This year and next, Allen Musk—who is being ostracized in the company he founded—will sell the company to Compaq in February 1999 for $307 million.
In his first startup, over three years, Allen had his shares taken here and there, leaving only 7% in his hands, but he still receives $22 million, exiting somewhat successfully.
Though full of twists and turns, becoming a millionaire at the young age of 28, Allen buys and renovates a 167m² apartment, purchases a McLaren F1 car and a small propeller plane, enjoying flexing, then invests all his remaining $12 million personal funds into founding X.com, stepping onto the path of a serial entrepreneur.
Recalling the lesson of losing management rights after taking external investment in the previous company and getting kicked out, he avoids outside funding, using his own money to become the largest shareholder.
‘I could help Allen right now, but this guy needs to suffer a bit to come to his senses.’
Even in the future, Allen Musk is famous for eccentric behavior; the current Allen in his vigorous 20s with little social experience is hardly believable as a company CEO.
He makes even the much younger James seem more mature, so Allen needs to suffer until next year to learn how companies really work.
“The electric car you lent me has so many fascinating parts. Lately, with nothing to do at the company, I’m living off the fun of tinkering with that car.”
“If James lived in San Francisco, we could meet often; it’s a shame you live in Seattle. You have to come to Stanford for college.”
Since James shows great talent in computers, he naturally assumed he’d go to Stanford.
“I’ll think about college more after entering high school.”
He grilled samgyeopsal for the Musk brothers too, chatting about various things, and told them good days would come if they endured a bit more.
This time, he didn’t invest in Allen Musk’s company, but he planned to take shares in Payval, which would be founded in 2000.
Payval, a first-generation fintech company, is an online payment system; as a platform business, it creates huge success and stable profits.
Just two years after founding, it would be sold to eBay—where James has shares—for $1.5 billion, but he still planned to invest early.
‘The Payval Mafia is worth building connections with.’
When Payval is acquired by eBay for $1.5 billion, the co-founders—who gain enormous wealth based on their shares—exit, but instead of retiring to buy mansions, supercars, and luxuries, they start new companies and venture investments again.
They maintain tight bonds like a mafia, investing in or helping manage each other’s companies, greatly contributing to mutual growth.
The Payval Mafia exerts massive influence beyond internal communication, on the entire Silicon Valley startup ecosystem, directly creating or investing in subsequent successful companies.
It’s similar to what James is doing now, but there’s a difference between doing it alone versus over ten people watching each other’s backs, so he planned to dip his toe into Payval’s founding just enough without revealing his face.
“Mrs. Yoo. Thank you for the meal.”
“Nice meeting Jenny too. See you next time.”
Contrary to worries, the Musk brothers behaved politely to the family, played in the garage to recharge, and returned to San Francisco.
James graduated middle school this time and entered high school, so no vacation homework.
Meeting people and organizing assets, the semester started, and he enrolled in a famous prestigious private high school in Seattle.
“You maintained top grades for three years in middle school. In third year, you completed high school courses with excellent grades, so adaptation shouldn’t be an issue.”
Entering high school, James had career counseling with Mom and the teacher.
“You’ve already nearly completed one semester of high school curriculum; are you considering early graduation?”
“If my son wants, going to college early wouldn’t be bad.”
After brief thought, James said he wanted to finish high school in two years and enter college.
“I can’t give a definite answer yet, but based on middle school records, it should be fine. We’ll create a curriculum for James to early enter a prestigious university.”
After counseling, Mom asked if early graduation was really okay.
“Actually, school was a bit boring. I have many things I want to do, so I want to go to college and graduate as soon as possible.”
He could skip college or drop out, but for his somewhat conservative parents and for the title, he planned to at least get a college diploma.
‘Most successful entrepreneurs around me dropped out, but I have plenty of time, so I’ll get the diploma.’
When James said he’d early graduate high school, Mom asked which university he wanted.
“You’re thinking of Stanford engineering, where you often go with Dad?”
“Honestly, I think I can do well in computers even without going there. I haven’t decided for sure, but if going, I want a famous prestigious university.”
“Okay. You still have time, so discuss with Dad and decide.”
Mom finished counseling and went home; as James headed to class, he heard kids chattering.
“Did you read the book that came out this summer?”
