermediating between production companies and vendors. Even Yahoo! BB, in
which SoftBank owned almost 100% of the shares, was named after their
subsidiary.
Son did not wish to easily give away his fortress brand name. If, by any
chance, the enterprise were to fail under its name, the fortress would collapse.
He would be unable to get his hands on the next enterprise.

“I appear to be recklessly doing all kinds of things, being drastic, making
risky bets, but, in all circumstances, I am constantly paying careful attention not
to incur any fatal injury.”

If he were to fail in this great undertaking in the cell phone business, he may
suffer a mortal wound. Would he be able to put forward his fortress name? Son
questioned himself for some time.

Ordinarily, such a large-scale agreement between attorneys would take place
over the course of months. Such a colossal merger would, all the more, take at
least half a year. Son, however, did this in virtually a month. What was it that
made this possible aside from Son’s resolute and accurate decision-making
power?
On New Year’s in 2006, Son had some time to retreat from his everyday busy
schedule and think alone for a few days. What went through his mind at that
time?
“How would I myself be able to strengthen my resolve?” Son pondered.
After the New Year’s holiday, Son immediately started the negotiations. He
had met with Vodafone representatives many times toward the end of the
previous year. However, their meeting did not concern acquisitions and mergers.
Son had planned to obtain access to Vodafone’s network infrastructure in the
form of a mobile virtual network operator (MNVO) in order to provide wireless
communications services. He had been negotiating with Vodafone for nearly four
months. Even during this period, was Son not strategizing inside, boldly, yet
scrupulously?
The New Year arrived.
“How tedious,” Son thought.
If he were to start an enterprise, he aimed to be the best in it. However, with
so few base stations and poor connectivity, he would cause customers trouble.

“Vodafone was planning to make capital investments to increase the number
of base stations over the course of three years, but if we were to advance the
schedule to complete everything in half a year, we might find the key to solving
the problem.”

Hence, Son conceived the idea of acquiring Vodafone.
However, this imposed a new challenge to Son’s SoftBank. After launching
the ADSL business in 2001, SoftBank had scrambled its way up from the depths
of deficit to making profit. The acquisition of Japan Telecom in 2004 also
brought them back down to losses, although they were able to turn it around in
the span of one to two years. When they were finally able to take a breather, they
were to make a monumental investment that might threaten the company’s
existence. The members of the board of directors were hesitant as well. They all
greatly trusted Son’s business acumen. However, the acquisition of Vodafone
was not a decision they could readily concur to.
They figured out that it would cost SoftBank about 2 trillion yen through their
early negotiations with Vodafone. However, they did not have such money on
hand. Therefore, initially, they had considered making it a joint investment with
several other companies, with SoftBank holding 30% of the shares. However,
would Son retreat from such a venture for the reason of not having enough
capital?
When Son started a new enterprise, mergers and acquisitions included, he did
not look at what he had on hand and do things which were possible within his
means. This was not Son’s approach to any undertaking.
“A life made of additions is not interesting.”
His aspirations stood before all conceptions. He aspired, more than anything,
to bring about an Information Revolution. The revolution started with
computers. These physically separate computer units were connected to a
network. The revolution did not stop there. At around 1998 or 1999 at the latest,
Son had conceived to expand that network to include cellphones.
“Current cellphones have the same quality CPUs as those in personal
computers a few years back. Three years into the future, cellphones will have
better performance than personal computers. If so, if I didn’t cover cellphones
right now, how would the Information Revolution be carried out?”
Unless people are able to exchange information whenever, wherever and with
whomever they wished to, the Information Revolution would not progress.
Without encompassing cellphones, the revolution was incomplete. He had
contemplated the idea of creating his own cellphone network from scratch, using
a 1.7 GHz spectrum band. Another option was to launch a MVNO under
Vodafone. However, Son decided to make the biggest bet of his life.

