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🕑 Added 2025-08-18 17:33:06 +0000 UTCChapter 471: Private Equity
Dunn could predict that Jobs would muster the courage to make a decisive break with Michael Eisner.
But what he hadnât anticipated was that Jobs would go all-in, selling Pixar to Dunn Pictures!
Pixar had long been a prize Dunn coveted, a gem heâd wanted to claim for himself. After all, it was the worldâs top animation studio! Beyond that, Pixar boasted a robust software development division. Many of the tools used in Pixarâs animations were developed in-houseâeven the current Mac interface and the USDZ format for future AR experiences were products of collaboration between Apple and Pixar.
Pixar also excelled at video post-production and visual effects enhancement. Once streaming video platforms took off, that expertise would be a goldmine, perfectly complementing a partnership with Netflix.
âSteve, honestly, this decision of yours is shocking!â Dunn said sincerely.
Jobs looked at him calmly. âIâll say it again: buying out the contract doesnât benefit me, but Iâm also not about to let Michael Eisner have it easy. So⊠that leaves you to step in.â
Dunn couldnât help but laugh and groan at the same time.
Unilaterally terminating a contract might be legally sound, but in a Western culture that prized integrity, itâd still leave a stain on oneâs reputation. Jobs had a wild streak back in his Apple days, earning himself a bad name that got him ousted from the board by Wall Street-controlled shareholders. Now, it seemed he was once bitten, twice shy.
He wanted to strike back at Michael Eisner without tarnishing his own image, and selling Pixar to Dunn was a clever moveâa win-win for him.
If Pixar ended up in Dunnâs hands, would its distribution deal with Disney still stand?
Jobs was clearly using Dunn to teach Michael Eisner a lesson!
Dunn, of course, was delighted. âAlright, I get what youâre driving at. Iâm Pixarâs second-largest shareholder with 15% of the stock. To be honest, I always figured Iâd acquire Pixar somedayâI just didnât expect it to happen this soon.â
Jobs replied, âOver the past few days, Iâve spoken with the shareholders. I told them Iâm done with Disneyâno more dealings! Pixarâs films will be scratched from Disneyâs lineup. They didnât agree with my call, though.â
Dunn grinned. âBut youâre the majority shareholder, with over 50% of the stockâabsolute control. Their objections donât hold water, right? To cash out before Pixarâs stock tanks, theyâll have to go along with your plan to sell. Still⊠Steve, youâre playing too soft. With that kind of control, you could do whatever you want at Pixar. Theyâve got no say!â
Jobs shook his head. âI donât want to strain things with the investors. But selling Pixar to Dunn Pictures? Thatâs a decision Iâve already locked in.â
Dunn nodded, flashing a small smile. âNo problem. At Pixarâs current stock price, plus a 10% premium, Iâll buy it all out!â
With Pixarâs market value topping $1.8 billion, a premium acquisition meant Dunn Pictures would shell out at least $2 billion!
Luckily, Dunn Pictures was flush with cashâover $8 billion on the books!
Spending $2 billion to snag Pixar would leave $6 billion. Buying Universal Pictures with that might be a stretch, but it wasnât an issue. Dunn Pictures had almost no debt and could easily borrow to make it happen.
John Lasseter sat quietly off to the side. This wasnât a conversation he could chime in on. With less than 3% of Pixarâs shares, he deferred to Jobs entirely.
Glancing at Dunn seated just ahead to his rightâa young guy whose face still carried a hint of youthâwas this really about to be his new boss?
John shook his head, marveling at how strange the world could be.
Jobs spoke gravely, âThe acquisition⊠Dunn, you canât do it with cash. That approach comes with too many hurdles and wouldnât help stabilize the new company.â
âHm?â Dunn raised an eyebrow. âYou mean⊠stock?â
Jobs nodded. âA mix of cash and stock swaps is the best way. Shareholders who want to cash out can take the money and go. Those who believe in the new company can hold onto their shares. Honestly, Iâve got high hopes for youâIâd even be fine without taking a dime in cash.â
Cash deals werenât the norm for big mergers since shareholders cashing out had to pay capital gains tax. Stock swaps dodged that tax entirely.
Holding stock was the biggest, safest tax shelter in the U.S.!
Take Buffett, the countryâs second-richest guy. He paid just a few million in taxes each year because his wealth was tied up in stocks. No matter how high they climbed, as long as he didnât sell, there was no capital gains taxâjust a 20-30% dividend tax when his holdings paid out.
Per Jobsâ plan, Pixar shareholders who doubted the new companyâs future could cash out; those who trusted Dunnâs vision could opt for stock in the new entity. (Even unlisted companies could issue stockâit just couldnât trade freely on exchanges.)
Dunnâs expression soured a bit.
Why hadnât the Dolby Labs acquisition gone through yet? Because Dr. Dolby and his son werenât happy with an all-cash dealâtoo much tax. They wanted a âcash-plus-stockâ arrangement.
The hitch? Dunn Pictures was still a private company, wholly owned by Dunn himself, with no stock restructuring done yet.
Dunnâs expectations for his company were sky-high, so heâd poured nearly all his funds into it. As Dunn Pictures expanded across film, TV, and animation, its valuation would only soar!