“Of course! I stayed up all night and read it in one go.”
“It was so fun. Does stuff like that not happen at our school?”
Kids everywhere were talking about the trendy book.
‘Even in high school, they’re talking about the book; it must have succeeded.’
The school was buzzing with the first Harry Potter series released in summer.
The Harry Potter novel, contracted and printed by a small UK publisher, was pulling sensational popularity among kids, stacking record sales.
‘I pushed hard for the contract; good thing I didn’t give up.’
He had almost given up unable to contract with the unknown author living in Edinburgh, Scotland, as a middle schooler, but unexpectedly got the chance to sign with J.K. Rowling.
He had casually mentioned Rowling to Jefferson, who had publishing connections and obtained her circulating manuscript from the UK.
Just then, James had formed his investment firm and hired employees; he sent Smith on a business trip to Scotland to meet her directly and contract.
Though Smith didn’t understand the odd instruction, as the new boss ordered, he flew to the UK, acquired the small publisher, brought the salaried president and editor, met J.K. Rowling together, and signed the publishing contract.
“Boss. It’s a huge hit. Sales are much faster than the publisher expected.”
“I told you it would sell well.”
“Sorry for doubting. Already over 100,000 copies, going into reprint. We’ll hit 200,000 soon.”
“Now reactions are starting, sales will explode. Quickly contract reprints with the printer.”
A new children’s book selling 100,000 copies in months was tremendous success.
The publisher head James acquired thought first print would sell well, maybe 50,000 for a jackpot.
But soon over 100,000, he said party with staff at 500,000.
Nearing 1 million, publisher’s all-time record, bonuses and joy.
But 1 million quickly becomes 2 million, over 4 million to 10 million record.
Staff happy with constant bonuses, then slightly fearful as sales keep rising without stop.
‘Eventually over 100 million worldwide, not stopping, to 200, 300, 500 million.’
Already making big money from internet investments, but Harry Potter series was too regrettable to miss.
In the end, without ever meeting J.K. Rowling, fully acquiring the publisher’s shares for the contract was actually better for James.
“Honestly, I thought boss was publishing a book as hobby, but this is making way more money than expected.”
“Smith, your incentive is based on sales too, so sell hard.”
“Already chaos in UK, rumors spreading among US students too.”
Seattle, where James lives, is famous even in America for reading a lot, with many students hobby-reading.
His school has many publisher employees’ kids, likely accessing Harry Potter faster than elsewhere.
‘Harry Potter profits to me are in hundreds of millions, but IT company IPOs are definitely best for making money.’
It makes author J.K. Rowling a billionaire, but not enough to significantly inflate already billionaire James’s assets.
Still satisfied adding another stable cash income, he asked/instructed Smith to manage the author well.
“James, good vacation?”
“I stayed long in New York because of Jenny. You came here too.”
“Over half from our middle school came here. Mostly familiar faces?”
James was so famous in middle school, kids greeted warmly, some boasted hard-to-get Harry Potter books.
“You read it too? So fun, right?”
“I read the manuscript before release.”
“Wow! Amazing. Do you know the next volume’s story?”
“I know some, but can’t tell.”
James usually didn’t show off to kids, but to a friend who truly loved Harry Potter, he showed the first edition with J.K. Rowling’s handwritten signature.
“See, it says first edition? Got the author’s signature too.”
“Wow! Insane. It says ‘To James.'”
He didn’t show to Smith or Jefferson, but James was actually a huge Harry Potter fan, quite proud of getting the author’s signed first edition of the first series.
In good mood bragging unusually, James told them the author was already writing the next.
Some new faces, but over half familiar, adapted quickly even in high school; first semester passed fast.
“James? It’s Director Cameron.”
“Hello, Director. How are you? Editing finished well?”
“It took long since the movie’s lengthy, but wrapped up. Release date set for year-end, but preview before that—must attend.”
“Mom will love it. What’s the dress code?”
“Big preview, so dress and tuxedo. Reserved four good seats.”
“Thank you for calling personally instead of just letter.”
“Directors should call investors personally. And the stock you recommended already more than doubled—when to sell?”
He told Director Cameron to hold at least two years, then not sell all at once but divide into 5-10 times, gradually.
Time flew, Titanic preview day approached; James and family flew to LA after long absence.