Globally, apart from government-controlled or privately monopolized large conglomerates, Danerys Entertainment Group's IPO marked a new high in the history of publicly listed companies. Before this, the record for the highest market value among listed companies was set five years ago in Japan during its economic bubble peak. The Nippon Telegraph and Telephone Corporation (NTT) reached a market value of 21.5 trillion yen, equivalent to approximately 160 billion USD at the exchange rate of 1 USD to 130 yen at the time.
Following NTT were major Japanese banks, with Industrial Bank of Japan reaching a market value over 100 billion USD, and others like Sumitomo Bank, Fuji Bank, and Dai-Ichi Kangyo Bank also surpassing major American companies. Even Dai-Ichi Kangyo Bank, ranked fifth, reached a peak market value of 8.6 trillion yen, approximately 66 billion USD.
In recent years, with the collapse of the Japanese stock and real estate bubbles, Japanese banks suffered the most, burdened with trillions of yen in bad loans and teetering on the edge of bankruptcy, causing their market values to plummet.
As for NTT, it was split up three years ago, mimicking the U.S. approach, coupled with the Japanese stock market's decline in recent years. Despite maintaining its position as the most valuable Japanese company, NTT's market value had shrunk to 6.3 trillion yen, equivalent to 61.1 billion USD at the recent exchange rate of 1 USD to 103 yen.
Even after the economic bubble burst, Japan remained the world's second-largest economy, trailing only the United States. Given this backdrop, Danerys Entertainment's market value of 112.8 billion USD on its first day of listing became the only company worldwide to surpass 100 billion USD.
The significant surge in Danerys Entertainment Group's stock on its listing day sent shockwaves through Hollywood's entertainment sector.
On July 1st, Hollywood's other major studios saw their stock prices fall:
- Time Warner's stock dropped by 3.1%, with a market value of 17.9 billion USD.
- Disney's stock fell by 5.3%, closing with a market value of 6.7 billion USD.
- MGM's stock decreased by 1.7%, resulting in a market value of 2.7 billion USD.
- News Corp, Fox's parent company, saw a 4.1% decline, with a market value of 9.6 billion USD.
- Seagram, Paramount's parent company, experienced a 6.1% drop, with a market value of 13.7 billion USD.
- Even Sony, Columbia Pictures' parent company, saw a 3.7% drop, with a market value of 21.5 billion USD.
Thus, the combined market value of Hollywood's six major studios, including the entirety of their parent companies' assets, was only 72.1 billion USD, equivalent to just 63% of Danerys Entertainment's market value on its first day.
Simon had been reluctant to create a scenario where one company dominated Hollywood, which is why he had supported Time Warner openly and covertly in recent years. However, based solely on market value, a dominant scenario had already formed, and the combined strength of the other six studios was less than that of Danerys Entertainment alone.
In Hollywood, known for its open competition, such a scenario could only be described as miraculous. While it may be challenging for outsiders to break into Hollywood, for insiders, the seven major studios have equal opportunities to tap into this market. For instance, every major studio could release multiple films during the summer season.
Given ample opportunities and market space, studios could not blame others if their films did not perform well. Thus, even though Danerys Entertainment overshadowed the other six studios, they had little ground to accuse it of monopolistic or unfair competition, unless they were simply being unreasonable.
Hollywood's other major studios had considered banding together against Danerys Entertainment. However, the company's rise was so rapid that, by the time some had thought to target it as a 'wild boar,' it had already grown into an 'elephant.'
Having recently witnessed the Hearst Group incident, no Hollywood company dared to move against Danerys Entertainment. Moreover, even if a group of 'wild boars' united, toppling an 'elephant' seemed unlikely. Furthermore, this 'elephant' did not aim to eliminate them but occasionally yielded 'food.' Although life had become tougher for everyone, they managed to survive in a thriving film market.
Inertia affects everyone, and since companies are controlled by people, the same applies. As long as they are not driven to the brink and the power disparity is significant, Hollywood's structure remains relatively stable.
Beyond Hollywood, on the last trading day before the Independence Day holiday, not only did Danerys Entertainment's stock soar on its listing day, displacing the industrial giant General Electric, but Westeros system's other publicly listed stars, Cisco and America Online, also saw stock gains of 7.1% and 5.6%, respectively, closing with market values of 76.4 billion USD and 65.9 billion USD.
In just one day, the Westeros system held three of the top five positions in the U.S. publicly listed company rankings.
The combined market value of these three companies reached an astounding 255.1 billion USD!
Based on the Westeros company's shareholdings in these three companies, Simon's personal wealth from these holdings alone amounted to 170.7 billion USD.
Three months ago, the media announced that Simon's personal wealth had surpassed 200 billion USD. Now, just from his holdings in Danerys, Cisco, and America Online, Simon's wealth approached that figure, reaching 170.7 billion USD. In addition, Westeros controlled companies like Cersei Capital, Melisandre Company, Egret Corporation, and Verizon Communications, with Egret alone estimated at a potential value of 50 billion USD. The Westeros company also held significant shares in tech giants like Microsoft, Intel, Oracle, and SUN, which were highly valuable.
Combined, these assets certainly exceeded another 100 billion USD.
Although Westeros system had advised major mainstream media outlets, many second- and third-tier newspapers still reported Simon's updated personal wealth over the weekend.
Moreover, these reports often exaggerated the figures.
300 billion USD!
This was the generally accepted valuation across various media outlets.
While not precise, it was not far off. Danerys, Cisco, and America Online alone contributed over 170 billion USD to Simon's personal wealth. Westeros system's other companies and assets, after accounting for debt, clearly exceeded a combined value of 130 billion USD.