When he was 19 years old, Son created a “50-Year Life Plan.” In his 20s, he
would start a company and establish himself in the business world. In his 30s, he
would accumulate war funds. In his 40s, he would make a once-in-a-lifetime bet
and launch a great enterprise.
At this time, Son was 49— still in his 40s. He was both mentally and
physically sound, with enough wealth that he was free from anxiety concerning
his personal future. He was steadily gathering momentum. If this were a drama,
now would be the climax.
“Now was the time to make my life’s biggest bet. I will make the 2 trillion
yen acquisition. In my 50s, I will devote my life to winning my bet. It will be the
time to realize my ambition.”
Confucius realized the will of Heaven at 50. Son understood his mission at
the age 49. He would then fight on for ten years in order to reign on the top. It
was a ’10-year war.’
“But, if we were to develop a 1.7 GHz cellphone from scratch, it would take
us five years just to construct base stations. It would not make sense to spend
five years of the ’10-year war’ on constructing base stations.”
He would also have to start with a very small number of users. There would
be very few handset models as well. If this were the case, Son would not be able
to compete.
“Within the limited time of my life that I am healthy, I buy time. If I can buy
myself time for 2 trillion yen, I consider it cheap.”
 Therefore, Son thoroughly assessed whether he could succeed with this
merger.

“If we are able to keep the 15 million customers after the merger, we would
be able to pay off all debt according to current cash flow. However, if it
decreased to 10 million, the company would be punctured. If we could increase
it to 20 or 30 million, we would be making big profits. Ten million would
consign us to hell. Fifteen million would allow us to pay back debt.”

Speculating on this point and getting it right determined everything. Son had
abundant ideas for cellphone models and software applications. He had
strategies to capture customers, in terms of management. He had calculated how
many more new base stations were necessary in order to be competitive.
Son calculated meticulously and projected possible future developments
through detailed simulations— What would happen if they were to lower costs,
how much would it cost them to acquire enough customers, how much they need
to invest in the infrastructure, what if the fixed cost suddenly rose? — He came
up with 3000 combinations of all kinds of factors. Son carefully calculated the
finances for each scenario.
Just how much time did it take for him to come up with a conclusion?
“Two months,” he says.
On February 2006, Son made up his mind. It was a moment where the great
strategist revealed himself. SoftBank would be the sole shareholder in
possession of 100% of Vodafone stock. That is, SoftBank would bring all the
risk onto itself. Furthermore, Son decided to acquire Vodafone.
“By the way, how much money do we have?” Son laughingly asked his men.
First, one had to set one’s aim. Finances came afterward. He was not aware
whether he would be able to pay or not.
“As long as we uphold our aspirations, we will be able to pull through, as the
saying goes, ‘money comes and goes.’”46
 Son truly believes in this.
“To calculate, one has to estimate the minimum and maximum of all
prospects. If one is truly confident from the bottom of the heart, one can
persuade others.”
Did he consider every possible difficulty he might encounter?
“I thought it through, and, therefore, I believed I would be able to raise the
money.”

SoftBank was able to prepare 200 billion yen for a down payment. They were
1.8 trillion yen short.
“We paid only 200 billion and now hold 100% of the shares. It’s rather
unusual. Perhaps it’s a bit impudent?”
The overruling point was that SoftBank would take all the risk.
“If we have the confidence, we can make a 2 trillion purchase for 200 billion
yen and, moreover, gain 100% of the future upside.”
What kind of structure was behind all this?
SoftBank purchased 100% of the common stocks. Yahoo! Japan and
Vodafone paid several hundred billion each for the preferred shares. Preferred
shares are subordinate to bonds and a stipulated rate of interest is paid to the
holder. Even if the business took off, the dividend, in this case, was fixed at 6%.
Yahoo! Japan and Vodafone purchased stocks with a fixed ceiling, and the banks
financed the remaining amount.

“We paid 200 billion yen, Yahoo! Japan paid 12 billion in preferreds,
Vodafone paid 300 billion in preferreds and equity warrants and an additional
100 billion yen in subordinated loans. The rest we borrowed from the banks with
a 3 or 4% real interest rate.”

