I am Hollywood

[Chapter 1140: A Two-Pronged Approach]

Due to recent incidents involving cyberattacks and eavesdropping, the Firefly Group had been reestablishing various confidentiality measures to ensure the security of email and mobile communications, which were among the most important issues to address.

Coincidentally, the Canadian company RIM had just signed a partnership with Sprint, a telecom operator in which Firefly had invested. Kelly recommended RIM's later-famous BlackBerry phone to Eric.

RIM launched the BlackBerry in conjunction with Sprint's CDMA network, which perfectly met the confidentiality requirements for both email and mobile communications. Eric decisively decided to promote this phone within the Firefly Group.

At the same time, Eric planned to acquire RIM -- the manufacturer of BlackBerry -- as a sub-brand focused on business security under Nokia.

In comparison to Nokia, whose market value had recently surpassed $100 billion, RIM's share price had also risen significantly, but its market capitalization was only about $260 million. Regardless, buying RIM would undoubtedly be a very wise investment.

Moreover, combining the information at hand with Eric's recollections, he realized that BlackBerry had once faced a situation strikingly similar to that of the MP3 player.

Historically, both products had matured in terms of technical development before gaining widespread traction. However, because they missed the optimal promotion window, after struggling for many years, both products made a brief surge only to be quickly overshadowed by new electronic devices. The MP3 player was overtaken by various music phones, while the BlackBerry fell behind more versatile touchscreen smartphones.

Now that Eric could clearly see the market potential of BlackBerry, he felt there was no need to wait for opportunities like the 9/11 situation when the U.S. government relied on BlackBerry for immediate disaster information. With the powerful distribution channels and resource advantages of the Firefly Group, they could promote BlackBerry ahead of schedule.

If they had ample time to complete the strategic layout for BlackBerry and its related services, even with the early onset of the smartphone era, Eric believed that the high-end business and security-focused BlackBerry could avoid the swift decline it previously experienced.

As Eric flipped through the documents handed to him by Merissa, he casually asked, "What are the main issues?"

"The most critical one is patents," Merissa replied. "During Nokia's assessment of the BlackBerry, they discovered that this phone has infringed on over 20 of the company's patents. Additionally, the core patent for BlackBerry's wireless email push feature is still held by a Virginia-based company called NTP. RIM is currently too small to attract much attention. However, if we acquire BlackBerry, patent holders like NTP will definitely file lawsuits, which could even lead to a federal ban on BlackBerry."

Over the years, Eric had always placed great importance on the patent strategy of the companies under the Firefly Group, influenced by a series of patent wars that he recalled. Among them, the wireless email patent war between RIM and NTP was undeniably the most memorable.

In 2006, after a lengthy six-year legal battle, NTP ultimately extorted over $600 million in patent damages from RIM through a series of wireless email patents.

Considering RIM's current market value of less than $300 million, even without changing history, that $600 million in patent damages would have been a crippling blow to RIM in 2006.

Reflecting back, one must acknowledge that the compensation of $600 million was likely influenced by federal government bias. While RIM's business focus had been in North America as a Canadian company, NTP was an American entity, and the federal government could not be expected to support a foreign competitor. Thus, RIM had no choice but to accept such a significant loss to maintain its business presence in the U.S.

After tapping the table and contemplating for a moment, Eric remarked, "Isn't the email patent in our possession? Didn't Yahoo or Firefly Electronics develop wireless email technology?"

"They did, but not as comprehensively as NTP," Merissa Mayer nodded before continuing, "While wireless email does overlap with email technology, it can't be fully classified as an extension of it. NTP was established in 1992, and their patent registration dates nearly coincide with the email patents held by Yahoo. I've consulted with the patent management departments of Yahoo and Firefly Electronics. They mentioned that, based on the overlap in technology, if a lawsuit were filed, we could confidently obtain all wireless email patent licenses from NTP for free."

Eric asked, "But that would definitely take time?"

"Yes, according to the normal legal process for similar cases, obtaining the license for free would take at least a year. But if Nokia initiates a buyout of BlackBerry at the same time, it would alert NTP, and the process would undoubtedly take longer," Merissa Mayer explained, then paused before stating bluntly, "So, the best option is still to acquire. NTP's patents haven't seen broad application yet, and acquiring that company would likely require around $6 million. However, if we appear too eager, we'd probably have to pay a significant premium, and the final price could range between $8 million and $10 million."

Acquiring NTP for under $10 million was a trivial matter for Eric's current wealth.

However, this wasn't just about simple measurement.

Even without his previous memories, acquiring NTP's patents was crucial for the future positioning of the BlackBerry. Merissa Mayer clearly recognized this point and brought it up specifically to Eric.

"Then let Nokia acquire that company quickly," Eric thought for a moment and quickly decided, "RIM can hold off for a couple months."

With the current surge in tech stocks, the Nasdaq index was estimated to hold out for only another couple of months. When that time came, tech stocks would likely see a significant downturn, and RIM wouldn't escape unscathed either. At that point, initiating a buyout would not only conserve a substantial amount of funds but would also be evidently easier to achieve.

Merissa nodded but quickly added, "It would be best to use a shell company for the acquisition of NTP."

Eric chuckled and said, "I sometimes overlook such details; you can decide how to handle that."

Merissa acknowledged his statement and lowered her head to record the notes in her pocket memo.

As Eric sat at his desk and watched his secretary intently taking notes in her OL suit, he suddenly felt inspired and said gently, "Mary, it's truly great to have you around."

Merissa paused in her writing, and although she didn't look up, a visible blush spread across her face.

