Whethermber 29, 1995.
Today marks an incredibly significthey ant day for Pixar Animation Studios aompany officially went public.
This event occurred on the Nasdaq trading floor.
"Toy Story represents the most significant breakthrough in the animation industry since Disney released the first-ever animated feature film, Snow White, 60 years ago, and it was all achieved by Pixar, with Disney solely acting as the distributor."
To cultivate and elevate Pixar's status as a next-generation animation film studio, the company's head, Steve Jobs, engaged in numerous verbal sparring matches with various reporters.
"Mr. Jobs, are you asserting that the success of Toy Story is solely attributed to you and your team?" a reporter inquired.
Jobs shot the reporter a scornful glance, as if to imply that his response was obvious.
"Absolutely!"
Jobs confirmed.
That's simply who he is. If it had been someone else, they would have likely chosen their words more carefully, considering Disney's reputation.
But that is not the case with Steve Jobs.
What significance does Disney's reputation hold? Currently, they have to be put aside for Jobs to ascend to greatness, or how else could the stock price reach such heights?
Strong, domineering, obsessive, sarcastic, and relentless in denying errors—these are the descriptions many people use.
Of course, this is not the complete picture.
Beneath his obstinacy and unwillingness to acknowledge faults, Jobs also understood the importance of timing in his actions and, on occasion, had to temper his anger. For instance, when Pixar faced downturns, he entered into a series of uneven agreements with Disney that allowed Pixar to survive. He also made compromises, collaborated, and engaged in fierce competition with Bill Gates several times.
This strategic blend of offense and defense is a recurring theme in Jobs' business endeavors.
"Jobs maintains that same familiar demeanor!"
"Conceited!"
"It's true he is formidable, but who can fault him for achieving success?"
"That wealthy man is infuriating; I wish he would experience hardship one day!"
.....
In response to Jobs's bold statements, those around him, whether they were Hollywood insiders or stock investors, felt a sense of discomfort.
"You're really something! You dare to speak to my face like that. I imagine folks at Disney must be feeling humiliated."
While Kyle voiced this, in reality, he admired Jobs and wished he could someday exhibit such boldness.
As expected, the reaction from Disney Chairman Michael Eisner was swift; he nearly overturned the desk in his office!
Soon, the stock market opened.
Pixar Animation Studios, buoyed by the massive success of "Toy Story," attracted significant interest from various investment firms and shareholders, even if they held some discontent towards Jobs.
Who could resist financial gain?
Kyle certainly wouldn't; he had proactively reached out to an investment firm and poured $6 million into Pixar without any outward display of emotion, which represented nearly his entire fortune.
"Pixar Animation and Steve Jobs, I'm counting on you. This is all of my money!" Kyle fervently hoped.
This time, he avoided using ten times leverage.
Kyle was uncertain whether Pixar's stock would rise or fall on the first trading day. Even if he suspected it would rise, using leverage could result in being taken advantage of by Wall Street traders. Regardless, Kyle was aware that within a month, Pixar's market value skyrocketed to $1 billion.
....
Indeed, Kyle still made a profit today.
Yet he felt discontent.
The IPO price for Pixar Animation was $22. Within thirty minutes of trading, the stock surged past $45, then climbed to $49 and finished the day at $39.
The $6 million Kyle invested that day had increased by 1.7 times, bringing his total equity and earnings to over $10 million.
Yes, Kyle had made a significant profit, but if he had sold at the peak price of the day, $49, his gains would have been even larger, which is why he felt unhappy.
Truly·Kyle·Greedy·Greedy·World!
"Ahem…"
At that moment, Brandon, the former top negotiator, entered Kyle's home. Noticing Kyle's irritated expression, he felt a slight pang of envy.
"Alright, you vampire, you've made plenty, so stop being ungrateful," Brandon said slowly.
There was a reason Brandon came over that night.
"Hey, my friend, the investigative materials you requested are all inside this. Take a look yourself."
After Brandon finished speaking, he stood up and left without waiting for Kyle to respond. He could be quite hasty at times because he had a date with a beautiful girl that evening.
Kyle stared at Brandon as he exited in surprise and couldn't help but smirk: "What a one-of-a-kind personality. It would be better if the charges were lower."
Kyle had been rather busy lately, so he had asked Brandon to reach out to an investigative firm to assist him in looking into certain matters.
Two documents lay on the table.
[Hughes Films]
[Stephen Hillenburg's biography]
.....
Kyle began reviewing the details of Hughes Films.
Hughes Films is a modest Hollywood firm situated in the Burbank region of Los Angeles, focusing on both production and distribution. Established in 1985, it employs 49 staff members.
This is the investigative company that Brandon reached out to. After a month of thorough investigation and assessment, it turned out that Hughes Films was the Hollywood entity that aligned best with Kyle's criteria.
Despite primarily producing offline video projects and having only released two films in theaters that grossed a total of less than $600,000, Hughes Films boasts a comprehensive distribution network across Los Angeles and the entirety of California.
The company is valued at $2 million.
The anticipated acquisition cost is between $2.5 million and $3 million.
"Tsk... not bad. It seems that if the owner of Hughes Films hadn't encountered a recent investment setback and sought to recuperate his funds, he likely wouldn't be selling it."
Kyle is somewhat connected to the entertainment sector and is quite knowledgeable about the inner workings and developmental paths of Hollywood.
