I am Hollywood

[Chapter 1077: A Popularity Overtaken]

At Firefly Studios, Robert Pittman, the president of America Online, sat in the lounge area next to the floor-to-ceiling tempered glass wall on the second floor of Digital Domain office. He gazed at the fiery clouds turning red in the sky but felt no joy from the magnificent sunset view.

A recent article where Eric had been interviewed by The New York Times sparked a global media frenzy, injecting a powerful adrenaline shot into the already inflated new tech industry. Even after more than a week, the influence of that interview had not faded. However, as one of the most important tech companies listed on NASDAQ, America Online should have benefited from the expose. Instead, Eric's comments during the interview led to chaos for the company.

On the day Yahoo went public, America Online's stock price had already taken a hit. Over the past week, influenced by the article, Yahoo's market value smoothly surpassed $100 billion, while America Online's valuation dropped sharply from its peak of $66.7 billion, currently sliding to around $60 billion.

Unfortunately, that was not the worst of it.

Eric had unexpectedly revealed in the interview that Firefly Group's Clover Fund held as much as 3.1% of America Online's stock, sending the management and shareholders into a panic, affecting the ongoing merger negotiations between America Online and Time Warner.

Despite being furious, America Online's executives had to confront the issue head-on. However, when Steve Case finally decided to reach out to Eric, the latter had suddenly vanished from the media spotlight. He not only left Manhattan but also did not return to Los Angeles, nor could anyone find him in London. When Steve called Firefly Group, he was informed that "Mr. Williams is on vacation and does not wish to be disturbed," which starkly contrasted with any past dealings within the Firefly system.

Left with no choice, Steve awkwardly reached out to Yahoo's CEO Ian Gurney. Although he got word that Eric was in Maryland, he was warned not to disturb him. Steve had no other option but to comply. However, the moment he heard Eric had returned to Los Angeles, he sent his deputy, Robert Pittman, to fly overnight.

...

As the orange and red clouds darkened, Robert glanced at his watch and was about to ask staff when Eric Williams would be finished for the day. Just then, he saw Eric stepping out of an office at the end of the hallway with a casually dressed middle-aged man. Robert hurried over.

"Good afternoon, Mr. Williams," he said, his anxiety barely concealed as he remained polite.

"Bob, just call me Eric," Eric replied with a smile, shaking Robert's hand. He then introduced, "This is Robert Byer, the visual effects supervisor for my current film."

After Robert greeted Robert Byer, he added, "Eric, I've made a reservation at a restaurant nearby. How about we have dinner together?"

Realizing Eric and Robert Pittman had business to discuss, Robert Byer excused himself.

Once Byer was far enough, Eric told Pittman, "I have a cocktail party I need to attend later, so let's eat on the big boat next door."

Robert, eager for a chance to discuss matters with Eric, didn't disagree.

...

When they arrived at the restaurant on the big boat and had just seated themselves, Robert couldn't contain himself anymore and said, "Eric, America Online wants to buy back that 3.1% stake from Clover Fund. What do you think is a suitable offer?"

Instead of responding to Robert's question, Eric noticed a striking waitress approaching directly to him, seemingly ignoring Robert. Her eager eyes inquired about his order. With a slight frown, Eric replied, "Get George over here. I have something to discuss with him."

The waitress paused for a moment, realizing George must be George Watling, the manager overseeing several restaurants aboard the big boat. Despite her confusion, she nodded and left.

After a while, George arrived in a hurry, bowing respectfully. "Mr. Williams, you called for me?"

Eric pointed to the waitress standing nearby, instructing, "Don't replace her again, or I'll replace you."

George was drenched in cold sweat upon hearing that.

Being able to frequently interact with significant figures in Hollywood, the restaurant and bar positions aboard Titanic, especially the internal restaurant solely serving Firefly Group's executives, were highly coveted among aspiring actors and actresses in Hollywood. Although Eric hadn't shown much interest in the staff over the years, quite a few "lucky ones" were indeed noticed by Hollywood heavyweights.

Thus, although George was merely a standard manager in the lowest tier of Firefly Group's entertainment division, wielding substantial power over the personnel decisions for the waitstaff, he had become someone many sought to ingratiate themselves with.

Hollywood was never short of beautiful women with stunning looks. If one wanted to work as a waitress on the big boat without extra favors, what was the chance? While he had to keep things discreet, George had enjoyed the company of several high-quality actresses, and under the auspices of connections, he had even secretly invested in a Hollywood talent agency. Every waitress in that internal restaurant had signed contracts with that agency.

George had often wondered why Eric, who dined there frequently, had never shown interest in any of the waitresses. It seemed inconsistent with a big boss's character. Hearing Eric's casual remark now, he finally grasped the reason behind it. Hollywood had no fools, especially not someone like Eric.

What could he say now? Should he convince the boss that he had never been involved with any of the waitresses in that internal restaurant? True, he had not.

Having landed such an important position, George was undoubtedly sharp. If Eric or other executives from the group expressed interest in a particular girl only to realize she was already contracted with his agency, they might brush it off. But if these big shots discovered the girl they liked was a "second-hand commodity" that had been enjoyed by someone in advance, the consequences would be disastrous.