Based on the first half's economic data, the U.S. GDP for 1994 was projected to be around 7.2 trillion USD. Now, Simon's 300 billion USD personal wealth represented 4.1% of the U.S. GDP, far surpassing the Rockefeller family's peak 1.5% GDP share.
The Rockefellers and Morgans were once said to control the entire United States. Similarly, the rapidly rising Westeros system had, in just eight years, permeated many aspects of American public life, notably the control of public audio-visual entertainment resources.
Thus, unlike the media's overwhelmingly critical response to the London Girls incident in March, this time, astute observers noticed a notably 'cold' response from North American media, especially influential ones, regarding Simon's new wealth milestone.
In the U.S., media opinions significantly influence federal policy directions. Often, a single influential article from papers like *The New York Times*, *Los Angeles Times*, or *The Washington Post* could push the federal government towards enacting laws.
With major mainstream media showing restraint, even if Simon's 300 billion USD wealth sparked latent resentment, the lack of media focus meant it wouldn't escalate into widespread backlash.
While significant media refrained from criticizing Simon's growing wealth due to their ties with the Westeros system or other concerns, the emergence of the first 300 billion USD super-wealthy individual in U.S. and world history still stirred a commotion that ordinary events couldn't match.
After all, no newspaper, TV station, or media platform could ignore the listing of Danerys Entertainment or Simon's record-breaking personal wealth.
Simon only aimed to prevent media from turning public sentiment against the Westeros system. He also requested that major newspapers minimize exposure but couldn't expect every media outlet to stay silent.
The Hearst Group incident reminded most media not to rashly criticize Simon's wealth accumulation. However, they eagerly used the topic to boost sales or viewership.
Mainstream media stayed cautious, but many U.S. politicians didn't share these reservations, especially those who sensed they were being targeted by the Westeros system in the upcoming midterm elections.
Politicians, led by Wisconsin Senator Craig Ams, resumed their warnings about the growing threat posed by the Westeros system to the U.S. economy, demanding immediate federal action to curb Simon's wealth accumulation.
Congressman David Melos, backed by the Hearst family, had attempted to establish a special House committee to investigate the Westeros system but had since gone silent.
However, Craig Ams picked up where Melos left off, advocating for an 'asset tax' bill and calling for a special Senate committee to investigate the 'Cisco-America Online-Egret' internet giants' alleged monopoly over the burgeoning internet industry.
As for Danerys Entertainment, although already massive, it had few legal vulnerabilities.
In this world, unless one is so inconspicuous as to be unnoticeable, one will have friends and enemies.
Simon understood that even federal media weren't as friendly towards the Westeros system as they appeared. The current news hype wouldn't harm the system significantly. However, should the tide turn, many would eagerly jump in to push it
down.
Regarding politics, in a capitalist society like the U.S., politicians generally avoid provoking super-rich individuals. But, when these wealthy people show weakness or block their political paths, politicians, who are inherently more combative than average, will go to great lengths.
The Westeros system's rapid rise and shallow roots provided many politicians with opportunities.
Over the weekend, news emerged from Washington.
The U.S. Department of Justice would soon investigate the 'Cisco-America Online-Egret' trio within the Westeros system for alleged monopolistic practices in the internet industry.
Unlike the FBI, the White House exerted strong control over the Justice Department. However, faced with continuous attacks from political opponents accusing the Clinton administration of favoring the Westeros system, the Justice Department needed to act before Congress, or such accusations would gain credence, further weakening an already embattled White House.
Thus, Clinton had to act before Congress.
Simon had anticipated this and had prepared a rough plan.
American antitrust investigations are known for their lengthy proceedings. Simon didn't need much time; two or three years would suffice for these companies to solidify their positions in the internet industry. By then, even if forced to split, it would mirror the AT&T breakup, resulting in a market dominated by regional monopolies.
Following July 1st came a three-day Independence Day holiday. While external tumult continued, the ever-growing commercial machine of the Westeros system kept running at full speed.
The IPO significantly boosted morale within Danerys Entertainment Group.
Amy Pascal's 35 million shares in Danerys Entertainment surged to 1.67 billion USD on the first day of trading. Including her previous savings, Amy Pascal's personal wealth reached 2 billion USD, placing her among the era's top-tier wealthy individuals.
Nancy Breyer, Robert Iger, Mark Belford, Danny Morris, and Ella Deutsch, the core management of Danerys Entertainment Group, all became billionaires on July 1st, thanks to the millions of company shares they held.
Based on the July 1st closing price, 15 mid-level managers at Danerys Group, each holding over 200,000 shares, became millionaires.
Danerys Entertainment president Tom Pollock, holding 1.5 million shares, despite not being in the core, had a net worth of 70 million USD. The *Hollywood Reporter* even joked that he was the biggest winner of this IPO despite his modest contributions to Danerys Entertainment.
Additionally, 173 junior managers with over 20,000 shares each became millionaires.
Practically every Danerys Entertainment employee who had participated in the stock subscription had profited handsomely from the IPO.
Before listing, Simon distributed 176 million shares either as rewards or subscriptions to Danerys Entertainment Group employees. At the time, this amounted to an average of 51,000 USD per employee, based on pre-IPO valuations.
However, on the first day of listing, those 176 million shares were worth 8.4 billion USD. After deducting the 1.09 billion USD employees paid during the internal subscription, each employee received an average of 250,000 USD.
In the history of global business, such a generous stock reward is unprecedented.
This, alone, hinted at why Danerys Entertainment Group had become so powerful.
_________________________
[Check out my Patreon for +200 additional chapters in all my fanfics! $5 for all!!]
[w w w . p a t r e o n .com / INNIT]
[+50 PowerStones = +1 Chapter]