The earlier he restructured shares, the more heâd have to give up for the same equity stakeâwhich was why heâd held off on reorganizing the ownership structure.
But with Dunn Pictures growing this big, skipping that step made acquiring other high-potential companies tougher by the day.
First it was Dolby Labs; now it was Pixar!
Equity deals often outshone cash offers in appeal!
Jobs seemed to read Dunnâs mind. âDunn Pictures has a massive business portfolio now. Managing a company this size takes more than cohesion through slogans or a mission. Sure, âNew Order, New Model, New Force, New Hollywoodâ is a grand vision, but shared interests tie people together tighter!â
Dunn shook his head, giving Jobs a half-smile. âSteve, youâve got me pinned, donât you?â
âI donât follow.â
Jobs looked perfectly unruffled.
Dunn said pointedly, âIâm starting to feel like youâre setting me up here. On the surface, it looks like Michael Eisner ticked you off, so youâre selling Pixar to Dunn Pictures to spite him. But now Iâm wondering⊠is your real target Dunn Pictures? You heard Iâm gunning for Universal Pictures and shifted all my funds here. You think Dunn Pictures has a brighter future than Pixar! So youâre jumping in early, before it goes public, swapping Pixar stock for Dunn Pictures stock. Thatâs one heck of an investment!â
Jobs burst out laughing. âDunn, youâre too full of yourself!â
Dunn locked eyes with him. âJust tell me if itâs true or not.â
Jobs sidestepped the question, saying, âTrue or not, does it matter? Pixarâs future canât stand aloneâit needs a big film company to lean on. All its shareholders thought Disney was the best bet, but right now⊠this is the moment to hand Pixar over to Dunn Pictures.â
Theyâd known each other for a year now, and Jobs was blown away by Dunnâs insight and vision. Despite his youth and obvious flaws, Jobs was convinced Dunn could carve out a legacy in Hollywood.
If he had a choice, Jobs would pick Dunn Pictures over Disney for Pixar any day!
Michael Eisnerâs public jabs at Jobs had given him the perfect excuse to flip the table and convince Pixarâs shareholders to sell to Dunn Pictures.
Dunn mulled it over for a long while before chuckling wryly. âSteve, youâve got me working for you, huh?â
Jobs lit up instantly.
Dunnâs simple words carried big implicationsâfirst, Dunn Pictures would restructure into a stock-based company; second, itâd acquire Pixar with a âcash-plus-stockâ deal; and finally, Jobs would become a shareholder and board member of Dunn Pictures!
âWorking for me? Thatâs a stretch! Pixarâs scale doesnât even come close to Dunn Pictures. Rough guess, my stake wouldnât top 8% of the new company! If anyoneâs working for someone, itâs me for youâyour 16.5% in Apple says it all!â Jobs was in high spirits.
Dunn grinned too. âAt Apple, you make me money; at Dunn Pictures, I make you money. Fair trade!â
March 8, 2002âInternational Womenâs Day
On this day, Dunn Pictures dropped a bombshell: theyâd team up with Wall Street titan Citibank to restructure the companyâs shares and underwrite an internal sale of original stock.
Per Citibankâs numbers, Dunn had pumped $8.5 billion into the company, with a total of 850 million shares. This private placement would offer 50 million shares at $10 each, exclusively to Dunn Pictures employees.
Thatâs $500 million to raiseâway more than the staff could handle.
Take Bill Mechanic, the guy with the biggest allocation at 6.5 million shares. Could he cough up $65 million in cash for that? Scrape every penny from his pockets, and heâd maybe cover half!
The other employees were in the same boat.
$500 million might be pocket change for Dunn Pictures, but in a sluggish economy, it was a fortune anywhere else.
With fewer than 2,000 employees, there was no way they could fully subscribe to 50 million shares.
So what about the leftover stock?
Simpleâit was Womenâs Day, after all!
Chapter 472: Subscribing to Original Shares
Dunn had it all figured out.
For him, Dunn Pictures wasnât just about moneyâit was a symbol of power and social status. Cash was secondary.
If he were chasing pure profit, heâd have dumped all his money into tech giants like Apple, Amazon, Google, Alibaba, or Samsung Electronics. No way would he bother with the hassle of running a company.
Once wealth hits a certain level, itâs just numbers.
Power, influence, social standing, leaving a mark in historyâthatâs the real game!
Citibank was underwriting Dunn Picturesâ original shares this time, taking a 3% cut. If all 50 million shares sold smoothly, theyâd pocket $15 millionâa haul bigger than some small companiesâ IPOs!
As for whether those 50 million shares would fully sell? No sweat.
Dunn Picturesâ employees couldnât swallow a $500 million chunk of stock on their own, but Hollywoodâs full of stars, and Dunnâs network was deep.
Word got out, and big names started callingâGeorge Lucas, Ron Meyer, Michael Ovitz, Brian Lord, you name itâall itching to grab a piece of Dunn Picturesâ original shares.
Outsiders might not get it, but insiders knew: stick with Dunn, and youâre setâbooze, steaks, and stacks of cash!
