Chapitre 993: Chapter 995: Sudden Provocation
[Chapter 995: Sudden Provocation]
"Of course not, that's just slander! According to the tropes of cinema, I could sue you," Eric joked, quickly shifting the topic. "The preparations for this year's Victoria's Secret Fashion Show must be in full swing now, right?"
"Yeah, we've started picking themes," Emily replied, not lingering on the previous topic. "Earlier this year, we opened a Victoria's Secret store in Europe, and this year's show is set to take place in London."
Eric had mostly stopped paying attention to the finer details of the fashion show. At the mention of Gisele, he wrapped an arm around her waist, saying, "Just remember to give Gisele the opening."
Emily nodded. "Of course, and she'll have wings! Besides, this year, aside from Cindy and the others, only Gisele can take the lead on the theme opening."
Though Emily had a good relationship with Joanna and Virginia, even bringing Joanna's sister, Ewa, on as her assistant, she had come to terms with Eric's flirtatious ways. Out of a sense of solidarity among women, she didn't harbor any biases against Cindy, Gisele, or the like just because of her power duo connection. Instead, she would habitually tease Eric a little.
This year marked the fifth anniversary of the Victoria's Secret Fashion Show. The original five models -- Cindy Crawford, Linda Evangelista, Christy Turlington, Diane Kruger, and Tyra Banks -- had signed a five-year contract with Victoria's Secret.
After this year, both Cindy and Linda would step down from the modeling roster to focus on their television programs. Christy had already gotten married and would likely opt for the stay-at-home life, leaving only Diane and Tyra from the original group.
Gisele was simply participating in the show this year, with a formal contract to follow next year.
...
As they chatted, the host of tonight's party, John Mark, approached them again. After greetings, he asked Eric, "Eric, can we talk privately?"
Eric felt a little puzzled but didn't decline. "Sure."
John gestured for him to follow, and they made their way through the crowd in the hall, up the spiral staircase to a lounge on the second floor.
After suggesting that Eric make himself comfortable on the couch, John walked to a wall-side bar, poured two glasses of whiskey from a bottle, added some ice, and approached Eric, handing him one. "Try this Johnnie Walker from my collection. While older whiskey isn't necessarily better, this 50-year-old Johnnie Walker is a rarity worldwide."
As Eric brought the glass to his lips, he noted a rich aroma, accompanied by that distinct peaty scent typical of Scottish whiskey. Taking a small sip, he nodded, "This is great, but I'm not really an expert."
John settled into a chair across from Eric, a gentle smile on his face. "Looks like you're not much of a drinker, which is actually a good habit."
"I just prefer to stay sharp," Eric replied, lightly swirling the whiskey in his glass and looking at John, anticipating his intentions.
John took a few sips of his drink before saying, "Eric, have you considered speeding up Yahoo's IPO process?"
"That's usually Chris's area," Eric replied nonchalantly while pondering why John had suddenly brought this up. Chris hadn't mentioned it to him, so it seemed this was an unexpected move from John. Compared to the more professional Chris, John might view Eric as an easier target to sway.
Recalling what Chris had mentioned about the former Morgan executives' power struggles following their merger with Dean Witter, Eric speculated that John and his cohorts wanted to use Yahoo's IPO to recover from their losses in that contest.
...
Yahoo's IPO strategy had been continuously adjusted. Initially, Eric hoped they could time the IPO release at the end of this year or early next year when the Nasdaq was performing favorably, offering about 30% of the total shares in a single push. This would have provided enough capital to support Yahoo's growth for the next five to ten years.
However, as Eric learned more about IPO processes, he recognized the impracticality of such expectations.
Yahoo's valuation had reached $15 billion at the start of the year, and based on the average growth of tech stocks over the past six months, Yahoo's valuation should now be around $25 billion. As long as there wasn't an early Nasdaq crash, it could potentially hit nearly $50 billion by year-end.
If they managed to issue 30% of shares at that point, the financing could theoretically grandly reach $15 billion -- breaking the historical records for any U.S. IPO prior to 1998. Before this, Deutsche Telekom's IPO raised $13 billion in 1996.
Deutsche Telekom's standing in Germany paralleled that of AT&T in the U.S.; neither its net worth nor revenue could be compared to Yahoo's current metrics. Eric held immense confidence in Yahoo's future, yet not everyone shared that certainty. The capital bubble sparked by the new tech wave had gathered more scrutiny.
Even with Yahoo's rapid growth in recent years, its revenue last year had barely surpassed $600 million. If this year's earnings broke $1 billion, that still wouldn't support a $50 billion market cap.
The overheated Nasdaq index was an open secret. If Yahoo displayed too aggressive an appetite during the IPO, compounded by investor fear of a market crash, it could lead to a failed IPO.
Thus, Eric planned to issue only about 10% to 15% of shares for the IPO. He didn't hold high expectations for Yahoo's valuation; he would be satisfied as long as it exceeded $30 billion at the eventual offering price.
Regardless, even at those figures, Yahoo could still raise between $3 billion to $5 billion, ample to sustain its growth for the next three to five years and navigate the aftermath of the web sector's 'winter' following the bubble burst.
While the $3 billion to $5 billion raised wouldn't rival Deutsche Telekom's record, it would still mark one of the most substantial IPOs in recent years. If successful, Morgan Stanley, handling the underwriting, would earn significant commissions and enhance its clout on Wall Street, attracting more companies looking to go public.
