I am Hollywood

[Chapter 1073: So Rude]

The two of them settled on the client couch by the window in the study. Judith Miller pulled out her notepad and recorder from her bag while covertly observing the young man across from her.

Eric Williams had that naturally youthful blonde hair and a clean-shaven face, but his chiseled face lacked any hint of innocence. Instead, Judith sensed a level of maturity and calm only achieved through life experiences.

Cindy soon entered with a pot of coffee, carefully pouring for both of them before quietly exiting the study.

Cindy's entrance broke Judith's concentration on Eric, and noticing the faint smile on his face, she realized she might have stared a little too long. Embarrassed, she smiled sheepishly, switched on her recorder, held the notepad, and addressed him, "So, Mr. Williams, according to the latest statistics, with Yahoo's IPO, your personal wealth has reached an astonishing $265 billion, exceeding even Russia's latest GDP figures. What are your thoughts on this newfound wealth?"

At first, Eric assumed it was yet another question along the lines of "What does it feel like to be the richest person in the world?" However, he quickly realized it wasn't quite that simple.

Judith was clearly inquiring about the implications of such immense wealth rather than exploring his personal feelings about it.

After hesitating for a moment, Eric smiled and shook his head. "I'm sorry, I'm not sure how to answer that."

Actually, it wasn't that he didn't know how to respond; it was that the question itself was incredibly sensitive.

As Judith pointed out, $265 billion has already surpassed the current GDP of Russia. While the power of such a superpower cannot simply be measured through GDP numbers, this wealth and its broader societal impact had touched upon some fundamental issues regarding control in America.

In the past, the Rockefeller family's wealth represented only 1.6% of the U.S. GDP, a figure that allowed them to be seen as controlling the entire country. Eric now held wealth that constituted an even larger proportion of the GDP.

The Rockefeller family had nearly controlled the lifeblood of the American energy industry following the Second Industrial Revolution. Similarly, Eric's holdings were now central to the core electronic information sector that emerged after the Third Technological Revolution.

At that moment, core companies in the Firefly system, such as Yahoo, Cisco, Amazon, Qualcomm, and Nokia, were all demonstrating their rise. Eric felt confident that several of these companies wouldn't repeat the same mistakes of the past. Over the next decade, as these companies consolidated their foundations and continued to expand, it wouldn't be an overstatement to say the Firefly system controlled the lifeblood of America's information industry.

On the other hand, to ensure that the overall interests of the Firefly system during future expansion wouldn't be affected by American national policies, it was essential that they strengthened their influence in the political arena, even to the extent of trying to exert control over the changes within the highest echelons of power in America.

This was something that Eric couldn't simply avoid due to a lack of interest in politics. If Firefly didn't act, they would only face a ruthless and aggressive suppression from competitors using political maneuvers. Simultaneously, Eric's substantial wealth could sufficiently support the Firefly system's political expansion.

Thus, adding Firefly's strong positioning in Hollywood, the picture was complete.

Politics, economy, culture.

These three words stacked together sounded rather familiar. Typically, the capitals of most countries are regarded as the centers of political, economic, and cultural activities.

If a consortium could manifest deep-rooted influence in all three of these areas, it was clear that it effectively controlled the entire country.

While all countries have ruling classes behind the scenes, most ordinary citizens generally prefer not to face such topics directly. Therefore, Eric could never elaborate on this issue in front of Judith Miller, nor did he wish to give a nonchalant response, so he outright declined.

At the same time, Eric realized that Judith, the journalist, wouldn't be too polite with her upcoming questions, so he mentally braced himself.

Judith, taken aback that her carefully prepared first question was dismissed so directly by Eric, even without any ambiguous answer, paused for a moment then showed a polite smile of understanding. Glancing at her notepad, she continued, "Mr. Williams, based on yesterday's closing figures, Yahoo's price-to-earnings ratio had reached 530 times. What are your thoughts on the serious bubble issue associated with Yahoo's stock price?"

Now, that wasn't very polite at all.

Eric thought to himself, then responded, "The increase in Yahoo's stock price on its first day of trading indeed surpassed our expectations, but I don't believe there's a significant bubble issue. Based on the continuously high growth in revenue over the last two years, Yahoo has started to develop a very mature business profit model. All we need is time to fully unleash the commercial potential embedded in the internet media industry."

Judith couldn't find fault with Eric's answer. Assuming it was a 'standard answer' he had prepared beforehand, she pressed on relentlessly, "So, how long do you think it will take for Yahoo's annual profit to match its current valuation of $90 billion?"

Eric hesitated slightly, responding, "Five years, perhaps."

Judith countered, "Even calculating at a price-to-earnings ratio of 30 times, in five years, for Yahoo to achieve an annual profit of $3 billion, do you think that's feasible?"

"In 1995, the global number of internet users was around 40 million. In just three years, this number grew to 160 million. Predictions suggest that by 2000, it will reach 300 million, and by 2005, it will grow to 1 billion. Without a doubt, these 1 billion internet users fall within the upper middle class and above in terms of spending capability," Eric focused his gaze on Judith, asking back, "So, Ms. Miller, what do you think is impossible in a vast market with such a premier user base of 1 billion?"

Judith Miller sensed the pressure behind Eric's gaze during his counter-question but held her ground.

The New York Times was keeping a close watch on this interview, and if she allowed it to devolve into a mundane dialogue, even with her deep experience and connections within the paper, she could face resignation. After all, the opportunity to conduct this interview was the result of a significant power struggle within The New York Times.

