Chapter 462: Chapter 463: America Online
[Chapter 463: America Online]
"Eric, even if you're not attending the Oscars, you can't leave Los Angeles at this time. There's the Firefly theme party after the Oscars, and this is the first one!" Drew languidly commented as she watched the two people packing their bags at the Liberty City Manor.
Tina Fey helped Eric fold his clothes. Hearing Drew's words, she glanced at Eric, who was pulling clothes from the wardrobe. She was now Drew's assistant, practically inseparable from her, even living together. Drew was taking Eric to the airport, so Tina came along as well.
Eric handed a suit to Tina and said, "Michael and the others can handle this."
"Why don't I go with you?" Drew sat up a bit, her voice full of hope.
"I'm not going out for fun, so you better stay in Los Angeles and not cause any trouble for me."
Drew let out a discontented hum, inching closer to Eric's suitcase to help fold clothes. After glancing at the quietly working Tina, she suddenly said, "Why don't you let Tina go with you? I don't have much going on right now anyway."
Tina felt a surge of excitement at Drew's suggestion and secretly glanced at Eric but soon shook her head with a tinge of uncertainty. "I can't go. I wouldn't know what to do."
"You don't need to know anything," Drew leaned closer and whispered as if sharing a secret, though her voice was still audible. "With you around Eric, he won't be distracted by other women."
Tina instantly understood what Drew meant, and her face flushed red.
As Eric finished taking out the last few items of clothing and handed them to Tina, he playfully tapped Drew on the forehead. "Stop talking nonsense. And while I'm gone, don't do anything crazy at the manor."
Drew covered her head and whined, drawn out her complaint. "Got it."
After packing, Eric turned down Drew's offer to drive him to the airport.
...
Along with Allen and four bodyguards, Eric took a car to Los Angeles Airport, boarding a small Boeing private jet. Originally, the jet was specifically rented by Disney for its executives. After Disney was acquired by Firefly, the use rights for the jet were transferred to Firefly.
Once the plane took off, Eric instructed Allen to pull out the materials he had prepared. He then went alone to a lounge at the airport, sitting at a desk by the window as he opened the folder in his hands.
After Chris returned to New York, following Eric's previous instructions, Firefly Investments started paying attention to gathering information related to computers and the internet. A few days prior, they sent Eric several investment projects they were interested in, and among the pile of materials, one company caught Eric's attention. This was the reason he had hurried to New York.
The company was called America Online (AOL), the same one that would merge with Time Warner in 2000 in another timeline. Back then, Eric was only twenty-five, just a few years out of college, filled with youthful ambition. Like many young people, he was very interested in that merger worth $180 billion. He remembered vividly that the market value for the merged AOL-Time Warner Group at its peak even surpassed $300 billion.
Now, the information in Eric's hands indicated that although America Online had been established for seven years, it was just an inconspicuous internet service provider in Virginia, valued at only $200-300 million. The company had 120 employees and merely 150,000 users, holding only a 10% market share in the internet service sector.
After carefully reviewing the not-too-thick folder a few times, the plane landed at Kennedy Airport.
...
"Eric, over here," Chris waved at him as he stepped out of the airport terminal, dressed in a long black coat. Even though it was late March, New York's temperature was still only about ten degrees Celsius. Eric, who had only worn a light jacket in Los Angeles, had to don a coat.
"Chris, how have you been?" Eric exchanged hugs and pleasantries with Chris.
"Pretty good. Oh, this is Mr. Steve Case," Chris nodded and introduced the middle-aged man next to him.
Eric had seen many materials about Steve Case, the founder of America Online. He wore a khaki coat, had a round face, and appeared somewhat shy.
"Mr. Williams, great to meet you. I really enjoy the films you've made," Steve Case complimented Eric, reaching out his hand. Although he had built up a vast fortune from scratch, he still felt overshadowed by Eric.
Eric smiled as he shook hands with him and introduced his entourage before they all got into a car heading back to Manhattan.
...
Once Eric and Chris were in the car and it started moving, he asked, "Have you made any progress with him?"
Chris shook his head. "Not yet. He hasn't completely given up on going public, but he did agree to talk to you."
Eric sighed with relief. While Chris gathered AOL information, the company had been preparing for its IPO for six months. However, Eric believed that this was not the best time for AOL to go public.
"As long as we can keep talking, that's fine."
Looking at his watch, Chris noted the time difference. Eric had flown out from Los Angeles at 9 AM Pacific Time, meaning it was just after 9 AM in New York. "By the way, should I drop you off at your place or take you directly to the office?"
If Steve Case hadn't come to pick him up, Eric wouldn't have minded going to his Manhattan apartment first. "Let's go to the office."
"Got it," Chris instructed the driver and added, "Come over for dinner at my place tonight. Emily will be cooking."
