Chapter 613: Can't Afford It Anymore

[Chapter 613: Can't Afford It Anymore]

After saying this, Melanie suddenly realized that if she could think of these things, Eric must have considered them as well. Even if he hadn't, the business elites surrounding him surely would. Seeing Eric nod slightly, she smiled and asked, "Eric, you came to Boston to resolve these issues, right?"

"Last week, I just merged three companies into a brand new Yahoo Network."

When Melanie heard Eric mention the name of the new company, she looked surprised. "Many people predicted in class that the Yahoo portal would be the focus of the three companies, and it seems that's indeed the case."

Eric continued, "What are your thoughts on business transformation?"

Melanie replied, "As for product placement and membership services, those are the only two ideas I can think of for now. Additionally, I don't support the free strategy for the IE browser. If we charged for it, although the user growth wouldn't be as rapid, the revenue would be sufficient to sustain the operations of all three companies. Eric, may I know why you chose this path? The IE browser currently has no competition across all operating systems, so the free strategy seems extremely unwise."

"That was my agreement with Tim Berners-Lee, the founder of the World Wide Web. Two years ago, many technical standards for the web hadn't been set yet. I chose to pursue this strategy to tilt the final version of the web's technical specifications toward the IE browser. And since you've recognized that the Yahoo portal is the focal point of the three companies, you should understand that the browser software primarily serves as an interface to expand the user base for the Yahoo portal; consequently, the software's profitability isn't that critical."

Melanie recalled that ever since the World Wide Web announced its complete openness to users worldwide last year, many smaller regional networks and paid services had quickly disappeared. The World Wide Web had evolved into a global internet network. By choosing a free strategy to favor the technical standards of the web, Eric had sacrificed short-term profits but gained much more. After all, once standards were set, it was difficult to change them. And Eric held the browser software that aligned with these standards. Over two years, his company had undoubtedly built a solid patent barrier. As a result, before anyone could break through that patent barrier, the IE browser would hold a monopoly on internet interface channels.

Understanding the pros and cons, Melanie admired the resolve of the young man across the sofa. "Honestly, Eric, if I were in your position, even if I understood the advantages of a free browser strategy, I would find it hard to make the same decision. Giving up tens of millions of dollars in easily obtainable profits is something not everyone could do."

Although Caroline was busy in the kitchen making coffee, she had been listening in on their conversation. As she entered the living room with a coffee pot to serve the three, she beamed at Melanie's remark as if it applied to her too. "That's why Eric is so impressive!"

Seeing Caroline's proud look, Melanie teased, "Caroline, why don't you tell us why you got a C in that class?"

Caroline's cheeks turned red, but she boldly countered, "Now I can prove my judgment was right!"

"Eric, you probably didn't know, but Caroline got almost all As in her classes, except for that one case about the Yahoo Network, where she received her lone C. We didn't investigate your agreements with the World Wide Web Consortium, yet she insisted that your free strategy was correct. She couldn't provide evidence and still argued with the professor," Melanie laughed reminiscing.

Eric smiled and said to Caroline, "Maybe I can prepare some materials for you, so your professor can change that grade."

Caroline, playfully confronting their teasing, sat next to Melanie and linked arms with her, giving Eric a glare that lacked any real threat.

After the playful exchanges, Eric took a few sips from his coffee, set the cup down, and asked, "Melanie, do you have any work plans for yourself right now?"

Hearing Eric's question, Melanie instantly understood that he had been probing her intentions earlier. She shook her head with a smile. "Not yet."

"Then, how about working for me?"

Melanie glanced at sparkly-eyed Caroline, tentatively asking, "What about Caroline?"

"Of course, I'd like both of you together! In the coming years, I'll be increasing my investments in the internet sector. Currently, most of my personal assistant team is focused on media. If you two join, it would perfectly fill that personnel gap."

Melanie looked enviously at Caroline, who was eagerly hoping for her approval. While Eric's offer was sincere and she felt tempted, she also realized that he likely wanted to work alongside her and support this innocent girl who lacked guile.

Born into an ordinary middle-class family, Melanie worked for two years at a securities firm in Atlanta after graduating to save up for her MBA tuition. Those two years made her deeply aware of the cutthroat politics of the office. In such an environment, someone as naive as Caroline could struggle to adapt. Being selected to work for a media magnate like Eric was undoubtedly a rare opportunity; those employees were exceptional and undoubtedly skilled, but they were also more adept at navigating office politics. Even with Eric personally defending her, Caroline might find herself bullied.

Eric didn't realize that Melanie had guessed his intentions. Noticing her hesitation, he said, "Though it's just a personal assistant role, this job has significant promotion potential. My former first assistant, Allen Fiesman, just became vice president in the prime time programming department at ABC last month, and many in the office have been promoted to management over the years. After a few years of experience, you'll find that even if you don't get promoted internally, many headhunters would be eager to recruit you."

