Friday, February 2.
After a week of oscillations around the 2900-point mark, with the capital markets eagerly watching to see if the Nasdaq would break through the 3000-point barrier on the last trading day of the week, another piece of cold water was poured by the Westeros System that morning.
Less than two weeks after announcing the reduction of its Cisco stock holdings on January 22, Westeros once again issued a statement regarding its reduction of holdings.
No surprise this time.
Now it was AOL's turn.
The reduction amounted to about $2 billion, just like before.
Following the January 22 announcement, over the next two weeks, Westeros completed the sale of its Cisco shares. This was one of the reasons why the Nasdaq index had fluctuated so much over the past week, failing to break through 3000 points.
Due to the close timing of the two announcements, when Westeros issued the new statement, the Nasdaq index immediately dropped 2.9% on that Friday—far exceeding the 0.7% market decline caused by the Cisco announcement. The Nasdaq fell back into the 2800-point range, closing the day at 2879 points.
Here we go again!
Since December of last year, when Westeros first cashed out on Danelys Entertainment stock, many have speculated about Simon's motivations.
If it was just a sense that the market had peaked and he was cashing out at a high, it didn't quite make sense.
With the influence the Westeros System now holds, if Simon needed funds, financial institutions would be falling over themselves to provide it. If the market were truly turning, Simon should be working to stabilize market sentiment, not risk triggering a collapse by selling off.
After three rounds of stock reductions, everyone finally realized the truth.
There was no doubt: Simon Westeros was deliberately suppressing the Nasdaq index.
And the reason was simple.
Anyone with basic financial knowledge could understand that an overheated market inevitably leads to rampant speculation, crowding out those who genuinely want to build. Preventing overheating was actually beneficial for the long-term development of industries. Otherwise, a flood of speculative capital would quickly rush in and out, leaving chaos behind, potentially even destroying entire industries.
While people understood this, they were also eagerly hoping for tech stocks to continue their explosive rise, for their own investments to soar, and for the chance to cash out at the top, leaving the mess for the unfortunate last buyers. So, when Simon Westeros brazenly cut off everyone's path to riches, it didn't sit well.
That afternoon, after the market closed, all kinds of forces began targeting Westeros.
Some called for the SEC to investigate whether Westeros was manipulating the market.
Others urged the federal government to take steps to prevent Simon's "malicious" sell-offs.
Some privately contacted Simon, hinting that it might be time for him to stop.
Others suggested Simon declare how much he intended to sell, so private off-market transactions could be arranged, avoiding disruptions to the secondary market.
And some, taking advantage of the election year, reignited the debate about the fairness of Simon's nearly trillion-dollar personal fortune, arguing that no individual should hold such vast wealth.
Meanwhile, tech stock short-sellers saw this as a golden opportunity. Using Westeros' reduction announcement as evidence, they once again fueled rumors that the Nasdaq had peaked and was about to turn, hoping to trigger a true collapse.
Even the White House made a call to Simon.
The president, clearly prompted by others, spent over half an hour discussing a report with Simon, explaining that the fundamentals of the new tech industry were strong enough to justify a Nasdaq at 4000 points. There was no need for Simon to be so cautious at 3000.
To be honest, Simon hadn't anticipated such a strong reaction to this latest sell-off.
However, it wasn't completely unexpected. After all, the Westeros System's suppression of tech stock growth had blocked too many people from making money. Simon just thought it would take two or three more reductions before this kind of backlash would occur.
When huge profits are at stake, people's eyes turn red, and when pushed, they'll do anything.
Since he had already stirred up widespread dissatisfaction, Simon had no desire to antagonize the entire world. Facing the various pleas and pressures, he went with the flow and promised not to conduct any more stock reductions in the short term.
This was a classic case of the tail wagging the dog.
In companies and even nations, there is never a shortage of clear-sighted people. They recognize the problems, but the weight of the past makes reform difficult. When a giant machine begins to collapse, those who try to stand in its path are often crushed.
That said, Simon had no intention of fully backing down.