Dunn Pictures was hands-down the most promising player in the industry!
Dunnâs response was consistent: if there were leftovers, heâd keep them in mind.
He wasnât issuing these shares to pad anyone elseâs wallet.
Beyond his employees, the main target was the actresses heâd been tight with over the yearsâNicole Kidman, Cate Blanchett, Charlize Theron, Liv Tyler, Sophie Marceau, Sofia Coppola, Rose Byrne, Jessica Alba, Anne Hathaway, Milla Jovovich, and more.
Among them, his closest gal palsâNicole Kidman, Cate Blanchett, Sofia Coppola, and PenĂ©lope Cruzâgot the biggest allocations: 3 million shares each.
Thatâs $30 million a pop. Only Nicole could swing that kind of cash. Sofia had to borrow big from her family to make it work.
Penélope scraped together enough for 700,000 shares, with 150,000 held for her sister, Mónica Cruz.
As for the B- and C-listers, their buying power was weakerâusually 100,000 or 200,000 shares tops.
Even though these were original shares, the steep $10 price tag gave Citibank some headaches during the rollout.
No biggie for Dunn, though.
If his staff and the actresses couldnât cover the full 50 million shares, the next tier was ready to pounce.
His guy friendsâLeonardo DiCaprio, Mel Gibson, James Cameron, Heath Ledger, Matthew McConaughey, Tom Hardy, Tom Hanks, Nicolas Cage, and othersâhad the muscle to snap up all 50 million shares themselves!
Sophie Marceau moved with a light, slow grace, slipping her scattered clothes back on piece by piece in front of Dunn, like a scene in slow motion.
Her pure, lovely face glowed with a fiery allure, her water-blue eyes shimmering with a soul-snaring magic. She stared at Dunn, lounging smugly on the sofa, her lips curling up slightlyâstill hungry for more.
Sheâd come by today specifically to thank him.
Unlike a lot of American actresses, whoâd gotten Dunnâs nod to buy shares and offered verbal thanks, Sophie was different. A foreigner breaking into Hollywood was tough, so when the moment called for it, she went all outâeager and warm.
Sheâd snagged 500,000 shares and made a special trip to Dunnâs office, delivering a tender, meticulous âthank youâ that felt like pure bliss.
Dunn sprawled on the sofa, watching her dress, and couldnât help but gush, âSophie, youâre mesmerizingâGodâs gift to men!â
Sophie dangled her bra in her hand, twirling it playfully, then shot him a sultry glance. âYou like?â
âOf course! If you werenât already in your thirtiesâand I didnât want to mess up your personal lifeâIâd have you back at Half Mountain Manor for a while,â Dunn said, savoring the thought.
Sophie laughed. âNo worries! You can⊠call me anytime. One ring, and even if Iâm in France, Iâll hop on the first flight over.â
Picturing that made Dunn smirk and shake his head. âYouâve got 500,000 shares nowâdonât just sell them off. Even if Dunn Pictures goes public, hold onto them. In ten years, those 500,000 shares could be worth⊠$100 million, maybe $200 million!â
$200 million might not faze a mega-rich tycoon, but for an actor? Thatâs a fortune!
Forget actressesâeven top-tier male stars would gawk at that number. In todayâs Hollywood, only Tom Cruise and Mel Gibson could boast that kind of wealth.
Sophieâs eyes lit up, and she flung herself into Dunnâs arms, practically ready for round two.
He waved her off, though. âThis is the officeâIâve got work to do. Forgot how many times my secretaryâs nagged me already?â
Sophie blinked fast, miming a phone call with her hand. âMiss me? Just ask!â
Five minutes later, she was gone. Little secretary Isla Fisher stepped in, nose wrinkled.
âMan, it reeks in here!â Islaâs face tightened as she tidied the chaotic desk. âThis is an office! What if someone finds out? Talk about awkward.â
Dunn rubbed his nose, grinning sheepishly. âItâll be fine once we move to the new building in August. The office thereâs⊠huge. Heh, like a dozen roomsâno more cramped vibes like this.â
Isla just stared, speechless. Looked like Dunn was fully embracing the office romance life.
âDo you have any idea how many people Iâve had to fend off this past hour?â
âOh,â Dunn replied casually, then perked up. âHey, has Rose shown up yet?â
âRose Byrne?â Isla was doneâon the verge of losing it. âSeriously, boss, this is an office! Watch yourself! Youâre not worried, but I am! Iâm your secretaryâI donât want people giving me weird looks. And didnât you just finish up with Sophie Marceau? Need a breather or what?â
Dunn laughed, half-annoyed, and flicked her forehead. âYou little secretary, griping at me now? And who said I called Rose over for a fling? Donât you know sheâs living at Half Mountain Manor these days?â
âHuh?â Isla blinked, thrown off. âThen whyâd you call her to the office?â
âFor work, obviously! Itâs about casting for Ant-Man.â
âThe female lead?â
âYup.â
Islaâs eyes widened, and she gasped, âWaitâRose is âWaspâ?â
Both were Aussie natives, and the âAussie crewâ was Hollywoodâs tightest-knit bunch.