Hollywood was rife with trades and desires. Eric wasn't a moral purist; his warning to George was merely a passing comment. He never intended to replace him. The dining services aboard the big boat were well-managed, evident to Eric. Moreover, switching personnel wouldn't guarantee a change in the situation either.

Looking at George, whose complexion had gone pale, Eric waved his hand impatiently, indicating for him to leave. He then called him back and instructed, "Get Kelly Haynes to personally recruit a few waitresses for this restaurant. I'm not concerned about the others, but I should not hear of any mess surrounding this place."

George nodded eagerly, though a flicker of concern crossed his face, as he was not in a position to contact Eric's assistant office director directly.

However, seeing that Eric had lost his patience, he dared not press further and quickly excused himself. If he couldn't reach out, he could always contact the heads of the exhibition hall or the top-tier operations department of the group, but he knew it wouldn't be without its difficulties.

...

After dismissing George, Eric and Robert Pittman ordered dinner, and Eric continued, "So, we were talking about the stock you wanted to buy back from Clover Fund?"

Robert attempted to put aside the earlier awkward moment, not daring to show annoyance. "Yes, Eric."

"And the reason?" Eric pressed, adding, "America Online's stock has a lot of upside potential. I don't want to sell right now."

Robert hesitated but pressed on, explaining, "Time Warner doesn't want Firefly Group to have a direct stake in the new company after our merger."

Eric nodded, seeming to accept that reasoning. He then asked, "How's the negotiation progress on your end?"

Understanding the need for transparency in front of Eric, Robert replied, "We've begun discussing the allocation of management responsibilities post-merger, and the audit of the balance sheet has also started. Tentatively, by next February at the latest, the merger proposal will be submitted to the SEC for review. Eric, if Firefly Group insists on holding onto that 3.1% stake, it may affect the SEC's stance."

Eric reflected on that for a moment; if Robert's timeline was accurate, the merger between America Online and Time Warner was occurring a year earlier than in the previous timeline.

While he didn't know the specific details, Eric was sure that the NASDAQ index, which had already crossed 2600 points, was significantly higher than the historical trends. This indicated that the market had already deviated distinctly due to his influence. Such deviations would ultimately mean that the NASDAQ could not follow its previous pattern.

He recalled that around 2000, the NASDAQ index had rushed from 3000 to 5000 points in just four months, a surge faster than the previous four years combined.

At the more measured rise from 2600 to 3000 points, calculating it at a rate of 100 points per month would yield just eight months' time before 5000 points -- a trajectory set to reach July next year, coinciding with the fulfillment deadline of that 30% long-term equity transaction contract between Yahoo and Microsoft. However, Microsoft had a three-month hesitation period to decide whether to go through with the agreement and to what extent.

This certainly posed a challenge.

Once the NASDAQ crashed, Yahoo's stock price would likely plummet far more than Microsoft's.

Although he understood that the specific movements of the NASDAQ index wouldn't be so straightforward, the chances for an early collapse next year seemed high. So that they wouldn't be disadvantageous to Microsoft, the index would need to hold until at least October next year.

However, such an outcome was uncertain.

Historically, one trigger for the NASDAQ crash was Microsoft's defeat in its antitrust case. Eric's favorable remarks toward Microsoft during The New York Times interview weren't merely a spur-of-the-moment gesture; he aimed for the Department of Justice's investigation into Microsoft's antitrust case to prolong and ideally fizzle out.

Thinking it over, without the igniting incident of Microsoft's antitrust loss, it was possible that given the future craziness of the NASDAQ, a surge to 6000 points was also plausible.

Of course, it wouldn't be surprising if the index collapsed under other triggers before hitting 5000 either.

The current situation with America Online represented a very unstable factor.

Although Eric had relinquished his position on the America Online board and ceased to meddle in its management, his concerns meant he wouldn't completely release his grip on America Online.

As he quickly sorted through this information in his mind, Eric turned to Robert Pittman and stated, "I've said before that I won't do anything detrimental to America Online, as it would also harm Firefly's interests. Although Firefly has already sold most of its shares in America Online, you can see our holding stands at 10.7%. Therefore, my earlier promise still stands. As for you wanting to buy back the shares from Clover Fund, I can agree, but not right now."

Robert Pittman's face fell, tinged with desperation as he requested, "Eric, you should understand our predicament. This is a critical phase in the negotiations between America Online and Time Warner."

"Aren't you saying the SEC review won't be until next February?" Eric remained firm. "You can tell Steve and Time Warner that next February, if you still insist on reclaiming those shares, I could sell them to you, but the price must reflect the market at that time."

While the stock price had seen fluctuations, everyone understood that this was temporary.

As the trading week commenced, following the media hype's cooldown, Yahoo's stock began showing obvious signs of a correction. Comparatively, America Online's stock, which was dominating the North American internet service provider sector, would surely trend upward as well.

Come February next year, reclaiming those shares from Clover Fund would undoubtedly cost America Online much more.

Yet, looking at Eric's steadfast stance, Robert Pittman had no choice but to face reality. They continued dining while discussing details, and to reassure America Online, Eric agreed to draft an intent letter for the equity transfer.

After dinner, Robert Pittman hurriedly departed, and Eric made his way to the hillside mansion of Amy Pascal in North Santa Monica to attend the cocktail party she was hosting.

*****

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