Vodafone had 15 million customers and its annual EBITDA (earning before
interest, taxes, depreciation and amortization) was approximately 300 billion
yen. After the merger, SoftBank would be able to pay back the banks with the
cash inflows from current customers, so the banks saw no detriment to offering
them a loan. This loan was not made by SoftBank itself, but Vodafone, its wholly
owned subsidiary, through a non-recourse loan based on LBO (leveraged
buyout) financing. Therefore, SoftBank paid 200 billion yen for all common
stocks it authorized while funding the remainder through other methods, paying
back investors and financial institutions in the form of cash and cash only. Thus,
SoftBank removed itself from the liability of an enormous acquisition loan. It
avoided all risks, and at the same time, allowed itself to receive all of future
upside.

“It’s an ideal deal for SoftBank shareholders, as long as we’re confident of
getting more customers. If we were to fail, we just lose 200 billion, but if we
thrive, it could be worth trillions. We may, in turn, say that Vodafone’s 15
million customers and their cash inflow were worth that much.”

One can raise money, even if one doesn’t have much.
Son lived up to his reputation.

First, there was aspiration.
In July 30, 2004, SoftBank bought Japan Telecom, entering the fixed-line
telecommunications industry.
On January 28, 2005, Son bought the prominent baseball team, Fukuoka
Daiei Hawks (currently Fukuoka SoftBank Hawks).
“From now on, we will be competing on content.”
Baseball was constantly in Son’s mind as one type of content delivered
through broadband. Quality content played an important role in pursuing the
Information Revolution.
SoftBank was now aiming for the world. Son’s vision was growing ever more
grand.

“SoftBank has become number one in Japan, and it will become number one
in the world. Just as Sony, Honda and Toyota have in the past. We will thrive in
order to become the ‘world’s SoftBank.’”

Let’s take a look at SoftBank Corp. in 2007. In Japan, it had 16 million
SoftBank Mobile users, with 5 million households subscribing to Yahoo! BB and
6 million to SoftBank Telecom. It had a total of 27 million users who paid
monthly bills. Son prefers to refer to this number as “0.027 billion.”47
“I like to calculate in the billions,” he says.
There were 0.042 billion Yahoo! users in Japan and 0.034 billion in China,
which added up to largely 0.1 billion. Its partner Vodafone had 0.5 billion users
in the world and Yahoo! 0.4 billion, adding up to 0.9 billion. This would make a
total of 1 billion users.
“We offer our technology, business model and content to 1 billion users.
We’re thinking on a grand scale.”
Servicing 1 billion customers. Planning for 1 billion users.
“If we succeed in one aspect, we will be able to reign supreme.”
It was that grand a vision.

In 2007, SoftBank achieved the number one position for the net increase of
new mobile phone contracts for the month of May, overtaking NTT DoCoMo
and au (DoCoMo: 80,000, au: 140,000 and SoftBank Mobile: 160,000).

“Although, we gained a few hundred thousand in May, we lost 40 thousand in
prepaid phones. Prepaid phones don’t make much money, so we’re deliberately
downsizing this area. We subtracted this by 40 thousand, so, practically
speaking, the sale of our regular cell phone handsets increased by 200 thousand.”

Although this was only for a one-month span, it was ‘a first step’ that Son
wanted to attain by all means. The enterprise had been losing in the competition
for 10 years straight, and they had grown accustomed to it. During its time as
Vodafone, it had never achieved number one. It was the same under the previous
operator, J-Phone, before it was acquired by Vodafone. They had gotten used to
being an underdog. However, now, they had become number one.
“This must be some kind of prelude.”
Son was genuinely happy.
“Maybe we might be able to do it. We became number one. If one wins a gold
medal even once, one believes one can do it again. One gains confidence.”
Son stresses that this was the most imperative point.

“Think about it. The employees, the salespersons at the stores and users
would all start thinking that they are like the crew or passengers on a ship that is
rising like the morning sun and not on a ship that is doomed to sink. One victory
completely changes one’s drive.”

