Chapter 8: The Boy Who Bought Pixar

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To inflate funds immediately, investing in Toy Story and sharing movie profits would be good, but the related contract had to be with Walt Disney.

Given Walt Disney Studios’ characteristic of not accepting much external investment and producing films with internal funds, it was practically impossible for Jaesung, with no connections, to approach and invest.

“You’re stating the obvious. So, how much are you thinking of investing?”

“I’ll invest one million dollars. Since you acquired the company from George Lucas for ten million dollars, I’d like 10% shares.”

“Haha. That’s nonsense talk. That was over 10 years ago, and there’s a concept called inflation in the world. Might be hard for you to understand.”

“I proposed the shares considering inflation. You’ve poured in enormous funds all this time, yet it’s still in deficit, right? For a company with no revenue, this seems generous.”

At the fact-attack that over 60 million dollars had been poured in without revenue, a vein popped on Jobs’ forehead.

By temperament, he wanted to spank the kid and chase him out, but one million dollars would greatly help the cash-dried company operations.

“Hmph! If this project succeeds, the company will grow big, so 10% shares make no sense.”

“You hold 80% shares alone, uncle. Wouldn’t giving away 10% be okay?”

“Rather than giving you 10%, selling the company to a close acquaintance would be better.”

As expected, Jobs’ resistance was strong.

He had called for 10% deliberately expecting to be bargained down, and Steven, needing cash immediately, started negotiating.

“Recognizing the potential of Pixar and Toy Story, specially, for one million dollars, I’ll give 1% shares.”

“Since you have 80%, give 8%.”

“Haha. I thought you were smart, but you can’t do math.”

The tussle between middle schooler Jaesung and Steven Jobs continued, and Seokhoon thought it would be good if there was popcorn, finding it more amusing than expected.

“Whew! Not an ordinary kid. Fine. I’ll give 5%.”

“It’s regrettable, but I’ll be satisfied with this. Then, please take good care of the company.”

Though giving shares because he needed cash right away, with his animal-like instincts alive, Jobs launches an IPO a week after Toy Story becomes a huge hit.

The stock offering price starts at 22 dollars, but on the first day of listing, it rises to 49.50 dollars, surpassing Netscape and recording the largest scale listing that year.

In one fell swoop, the value of Steven Jobs’ Pixar stock exceeds 1.1 billion dollars, and he sits on a money cushion again.

Pixar’s success changes the landscape of the animation market; Disney, unable to create new characters, attempts to acquire Pixar.

At first, Disney, with history and influence, is naturally in an advantageous position, but as time passes and Pixar consecutively produces successful works, eventually, through stock swap, Apple acquires Pixar on equal terms.

Even after selling some stocks, Jobs, holding 50% of Pixar shares, becomes Disney’s largest individual shareholder (7%) in one go, inflating assets to 4 billion dollars.

Perfectly timed securing Pixar shares.

This contract was practically close to impossible, but since Jobs was overextending to complete Toy Story, it somehow succeeded.

Toy Story, opening on Thanksgiving in 1995 next year, records the number one box office in 1995, earning 192 million dollars in North America alone.

“Jaesung. Do you think the cartoon made with computers will succeed? You haven’t seen it in advance.”

“Disney invested and is distributing it directly. That’s why I could trust it.”

“Even so, investing 1 million dollars in a deficit company seems risky.”

“Dad, you don’t know who the company CEO we saw earlier is, right?”

Until signing the contract and coming out, dad hadn’t recognized Steven Jobs.

“He looked like a patient with nutritional imbalance. He needs to consume protein; next time, I should bring food made with tofu.”

As Apple Computer was pushed by IBM, unless really interested, people didn’t know well, and most didn’t know Jobs, who was chased out of the company 10 years ago.

Well, even after returning to Apple, he doesn’t become that famous for a while.

Apple is recording huge deficits while pursuing too many businesses at once, but with Jobs’ return, most businesses are streamlined, focusing on selection and concentration.

As the company gets back on track to some extent and he personally presents new products, his face becomes known to the public, so it would take roughly 10 years for him to become famous.

Briefly thinking about Steven Jobs and Apple, he answered dad’s question.

“He previously founded a company called Apple and was a hugely successful businessman in America, but got fired from his own company due to eccentric behavior.”

“His personality didn’t seem ordinary. Where did you hear that?”

“Jefferson knows him well. He must have been very famous before. And above all, the cartoon called Toy Story was fun. It will definitely be a big hit.”

Though not completed yet, the story of Toy Story was as Jaesung knew.

Toy Story, Pixar’s first theatrical animation, showcases astonishing technology while receiving acclaim from critics and audiences, rising to the ranks of masterpieces.

