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Chapter 14 - 14: Invest in West Germany Chapter Text

The popularity of computers in the United States surged early. After Apple launched the first real personal computer in 1977, personal computers proliferated across the country. By 1987, they were no longer a rarity but a slightly more expensive item that many affluent individuals purchased. The only barrier to the widespread utilization of the Internet was the development of the network backbone.

The advancement of the network backbone is clearly linked to financial interests!

In Henry's previous life, Cisco had barely launched routers in 1986, with slow promotion and development. Consequently, capitalists were reluctant to invest heavily in operating the National Science Foundation Network. Even so, the number of connected hosts exceeded 10,000 by 1987. Now, due to Henry's involvement, Cisco experienced rapid development, launching its router products by 1985. Subsequently, Sequoia Capital stepped in, raising $20 million, adding significant power to Cisco. Consequently, the National Science Foundation Network developed faster and became increasingly commercialized.

According to data collected by Henry, there were approximately 65,000 computer users in the United States at that time. Excluding school computers, government institutions, research facilities, and companies, there were more than 10,000 private users. The high access fees remained a barrier for ordinary individuals seeking to join the network. However, due to profitability concerns, numerous large consortia were actively developing new commercial backbone networks!

The IMDb website became especially popular among university students, as young people enjoyed movies and social interaction. IMDb provided that platform. On January 15, 1987, the IMDb website promoted Luxo Jr. with beautiful images and a lively introduction. After reading the information, many internet users expressed interest, giving the short film an impressive score of 90.

To further promote the animated short film, the information highlighted that its protagonist—the Jumping Light—was voiced by the renowned young novelist Henry Williams.

Henry was nearly a household name in the United States, far more famous than any contemporary Chinese celebrity. The "Harry Potter" series alone sold over 40 million copies, an extraordinary figure that drew widespread admiration. Furthermore, he was only twelve years old. An American genius child like Henry was hard to ignore, and the media quickly took notice, capturing public interest and portraying him as one of America's stars. Realizing he had dubbed an animated short, many were eager to learn more about Luxo Jr.

As Luxo Jr. gained traction, it coincided perfectly with the Oscar animated short film nominations, greatly increasing its visibility and chances of winning an award!

Shortly thereafter, Henry released his new book, Jurassic Park. Upon its release, it quickly sold out, with the first 500,000 copies from the West German Publishing House disappearing in just one day, followed by orders for another one million copies.

The overwhelming success of Jurassic Park shocked the nation as it topped the best-seller list for American novels.

Bookstores in cities like New York, Los Angeles, and San Francisco saw long lines outside their doors. Some fans had to wait two to three hours just to purchase a copy. The level of hype reached proportions that stunned the media!

The Los Angeles Times reported: "Los Angeles is in chaos due to Jurassic Park!"

The New York Times declared: "On this day, America only knows Jurassic Park!"

The Wall Street Journal noted: "Even Wall Street, usually focused on stocks, is now queued to buy books!"

Jurassic Park tells the story of Dr. Hammond, who assembles a group of scientists to extract dinosaur DNA from prehistoric blood preserved in amber. He aims to resurrect these long-extinct giants, creating a "Jurassic Park" on Nubra Island. However, the plan goes awry when Hammond's grandchildren visit the park and the dinosaurs become enraged!

The American audience was captivated by the myriad of imaginative concepts and thrilling adventures depicted in Jurassic Park, expressing their deep admiration for Henry's storytelling prowess—even thinking to themselves about how he could come up with such an incredible plot!

Henry's novels weren't just selling; they were skyrocketing in popularity.

At the same time, public interest in the animated short film Luxo Jr., for which Henry provided the voice, grew. As people learned that Luxo Jr. was competing for the Oscar for Best Animated Short Film, they rallied around it in support!

The Oscar judges themselves were fond of Luxo Jr., and public enthusiasm for its nomination swelled. Subsequently, the Oscar committee announced that Luxo Jr. was indeed nominated for the award!

When this news broke, the Pixar team erupted in cheers and celebrations, popping champagne in joyful revelry!

Henry attended the celebration party but soon left, as he was reminded that American laws prohibited underage drinking. It was frustrating for him, especially since Chinese laws were more lenient in this regard.

