Chapter 623: Too Many Surprises Happened

[Chapter 623: Too Many Surprises Happened]

Eric planned to hold the first Victoria's Secret fashion show in the fashion capital of New York, but due to his busy work schedule, the initial arrangements for the show were set in Los Angeles.

After the preliminary list of models was decided, the newly appointed Victoria's Secret Angels were required to participate in a customized body shaping program for at least a month, maintaining their figures until the end of the show. In Eric's view, most models were still accustomed to maintaining a slim figure, which was great for showcasing high-fashion designs on the runway, but not as flattering when wearing lingerie.

In addition to the scheduled five spokespersons who would sign special contracts, the pay for the other models throughout the show was relatively low, with most of them earning around $50,000. While this amount was quite generous for inviting top models to participate in a show, it was unlikely anyone would agree if the work stretched over four months.

This was primarily why supermodels Cindy Crawford and Naomi Campbell initially declined; their daily rates were already over $10,000. It was understandable they wouldn't want to waste four months on merely one show. Eric also wasn't in a position to personally explain the benefits of becoming a Victoria's Secret spokesperson to them. His stance remained the same with other models: the contract was laid out, and if anyone didn't see the benefit of becoming one of the forty selected out of thousands, they could refuse as well. However, the forty models eventually smartly accepted the contracts and moved forward with the next steps.

...

Meanwhile, at Yahoo's headquarters in Boston on the West Coast, after a month of protracted negotiations, Yahoo finally reached an agreement with Microsoft.

"In five years, any advancements made by Yahoo's browser must first be applied to the Windows platform, with updates for other operating systems being delayed by three months," Chris explained over the phone from Boston. "Additionally, within five years, Yahoo must grant Microsoft full access to all browser patents. Unless Microsoft agrees, Yahoo cannot transfer any browser software technology patents to any third party..."

Eric reclined in his office chair, listening to Chris outline the agreement. He chuckled, "Looks like Microsoft is indeed focusing most of their efforts on the browser, just as we initially discussed."

Chris nodded in agreement, "Yep, Microsoft actually wanted to gain some control over Yahoo Mail, but when we made concessions in the browser negotiations, they dropped that idea."

In Eric's eyes, an email platform capable of attracting a large number of loyal users was far more important than browser software: "They probably think, in five years, Yahoo will just belong to Microsoft anyway. For now, if they can use Yahoo's browser bundling to give the next Windows system an edge over other operating systems, that's just a small price to pay."

Chris continued, "Besides the collaboration on browser software, the most crucial aspect is the 30% stock option. Microsoft will provide Yahoo with $100 million in debt financing in exchange for a 30% stock option five years from now. The agreement will take effect in July 1999, after which Microsoft will have three months to decide whether to proceed with acquiring the 30% stake in Yahoo. If they fail to present a viable acquisition proposal after three months, they will automatically forfeit this stock option. That's about it; the detailed contract is over 100 pages long, and I've already faxed it to your assistant's office. If you're interested, you can take a look."

Chris's tone at the end held a hint of amusement, well aware that Eric was too busy to spare any time for such a technical agreement.

Eric shook his head with a wry smile. "I just wrapped up auditions for Resident Evil this morning, and I have a pile of paperwork in front of me. I still need to attend the premiere of The Lion King tonight. Do you think I have time to read it?"

"Make sure your lawyer reviews the agreement as quickly as possible. If there are no issues, I'll formally sign with Microsoft next Monday," Chris said professionally from the other end of the line. "Also, Ian and the others can hardly wait to launch the scripting language and instant messaging software right after we finalize this agreement. They want to surprise Microsoft!"

"Of course, I'll get back to you as soon as possible."

Nodding, Eric exchanged a few more words on the phone before hanging up. A huge weight lifted off his shoulders; signing this agreement would signal that Microsoft wouldn't disrupt the technical standards of browser software, greatly facilitating the rapid promotion of the internet. Of course, this agreement wouldn't restrict Microsoft from entering the internet services sector. Although they had been slow to respond in many areas, Eric believed that in the coming years, as the internet industry exploded, Microsoft would likely seek to carve out their territory, even while holding a stake in Yahoo. As long as the technical standard disputes around internet access were resolved, Eric had faith that Microsoft wouldn't gain any advantage over Yahoo.

...

Busy work always made time fly, and before he knew it, it was evening. Eric changed into his attire in the lounge and took a car towards the Kodak Theatre in Hollywood.

Although he had decided to close Disney's hand-drawn animation department, he certainly wouldn't overlook the 2D animated masterpiece that had defined the original timeline, so he specifically requested to attend the premiere.

Since two weeks prior, The Lion King had been undergoing small-scale sneak previews, and at that moment, tickets were already exceeding $3 million in box office receipts from just a handful of preview theaters in North America. Meanwhile, Firefly had invested heavily in promotional advertising, making the premiere a grand affair.

When Eric arrived at the Kodak Theatre, the red carpet entrance was already underway. Instead of following the queue like other guests, he got out of the car and, under the guidance of staff, walked directly onto the carpet, coincidentally alongside The Lion King's director, Roger Allers.

