Rebirth as an American Tycoon

Chapter 29: Chapter 29: Jobs Caught in Cross-Fire



White Software's profits were making everyone envious. The economy was terrible this year, and everyone struggled. Meanwhile, Apple and White Software kept flourishing, attracting attention and money like magnets.

In the eyes of these critics, customers should have been buying minicomputers. They saw the so-called microcomputers as mere game consoles, with ridiculous performance. They couldn't understand why customers were so easily fooled.

What White Software sold wasn't just software; it was game cartridges. They even dared to make the manuals too detailed. "Are you sure you're not just teaching fools how to use computers?" one insider scoffed.

Larry Ellison was the classic underdog who had made it big. Everyone knew what he thought of rich kids like William White. It was obvious.

So, a group of frustrated people began to vent their anger. They took jabs at microcomputers fiercely. The outcome didn't look good.

...

William White ignored them, so instead, they directly confronted Steve Jobs. Jobs wasn't worried about this bunch; he viewed traditional IT giants as nothing less than the enemy.

Faced with a fierce character like Jobs, the old-timers clearly didn't stand a chance. If they kept arguing, some of them might end up in the hospital.

"William, I'm just helping you dodge the bullets; you've gotta return the favor," Jobs said.

"Come on, they look down on every microcomputer supplier. You're the real deal; I'm just a lucky kid," William shot back, feeling helpless under Jobs' criticisms.

"Pfft, you only got that position because you poached their engineers. Otherwise, that madman wouldn't have gone nuts," Jobs countered.

"I wasn't targeting him. My headhunting firm doesn't have specific targets, just keep an eye on not poaching from Apple. The old man is just too stingy," William replied.

"Whatever, you owe me one," Jobs insisted.

"Alright, I give in; I'm scared of you," William said.

William didn't mind this favor. When Jobs was down on his luck, he could help him out. He didn't expect repayment, just hoped Jobs wouldn't turn against him.

Steve Jobs had a simple worldview; it was either genius or idiot, friend or foe. William didn't want to make an enemy out of a fanatic like Jobs. He was a real talent, and one wrong move could cost him. It was better to be friends with guys like that.

Jobs' call was less about complaining and more about boasting. He always saw himself as the new industry leader. He wouldn't pass up a chance to show off. If William stole his spotlight, that would really make him angry.

...

When he wanted to lash out, somebody else took the spotlight. Larry Ellison was fuming.

William White didn't have time to deal with him. Once, while on set, someone pressed him, and he blankly asked, "Who's Larry Ellison?" He explained that he was just an investor, the top shareholder, and that the company's operations and development were in the hands of the CEO, praising Tom as an excellent IT professional who knew the details. "You should ask him instead," he said.

With a few journalists exaggerating, it was easy to gauge the level of Larry Ellison's fury. He didn't know about Oracle. Although he self-deprecatingly admitted to being clueless, his dismissive tone was infuriating.

William White's shameless act of trying to be clueless was driving reporters mad. He had a knack for redirecting conversations to movies, and they found it impossible to pin him down. When asked about films, he was genuinely warm and talkative, answering questions with enthusiasm.

Reporters realized that to ensure a pleasant interview next time, they better promote his movie. Otherwise, they'd get nothing valuable out of him, like the Wall Street Journal folks who left empty-handed.

No reporter believed his talk of just being an investor. Employees confirmed that he was a brilliant software architect and they were merely executors.

Some believed him, others doubted. The initial core team at White Software was small, and many companies tried to poach them but to no avail. They knew their worth; working under William White was favorable. They were solid executors, but if put in charge alone, they'd likely fail.

What good were benefits if you couldn't earn money? Plus, White Software had a clear points system -- if they hit certain goals, they would receive corresponding equity incentives.

At first, they didn't care for such incentives. They thought their boss was making a mountain out of a molehill. A small share was nice, but no one was bothered if there was none; their main income was still salary and bonuses.

Now, they saw things differently. White Software was clearly valuable. The company had just started up, but with this growth trend, making it to the Fortune 500 wasn't out of reach.

The idea of a Fortune 500 didn't seem so intimidating anymore. With revenue over a hundred million, there was a chance, and if they approached a billion, they'd barely scrape by.

They dismissed outside rumors. Their boss had a well-laid plan and they just needed to follow it. The company's ambitions were grand; they were really just seedlings.

For such a disruptor, the software industry felt lost. His money-making strategies were clearly different. Most software vendors catered to producers; they didn't sell directly to clients like he did.

As for software's importance, operating systems were undoubtedly more crucial; they were the foundation of microcomputers, and most were sold in bulk.

White Software had it better, charging per package. While hardware manufacturers also benefited, their costs dwarfed those of bulk licensing software.

What about outright purchase?

Ha!

Someone actually inquired about prices, and White Software unfeelingly replied that currently, no one could afford them. "We're not a traditional business; any valuation now is a joke. If you doubt it, come back in a year. I'm sure you'll all get to witness this miracle."

White Software managed well, and William had no need for worry. The CEO he chose was indeed a marketing genius, easily meeting the set goals.

...

However, things were rough in Hollywood, where the big shots weren't giving him any breaks. Paramount offered two million dollars for a buyout; Fox showed no interest at all.

The only company open to collaboration was Columbia, but their distribution costs were outrageous, demanding 45% of the box office -- enough to make William White bleed.

In American cinemas, the first week typically yielded only about 10% of box office shares, which increased based on performance. Their operating costs weren't high; be it rented or owned, theaters were cost-effective.

Their land was cheap, and taxes relatively low. A 10% share could still turn a profit.

As long as your movie wasn't a total flop, with some income from snacks and drinks, theater owners could get by. This year had been tough, but they were hanging on. If it continued this way for another year, however, many theater chains could go under.

*****

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