I am Hollywood

Chapter 533: Chapter 534: Nostalgia



[Chapter 534: Nostalgia]

Eric raised an eyebrow but did not answer the question. Instead, he retorted, "What do you think the purpose of a company going public is?"

"To raise funds to allow the company to develop better," the journalist replied.

"Well, Firefly isn't lacking in funds, and its development status is clear for all to see. So, do you think there's still a necessity for Firefly to go public?"

The reporter, undeterred, pressed on. "Mr. Williams, are you truly satisfied with the status quo and have no plans to continue expanding Firefly's territory?"

"Of course not. However, there are many ways to secure funds for the expansion of Firefly, and going public isn't the only option. I have a complete plan for Firefly's development. Some of my ideas might even spark quite a bit of controversy. I don't want to waste time justifying every decision to those Wall Street big shots once we're public. You all cover the news, so you should know how difficult they can be."

With that slight teasing tone in Eric's voice, the journalists present chuckled.

They were well aware of what Eric meant. Although Hollywood and Wall Street closely intertwined, the reality was that the games they played leaned more toward competition than cooperation. Wall Street sought high growth and returns on investment, with most investors typically more interested in seeing a sleek financial report than in long-term development. This often led company operators to sacrifice short-term gains for long-term benefits, which put them at odds with Wall Street's perspectives.

If a company chose not to go public, Wall Street could only bark up the wrong tree; if they didn't want to engage with its funds, they couldn't meddle in its operations. But if a company opted to go public, even if the control remained with the operators, any deviation from the growth path envisioned by Wall Street would lead to incessant interference from investors. A bearish report from an investment bank today, an outspoken critique from a Wall Street tycoon tomorrow; if a company refused to cater to these pressures, it would face relentless turbulence.

The most extreme example was the Marvel Entertainment Group, which Eric had been quietly monitoring. Through the 1980s, Marvel Comics had thrived, nearly swallowing up DC Comics, then owned by Warner Bros. However, after it fell into the hands of Wall Street investor Ron Perelman at the end of the decade, it encountered a series of misfortunes. Perelman was solely focused on capital operations and had no intention of running the company. By now, he had extracted hundreds of millions in profits from Marvel, but the company's performance had sharply declined, edging toward bankruptcy.

There were a multitude of speculators like Ron Perelman on Wall Street. In Eric's memories from a previous life, MGM finally broke free of the gambling mogul Kirk Kerkorian after 2005, only to become yet another toy for the Wall Street speculator Carl Icahn. In the years that followed, MGM repeatedly faced bankruptcy crises, with no improvement in its operations, while Icahn profited handsomely.

All this information instilled a deep-rooted wariness in Eric toward Wall Street. Firefly was the foundation of his career, and it was what he was most passionate about, so he had never intended for it to go public.

Chris managed several high-tech companies on behalf of Eric, which represented his means of expanding his territory in Hollywood. Nobody knew better than Eric the growth prospects of companies like Cisco, AOL, and Yahoo. If Firefly ever needed a significant influx of cash for expansion, Eric could easily sell off shares of Cisco or take Yahoo public to secure considerable funding. Even if he lost control of those companies in the future, he wouldn't be overly concerned. The internet was a burgeoning industry, and bubble elements were rife; cashing out was the wisest option. Moreover, there were countless investment opportunities in the internet sector over the next twenty years.

After Eric concluded his thoughts, he directly passed the microphone over to Ed Catmull. Following Eric's hints, the journalists shifted their focus from Jurassic Park and Firefly to Firefly Software.

This press conference quickly generated significant buzz in Hollywood and beyond. Many understood this was the first retaliatory strike from Digital Domain against recent poaching attempts, aimed at preventing Autodesk from entering the visual effects software market and maintaining the industry's leading position.

...

After the conference, Autodesk's chairwoman and CEO, Carol Bartz, stated in an interview that Autodesk would not abandon its quest to enter the visual effects software market. However, news soon emerged that Autodesk's board had begun to divide over the strategy to enter this sector. Firefly's move had been too powerful; although Autodesk could launch a mature effects software in just six months, by that time, Firefly Software would likely have captured ninety percent of the market.

Furthermore, Firefly Software boasted advantages that Autodesk simply didn't have -- its collaboration with the giant in the visual effects industry. The cost and technological benefits born from their close cooperation were beyond what Autodesk, which produced "tools" without its own testing grounds, could compete against. Although Autodesk had previously reached some collaborative intentions with ILM, the two were still separate companies, unlike the close-knit partnership between Firefly Software and Digital Domain.

A week after the Firefly Software press conference, ILM confirmed its decision to use Firefly's products. That announcement was quickly followed by photos of George Lucas shaking hands with Firefly Software's CEO, Ed Catmull.