And, at this point, SoftBank made its first TV ad for the general public,
putting forth its company name. Here, SoftBank became number one, as well.
Between October and December 2006, when the MNP system started,
SoftBank’s television ads were ranked as the public’s number one favorite.
Between January and March 2007, and the following April, it continued to rank
first place. To be in first place for seven consecutive months was, according to
the research institute CM Databank, “miraculous.” Approximately 2000
companies aired television ads every month. The SoftBank brand, which was
unknown to the general public until then, ranked number one above such
established brands as Panasonic, Sony and Suntory.
“It’s a good sign,” Son says impishly.
However, his eyes were serious. His eyes were fixed on the battles of the 10-
year war.
 The number of SoftBank’s handset designs and colors now largely surpassed
that of DoCoMo and au. Son proposed to make the television ads as well as the
brand more exhilarating. He even designed new handsets himself. At a press
release for new product lineups, Son raised “style” as one of the key words.
SoftBank also started a popular service named “White Family 24,”48 which
allowed families to talk for free 24/7.

“In the next one, two and three years, we will steadily achieve first place on
all kinds of fronts. We are sure to bring about heart-moving and exciting new
things. We will win the overall fight.”

Was the acquisition of Vodafone a success, then?
In terms of financing, they were able to refinance 1.45 trillion out of their 2
trillion yen loan, from a short-term loan to a 7-year long-term loan. This gave the
company a big relief. How was profitability? Their profit grew 1.7 times in the
cell phone business alone. In terms of the number of users, the annual net
increase was four times that of the previous year.
SoftBank as a group had an operating income of 270 billion yen in the year
2007. They had achieved a V-shaped recovery. Profits improved in all areas. The
current profit exhibited a V-shaped curve as well. Moreover, the rating agencies’
ratings improved.
Although they were concerned about losing their customers with the start of
the MNP system, their users increased from 15 million to 16 million within a
year after the announcement of the acquisition. And, in May 2007, they were
able to obtain 20 thousand new contracts in a month. From then on, SoftBank
increased its users at a 2 million-per-year pace.
To his initial question on whether he had confidence in this enterprise, Son
was steadily producing answers. The outcome of the acquisition was clear.

In the past, Son had found himself in unexpected predicaments. In October
2006, SoftBank’s network crashed due to high volumes of applications, and they
were met with protests from their competitors regarding their advertisements.
The company was forced to make their case in front of the Fair Trade
Commission for their “unexpected discount” campaign, which provided various
fee-free services. As a result, they had to modify their ads on television and other
media.
Out of the frying pan, into the fire. Unable to understand Son’s surprise attack
tactics, some employees left. Obstacles arose one after another.
“Everything entails some kind of difficulty. Any professional athlete may
experience injury. But they have the spirit and strength and confidence to
overcome.”
In life, one always meets hardships.
Son encountered many great trials in his business and overcame each one,
including the data breach incident at his ADSL venture.

“Even in ‘the Game of Life,’ people draw unlucky cards such as fire hazards
or burglary, once in a few draws. Luck and bad luck comes to people equally.
That’s why when I am unlucky in real life, I never get distressed about being the
unluckiest person in the world, complain that I’m the one with the real talent or
make excuses for myself. That is something I dislike most.”