He mentioned something Allen had told him as a funny anecdote -- which highlighted that Eric's films consistently attract top talent. Those assistants responsible for overseeing film progress were frequently lured away by other companies offering high salaries. Over the years, many had rotated through that position until the human resources department established strict secrecy and hiring contracts, cooling this trend. Additionally, many film companies began to understand that the real secret to Eric's success was not just the assistants but Eric himself. Nonetheless, the attempts to poach from Eric's assistant office have never ceased, especially following major successes.

Melanie knew full well about the promotion potential of this job. Being the assistant to a legendary entrepreneur like Eric, who had created a series of business miracles, would lend more weight to her resume than even her Harvard MBA. However...

After hesitating for a while and feeling Caroline gently squeeze her arm again, Melanie finally couldn't help but agree.

A personal assistant might be a personal assistant, but this 'princess' wouldn't put on airs or even recognize her own 'status.'

After Eric left, Melanie pinched Caroline's delicate face, echoing Eric's earlier actions, and spoke with envy, "He's really good to you. No wonder you silly girl are so devoted."

...

Early in the morning, Eric tidied himself up a bit since John Chambers and Steve Case would be arriving throughout the day. After finishing his morning routine and shaving off several days' worth of stubble, he stood in front of the mirror for a few seconds, staring at his youthful face, feeling an inexplicable sensation inside.

Could it be that he looked handsome again?

Just when Eric made a joke to himself in the mirror, he heard the doorbell ring. He hurriedly wiped his face with a towel, put on a light gray checkered shirt, and opened the door.

He exchanged morning greetings with Chris outside the door, and the two casually chatted as they walked toward the dining room.

The breakfast crowd at the hotel was sparse. Just a few days ago, they might have run into Tina Brown, but now that this whirlwind woman had joined Yahoo, she was eager to dive into her work. She had already rented an apartment not far from Yahoo's headquarters and was even planning to have her husband and kids move to Boston with her.

Last night, Eric and Chris had meticulously discussed the potential cooperative intentions for their meeting with Bill Gates and had informed several other heads of Yahoo Network about it via phone.

After breakfast, Eric and Chris hurried toward Yahoo headquarters.

...

Just after 8 a.m., Ian Gurney and a few other main executives had already arrived at the office.

As a former manager at Oracle, who saw Microsoft as a direct competitor, Ian Gurney was more familiar with Bill Gates's style than the others in the room, leading to a sense of unease.

Ian was well aware that if they did not choose to cooperate with Microsoft, Yahoo would certainly end up in opposition to them. And Yahoo had no standing to confront Microsoft at this point. Even with Eric's backing and his assurance that he would support Yahoo to the fullest, Ian still thought that according to the iron laws of capital in a competitive market, in the battle between the two entities, Eric might ultimately abandon Yahoo. In Ian's view, Eric's business roots lay in Hollywood, and abandoning Yahoo would not inflict much damage on him.

Now, while Eric made the choice to cooperate with Microsoft, the agreement was very unfavorable for Yahoo. Yahoo was set to conduct an IPO next year and, in five years, they would need to secure enough development funding through the financial markets, selling no less than 20% of the stock shares. Management would also obtain 20% of the shares. Therefore, Eric's stake as a major shareholder would not exceed 60%. However, if Microsoft secured a 30% option for five years, Eric's personal shares would slip below 30%. In Ian's eyes, this approach could be seen as relinquishing Yahoo's control to others five years down the line.

As a middle-aged man nearing forty, Ian witnessed firsthand the extraordinary growth statistics generated by Yahoo's browser software, portal site, and online mail services. He understood that he could be part of ushering in a new era, so among the people gathered in the conference room, he was the most unwilling to see his hard work amount to nothing.

Ian candidly expressed his thoughts to the group, not opposing cooperation with Microsoft, but urging Eric to be more cautious about the terms of the partnership.

Eric patiently listened until Ian finished, then sincerely stated, "Ian, do you know why I'm willing to offer 30% of the stock options?"

Not only Ian, but also Steve Mitnick and others showed confusion; only Chris remained somewhat calm, having already known the answer.

Eric drew everyone's attention to himself and confidently declared, "Because I never intended to sell any stake to Microsoft."

At Eric's statement, the nearby individuals became even more puzzled. After a slight pause, Eric continued, "Yahoo was built from scratch by all of us, and I know everyone feels about it as if it were their own child. I feel the same way, and my expectations for Yahoo are much greater than any of you. The reason I seem to generously agree to sell 30% of the stock to Microsoft in five years is that I want Microsoft to realize they can't afford it by then. Achieving this isn't difficult; given Yahoo's current explosive growth, even if Yahoo's value is only a third of Microsoft's in five years, Bill Gates will realize that if he uses 10% of Microsoft shares to get 30% of Yahoo shares, he would end up with a major stakeholder who could threaten his control over Microsoft. If he still wants to take over Yahoo, he might even find himself inviting trouble by introducing a group of shareholders who may threaten his position. What do you think? At that point, will Bill Gates insist on exercising the stock option or voluntarily give it up?"

*****

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