The success of Toy Story greatly influences Pixar’s subsequent works, continuing a successful path.

“We’ll know the results when the movie opens next year.”

“Then, let’s go see the movie as a family.”

Since Toy Story is a Disney animation, there was no problem taking his elementary school sister.

This year, Forrest Gump records number one at the box office, a bountiful year for excellent films, but next year sees a box office drought, drawing more attention to Toy Story.

“Let’s do that. You’ve spent big money in San Francisco, which worried me, but now that there’s no money left, I’m relieved.”

On the way back home to Seattle after the Pixar meeting, dad was satisfied that Jaesung had invested all 2 million dollars earned into Amazon.com, Yahoo, and Pixar, leaving no money in Jaesung’s account.

Jaesung could have left some without investing everything, for pocket money, but as a middle schooler, it was hard to buy expensive things, and parents bought most necessities.

Dad was relieved thinking no more company investments since money was all spent, but Jaesung had different thoughts.

To invest in as many companies as possible before the dot-com bubble fully hits, he planned to make profitable programs again to raise investment funds.

Still, I’ve invested in the companies needing immediate investment, so for a while, I can rest and slowly look for companies to sell programs to and earn money.

Satisfied with enterprise shopping in San Francisco following dad, Jaesung focused on school life upholding a middle schooler’s duties for a while, and at home, helped startup by frequenting the Amazon.com headquarters in the next-door garage.

“You met Steven Jobs?”

“How did you know?”

“Your father came home from work and asked who Steven Jobs is.”

Jaesung omitted the Yahoo story and only mentioned investing in Pixar where Steven Jobs is.

Jefferson showed interest in the fact that he was making animations with Disney, but upon hearing one million dollars invested in a company recording deficits for over 10 years, he said worriedly.

“If he’s taking investment from you, the situation must be bad; is it okay giving one million dollars to such a company?”

“You think that because you haven’t seen Toy Story, uncle. If you see it directly, your thoughts will change? It opens next year, so check it out.”

“It’s your money, so I can’t say much, but I’m worried. Still, I’m envious that you met Steven Jobs in person and talked.”

In the future, Jefferson Bezos would become much richer than Steven Jobs, but now, he was a dreamer preparing a startup in his garage.

It was natural to admire Jobs, who started in a garage and built a big company at a young age, and he envied that Jaesung met him, received a presentation directly, and got Pixar shares.

“If there’s a chance, I’ll introduce you. You two will definitely get along.”

“He’s notoriously eccentric, so I’m worried but also looking forward to it.”

Thus, talking about Steven Jobs, they worked together on making the Amazon.com homepage.

Now, Jaesung no longer hid his skills, handling Java or C++ proficiently, helping with slightly difficult and important tasks too.

Performing a role as a founding member of Amazon.com while spending daily life, companies he wanted to invest in kept flickering before his eyes.

“Jaeeun will have hot chocolate, right? Jaesung, what will you drink?”

“I’ll have white chocolate frappuccino.”

Mom, adapted to American life, often took Jaesung and Jaeeun to Starbucks, a coffee franchise starting in Seattle, to drink coffee.

Jaesung was in 7th grade, Jaeeun in 5th grade elementary, so they couldn’t drink coffee, but since they sold drinks without coffee shots, mom enjoyed the cozy atmosphere of Starbucks with the kids.

“The coffee here really seems delicious. The atmosphere is good too; it would be nice if there were such stores in Korea.”

“I want to try coffee too.”

“You’re still too young. They say it hinders growth.”

Jaesung, who lived on Starbucks coffee in his previous life, smacked his lips looking at mom’s Americano.

Starbucks, starting in Seattle, was exploding in growth in the early 90s, chosen by American baby boomers.

Stores only in North America yet, but in 1996, first overseas store in Tokyo, and in 1999, opens first Korean store in Edae.

Starbucks is also a really good company to invest in, but it’s a bit late.

If invested before or in the early days when Howard Schultz, who was marketing director, acquired Starbucks, in the mid-to-late 80s, it would have recorded huge returns, but 1994, already trending in America, wasn’t the right time for investment.

Stocks would steadily rise, but compared to IT companies hitting the dot-com bubble, it wasn’t exciting enough.

Decisively, being a middle schooler is the biggest obstacle.

Programs could be made by a middle schooler, called a genius and excused as youthful creativity, but coffee was different.

If I say appropriate acidity brings out fruit aromas and diversified flavors, and dark-roasted beans suit American tastes, they’d think it’s weird?

Though exploding in growth in America, the impulse to invest in Starbucks, which hadn’t gone overseas yet, was strong, but it wasn’t a particularly wise choice.

Returning to a young body, missing caffeine more than alcohol, Jaesung smacked his lips while drinking white chocolate frappuccino.