At times, he lashed out at his employees and fought with much tension
himself. Right now, he was in the middle of a fierce battle. Because they were all
comrades in this fight, he was strict with them in order to boost their morale. It
was time to overcome this trial together and triumph. At such times, the spirit
that says, “here we come again,” “leave it to me,” “I will win over no matter
what,” is required. For example, at a relay race, Son says he is excited when he
is the last one to receive the baton. He tracks down those runners ahead of him.
Not only does he line up with them. He will outrun them by all means. He will
run and run and become number one at the end. Son had experienced such a
thrilling feeling many times. This may resemble SoftBank’s situation in the
present cellphone business.
“It cannot be achieved in two or three years. It took nearly 20 years for the
competitors as well. But, I would be ashamed if I won’t be able to do it in 10
years.”
They were lacking in base stations, the customers did not understand the
situation, their brand name was still not widely known, their sales network and
the number of stores were still very small. But, Son did not make excuses.
“Although we won’t be able to fix everything in a moment, there is no reason
for why we cannot do it.”
An indomitable resolve. To hold tight to one’s aspirations and never retreat. In
Buddhist terms, it means to never regress from the level one has attained through
assiduous Buddhist practice.
Among all the businesses Son had engaged in hitherto, the mobile phone
business was by far his biggest fight. He competed with large corporations. The
cash flow, customer base and influence on society were also immense. That is
why Son devotes his life to fighting this battle until he wins.
“I can’t die in third place.”
“I will be number one by a wide margin.”

The Kaientai (Ocean Support Fleet) led by Ryoma Sakamoto, the samurai
warrior of the Bakumatsu era, held high a banner with two bold red lines. When
changing the red into yellow, it becomes the SoftBank logo. What Son is trying
to spearhead is a once-in-a-century revolution. SoftBank’s aim is to instigate a
revolution that would transform our industrial society into an information
society. The two-line corporate logo carries such a meaning. Ryoma posed the
basic concept of freedom to society. Sharing the same ideal, SoftBank aims to
carry out a third revolution called the Information Revolution.
“I intend to give Japan a good scrubbing once again.”

With unyielding and indomitable resolve, Son devotes himself to the
Information Revolution.
Afterword

Interviewing people connected with Son, what I felt most was the affection
that everyone has for him. Of course there are business people who have to
compete against him, but they too say that they like him outside of business.
Stanford University professor and futurist Paul Saffo has said, “We need you.
Come to America more often because we want to collaborate with you on so
many things.”

What stands out is Son’s ability to communicate. Many people say that he’s
the kind of person who you immediately hit it off with when you meet him.
Steve Jobs was like that too. I think that his skill in communicating directly and
fluently in English isn’t just down to his time studying and living in the U.S. It is
also because of his character, his heart. That is what endears him to everyone
who knows him.

SoftBank will continue to grow and grow, closing in on becoming number
one, and will certainly lead the world. Being the best in the world, in the true
sense, however, means aiming to become number one in creating happiness. This
is truly “Aiming High.”

Masayoshi Son is, in a word, warmhearted. He is a digital person with an
analog heart.

Atsuo Inoue
September 2013
Translator’s Notes

Picturing the vast battleground of the Warring States Era, or the Sengoku
Period in 15th century Japan or China, might provide the readers with a more
profound understanding of the dynamics of the story of Masayoshi Son. The
collision and alliance, rise and fall of the various samurai clans, can be likened to
companies competing in the late 20th century into the new millenium, and the
truthfulness one exhibits to the clan and master, as well as betrayals, may be
likened to the internal struggles that take place within individual organizations.
Just as the legends of many historical figures shine as beacons in the long
picture scroll of history, always there to guide us forward, the life-story of
Masayoshi Son, who rose from his humble origins to being one of the most
influential businessmen in the world today, shall serve as an inspiration to many
to set high goals and “aim high”—or even higher.
In the current Warring States Period (on the IT front), different clans, led by
notable commanders, are driven perhaps by the same ambition to reign over,
however, instead of by the force of arms, compete with the power of wisdom,
insight and their contribution to the world. What kind of world we would see
beyond this period is yet to be seen. As Steve Jobs stated, “And no, we don’t
know where it will lead. We just know there is something much bigger than any
of us here (Playboy, 1985).”

The Japanese word used here for ‘aim’ in the title, Aiming High, is
“kokorozashi ()” and may be translated as aspiration or resolve. The Chinese
character for “kokorozashi” consists of “shi (),” which symbolizes the motion of
moving forward, and “kokoro (),” which may be translated to one’s spirit, mind
or heart. Combined, the Chinese character represents the concept of ‘directing
one’s mind to achieving a certain goal.’