Naturally, the original Morgan team operating Yahoo's IPO could gain more influence within the new company.
...
Hearing Eric mention Chris, John remarked, "Eric, you are the owner of Firefly Investments, and I believe it would be more fitting to discuss this directly with you."
John's underlying provocation irked Eric slightly, but he simply smiled and said, "I prefer to leave professional matters to professionals; that's also a big reason why Firefly has achieved its current scale."
John's emphasis on Eric as Firefly's 'owner' was his attempt to provoke Eric's need for control, hoping to persuade him to make a decision that aligned with his agenda.
Noticing that tactic wasn't working on Eric, John switched gears. "Eric, many investment firms on Wall Street believe the Nasdaq is currently in a serious bubble. Look at America Online; when it went public in 1995, it was valued at $5 billion. Now, just two and a half years later, its market value has exploded past $40 billion, an 800% increase. Then there's Microsoft, with its valuation skyrocketing over six times since 1995. Other tech companies like Cisco, Oracle, and Intel have also experienced outrageous price surges. So, the next few months seem to be the last and best window for Yahoo's IPO. We're well prepared; if we can get started, we could complete the IPO plan before September. Waiting until the year-end or early next year -- even if the bubble doesn't burst -- investors will be very hesitant about tech stocks, which would hurt Yahoo's IPO prospects."
John's argument had its persuasion; had Eric not possessed a rare understanding of Nasdaq trends, his caution might have led him to agree.
However, after patiently listening, Eric shook his head and replied with a smile, "John, I understand what you're aiming for, but I have my plans too. Yahoo's current valuation hasn't reached my ideal, so the year-end IPO plan remains unchanged. Moreover, while I genuinely hope Yahoo successfully goes public, I'm also not frightened off by the idea of a failed IPO. Even if Yahoo doesn't go public, Firefly can provide ample support for its growth."
John paused, uncertain if Eric's "I understand your thoughts" meant he recognized John's desire to leverage Yahoo's IPO for leverage, or if it represented genuine concern over the IPO's potential failure.
Nonetheless, John's face remained unchanged. "Eric, what about Microsoft's 30% purchase option? If Yahoo fails its IPO, trading equity with Microsoft in a non-public state could place Yahoo at a disadvantage. As it stands, Microsoft's valuation is nearly ten times that of Yahoo; with just 3% of its shares, they would effectively seize 30% of Yahoo's. I'm sure you wouldn't want to see that happen. I believe if Yahoo were publicly traded, its valuation could at least touch that of America Online."
Eric kept a relaxed demeanor. "John, Microsoft can exercise its purchase option after next July. According to your logic, if the Nasdaq bubble bursts by year-end, Yahoo wouldn't smoothly IPO, but the same would mean Microsoft wouldn't retain such a high stock price either. Even if Yahoo and Microsoft traded right now, I'd be frustrated but selling Microsoft's 3% shares could still yield $6 to $7 billion for Yahoo, while Firefly maintains complete control of Yahoo."
Initially, Eric had envisioned that once both sides fulfilled the stock purchase agreement, if Microsoft peaked at a $600 billion valuation, Yahoo would be close to $200 billion.
At that point, Microsoft could never muster the cash needed for that 30% interest, forcing them into a stock-swapping acquisition route. However, this approach would require them to hand over around 10% in equities, making Firefly a substantial shareholder in Microsoft -- a situation likely prompting Microsoft to forfeit the purchase option altogether.
However, should John's scenario emerge, promptly offloading Microsoft shares wouldn't lead to losses for Firefly; the only downside would be missing out on becoming a major shareholder.
Having frequently interacted with Chris Hansen, John was aware of Chris's clearly outlined strategy for Yahoo's IPO, making it incredibly challenging to sway his position. That's why he sought to find a breakthrough point through Eric tonight.
Seeing Eric's resolve only intensify, John soon relinquished any hopes of persuasion.
His intent in inviting Eric had always been about fostering good relations, so he would never allow the conversation to become strained.
Abandoning his attempt to persuade Eric, John swiftly changed the subject. They chatted for a short while before leaving the lounge together.
...
Eric didn't accompany John back down to the main hall. Guided by John, he ventured to a washroom at the corridor's end. After reemerging, he noticed a staircase leading up to the terrace. After a moment's thought, Eric ascended to get some fresh air; it was quite taxing engaging with clever individuals like John Mark.
Pushing open the terrace's slightly ajar iron door, Eric stepped outside and spotted a slender figure at the northwest corner of the terrace, seemingly gazing over at Central Park shrouded in nighttime darkness.
Upon hearing footsteps behind her, the figure turned around. It was Stephanie Seymour.
Stephanie appeared somewhat surprised, a teasing tone in her voice as she asked, "Eric, you didn't follow me here on purpose, did you?"
Though framed as a question, her slightly smug smile suggested she felt certain of her conclusion.
"I could say otherwise, and you still wouldn't believe it," Eric shrugged nonchalantly as he joined her at the railing, looking across to Fifth Avenue's illuminated traffic and the more distant Central Park. "What are you looking at?"
Stephanie shook her head, resting her arms on the railing. "Oh, nothing, just trying to get some air -- it's stuffy down there."
*****
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État de l’alimentation hebdomadaire
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