[Chapter 847: Paranoia is Not Welcomed]
Frank Patteno had not anticipated running into another celebrity manager here. He chuckled to himself while extending his right hand with a smile.
Pixar had plans for an IPO, which was promising, even if it wasn't exactly an entertainment titan. After all, his boss was no ordinary person. If that weren't the case, he wouldn't have come here in person.
As for the sharply dressed guy across from him, he was also no slouch--he was Iverson Martin, a senior fund manager from Goldman Sachs.
"Hey, Iverson, great to see you," Frank said.
"Same here, old buddy. You've been doing well lately," Iverson replied.
Watching the two men exchange pleasantries, Steve Jobs, who was known for his bluntness, felt a pang of annoyance. These two characters seemed to have forgotten that he was standing right there beside them.
In Steve Jobs's opinion, with the success of their company, they should be fighting to throw money at him. After all, with his name, he could command significant investment interest.
Not that he was completely uninterested; if things went right, his clout could easily bring in some significant funds.
Finally, as their mutual praise waned and Steve Jobs sought to interject, the conversation naturally shifted back to Steve Jobs.
"Gentlemen, this is a revolutionary time. The movie you're about to see will be 100% computer-generated," Steve announced with enthusiasm.
"I can't wait, Steve. When will the movie be done, and who's your distributor?" Iverson asked.
"We haven't set a date yet, but it won't be later than Thanksgiving. Oh, and we've got Tom Hanks doing the voiceover," Steve replied confidently.
The two investment bankers exchanged looks, unknowingly marking an imaginary 'X' across the air. The man was an Oscar winner, possibly a two-time winner.
"What a waste," Iverson whispered under his breath.
"We'll be working with Disney for the distribution. Mr. White hopes for a summer release, but unfortunately, there are still some details we need to finalize," Steve added.
Another round of private grumbling followed. Steve Jobs thought, "You paranoid crazies. Instead of chatting idly, why not get these guys to work faster?"
A summer release? Did they even grasp what that represented? It seemed that William White had a lot riding on this film--or more specifically, on Steve.
The film might look good; that was their consensus. However, they didn't believe Toy Story could outshine The Lion King. If it managed to gross a hundred million, they'd be modestly breaking even.
Clearing his throat, Iverson thought maybe that still wasn't enough. Disney was notoriously greedy.
But that didn't matter too much; as long as the box office topped a hundred million, they'd find a way to package it for public offering. And William White had quite a bit of stock--collaborating a little wouldn't be an issue.
Their optimistic outlook dwindled at this point. After reviewing Pixar's financial reports, both men's expressions turned sour.
"Man, this is a big hole. After all these years, forget about profits--it's just pouring money down the drain. I wonder if old Steve Jobs has burned through his retirement fund yet," Iverson lamented.
The negotiations, as expected, hadn't gone well. Steve hadn't garnered the excitement he had anticipated. "Brother, you need to show shareholders at least some hope for profits. And your dependency on Disney is too high; that's not a great sign," they insisted.
"Michael, has the deal with Steve fallen through?"
"Yes, boss. Should we just bring him under our wing?"
"What are you talking about? Jobs is a paranoid lunatic. Unless he's backed into a corner, it's not even worth thinking about. And a bit of competition is always beneficial."
Michael Eisner shrugged, unconvinced. "Pixar's creative engine is Lawrence; no matter how talented he is, he's just one person. When it comes to intellectual property resources, who can really compare to Disney?"
"Sir, we've already run out of time for summer. Steve is a classic perfectionist. I thought using computers would save some costs, but it seems it costs more than traditional animation," Michael added.
"Michael, the film is good. About the paranoia, all engineers are like that. Hahaha, this guy must have really ruffled the feathers of those investment banks.
Do you know? During Apple's roadshow, he nearly got into a fistfight with a fund manager. Hahaha, that scene scared me to death," Eisner chuckled.
The two of them, puffing on cigars, sarcastically critiqued Steve. They also didn't pass up the chance to poke fun at the investment banks. "Why can't you guys ease up a bit? Old Steve Jobs's feelings were set to be shattered."
William White had no intention of getting involved any further; those fund managers weren't worth his time. It was still true that those who sought to critique you were the true buyers. Showering you with compliments? Good luck getting them to invest.
After Apple went public, those guys would suddenly change their tune. The feeling was like, "Look at me, I have great insight. This is a great company."
After enduring all this from the two of them, Steve was thoroughly frustrated. He planned to use the IPO to create hype for the movie--ideally, it would be a mutual benefit.
It had to be said; this was standard Silicon Valley thinking. Steve had knowledge in this area that those so-called finance gurus couldn't match.
Perhaps those guys understood that they were being intentionally overlooked. Morgan Stanley and Goldman Sachs were not your average brokerage firms. If given a chance, they would be more than willing to be part of the action. The hefty commissions perceived by others didn't matter to a firm at this level.
The lack of friends was a chilling reality. In the vast networks of Hollywood and Silicon Valley, Steve considered Larry Ellison the only true ally he had.
William White?
He wasn't worth much; he had once pulled a fast one on Steve at Apple. If possible, Steve would prefer not to work with him again.
In Steve's eyes, selling stock early to cash out was tantamount to betrayal.
"Steve, your thinking might be flawed. I mean, why engage two major investment firms? They just want to gobble you up," Larry pointed out.
"I thought that if I brought in both, they wouldn't resort to that," Steve replied.
"Steve, you don't have my experience. If you did, you'd know how formidable those guys are."
"Ha, William White, right?"
"You're mistaken, Steve. While they're all cutthroats, at least he has the skills and the ambition. I wouldn't have a chance otherwise with another firm."
"I see now, Larry. Looks like it's time to find a new investment bank. Those damn vultures," Steve said.
Larry Ellison rolled his eyes; he wasn't any happier with his past experiences, having also been shown the door at a company.
But Steve's situation was worse; he was nearly unceremoniously tossed out.
Although William White kept an eye on Pixar's progress, he showed no sign of wanting to intervene. The reason Steve had such authority at Apple was due in part to his substantial experience at Pixar.
When he was ousted, Steve was left clinging to just one Apple share. What he owned later was all gifted by the board.
That was far from ordinary stock options. The most peculiar thing about Apple's board was that even if you held 5% of the stock, they could still cast you aside.
But those were stories for another time; he still needed to discuss the movie's release and the IPO with William White.
Why did Steve have issues with William White?
He was simply too tightfisted. When White suggested a stock option incentive plan, Steve took it as suspect intentions.
After an IPO, would he still have control over the company? If he were ousted again, he really wouldn't know how to face anyone.
*****
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