This year's plan to reduce holdings had two main objectives: to curb speculative overheating in the tech sector and to raise capital.
Simon's goal was to cash out a total of $20 billion in 1996.
Since he had promised not to sell publicly for a while, at least for the next six months, he would consider conducting large block trades with institutions, as some had suggested.
He also planned to issue a corporate bond for Westeros in the near future.
Until now, Westeros had primarily relied on bank loans when it needed funds. This was convenient and quick, with no need to go through the cumbersome process of issuing bonds or disclosing excessive information. With the company's credit rating, Westeros often secured loans at very favorable rates.
However, raising over $10 billion in long-term debt with a term of more than ten years made loans less suitable.
The main issue with bank loans is their inflexibility, with many restrictions and little room for maneuvering when it comes to repayment. If a company runs into trouble, banks' demands for repayment can often be the final straw that breaks the camel's back, as they have priority over other creditors in a bankruptcy.
In contrast, corporate bonds offer much more flexibility. Once the funds are raised, there are few restrictions. In the event of trouble, bondholders can negotiate debt restructuring.
Given the scale of the Westeros System, the likelihood of repayment difficulties was low. Thus, the main reason for issuing bonds would be to lower costs.
Banks aim for profit, so corporate loans inevitably come with higher interest rates.
Bond investors, especially those who seek stable, low-risk returns with high credit ratings, are often more concerned with capital preservation than profits, which means lower costs for the bond issuer.
In fact, many companies within the Westeros System, such as Danelys, AOL, and others, have been issuing bonds in recent years. But Westeros itself hadn't done so yet, mainly because bond issuance requires extensive disclosure, something Simon had been reluctant to do.
Now, with the system being powerful enough, Simon felt he could selectively disclose information while issuing bonds.
Believe it or not.
Buy it or don't.
Following his promise not to sell in the short term, Simon let it be known over the weekend that he was open to private block sales.
In addition to the $2 billion worth of AOL stock that was announced on Friday and would continue to be sold on the secondary market, Simon planned to sell $30 billion worth of Danelys, Cisco, and AOL stock to institutions.
Now, it was up to the institutions to gather their funds.
And because it was a large block sale, Simon graciously offered a 10% discount to institutions.
This new sale, along with previous reductions in Danelys, Cisco, and AOL, would bring the total cash raised to over $60 billion.
Furthermore, with the upcoming IPOs of Thinkable, Melisandre, and Verizon, each expected to raise over $1 billion, Westeros was poised to raise at least $100 billion in the first half of the year. After paying capital gains taxes, Westeros would likely net more than $100 billion in cash.
Then, in the second half of the year, Westeros would issue $10 billion in corporate bonds.
Altogether, $20 billion—just enough to meet Simon's goal of accumulating funds.
Moreover, Simon didn't plan to completely abandon his efforts to suppress the Nasdaq. He would just be more discreet about it, doing what he could under the radar.
In fact, all this capital extraction was a form of suppression.
Anyone who noticed Simon Westeros continually pulling funds from the market would hesitate before charging headlong into the tech sector.
Once Simon's plans were leaked, responses came quickly.
Wall Street giants like Goldman Sachs and Morgan Stanley, along with international players like Credit Suisse, showed great interest in the stocks Simon planned to sell. However, they hoped for a deeper discount. Simon refused to budge.
Nonetheless, formal negotiations quickly began.
Simon also brought BlackRock, under Cersei Capital, into the mix, planning to offer them at least 10% of the deal. After all, as long as they weren't too greedy, buying now and selling later would yield hefty returns.
Of course, Simon wasn't about to forget his own people.
He instructed Laurence Fink to sell off all the acquired stock as soon as the six-month lock-up period expired, regardless of market conditions.
Perhaps because many had received assurances from Simon, once the weekend passed, the Nasdaq quickly returned to the 2900-point range, and the barrier to 3000 points seemed to have vanished—it was only a matter of time.
The plan to suppress the Nasdaq was barely underway when it was derailed, but Simon wasn't upset. He continued to push forward with the various initiatives of the Westeros System.