Instead of heading home immediately, Henry went to meet with the West German Publishing House.

He arrived to discuss a potential partnership.

Edward Joe, the CEO and largest shareholder of the West German Publishing House, was currently smoking in his office, appearing deep in thought.

Although the phenomenal success of Jurassic Park should have made him elated, Edward felt restless, much like the cigarette butt flickering and dimming in his hand. A knock on the door interrupted his reverie, and a beautiful female secretary entered. Edward barely acknowledged her beauty, caught up in his own worries.

"Is Henry here?" he asked.

"Yes, he's waiting for you in the reception room."

"Okay, I'll head there now."

Edward adjusted his attire and stepped out.

Henry sat calmly, sipping coffee with a faint smile.

Edward walked in, reluctantly putting on a smile and extending his hand. "Welcome, Henry!"

"Edward, you don't seem particularly welcoming."

"Of course not..."

Henry smiled as he shook Edward's hand. "Edward, since Jurassic Park has been such a tremendous success, let's discuss my equity stake!"

Before the book's release, Henry had signed an agreement with West German Publishing House. If Jurassic Park proved successful, they had agreed to let Henry acquire a 30% stake based on their internal IPO calculation. If the share acquisition went through, Henry would become the largest shareholder, while Edward would transition to the second position.

Among the more than ten shareholders of West German Publishing House, Edward possessed only 26% of the shares. The other board members were pleased to see Henry's stake and had been looking forward to it. Tying the publishing house's interests closely to Henry would ensure financial benefits for everyone involved. Jurassic Park's popularity clearly demonstrated Henry's value!

Despite this, Edward harbored some reservations. He worried that once Henry became the largest shareholder, it could threaten his own position on the board.

In reality, this concern was unfounded. Henry, a busy individual, had no intention of managing a publishing house. He sought a stake primarily to support his future Internet entertainment media empire. With Henry's assistance, West German Publishing House could become a leading player in the industry.

In truth, Henry could have acquired his share without a personal meeting with Edward, in accordance with their prior agreement. However, he preferred to consider the broader implications of ensuring stability at the publishing house. He explained to Edward: "While I'll be a shareholder, I won't interfere in daily management. Your operations will continue as usual!"

Hearing this, Edward felt elated and instantly became more enthusiastic, calling the female secretary to brew some coffee. "Henry, enjoy this—the best Blue Mountain!"

Henry remained speechless.

In late December, both Penguin and West German Publishing House had settled manuscript payments, totaling $15 million. Henry had sent $9 million to George Lucas and retained $6 million for himself, now with a total of $10 million in his bank account.

West German Publishing House was regarded as one of the leading mid-sized publishing houses in the U.S. It was gearing up for an IPO, projected to have a market value exceeding $100 million upon going public. Henry's stake, however, would involve purchasing original shares! Ten million was sufficient to secure 30% of the shares. Once the news of Henry's investment became public, the share price would undoubtedly rise significantly, benefiting all the current shareholders.

Prior to any listed company's IPO, it was common practice to seek subscriptions from large firms. Why? To instill investor confidence and drive share prices up.

With so many prestigious companies backing the stock, it naturally gained credibility! Henry's influence in the publishing industry was undeniable, especially given his age and achievements. If Henry were to become a shareholder, it would signify a rebirth for West German Publishing House, transforming its perception and identity. Previously, it was simply a publisher for Henry's novels, but given the right conditions, other publishers could have begun to lure him away. But now, things had changed. With Henry's affiliation to West German Publishing House, the odds of it soaring to new heights were assured.

Astute investors understood this disparity well.

It was impractical for Henry to invest the entire $10 million in shares outright. He and the publishing house had agreed to use profits from Jurassic Park when calculating future stakes. This mutual arrangement was why Henry had formalized the agreement prior to the book's success and committed to buying shares post-release.

Henry and Edward chatted for some time before Henry finally took his leave.

Shortly after, West German Publishing House began its roadshow to generate excitement about the upcoming IPO. Henry's stake was also heavily promoted, though he refrained from disclosing the terms of the investment to the media.

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