Even though companies like Hughes Films find themselves at the lower end of the Hollywood spectrum and wield limited influence, it is increasingly rare to unearth firms with their own distribution systems. At the very least, such companies are becoming more valuable over time.
Just look at how Wang's Wanda Group invested over $3 billion in 2016 to acquire Legendary Pictures, a second-tier production company in Hollywood!
"If I acquire Hughes Films, even if it operates at a loss every year, I can still potentially sell it for $200 million in two decades," Kyle resolved to pursue the acquisition.
....
The second piece of investigative material pertains to Stephen Helenberg's background.
Although many might not recognize the name Stephen Helenberg, his influence is significant, particularly in relation to the cartoon "SpongeBob SquarePants," which has achieved global acclaim.
Indeed, Stephen Helenberg is destined to be referred to as the "Father of SpongeBob SquarePants."
Initially, he wasn't part of the entertainment realm; instead, he was a scientist specializing in marine life and served as a marine biology instructor at the Aland Marine Research Institute. His initial motivation for creating the little sponge was to illustrate marine biology concepts in a comic book for visiting children upon request from the institute.
But who could have anticipated such tremendous success for SpongeBob SquarePants?
Since debuting on Nickelodeon, the show has garnered immense popularity among children worldwide. The series has earned two Emmy Awards, 12 Children's Choice Awards, and sparked the creation of two feature films. As of January 2020, the associated merchandise has generated over $13 billion in revenue for the Nickelodeon network.
$13 billion in merchandise revenue?
"Even accounting for costs and channel expenses, SpongeBob's profits must still be substantial!" Kyle couldn't help but marvel.
Clearly, Kyle has certainly struck gold!
....
The following morning, Kyle woke up, freshened up, and hit the road. Aside from monitoring Pixar's stock performance, Kyle had a packed schedule, with the top priority being a visit to seven SpongeBob SquarePants stores.
Hollywood and Highland Shopping Center.
The second SpongeBob SquarePants store.
This store ranks as the most successful after the main one, attributed to its excellent location and influx of tourists. At times, its revenue even surpasses that of the main store.
"Boss, it's great to have you here to oversee our operations. If you hadn't come today, I would have had to report to you in the evening," Victor expressed.
Victor Jones, a 30-year-old white male, married with a two-year-old daughter, currently manages the second store. Prior to his role at the second SpongeBob SquarePants location, he served as the director, or general manager, of a local toy factory in Los Angeles, where he excelled in his work. However, after the factory owner fell into gambling and lost everything in Las Vegas, he joined Kyle's team.
Victor Jones undeniably has the most impressive resume among Kyle's employees.
Before "Toy Story" was released, the second store, under Victor's leadership, achieved the highest sales and was the only location that turned a profit for two consecutive months.
Considering that, who could be more valued by Kyle than him?
Talent is indeed rare!
"Victor, I heard that you spent some time working in Hollywood before becoming a toy factory manager?" Kyle inquired.
Victor acknowledged with a nod, saying, "That's correct, boss. When I was younger, my academic performance wasn't great. After high school, I began working on a Hollywood set. Eventually, I transitioned into management for a few years."
As he shared, Victor couldn't help but show a hint of nostalgia.
After all, it was Hollywood!
"Oh? Then why didn't you continue in that path?" Kyle asked, intrigued.
"Boss, the company had plans to promote me to the New York branch as a manager. However, my wife was pregnant at that time, and she experienced quite severe pregnancy reactions. I had no choice but to resign and take a job at the toy factory. You know what happened after that," Victor explained.
Kyle nodded in response to this.
Victor Jones is undoubtedly a thoughtful and skilled manager.
Prior to the launch of "Toy Story," Kyle amassed a large inventory of related products, a move that raised concerns among several store managers, including James, who believed Kyle was acting irrationally.
Only Victor supported Kyle's strategy!
He explained, "Since Steve Jobs took control of Pixar, the company has made significant investments but has consistently spent more than it earned while working on many unproductive projects. However, they have also built up a wealth of advanced 3D animation technology. Furthermore, if you have seen the Oscar-winning short film Tin Soldier that they produced a few years back, you would recognize their remarkable rendering technology and storytelling skills, placing them at the forefront of Hollywood and globally. Toy Story is their last-ditch effort, created over four years, and its chances of success are significantly higher than its chances of failure."
That was the moment it all began.
Kyle confirmed that Victor is a true talent.
As for why Kyle never heard Victor's name in the years that followed, is that really surprising?
Isn't it true that many talented individuals remain unnoticed in Hollywood?
Moreover, sometimes being in the right place at the right time is more crucial than one's own skills!
"Victor, you need to organize your work soon and prepare for the transition," Kyle mentioned.
"Uh... Boss, did I do something wrong?"
Victor's heart raced when he heard Kyle's words.
What could this be about?
Are you planning to let me go?
I really need the money right now, especially since my wife is at home caring for our two-year-old daughter and depends on my income! How will I manage without a job?
"You've misunderstood."
Kyle chuckled lightly and said, "I'm looking to acquire a film company in Hollywood soon. It's a relatively small one. I don't feel that the current manager of the film company is up to par. Are you interested in trying your hand at it? Of course, you have the option to decline and stay in your current position."
"I accept! I am very eager to get involved."
Victor could hardly contain his excitement. After almost ten years in Hollywood, this network was not easily replaceable. Now that the opportunity had presented itself, he could not let it slip away.