Hearing Rose Byrne would star as Ant-Manâs leadâand later a key Avenger as Waspâmade Isla genuinely happy for her compatriot.
Dunn teased, âWhat, you wanna act too?â
Isla shook her head fast. âNope, no interest! Hollywoodâs too⊠whatever. My dreamâs shot anyway. I just want a quiet gig as an office gal, maybe write a book or two, dip into the literary scene.â
Dunn grinned. âAmbitious! I canât help much there, though. If you want another bestseller like Gone Girl, thatâs on you.â
âWhat about your new book? You writing it yourself?â Isla asked, curious. Dunnâs Hit Strategy was slated for October, by his own wordâa pro-level book aimed at the film market, with some business insights tossed in. Theory stuff she couldnât touch.
âUSC hooked me up with two grad students,â Dunn said. âTheyâre sorting my speeches and pulling in data references.â
âOh.â Isla nodded, her mind bouncing around. âSo, Ant-Manâwhoâs the lead? Another Aussie?â
Dunn huffed, âAll Aussies? Nah, itâs an AmericanâPaul Rudd!â
âWhat about Ghost Rider? Aussie there?â Isla asked, hopeful.
Dunn smirked. âBritishâClive Owen!â
Chapter 473: The Making of a Hit TV Show
In the U.S., employeesâ work hours are tightly regulatedâeight hours a day is not just a norm, itâs enforced by law and ingrained in the culture.
But for truly ambitious, goal-driven high achievers, those rules donât apply.
Take Elon Musk, the head of PayPal. The guyâs a workaholic, clocking over 18 hours a day! He crashes at the office every night, sprawling out on the floor in a sleeping bag. Come morning, his staff literally kick him awake, and heâs right back at it.
Then thereâs Steve Jobs, Appleâs big shot. A vegetarian whoâs up at 4 a.m. every dayâworking out, checking emails, kicking off his workday. More often than not, heâs burning the midnight oil too.
Or Bill Mechanic, president of Dunn Pictures. Heâs pushing past 14 hours daily, especially since the company took on the STA Network. The guyâs so swamped heâs holding conference calls in the shower!
Even Disneyâs Michael Eisner has no personal life leftâevery ounce of energy goes into work. Sleep, then work, rinse, repeat.
The more successful someone is, the harder they tend to grind. For these people, itâs not about overtime payâitâs a burning obsession, a relentless pursuit.
Dunn, though? Heâs the odd one out. He caps his workday at eight hours, no exceptions. And even within those eight, heâs often off doing something random.
Like firing off a flirty email to some actress, making a sweet call to a pretty girl, or straight-up inviting a gorgeous woman to his office for a little âquality time.â
Sure, Dunnâs technically the CEO, but in reality, heâs more like the chairman of Dunn Picturesâfocused on big-picture strategy.
That said, heâs hands-on with one key area: content creation.
Whether itâs movies or TV shows, Dunnâs the final say on every project.
Recently, the lead for Ghost Rider was locked in: British actor Clive Owen. Tall, ripped, with those bluish-gray eyes that ooze a wicked charmâheâs perfect for the âGhost Riderâ vibe.
Nicolas Cage has a bit of that devilish edge too, but Cliveâs got the physicality nailed.
The original Ghost Rider from Sony Pictures leaned hard on Cageâs demonic transformation as its only hook. Low budget meant a thin plot and lackluster visualsâcritics tore it apart.
Even so, Ghost Rider 1 raked in $230 million worldwide.
Dunnâs version? No cutting corners. Budgetâs a hefty $150 million.
And the script? Itâs a full-on production!
To nail it, Dunn set up a âProject Management Committeeâ led by veteran producer Frank Marshall. He pulled together the production team, writers, market analysts, Marvel Entertainmentâs creative crew, and Marvel Studiosâ script departmentâeveryone brainstorming to craft a classic.
The writers Dunn handpicked through his âSunglasses Systemâ are scripting wizards, no doubt. Problem is, their genius doesnât always sync with market trends. Classic doesnât guarantee fan love.
Thatâs where the production and market analysis teams come in, syncing everything up.
Just yesterday, Frank Marshall shot down a Ghost Rider draft. With Dunnâs okay, he brought in a heavyweight writer to join the committee: Frank Darabont.
Whoâs Frank Darabont?
Only the producer, director, and writer behind The Shawshank Redemption and The Green Mile!
Dunnâs all over this. He even sent a note to the committee, suggesting the scriptâs core could draw from Buddhist philosophy, summed up in one line: âIf I donât go to hell, who will?â
For lighthearted flicks like Spider-Man or Ant-Man, the scriptâs a breezeâjust tweak the comics and toss in some witty humor.
But for darker, serious stuff like Daredevil or Ghost Rider, itâs a tightrope walk. They need market appeal plus real depthâphilosophical meat thatâs tough to pull off.
The Daredevil scriptâs in the hands of the Nolan brothers, and Dunnâs confident theyâll deliver.
Ghost Riderâs script, though? Trickier.
But whatâs really gnawing at Dunn isnât Ghost Riderâitâs finding a hit TV show to keep STA Network climbing!
Band of Brothers put STA on the map as Americaâs hottest premium cable network!