Lucas' decision was also a reluctant one. ILM had previously developed its own tools, but their performance couldn't compete with Digital Domain's. Should they forgo collaboration with Firefly Software, ILM's CG effects might end up subpar compared to even third-rate studios using tools like Maya, which would lead to a swift decline for them.

The news of ILM and Firefly Software's partnership prompted Autodesk's board to shoot down management's proposal to establish a visual effects software department.

...

Along with the establishment of Firefly Software, Eric and Firefly's management team began efforts to retain Digital Domain employees, implementing a series of salary and benefit increases. They even encouraged those who were set on leaving to establish their own effects studios, promising that these studios could access software at discounted prices and secure a certain number of outsourced projects from Digital Domain. This initiative aimed to keep these talents tied to Digital Domain while simultaneously weakening the competition. This strategy proved quite appealing to many; who wouldn't prefer being their own boss, even if just for a small studio, over working for someone else? Following the implementation of this initiative, several small effects companies, which had no previous connection to Digital Domain, expressed interest in joining its affiliate network in hopes of obtaining relevant benefits. Digital Domain selectively accepted a handful of these companies. Since these affixed micro-studios depended heavily on Digital Domain for technology and projects, Eric wasn't too worried about them evolving into threats against Digital Domain. In fact, this method accelerated the expansion rate of Firefly's effects software tools.

After a little over a week, the employee exit wave at Digital Domain began to settle. In response to this event, and to ensure similar situations wouldn't occur in the future, Eric started to formulate an equity incentive plan covering all member companies of Firefly Industries. This plan aimed to deepen the sense of belonging and cohesion among Firefly's employees.

...

During this time, Pixar's second 3D animated feature, A Bug's Life, hit over 2,500 screens in North America. This insect-themed animated film attracted a sizable audience of all ages thanks to its fun characters and family-friendly plot. It earned $33 million during its opening weekend, with projections estimating around $50 million for the first week. While it couldn't rival Jurassic Park's opening figures, A Bug's Life had definitely secured its place among the summer blockbusters.

With a production budget of only approximately $70 million, A Bug's Life was well on its way to recouping costs based on box office trends. Moreover, as an animated feature, its surrounding merchandise profits promised to contribute significantly to its earnings. Within the first three days of the film's release, merchandise sales across hundreds of Disney stores in the U.S. generated nearly $12 million in revenue. Additionally, Jurassic Park's merchandise also launched simultaneously through Disney stores. Over the course of a month, those sales exceeded $100 million in revenue. Eric had even gone so far as to include a few clear nods to Jurassic Park merchandise in the film, and history seemed eerily similar -- Lex, the granddaughter of Dr. Sattler, had her figurine become the least favored product among customers. Eric had inadvertently neglected to inform Disney about this, leading to a premature production of Lex action figures, while other character toys had sold out multiple times.

...

Being in Los Angeles meant a whirlwind of activity. Often, he hadn't finished one task before others started to pile up.

Undoubtedly, most of these matters revolved around film. While the direct profits from Firefly's film operations accounted for a diminishing share of the company's overall profits, nobody could afford to underestimate this branch. The film division was like the engine of a film company; only with enough power could the engine guide other sectors toward rapid

development.

After deciding to abandon the acquisition of Miramax, Firefly Studios revived its Black Ant label and established a dedicated art film investment department. After some time, several scripts gradually found their way to Eric.

Quentin Tarantino, having gained fame from Reservoir Dogs, had spent the next two years already contributing to B-movies. But now, he finally recalled he had legitimate business to deal with. After a bit of nudging from Eric, he finally presented a script for Pulp Fiction. Eric, drawing from his previous knowledge, offered some recommendations, such as casting choices for the lead roles and that iconic twist contest moment.

Perhaps many viewers of Pulp Fiction couldn't understand why the twist dance between John Travolta and Uma Thurman was dubbed classic. However, upon its initial North American release, when audiences who had lived through that vibrant era viewed that scene, they felt a swell of emotion inside.

The story actually harkens back to 1978, when Paramount released a highly unconventional musical film, Saturday Night Fever. The male lead was none other than John Travolta from Pulp Fiction. Once it premiered, the film sparked an uproar among North American teens, raking in $170 million at the box office with ticket prices at only half what they would become in the 1990s. It undeniably took the top box office spot that year. Moreover, the film kickstarted a disco craze and set an unbeatable sales record for movie soundtracks for many years to come.

In Saturday Night Fever, numerous scenes showcased Travolta's character battling on the disco dance floor. Years later, Pulp Fiction recreated that famous moment with Travolta and Thurman participating in a dance contest, evoking a nostalgic response.

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