"Sounds good," Eric agreed readily, unaware of the slight guilt and awkwardness that flashed in Chris' eyes when he said this.
...
"If a company doesn't prioritize user experience, even the most advanced technology is often eliminated from the market. Therefore, America Online's operating strategy is all about the user. We conduct user satisfaction surveys every quarter and gather user suggestions for improvements..." In the conference room of Firefly Investments, Steve Case passionately explained his business philosophy.
Since being approached by Firefly Investments, Steve Case had begun to consider taking in their funds. After all, if he opted for an IPO, America Online would have to comply with significant regulations, which would certainly limit the company's growth pace to some extent. However, the reason he hadn't yet agreed and wanted to meet Eric, the owner behind Firefly Investments, was likely due to wanting to negotiate for better terms.
"Mr. Case, I heard you're still leaning towards America Online going public, am I correct?" Eric asked after Steve finished his presentation.
Without hesitation, Steve Case nodded. "Yes, going public would allow America Online to more easily access capital markets. In our growth plans, America Online has a significant need for funding."
Eric chuckled. If Steve Case was set on going public, he wouldn't be here right now. But since everyone was aware of the reality, there was no need to confront it head-on.
"I am not against the idea of America Online going public," Eric said. "However, I don't believe now is the right time for it."
Steve Case showed a confused expression.
Eric continued, "If you're following current affairs, you might have noticed the recent campaign speeches by Bill Clinton, a hopeful for the Democratic nomination. He brought up a plan for an information superhighway."
"I have heard a bit about it," Steve nodded. "While I support some of Clinton's ideas, I don't think he has a strong chance to win. The victory in the Gulf War brought President Bush a lot of popularity, and the Democratic Party often appears disunited. If Clinton doesn't make it, many of his governing ideas would just be empty words."
"That's not the whole picture. Clinton proposed the information superhighway plan precisely because his campaign team saw the potential for computer networks. I believe this is an irreversible trend of the era. Even if Clinton loses, President Bush's reelection will not change this trend. Therefore, it would be unwise for America Online to go public so early."
"Mr. Williams, while I do have faith in the proliferation of computer networks, I must..."
"$60 million."
"What?" Steve Case was taken aback, uncertain.
Eric clarified, "I know America Online intends to sell 30% of its shares and raise $50 million. I can offer $60 million, and if America Online needs more funding in the upcoming years, Firefly can still invest."
Upon hearing Eric's direct quote, Steve replied, "Mr. Williams, $60 million seems a bit low. While our company's plan is indeed to raise $50 million, if the market responds well, the financing size will surely exceed that."
"Very well," Eric smiled. "It seems you're ready to discuss the investment with Firefly. The specific amount can be negotiated by our teams."
Steve Case hesitated for a moment and quickly realized that Eric had steered him into a tight spot. "Mr. Williams, I was simply suggesting a possibility and hadn't agreed."
"No worries, let's continue the discussion," Eric straightened in his seat, his smile still intact.
Chris chimed in, "Mr. Case, Eric not only manages Firefly Films but also has several movies in the works. The Oscars are just around the corner, and he canceled his attendance to rush to New York. So, you can see we are genuinely interested."
"Alright," Steve Case thought that further elaborate refusal might backfire. "However, I have some conditions regarding the scale of Firefly's investment and management rights afterward."
"Go ahead," Chris extended his hand.
"First, Firefly cannot interfere with the daily management of America Online."
"You can rest assured about that," Chris replied. "You should know that Firefly Investments is also the largest shareholder of Cisco, but aside from significant company matters, we do not interfere in Cisco's management."
Steve Case nodded, evidently aware of this issue. "Another thing, I hope Firefly can transfer the voting rights of the shares held to me."
Upon hearing this condition, Chris looked at Eric. Not interfering in the daily management of America Online and transferring voting rights were two completely different matters. Giving up voting rights meant that Firefly would lose all control over the direction of America Online, allowing Steve Case to do whatever he wanted.
Eric thought this over quickly before raising three fingers. "Three years. Within three years, Firefly will transfer the voting rights of its shares to you."
"Three years is too short. It should be at least five years," Steve bargained.
"Impossible. Five years is too long," Eric shook his head. "At most three years, and I expect America Online to go public within that timeframe."
Three years later would be 1995, which marked the beginning of the internet boom, as well as the onset of the dot-com bubble.
Eric had followed America Online closely due to its merger with Time Warner, and its most glorious period only lasted from 1995 to 2000. This was because America Online mainly operated dial-up internet services, and after 2000, the bursting of the dot-com bubble, along with the spread of broadband internet, caused America Online's market value to plummet by over 90% within just a few years. Therefore, Eric's current concern over America Online stemmed entirely from its five-year potential during its peak years; beyond that golden period, America Online lost its value.
"Steve, I am open to negotiating the investment amount, but I will not budge on the three-year term."
*****
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