Once it wrapped, though, viewers were left hungry for more. Compared to Band of Brothers, other shows just donât hit the same.
Dunn gets it, but the million-dollar question is: whatâs the next big topic for a breakout series?
That day, J.J. Abrams dropped by, offering to team up with Dunn Pictures on a big-budget show.
In other words, he was ditching his ABC project, Lost.
Dunn was thrilled. Weakening Disney was a bonus, but snagging Abramsâa sci-fi genius with endless potentialâwas the real win.
Sure enough, when Abrams heard Dunn hadnât settled on a concept for the big show, he jumped in: âI heard Dunn Pictures nabbed the TV rights to Stephen Kingâs classic The Dark Tower. That true?â
Dunn chuckled and nodded. âYeah, itâs true. But⊠I donât think The Dark Towerâs ripe for adapting. Not yet, at least.â
âItâs got a huge name, though,â Abrams pressed, puzzled. âStephen Kingâs got over a hundred million fans. That fits your âhit formulaââthe added value from an existing property.â
âTrue,â Dunn said, âThe Dark Tower has some built-in value, but not enough! Whatâs hot right now? Epic fantasy! The Ghost Rider scriptâs leaning that way too⊠Never mind, forget that. Point is, with The Chronicles of Narnia, The Lord of the Rings, and Harry Potter blowing up, magic and fantasy are the biggest trends out there.â
âHarry Potter?â
Abrams blinked.
Dunn grinned. âFirst movie, Harry Potter and the Sorcererâs Stone, hits theaters this Christmas. Itâs gonna crush it.â
Abrams nodded. Dunn-produced films? Box office gold, no question.
Still, Abrams thrived in sci-fi, not fantasyâa bit of a snag for him.
What concept could he pitch?
Creativity alone wouldnât cut it. Per Dunnâs theory, a hit needed âadded film valueââan IP like a novel, real event, historical tale, game, or toy to build on.
Abrams raised an eyebrow. âI caught a movie the other dayâoh, you produced it, actually. Zack Snyderâs Resident Evil. Super fun, tons of potential for adapting. Last yearâs Tomb Raider, this yearâs Resident Evilâgame adaptations could be a goldmine.â
Dunn nodded. âYeah, Resident Evilâs solid. Zombies have a lot of room to grow as a genre.â
Truth is, Dunn had been mulling it over latelyâmaybe shoot The Walking Dead and go all-in.
Itâs AMCâs flagship show, with influence in North America rivaling Game of Thrones. And the director? Frank Darabont, no less!
But then he thought twice. Nope, wouldnât work.
AMCâs The Walking Dead came from a 2003 comic that ran for seven years before hitting TV. Its success was tied to that IP.
In 2002, itâd be an original conceptâno prior buzz to lean on. It wouldnât pop like it did in another timeline.
Still, Dunn had a plan. Shoot The Walking Dead ASAP. Once Darabont wrapped Ghost Riderâs script, bring him on to direct!
Itâs a gritty, end-of-days drama packed with human strugglesânot about cheap thrills or suspense, but deep character work and meaning. Perfect for boosting STAâs brand.
That said, The Walking Dead would just be a supporting act. STA needed a true ace up its sleeve!
Dunn said, âMy original idea was adapting The Hobbit and The Lord of the Rings into a show, but with the Rings movies out now, the timingâs off.â
Abrams, still hooked on the earlier thread, mused, âEpic fantasyâs hot, game adaptations are hotâcombine the two, and you might get some serious sparks.â
âWhat?â
Dunnâs eyes widened, practically jumping out of his seat.
Abrams froze. âUh⊠what? I said⊠sparks, you know, a figure of speechââ
âNo! The line before that!â Dunnâs voice buzzed with excitement, his gaze intense.
Abrams blinked. âBefore that⊠I said combine epic fantasy with game adaptations.â
âThatâs it!â
Dunn slapped his thigh, grinning ear to ear.
Abrams caught on, his own excitement building. âMr. Walker, did⊠did you just get an idea?â
âHaha!â Dunn laughed heartily. âJeff, you ever played a game?â
âWhat game?â
âWarcraft.â
Chapter 474: A Century-Old Brand Does Warcraft Have Adaptation Potential?
The answer is a resounding yes.
After Red Alert was abandoned by EA, Warcraft quickly rose to prominence, becoming the worldâs most beloved role-playing real-time strategy game today.
Released in 1995, Warcraft II: Tides of Darkness, followed by Warcraft II: Beyond the Dark Portal in 1996, defined an era. Alongside Blizzardâs other hits, Diablo and StarCraft, these games stood as the three titans of their time.
Especially after the introduction of online multiplayer strategy mode, competitive gaming was born. The saying âfighting against others is endlessly funâ was perfectly proven in Blizzardâs titles.
Beyond that, Warcraftâs story is captivating. Sure, it borrows heavily from The Lord of the Rings, but in 2002âright nowâother than the Lord of the Rings movie trilogy, where else can audiences find an epic fantasy saga with such a grand backdrop?
The Chronicles of Narnia and Harry Potter lean in different directions. Only Warcraft can stir up those Lord of the Rings vibes for movie fans.