After quickly jotting down a few last notes, the assistant shot Eric a playful glare before turning and exiting the room.

...

Four hours later, a Boeing 747 landed at Ventura Airport.

Though it wasn't yet time to leave work, Katzenberg personally arrived to pick up Eric.

After some pleasantries, they got in the car. Despite the ongoing close communication between the two parties during this time, Katzenberg couldn't help but dive into recent developments.

"There were at least three factions involved in this eavesdropping incident, but so far, we've only caught the tail of Tiger Fund. Ian and I have been discussing the company's security issues, including the surveillance system, confidentiality regulations, and security personnel. Eric, aren't you working on getting Carter to form a separate bodyguard team? I was thinking that, rather than leaving Firefly's security to outsiders, we should handle it ourselves -- establish a dedicated security company to cover all these services specifically for the Firefly Group."

Listening to Katzenberg, Eric noted that Carter Moen, driving in the front seat, couldn't hold back a glance at the rear-view mirror and replied, "Carter, what do you think?"

"Boss, while I would love to take on this responsibility, to be honest, I might not be able to manage it if it enlarges."

Eric nodded and addressed Katzenberg, "The key here is to find someone trusting and capable. While we can elevate this company to be responsible directly to me, the specifics still require designated professionals. The Firefly Group's goals are quite lofty, and blindly searching for personnel might leave us vulnerable."

"We could let a recruiting firm look for some candidates, and we can take our time to select," Katzenberg suggested. "Either way, this would certainly be better than handing everything over to outsiders."

"Let's proceed that way, then," Eric agreed. "I'll ask Kelly to draft a proposal outlining what departments need to be established and the budget. If anyone has suggestions, they can bring them directly to me."

"Now, regarding Viacom," after discussing this matter, Katzenberg continued, "Eric, what do you plan to do?"

"I've been reviewing Viacom Group's financial reports over the past few years, and my biggest takeaway is that Viacom has rapidly expanded its business scope, but as a whole, the company is in decline. Just like Blockbuster, Viacom initially bought this rental chain for over $8 billion, yet just a few years later, their market value has plummeted to $3 billion. While the pure VHS market is fading, the home entertainment industry -- gradually being replaced by DVDs -- has grown exponentially, and last year, the entire home entertainment market nearly reached $20 billion, almost triple Hollywood's North American box office. However, Blockbuster's market share has dropped from the peak of 45% to just 25%. Do you know what the problem is?"

Without giving it a second thought, Katzenberg replied, "Summer Redstone?"

"Exactly, Summer Redstone," Eric nodded, continuing, "Redstone is too outdated; he can't keep up with the times. More importantly, he refuses to delegate authority to the managers below him, tightly holding all of Viacom's power in his hands -- that's the fundamental reason for Viacom's decline."

When it came to Hollywood's old guard, Eric thought Murdoch was undoubtedly far superior to Redstone. This disparity in leadership excellence was why, despite the rapid decline of News Corp's print business, Fox continued to thrive.

In contrast, Redstone had become a stubborn tyrant.

In the original timeline, Paramount had fallen out with Cruise over the Mission: Impossible franchise and resorted to undermining him. This reflected not only Paramount's decline but Viacom's overall downfall as well.

A Hollywood giant stooping to squabble with a superstar over a single film's interests, even if that star was A-list, was quite demeaning. Even more humiliating was having to mend ties and collaborate afterward.

Katzenberg seemed to ponder this, but quickly replied, "Eric, I understand you're really angry about this whole situation. However, pushing Redstone out isn't realistic. While his family doesn't hold absolute shares in Viacom, they do control more than half of the voting rights."

"I never thought about that," Eric shook his head, smirking coldly, "Imagine the scene -- an old king clinging desperately to his throne while watching his kingdom crumble step by step. Isn't that tragic enough to have an epic quality?"

Katzenberg felt a chill and instinctively nodded, "So what do you plan to do?"

Eric shook his head, "There's no rush; we'll see after Iron Man is released."

The key to striking at the enemy was to preserve oneself first.

At this moment, the priority was Iron Man -- this film marked the inception of the Marvel Cinematic Universe and was critically important for Firefly Pictures. Eric didn't want to complicate matters during such a crucial time, as Iron Man would be hitting theaters soon. Some things just needed to wait a week or two.

...

Returning to the Liberty City estate, it was still only a little past two in the afternoon in Los Angeles. Katzenberg had more work to do and left shortly after.

The villa remained quiet; Drew hadn't returned from Australia yet and was still vacationing with Joanna. However, Elisabeth and Julia had already come back, and Eric had just received a call from her earlier in the car.

After seeing Katzenberg off, Eric returned to the sofa by the glass wall of the villa, casually stretching. After a whirlwind of recent events, he felt a growing sense of exhaustion deep inside. Now back at home, gazing at the blue ocean and sky beyond the glass, he finally felt a bit lighter.

Caroline and Merissa had not left, still helping Eric organize his luggage.

After a while, Caroline walked over with a coffee pot, set it down on the coffee table next to Eric, quietly snuggled up beside him, and said, "Eric, Aunt is planning to come to Los Angeles next week."

Eric raised an eyebrow in confusion, "Oh?"

"Last time, when I was in London, Aunt suddenly showed up and asked me some questions about you."

Eric understood, it must have been the day he handed the laptop to Olivia. He asked, "Did she mention anything specific?"

"She didn't say," Caroline shook her head. "She just told me she would be coming next week."

Eric thought for a moment, still a bit unsure, and just nodded, "Okay, I understand."

*****

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