[Chapter 502: The Right Mont]
The ergence of graphical web browsers like Internet Explorer (IE) significantly transford how ordinary people accessed the internet. Previously, users needed to navigate complex procedures to get online, which kept most people from becoming avid surfers. However, with IE's integration of the Yahoo hopage, everyday users could browse internet information according to their preferences. They could also leverage Yahoo's search engine features to find content that piqued their interest. This shift made it much easier for people who had almost no experience with computers to explore the web.
Thanks to effective advertising and word-of-mouth, IE sold 110,000 copies across major North Arican cities within just a week of its launch. Although the company didn't impose a limit on installations from each floppy disk, the software's sales trajectory continued to rise rapidly without any sign of decline. So retailers even raised the prices significantly due to the overwhelming demand.
The popularity of IE not only resulted in a surge in user applications for internet services from mainstream telecommunications companies but also led to a notable increase in personal computer sales for major brands by the end of the year.
anwhile, both mainstream newspapers and specialized computer magazines attentively tracked the sudden market arrival of this "magic software." Almost all North Arican TV news channels featured special reports on IE's soaring sales. More specialized publications like PC Magazine, InfoWorld, and Byte Magazine praised IE extensively, offering in-depth analyses of IE and Yahoo in their latest issues.
...
Standing by the window in his study, Eric hung up his mobile phone and returned to the seating area by the sofa. Chris slid a freshly brewed cup of coffee toward him, curiously asking, "From Los Angeles?"
Eric nodded. "Warner wanted to attend the premiere of The Bodyguard, but I turned it down. I've been getting calls like that all week. Spielberg even had Drew call two days ago to test if I could make it to the premiere of Schindler's List."
Chris chuckled and inquired, "You're going to attend the premiere of Mr. & Mrs. Smith, right? After all, you're the screenwriter."
"Maybe," Eric said, taking a sip of his coffee.
Suddenly, light laughter ca from the desk behind him. Turning around, Eric saw Virginia, Joanna, and Emily, who had co with Chris, huddled around a computer screen whispering to each other.
While Eric couldn't fully grasp the industry's adulation for IE, Virginia made him aware of it. Due to the convenience of IE and Yahoo, Virginia, who previously had no interest in computers, had beco fascinated with internet browsing, spending hours in front of the computer screen. She often dragged Joanna along. If it weren't for the severe radiation from computer screens, which often left her skin oily after extended exposure, Virginia would have wanted to hold onto the computer all day long.
Following Eric's gaze, Chris smiled knowingly at the sight of the three won.
"News from the IE headquarters indicates that in less than two weeks since its launch, total installations of the IE software have already surpassed three million, and it continues to grow explosively. As long as no competitors erge, IE is expected to cover all internet users in North Arica and Europe within three months. Likewise, Yahoo's hopage traffic is skyrocketing, and the company is expanding its website's server to accommodate the influx."
Eric patiently listened to Chris's information before asking, "These are all good news. Is there anything else?"
"Of course," Chris replied. "Lately, Microsoft, Apple, IBM, and Oracle have all approached about potentially buying IE and Yahoo. Apple even offered a high price of $150 million for both companies, clearly aiming for its operating system to dominate the IE software market. Additionally, several major internet service providers have contacted . Steve Case from Arica Online plans to visit tomorrow to discuss personally."
Eric only invested about $30 million in IE, Yahoo, and Hotmail online email services over the past year. If he sold IE and Yahoo to Apple, that would an a quick five-fold return on his investnt. However, with IE and Yahoo showing such strong growth potential, only a fool would sell them off. Other investors would typically consider going public to cash in after a while, but Eric had no intention of doing so before 1995.
However, Arica Online was a very important piece in Eric's internet strategy, and with Steve Case expressing interest in both companies, it would be unwise to ignore him. "What does Steve Case want?" he asked.
"He hopes to acquire IE and Yahoo, or at least Yahoo," Chris responded, gauging Eric's reaction. Knowing Eric well, Chris felt certain he wouldn't part with either company.
"His interest in rging with either IE or Yahoo might not be a bad option," Chris considered aloud.
At this ti, Arica Online had begun exploring online advertising. In September, Steve Case secured a $1 million online advertising deal, which, while insignificant compared to what a TV network or print dia would typically charge, was arguably a breakthrough for the nascent internet. This demonstrated Case's outstanding managerial capabilities.
Seeing the contemplative expression on Chris's face, Eric thought for a mont before saying, "Chris, do you know why I initially set up the browser, portal, and email services as three separate companies?"
Chris smiled but remained silent, suggesting Eric continue.