"Mr. Williams, the entire North American population is only 300 million. So, are you suggesting that Yahoo's future focus will be on the global market? However, as I understand it, over 70% of Yahoo's business is currently in North America, and overseas expansion hasn't been smooth. What's your take on this issue?"

"Your description of the problem isn't accurate, Ms. Miller. While it's true that over 70% of Yahoo's business is concentrated in North America, that doesn't mean Yahoo has failed in overseas expansion. Over the years, Yahoo has been diligent in solidifying its foundations in North America. If a company can't achieve absolute leadership in its home country, it cannot expect to expand overseas. Moreover, under such a business development strategy, Yahoo has still managed to secure a 30% market share overseas, which sufficiently proves Yahoo's substantial global expansion potential. After the IPO, Yahoo's main expansion targets will focus on international markets. I believe that Yahoo's business scale overseas will soon match or even surpass that of North America."

Judith nodded slightly, seeming to agree with Eric's viewpoint. However, as soon as Eric finished speaking, she immediately posed another sharp question, "Mr. Williams, I heard you mention 'absolute leadership' in your remarks. Currently, Yahoo indeed leads the internet media sector. Have you considered the potential negative impact this situation may have on the entire industry?"

"I understand your insinuation, Judith. In every industry, once a giant monopolizes the market, it often leads to complacency among leaders, while newcomers struggle to innovate and grow. Yet, the internet industry is different; it's a nascent, rapidly growing field. Moreover, the global nature of the internet ensures that the most outstanding new tech companies will be global behemoths. By such a standard, Yahoo is still a toddler taking its first steps. Although we have learned to walk earlier than others, if we become complacent, we will inevitably be eliminated in this wave of new technology. Additionally, I believe the federal government should not be too quick to impose restrictions once a new tech enterprise demonstrates a leading market position. As I mentioned, the future internet industry will be highly globalized, unlike any traditional sector. If the federal government fails to show sufficient openness and inclusiveness during this industrial transformation, the leading position the U.S. has just attained in new technologies may well be surpassed by Europe and Asia. In the future, we could find ourselves struggling as we face a siege from Eurasian internet giants in North America."

"Mr. Williams, the idea of Eurasian internet firms retaking North America -- don't you find that a bit alarmist?"

"Alarmist?" Eric smiled, responding, "I don't believe so. At least in the tech sphere, for decades, the top electronic product technologies have consistently originated from Japanese manufacturers, like the DVD standard that is now being promoted -- most core patents are held by Japanese companies. Just in licensing fees alone, we pay billions of dollars each year to Japanese firms. Furthermore, the GSM technology that is most widely used in the digital communications sector also comes from Europe. From the establishment of lower-level technical standards to the development of terminal products, North America can only directly or indirectly accept control from European manufacturers. Therefore, while we have gained some advantages in the internet sector, if the federal government cannot adopt a more open support stance, we still face an uncertain future."

The New York Times had not previously communicated with Firefly regarding the specifics of this interview; several of Judith's questions were even last-minute improvisations. However, the young man before her did not display any signs of confusion during her series of tricky questions, nor did he evade like some other interviewees, instead, he provided very clear and convincing answers.

Having interviewed countless social elites, Judith quickly realized that Eric's insightful industry data and analytical insights couldn't possibly have been the result of preparatory research. It indicated that he had been deeply contemplating the entire internet industry for a long time.

If her initial impression of Eric was merely his seemingly mature and composed demeanor, after this series of dialogues, Judith found herself increasingly impressed by the depth of knowledge and foresight he demonstrated.

Judith had previously researched Eric's background extensively, and now she was even more curious about how this merely high school graduate managed to achieve everything he had today.

However, due to prior agreements, Judith refrained from voicing her curiosity; she knew Eric wouldn't answer such questions.

Digesting Eric's earlier statements, Judith opted for a slightly softer question, asking, "Mr. Williams, Microsoft is also a new tech firm, and everyone is aware that Yahoo has a very close partnership with Microsoft, such as the 30% forward share transfer agreement and the pre-installed Yahoo browser with its Windows operating system. Microsoft has faced antitrust investigations from the Justice Department in recent years. Given your earlier remarks, do you believe the federal government's scrutiny of Microsoft has been too harsh?"

A faint smile appeared on Eric's lips as he replied, "While I know that Bill, that arrogant guy, wouldn't appreciate it, I must say yes. Microsoft is still in a crucial phase of global expansion. If the federal government imposes too severe restrictions on Microsoft, the U.S. could lose a global corporate giant. While North America is the world's largest consumer market, it still can't compare with the much larger global market. I believe it is in the federal government's fundamental interests to support a company that holds an industry-leading position globally. Of course, I also hope Microsoft can adopt a more open corporate stance. On that note, I have enough confidence to use Yahoo as an example. Yahoo maintains an open licensing approach regarding its core technologies like web browsers, instant messaging software, and email services, often granting licenses to direct competitors such as America Online, or Microsoft's MSN portal. This hasn't dampened Yahoo's market position; on the contrary, it has spurred Yahoo to be more proactive in technological advancement."

Judith nodded slightly, "Speaking of America Online, Mr. Williams, although Firefly has previously provided detailed explanations for relinquishing most of its stake in America Online, I'm still very curious about your personal sentiments regarding this decision."

*****

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