In any case, when the Nasdaq eventually crashes, the value of the companies within the Westeros System may plummet, but thanks to his preparations, the impact on Simon won't be severe. He'll also be in a prime position to expand his power at low cost during the ensuing chaos.
Wednesday, February 7.
Just after the AOL
sell-off event subsided, another piece of news related to Westeros broke.
That morning, Foster City, located in the San Francisco Bay Area, saw a press conference held by Gilead Sciences, a pharmaceutical startup. They announced a $120 million financing deal with Westeros, giving Westeros 4 million shares, amounting to a 32.8% stake, making it Gilead's largest shareholder.
Gilead Sciences was already a public company, and following this news, its stock price surged 17% within hours, pushing its market cap to $535 million. But most people were left confused.
Gilead?
What kind of company is this?
Within hours, Gilead's background was thoroughly dug up—helped along by the company itself.
But upon closer inspection, people found that the company's history wasn't exactly impressive.
Founded in 1987, Gilead focused on research in immunodeficiency and antiviral drugs. Over the past eight years, it had burned through nearly $100 million with little to show for it, surviving mostly on outsourced contracts from pharmaceutical giants like GlaxoSmithKline for minimal revenue.
Yet despite this, Gilead managed to IPO in 1992 and survive until now, which was seen as a small miracle.
Of course, that was just the surface.
Upon deeper investigation, people discovered some notable connections, such as a former U.S. Secretary of Defense, who was the youngest in the country's history. These ties likely played a significant role in keeping Gilead afloat. Moreover, Gilead was about to launch its first new drug.
According to the FDA, Gilead had submitted a drug called cidofovir for approval, intended to treat cytomegalovirus retinitis, a condition caused by HIV.
What?
After eight years and over $100 million burned, they came up with a drug to treat a rare, non-mainstream complication? Although Gilead painted the drug's prospects as bright—touting its intravenous injection method as an improvement over existing treatments requiring surgical catheterization—and projected over $150 million in annual revenue after its launch, not everyone was so easily fooled.
It didn't take long for someone to poke holes in Gilead's claims.
Given the limited demand for the drug, generating even $15 million in annual revenue would be a miracle, let alone $150 million.
It didn't make sense.
Why would Simon Westeros spend $120 million to invest in such a company?
Though people noticed that Simon got a 20% discount on Gilead stock before the news broke, if the company was worthless, even a 50% discount would still be throwing money away.
Could there be some hidden insider information?
Speculation ran rampant.
One eager researcher finally came up with what they believed was the key.
Gilead's primary focus was on AIDS research.
Since the disease gained widespread attention in the 1980s, AIDS has become one of the most feared illnesses across all social strata.
While the poor had no choice but to accept it, the wealthy were desperate for a cure.
This might explain why Gilead had consistently secured research funding over the years.
Simon Westeros could just be another wealthy investor hoping to conquer AIDS.
After all, he's not short on money.
And everyone knows he's quite the playboy.
Even if…
Well, it could be considered a precautionary investment, right?
So, everyone dispersed.
Given the influence of the Westeros System, mainstream media steered clear of these scandalous speculations. However, gossip tabloids and rumor sites were quick to hint at all sorts of salacious connections. Most people couldn't resist such juicy gossip, and even some elites found themselves eagerly discussing it.
Simon hadn't intended for the Westeros System's investment in Gilead to be too high-profile, even declining an invitation from the soon-to-be Chairman Donald Rumsfeld to attend the signing ceremony.
But he hadn't expected the media narrative to take such a wild turn, leaving him amused.
There's no shortage of sharp minds.
If Simon Westeros had only invested $120 million for personal reasons, he would've kept it as discreet as possible. There's no way it would've been made public. Since it was, this might actually signal something else: the Westeros System could be making a move into the healthcare industry.
If true, this would be an excellent opportunity to quietly follow suit.
The internet sector was already too hot. Entering now would not only carry increased risks but also make it harder to find high-quality investment projects. In comparison, healthcare could be a fresh new path. Following Simon Westeros might just be the right move.
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