Plus, that similarity helps a lot of non-gamers grasp the plot. Everyoneâs so familiar with The Lord of the Ringsâdwarves, orcs, undead, night elvesâonce they show up, people get it right away.
The downsides of being a copycat are obvious, but the upsides are just as clear.
If you turn Warcraft into a TV series and avoid competing with The Lord of the Rings on the big screenâno crazy attempts to match its visuals or depthâit could be a total game-changer. On TV, as the first-ever epic fantasy series, Warcraft would make waves.
And get this: Warcraft III: Reign of Chaos drops this July, and Warcraft III: The Frozen Throne comes out next July. If Dunn decides to produce a Warcraft TV show, it could air next fall, riding the hype of the new game releases and sparking a viewing frenzy.
From an entertainment perspective, Warcraft is a goldmine for adaptation!
But Dunn Studiosâ strategy isnât just about movies and TV.
Dunnâs got big ambitionsâhe hates working for someone else!
Imagine this: if Dunn Studios pitches a Warcraft TV series, Blizzard would jump at the chance. They might even let him shoot it for free.
Why? If the Warcraft story blows up, it means more gamers!
Blizzard rakes in more cash!
Even bigger, after Warcraft III: The Frozen Throne, Blizzardâs got a massive new project lined upâWorld of Warcraft!
If Dunn Studiosâ Warcraft series heats things up, itâd be a huge boost for Blizzardâs upcoming online game, World of Warcraft.
The Warcraft TV show would basically be a billion-dollar ad for World of Warcraft!
Dunnâs not about to pour over $100 million into a series just to become someone elseâs billboard. Thatâd leave a bad taste in his mouth.
Even if the showâs a hit and Dunn Studios makes bank, itâd be peanuts compared to what Blizzard would haul in!
Why should that be okay?
Dunnâs fine eating the meat while others sip the soupâbut someone else eating the meat while heâs stuck with the soup? No way, heâs not here for handouts!
The only solution? Keep the meat and the soup in his own bowl.
âWhat? You want to buy Vivendiâs gaming division?â
Bill McNick was called into Dunnâs office, and when he heard Dunnâs plan, he was too stunned to speak.
Dunn laid it out simply: his goal to adapt Warcraft into a TV series. Then he added, âMovies, games, toys, publishingâtheyâre all part of the same chain. Right now, itâs all about integrating resources. Linking everything up boosts efficiency, cuts costs, and opens up bigger profits.â
Bill frowned. âWe havenât even locked down Universal Pictures yet, and now youâre eyeing Blizzard? Dunn⊠isnât that a bit too ambitious?â
Vivendi Group has a massive entertainment divisionâVivendi Games, Vivendi Films, Vivendi Publishing, Vivendi Music, Vivendi TV Network, and more.
Bill got Dunnâs vision, but Vivendiâs on a hot streak, expanding aggressively. Theyâre bigger than Viacom, second only to AOL Time Warner as the worldâs top media conglomerate.
Even as a French company, could Dunn Studios really take them on?
Dunn shook his head. âBill, you might not know the full picture. Iâve been keeping tabs on Vivendi for the past six months. Their CEO, Jean Messier, is bold, efficient, and full of American-style swaggerâwhich totally clashes with Franceâs business culture. In 2001, Vivendi lost 13.6 billion euros, and their balance sheet? Theyâre drowning in over 3 billion euros of debt!â
Bill barely had time to keep up with Dunn Studiosâ workload, let alone dig into some French company. Heâd only heard bits and pieces. âWait, didnât a French survey earlier this year call Messier âthe most entrepreneurial and business-savvy French iconâ or something?â
Dunn burst out laughing. âSimpleâitâs national pride talking! Messierâs leading a French company on a buying spree in the U.S., and thatâs got the French feeling all puffed up. They see his rise from manager to CEO as a global takeover blueprint.â
âItâs like when Japanese companies swept into the U.S. for big acquisitions back in the day. And what happened? They choked on it! Panasonicâs out, Sonyâs fading fast. But to the Japanese, Sony cracked open Americaâs gatesâitâs their pride, a symbol of their rise.â
âThat survey you mentioned? Probably just a bunch of clueless folks hyping him up. Real business pros have already spotted the flaws in Messierâs debt-fueled buying spree. Just recently, Vivendi sold 15.8% of its environmental division for 1.7 billion euros to pay off debt interest. Thatâs the crisis showing its face.â
Bill was floored. âVivendiâs already selling assets to cover interest? The boardâs got to be reacting, right?â
Dunn nodded. âOh yeah. In just over three months this year, five Vivendi board members have jumped ship. And with all that debt pressure, the management teamâs cracking. Messierâs obsessed with conquering markets and making deals, leaving the actual running of things to his assistants. But honestly, no one can handle that mess.â
In 2001, Messier led Vivendi to swallow 59 companies in a row, setting a world record!
Since 1998, through cash and stock deals, heâs burned through 77 billion euros!
Sure, Messierâs dream came true fastâhe built a global media empire. But now, both inside the company and on Wall Street, heâs lost all trust and clout.