Surrounded by enthusiastic fans, the two of them walked to the interview area and selectively answered a few questions. Just as Eric was about to leave, a slightly pudgy reporter suddenly stretched a recorder towards him and shouted, "Mr. Williams, we heard you plan to shut down Disney's hand-drawn animation department after The Lion King. Is this true?"

Eric was taken aback, glancing at Roger Allers, who, instead of looking excited, wore an unusual expression. Eric wasn't sure if this was a calculated move, but eventually, he realized the news couldn't be hidden for long. He nodded, saying, "Yes."

This answer sent the other reporters into a frenzy, with the same reporter echoing, "Does this mean Firefly is attempting to suppress Disney's brand influence?"

Eric refrained from answering this rather sharp question immediately and retorted, "I'm not sure why you would ask such an ignorant question. Do you really think the Disney brand equals solely its hand-drawn animation?"

The reporter replied, "Disney's brand image is represented by Mickey Mouse and Donald Duck -- traditional 2D hand-drawn characters. If Disney's hand-drawn animation department is canceled, doesn't that mean the disappearance of Disney's core values?"

"I don't believe so," Eric shook his head. "Technological advancement is inevitable. Using more advanced 3D animation to replace 2D animation is just like how color films replaced black-and-white films; in my view, it reflects a necessary trend. Firefly will never attempt to suppress any brand under its banner. Disney will always maintain its core value of bringing joy to audiences through outstanding works."

The reporter hadn't expected Eric to respond so sharply without preparation and hesitated for a moment, allowing other reporters to seize the opportunity to ask questions. "Mr. Williams, based on The Lion King's preview performance and excellent reputation, if The Lion King performs exceptionally well, will you still stand by this decision?"

Eric nodded, "I will stand firm."

After saying this, Eric ignored the other reporters and walked straight into the theater.

...

Initially, Eric had personally selected The Lion King from the potential projects at Disney Animation Studios. Jeffrey Katzenberg had been directly responsible for this project, and he also attended the premiere. Hearing some commotion outside from the staff, Katzenberg immediately came out of the theater.

"Eric, what's happening?" Katzenberg greeted Roger Allers and then asked Eric.

Eric gestured for Roger to enter first, then took Katzenberg aside to recount what had just happened, shaking his head while laughing, "It seems some people still aren't willing to back down."

Katzenberg paused for a moment, then said, "Eric, based on our data collection during the sneak previews and the current scale of The Lion King's premiere, most people believe the first weekend box office could surpass $40 million, which would break all previous Disney animated film box office records. If you still insist on shutting down the hand-drawn animation department afterward, many people will definitely be unhappy."

"I already provided you with a detailed analysis; you wouldn't oppose my decision, would you?"

Katzenberg shook his head with a smile. Most executives at Firefly recognized the rationale behind Eric's decision; however, people often let immediate interests cloud their judgment. For example, if The Lion King's first weekend box office did indeed reach $40 million, it would set a brand-new record for 2D hand-drawn animation. In that case, insisting on proceeding with the closure would undoubtedly lead to a series of repercussions.

"Eric, if you feel it necessary, Michael and I can hold a special meeting to discuss this matter. The Lion King is a project you personally oversaw, which means that even if it becomes a box office success, the credit will largely go to you. Clarifying the situation should not be too challenging."

Eric nodded, adding, "Also, we should keep the media in check. Morgan Stanley and Deutsche Bank are already halfway through with the bond issuance, and I don't want any disturbances at this point."

"I understand. If needed, we can always wait until after the bond issuance to shut down the hand-drawn animation department."

...

After discussing the matter, Eric walked alongside Katzenberg into the theater lobby.

However, the media clearly had no intention of letting this explosive topic fade easily, especially with some unexpected developments.

Eric remembered that The Lion King had made $40 million in its opening weekend, but he still analyzed its box office trajectory based on the previous Disney hand-drawn animated films like Aladdin and Beauty and the Beast, expecting a long-term release pattern over the span of six months.

However, the reality was, the day after many newspapers reported on Eric's plans to cancel Disney's hand-drawn animation department, a news flash on Saturday sent shockwaves through North America and around the globe.

The first-day earnings for The Lion King took everyone by surprise: $15.6 million.

This figure wasn't particularly striking compared to recently released films like The Mummy or Saving Private Ryan. Yet, compared to similar films, it left many jaws on the floor. The highest-grossing 2D animated film from Disney prior was Aladdin, which garnered $220 million in North America. Yet Aladdin's first weekend gross was merely $19 million during its release the Thanksgiving weekend in 1992, which was exceptionally impressive given that its first day took in only about $6 million. This meant that The Lion King's first-day box office not only nearly matched Aladdin's opening weekend but also doubled Aladdin's first day earnings. Everyone realized that The Lion King was likely to become the first animated movie in history to surpass $300 million at the North American box office.

In this context, Eric insisting on closing Disney's hand-drawn animation department triggered a series of intense reactions.

*****

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