Eric didn't keep them in suspense, adding, "Because the computer and internet information industry is vastly different from the nearly century-old film industry. This is an erging industry with plenty of aspects still in their infancy. Making a hasty move towards diversification isn't wise. If a company has too broad a product line, it becos difficult to focus on excelling in any one area. The rapid developnt of computer and internet technologies ans that if you fall behind, your competitors could leave you in the dust." "So you want these three companies to operate independently. Refusing the Yahoo team's suggestion to set IE as the hopage ans you want them to maintain a strong drive to improve their positions, right?" Chris surmised.
Noticing that Chris had guessed his intention, Eric smiled. "Exactly. My plan is to wait until these enterprises achieve undisputed dominance in their respective fields before considering horizontal expansion. That's the sensible approach, rather than spreading ourselves thin from the start and ultimately falling behind more focused competitors, leading to failure across the board."
"What should I say to Steve Case when he cos by tomorrow?" Chris asked.
"If he needs a reason, just tell him what I just said. Both IE and Yahoo could engage in deeper cooperative ventures with Arica Online in certain areas, which would undoubtedly be mutually beneficial, but a rger isn't in the cards."
While they chatted, light laughter again ca from behind them. Eric turned around and asked, "Hey ladies, what's so funny? Care to share?"
"Nothing much, Vicky found a joke website," Emily replied, looking up.
Virginia also shifted her gaze from the screen and said to Eric, "I realized sothing."
"What's that?" Eric asked, leaning back with a smile, cradling his coffee. Virginia pointed at the computer screen and exclaid, "Although so information on these websites is interesting and diverse, much of it is outdated. We just saw a fashion website that provided brand information, and I actually read so of that last year in a magazine. The news sources aren't current either."
Eric felt a spark of inspiration but kept his composure. "What do you think should be done
about it?"
Virginia replied, puzzled, "What's it to ? If they've got dated info, I'll simply stop
visiting."
Emily, sitting beside Virginia, noticed the flicker in Eric's eyes and remarked, "Eric, you're definitely onto sothing, aren't you?"
"Yes," Eric nodded, turning to Chris with an enlightened expression. "Chris is on the sa
page."
Virginia typed a few keys on the keyboard, casting a curious glance at Eric and Chris. "Then just say it already! Hiding things is no fun."
Chris looked over at Eric and comnted, "I think Yahoo can create its own content. I'm not sure if you feel the sa, Eric."
As portal websites evolved, they mainly split into those offering search engine capabilities and those focused more on providing news. Although the forr seed more promising, the current scale of the internet hadn't yet reached the point where large search engines could thrive. Yahoo's existing search technology was sufficient. Thus, shifting towards a primarily news-based portal was undoubtedly a safer choice.
Eric agreed. "Close enough, but with so many content sections on Yahoo's main site, it simply wouldn't be feasible to do it all. They could test a few aspects that internet users find most
engaging first."
"Perhaps...," Chris glanced back at the won at the desk, lowering his voice slightly. "Don't you think collaborating with traditional print dia could be a more efficient way to obtain
content?"
Looking at Chris's sly deanor, Eric instantly thought of News Corporation. His relationship with Elisabeth wasn't a secret among those present, and Chris's expression suggested he wanted Eric to take the lead.
News Corporation had operations across Australia, Europe, and North Arica, virtually covering the entire Western world with nurous types of newspapers, magazines, and a large number of television networks. Collaborating with News Corporation for content could be the difference between Yahoo thriving and rely surviving. However, solely considering Yahoo, the enormous News Corporation wouldn't likely be interested in a small fry like Yahoo, which had only just begun making waves in the online
world.
Eric didn't dismiss Chris's idea right away. "I'll make ti to talk to Mr. Murdoch, but I'm not overly optimistic. Establishing a dedicated content editing departnt at Yahoo is the way forward. Besides, Yahoo doesn't need to collaborate with such a colossal dia group. Simply working with so individual newspapers and magazines for content would suffice." "I'll head back and have the Yahoo team draft a plan ASAP," Chris nodded.
After a mont of thought, Eric added, "One more thing: now that IE and Yahoo have
launched, it's also ti for stock equity incentives. I plan to allocate up to 20% equity for each company as rewards, but the payout will take place in 1995. Of course, these aren't being handed out unconditionally. The specifics of how much equity will be awarded depend on negotiations with each company's managent team. The key trics will include product market share, user numbers, revenue, patent holdings, company evaluation, etc., as of 1995." It's quite common for investors to grant equity incentives to managent teams making significant contributions to a company. This not only keeps the company motivated but also boosts its cohesiveness.
Although Chris thought Eric's proposal of 20% equity was sowhat excessive, he understood that this was the best way to maximize motivation across the three companies. Moreover, Eric pointed out that it was up to 20%, not a mandatory distribution. If the teams didn't et expectations, the equity incentives would certainly decrease. However, securing 20% to retain a team capable of keeping the three companies in a leading market position was
a worthwhile investnt.
Thinking along these lines, Chris began to ponder specific contract details with the three
companies' managent.
*****
spatreon/Sayonara816.
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