Still, Messierâs brimming with confidence, charming the board with big talk and boldly claiming heâll run Vivendi for another 15 years!
In management, he flip-flops constantly, sets contradictory goals, then blames others for the fallout. He shuts down dissent and loves to ramble on about himself in meetingsâŠ
Billâs face turned serious as he sank into thought.
Dunn smirked, grabbed a copy of Businessweek from his desk, and handed it over.
âWhatâs this?â
âTurn to page 18.â
Bill flipped it open and saw a bold headline: âFour Media TitansâWhoâs Out First?â
First up: AOL Time Warnerâs COO, Robert Pittman, with odds of 2.1:1. (Heâs an America Online guy, but Time Warnerâs crew is taking over.)
Next: Viacomâs president, Mel Karmazin, at 1.6:1. (His feud with Sumner Redstone is getting ugly.)
Then: Disneyâs chairman and CEO, Michael Eisner, at 4:1.
And finally: Vivendiâs CEO, Jean Messier, with odds of a dead-even 1:1!
From those odds, Businessweek was betting Messierâs out within months!
Bill set the magazine down, still looking puzzled. âDunn, even if Messierâs gone, so what? How do you know theyâll ditch their entertainment businesses?â
Dunn grinned. âThe news, manâFrench news spilled it. Vivendiâs two big shareholders, the Bronfman family and financier Paul, want to sell off everything in the U.S. except leisure and theaters. Theyâre fed up with the American market. And thatâs all the stuff Messier spent years building upâitâs his baby.â
Bill couldnât help but laugh, half-annoyed, half-amazed.
This Dunn guyâusually shoving all the companyâs big and small headaches onto himâturns out heâs been pouring his energy into studying the competition.
Dunnâs business game isnât about managementâitâs about playing people!
Heâs got Vivendi completely figured out.
If things at Vivendi are as shaky as Dunn says, Dunn Studios might actually have a shot at snagging some key pieces of Vivendiâs entertainment empire.
Bill gave Dunn a long look, a playful smirk creeping onto his face. âDunn, youâre not just after Universal Pictures and Blizzard, are you? Vivendiâs entertainment assets are pretty tempting.â
Dunn smiled back, dead serious. âOf course! If weâre making a move, weâre going big! I want Universal Pictures, Universal Music, and Blizzard Entertainmentâall in one package! Universal Musicâs label is âUniversalââI canât let it split from Universal Pictures. That century-old brand belongs in Hollywood!â
Chapter 475: Acquire! Acquire!
Dunnâs made up his mindâheâs going to produce Warcraft. But thereâs a catch: it hinges on him successfully acquiring Blizzard.
A Warcraft TV series, paired with the Warcraft standalone games, the World of Warcraft online game, and tie-in novels, would be a perfect mixâa synergy thatâd make everything shine brighter.
As for whether Vivendi would sell Blizzard⊠well, if the price is right, itâs a done deal.
Vivendiâs brutal handling of game studios is almost as infamous as EAâs. Sierra Entertainment, the folks behind Half-Life, got shut down. Blizzard North, the team that made Diablo, was half-dismantled. The Blizzard crew has been at odds with the French execs for agesâtheyâve been itching to switch bosses.
The video game industryâs a wild ride. Over the past two decades, tons of big-name companies have crashed and burnedâfrom handheld games to console titles, and now PC gaming.
The times change too fast.
Even Microsoftâs been stumbling in the gaming world.
But Dunn? Heâs got a knack for seeing where things are headed. Heâs bold enough to invest and push game development forward.
After PC games come online games, then mobile games, and eventually cross-screen streaming video gamesâŠ
Universal Pictures used to have its own gaming division, but after Vivendi swooped in, they restructured everything. The gaming wing got merged with Blizzard to form Vivendi Games, and even Universal Music got split offâŠ
All Dunn wants is to take back what belongs to Universal Picturesâwhat belongs to Hollywood!
Two weeks later, Dunn Studios wrapped up its internal private placement. Employees snapped up 38.7 million shares, actresses close to Dunn grabbed 7.84 million, and Mel Gibson and Leonardo DiCaprio split the remaining 3.46 million.
That brought Dunn Studiosâ shareholder count to 1,635âover 90% of the staff now had a piece of the pie.
Especially for the loyal crew Dunn had pulled up from the bottom, becoming shareholders meant a shot at becoming millionaires down the line.
A leap from the working class to high society in one go!
Thanks to this 50-million-share private placement, Dunn Studios added nearly $500 million to its books.
But that doesnât mean the stockâs worth just $10 a share!
These are original sharesâDunnâs dipping into his own stash to hook his employees up with a perk.
According to Citibank, the underwriter, Dunn Studiosâ current valuation is no less than $13.5 billion!
STA Network tops the list at a whopping $2.2 billion valuation!
Marvel Entertainment and Marvel Studios, riding the superhero movie wave, clocked in at $2 billion.
But that still doesnât capture Dunn Studiosâ true worth!