Acknowledging both the praises and criticisms the man receives, I would like
to ask our readers to consider Mr. Son as one of your potential friends, with the
hope that your encounter with him through this book would be a pleasing one.
Imagine him as a friend who could at times be radical and unconventional; a
friend who always has a smile on his face, never letting go of his wits; a
hardworking friend, who you see traces of greatness in; and, a friend with all his
faults and shortcomings.
In closing, I would like to thank Buhe Heshige, for without his contribution
this electronic English edition of the book would not have been possible.

Sayaka Sugahara
August 2013
Acknowledgements

I’m deeply grateful to the following individuals who were interviewed for this
publication.

Masayoshi Son, Goro Hashimoto, Ken Miyauchi, Masahiro Inoue, Takumi
Kageyama, Kosei Tsuchihashi, Toshio Inaba, Takashi Tsutsui, Toshiki Otsuki,
Taizo Son, Tadashi Sasaki, Kazuo Noda, Takashi Mikami, Toshiko Miki,
Takeyoshi Miki, Yoshiyasu Morita, Itsuo Abe, Kazuo Koga, Yoshie Akiba,
Masaaki Kawamukai, Akira Tanabe, Kazuhiko Nishi, Mutsuro Fujiwara,
Masayuki Gokitani, Katsuyoshi Tateishi, Hiromitsu Kumada, Sohen Yamada,
Seiichiro Yonekura, Yasuyuki Nambu, Hideo Sawada, Hideo Okubo, Naonori
Kohira, Ryuji Sato, Ichiro Sayama, Takashi Hori, Yozo Shimizu, Koki Tabe,
Katsumasa Tochihara
Bill Gates, Hong Liang Lu, Ted Dolata, Ron Fisher, Eric Hippeau, Irene
Woodward, Marguerite Kirk, Forrest S. Mozer, Jim Bradley, Ikuko Burns, Chuck
Carlson, Paul Saffo, Tim Scannell, Taek Jin Kwon

Special thanks to Mitsuhiro Kurano and Matthew Nicholson for their
assistance with this English version.
Copyright and Notices

Original Japanese title: KOKOROZASHI TAKAKU, Son Masayoshi Seiden

Ketteiban
©2004, 2007, 2010 by Atsuo INOUE. All rights reserved.
Original Japanese edition published by Jitsugyo no Nihon Sha, Ltd.
e-Book transmission rights for English Language Version directly arranged
with Jitsugyo no Nihon Sha, Ltd. through You Teacher Inc., Tokyo.

YouTeacher Inc.
© 2016 YouTeacher Inc.
All rights reserved

S-713, 1-4-24, Misumi Cho, Higashimurayama City, Tokyo, Japan 189-0023
heshige.buhe@gmail.com
https://www.facebook.com/MasayoshiSon


1 Augusta National Golf Club in Augusta, Georgia, which hosts the Masters
Tournament.

2 Japan Broadcasting Corporation.

3 A year-long television series by NHK on historical figures in Japan.

4 A decisive battle in which Oda Nobunaga established himself as one of the

most powerful military generals of his time. His troop of 1,500 men defeated
Imagawa’s army of 35,000 men.

5 Currently Holy Names University. This text uses the previous name that was
used at the time.

6 The public high school closed in 1995 and is now providing secondary
education to adults.

7 One of the world’s best-selling electronics magazine started by Ziff-Davis

Publishing in 1954. The title was sold to another publisher in the late 1980s.

8 A reference to ‘The Age of Civil Wars’ or ‘Sengoku Era’ (15-17th century). A

period in Japanese history characterized by political unrest, social upheaval and
constant military conflict.

9 Western vessels that arrived at Uraga Harbor in Japan in July 1853 under
Matthew C. Perry’s command, which symbolically marked the end of Japan’s
isolationist policy.

10 The restoration of imperial rule in 1868 after overthrowing the feudal military
dictatorship (shogunate regime) which was in power since 1600.

A Chinese idiom expressing “one in his or her element.”