CFO Brandy Norris came to update Dunn. âBoss, I think we should go public soon. Weâve got a string of equity acquisitions coming up, but buying at our current valuation isnât in our best interest.â
Dunn shook his head. âThe economy right now⊠letâs wait a few years. Anyway, our next acquisitions will mostly be cash deals.â
For Dolby Laboratories and Pixar, Dunn Studios already agreed to a âcash plus stockâ setup.
But those two are small fries.
The real prize this year? Snagging Universal Pictures, Universal Music, and Blizzard Entertainment!
Vivendiâs drowning in debt. Once they swap out their CEO, the first move will be selling assets to pay it off.
And when that happens, theyâll want cash, not shares!
That plays right into Dunn Studiosâ hands.
Brandy Norris, who scooped up 2.1 million original shares, is the ninth-largest shareholder at Dunn Studios. For a ânewbieâ like him to get such a big slice, heâs clearly grateful to Dunn.
He paused before saying slowly, âInitial talks with Dolby are done. Theyâre asking $450 million, which fits our expectations.â
Dunnâs eyes lit up, pleased. âGood news! Whatâs the catchâhigh stock demands?â
Brandy nodded. âDr. Dolby wants $200 million in cash plus 20 million shares. With Citibankâs $13.5 billion valuation, our stockâs at $15.9 a share. But their terms would drag it down to $12.5.â
Dunn Studios currently has 850 million shares, with Dunn holding 800 million.
Issuing 20 million more to snag Dolby Labs wouldnât dent his control one bit.
Dunn paced the room, hands behind his back, mulling it over. âWe need to lock down Dolby fastâdonât let it slip away. Their price⊠we can handle it!â
Dolby Labs has a bright future. When it went public in 2005, its market cap shot past $2 billion.
Buying it now? A steal!
Brandy frowned. âBut a lower stock price could mess with our Pixar talks.â
Dunn waved it off. âDisneyâs putting the squeeze on. Jobs canât waitâhe sees Pixar as a headache. Heâs more eager to sell it than we are to buy it!â
Brandy caught on, nodding. âYou mean⊠delay signing with Dolby until weâve nailed down Pixar?â
Dunn grinned. âExactly. Keep it hush-hush. Jobs has been having a rough time latelyâpiracy scandals have Apple under fire. Heâll want Pixar off his plate fast. We need to move quick and wrap this up by the end of the month!â
âŠ
On March 21, 2002, Dunn Studios and Pixar dropped a joint bombshell: Dunn Studios was acquiring Pixar Animation Studios for $1.98 billion!
Since Pixarâs a public company, the details came out.
Dunn Studios shelled out $680 million in cash and issued 80 million new shares to Pixarâs shareholders.
By that math, Dunn Studiosâ stock price topped $16.3 a share!
Post-deal, Dunn Studiosâ total shares hit 930 million, pushing its valuation past $15.1 billion! (Thatâs without counting Dolby Labs.)
Pixarâs chairman, Steve Jobs, walked away with $250 million and 48 million shares. Dunn, who already owned 15% of Pixar, nabbed 15 million of the new shares.
Add in the upcoming Dolby deal, and Dunn Studiosâ total shares swelled to 950 million. Dunn still held 815 millionâ85.7% of the pieâmaking him the undisputed top dog!
The second-largest shareholder? No longer Bill McNickâitâs Steve Jobs now, with 48 million shares from the Pixar deal, a solid 5% of Dunn Studios.
Dunn was in high spirits. Swallowing Pixar and Dolby Labs in quick succession had the whole company buzzing!
But while some cheered, others groaned.
Dunn was thrilledâDisney, not so much.
Michael Eisner couldnât sit still anymore. He picked up the phone and called Dunn.
Dunn didnât hold back, chuckling. âMichael, I just wrapped up the Pixar buy, and my phoneâs been ringing off the hook with congrats. Didnât expect youâd be one of them!â
Eisner nearly choked, fuming.
Things had just started looking up for him at Disney, and now Dunn pulls this stunt.
Buying Pixar? Thatâs cutting Disney off at the knees!
For years, Disneyâs animation wing has leaned hard on Pixar.
Everyone at Disney knew Pixarâs valueâand now Dunn swooped in and stole it.
With Dunnâs rocky history with Disney, would Pixar still work with them?
Disneyâs board gave Eisner an ultimatum: no matter what, keep Pixar in the fold!
Renew the deal!
Extend the contract!
Disneyâs stock was already shakyâthey couldnât take another hit.
Eisner had no choice but to call Dunn himself. Hearing Dunnâs jab, he sighed. âDunn, you winâIâm impressed!â
âMr. Eisner, whatâs that supposed to mean? Iâm lost,â Dunn replied breezily, a sly smirk tugging at his lips.
There was a time Dunn wanted to team up with Eisner for realâbut he got played.
Chances only come once!
Pleading or promises? Too late!
This time, Dunnâs eyes are on the prize.
A result that works for him!
If they canât deliver, itâs game over.
Dunnâs done with the fake smiles and backstabbing.
Eisner knew Dunn had him cornered. He sighed again. âDunn, I get it. This time, Iâll push the board hard to make it happen. I just hope Pixar can stay Disneyâs partnerâŠâ
âNo chance!â
Dunn cut him off cold before he could finish, his tone sharp and final.