11

One ri is approximately 2.44 miles. “A thousand ris” refers to “a long

12

distance.”

The Chinese characters for justice (; read ‘sei-gi,’) may also be read ‘Masa-
13

yoshi’ in Japanese.

14 The Korean dynasty that ruled from 918 to 1392.

The Japanese word used is ‘anata.’ A formal and possibly feminine second-
15

person pronoun.

The Japanese word used is ‘omae.’ An informal and masculine second-person

16

pronoun.

The village in which mass murder was committed during the Vietnam War,
17

known as the My Lai Massacre or Son My Massacre.

18 A Japanese communist militant group.

19 One of the most important writers in 20th century Japan, nominated three times
for Nobel Prize in Literature.

20 A ritual suicide in the form of disembowelment.

 Short of an-pon-tan, which means fool or saphead.
21

Fukuoka City downtown.

22

23 Late Tokugawa shogunate, or the final years of the Edo Period (1603-1868),
ruled by a military regime.

Scale of 1 to 5 with 5 being the highest.

24

A guardian deity of children.

25

Comics written primarily for young female audiences.

26

27 From the famous haiku poem by Matsuo Basho: “The summer grass—It is all
that’s left of ancient warriors’ dreams.”

In Japanese, the number of things is accompanied by a counter word. The

28

counter word “cho” is used to count tofu (i.e. one cho of tofu). Although
different Chinese characters are used, the counter word for tofu, “cho (),” and the
word trillion, “cho (),” have the same sound.

29 The official English company name at the time. The company name is referred
to as “SoftBank Japan” and later “SoftBank” hereafter.

One of the major and earliest computer-related magazines in Japan, which was
30

published from October 1977 to April 1995.

 Often refers to men with wealthy backgrounds who received education from
31

Keio-affiliated institutions, starting from elementary education to university.

Keio University is the oldest and currently one of the most prestigious
universities in Japan.

Originally, Edokko (
32 ). A person born and raised in Tokyo (formerly, Edo).
Although different interpretations exist, it may imply the following
characteristics of Tokyo natives: spiritedness, assertiveness, hastiness, etc.

Abbreviation for “My Computer.”

33

Japanese honorific. Expresses endearment for the person referred to.

34

The week containing consecutive holidays, such as Constitution Memorial

35

Day, Showa Day and Children’s Day.

A Japanese honorific suffix, expressing respect.

36

The Japanese word for “loss” is also pronounced “son [],” although it is
37

written in different Chinese character from Son’s surname []. Son’s given name,
consists of the two characters for “justice [],” although it is pronounced
differently.

Based on the Battle of Sekigahara (1600).

38

Sen no Rikyu (1522-1591). Considered one of the most important figures in

39

Japanese tea culture. He served as the tea master for the legendary general Oda
Nobunaga and Toyotomi Hideyoshi. He was also a writer and poet.
 One of the famous stories in Japanese history that epitomizes the spirit of
40

Bushido, or the samurai code of honor.

41 The samurai lord, Asano Naganori, was forced to commit ritual suicide for
assaulting the court official, Yoshinaka Kira. The Forty-seven Ronin avenged
their lord’s honor by taking Kira’s life.

Originally, gyuho sakusen, or ‘cow’s pace tactics.’ A method that political

42

minority parties use to delay the passage of bills supported by the majority.

43 A traditional Japanese holiday honoring the spirits of one’s ancestors.

44 The original quote reads, “...just imitations and are the second infusion of tea.”

A move in the field element invented by Ina Bauer, in which the skater’s
45

blades are in parallel.

A Japanese proverb, which may also be translated to ‘money is a thing which

46

comes and goes around the world.’

The original Japanese sentence reads, “0.27 oku.” Oku stands for one hundred
47

million, which is considered one significant defining numeral. Here, ‘oku’ is

converted to ‘billion’ for the convenience of English readers.

White is derived from the surname Shirato. “Shira,” consists of the Chinese
48

character for “white.” The Shirato Family is a fictional family that appears in the
SoftBank television ads.