[Chapter 417: Netscape Goes Public, Silicon Valley Goes Wild]
By the time the two meetings wrapped up, it was already 4 p.m.
Back in his office, just as Linton picked up his coffee, he saw Winnie walk in wearing a sharp, professional outfit. She wore a crisp white fitted blouse tucked into a tight pencil skirt, her legs clad in sheer black stockings, and stepped confidently in black high heels.
Her ample curves, high-arched hips, and sleek silhouette -- wow, this was pure secretary temptation!
It was the first time Linton had seen Winnie dress like this; was she trying to play the classic boss-and-secretary role for fun?
Just as he was lost in thought, Winnie handed him a folder with a serious expression but couldn't help smiling slightly.
"Darling, good news! Netscape officially went public on August 9th. The opening price was $32 per share, the stock soared to $75 at its highest that day, and it settled at $58.25 by closing. Since then, it's been fluctuating around $60, closing yesterday at $61.85."
"That's great news. So how many shares do we have now, and what are they worth? Come sit on my lap and tell me all about it," Linton said with a grin. Gently, he pulled Winnie toward him. She obliged, settling on his lap and wrapping her arms around his neck, planting a sweet kiss.
"Sweetheart, we now hold 17.955 million shares, accounting for 21.12% of the company. Based on yesterday's closing price, that's worth 1.11 billion dollars."
"Wow, that's incredible! Here, kiss me, muah..." As he spoke, Linton's hand began undoing the buttons of her blouse, slowly making its way up the enticing curves.
Winnie smiled brightly and didn't shy away; instead, she adjusted her position to make it easier for him. "Darling, this investment is a jackpot. Our first round put in just $4 million about a year and a half ago, the second round was $15 million seven months ago. Altogether, only $19 million invested, and now it's worth 1.11 billion. The total return is 58 times in such a short time. And from what I see, Netscape's growth is unstoppable."
"That's fantastic, babe. Looks like I owe you a proper reward..."
Before long, blouse, bra, and skirt fluttered down to the gleaming floor...
An intense office game began its passionate play...
Sweet melodies started filling the room...
...
Only when the sun was nearly sinking into the Pacific did they finally take a break.
Winnie, flushed and radiant, swallowed 'a protein shake' before sitting back on Linton's lap and sharing tales of Netscape's IPO drama.
"Darling, you know, Jim Clark really is something special. Back in July, the underwriter Goldman Sachs proposed a plan quantifying the total shares at 70 million. Our 25.65% stake meant those 17.955 million shares. The plan was originally to issue 15 million new shares at $16 each, valuing the company at $1.36 billion, with a fundraising goal of $240 million. Goldman Sachs had lined up investors and distributors at that price.
But just a week before the IPO, Jim felt that $16 per share seriously undervalued Netscape given the market outlook and its potential. He pushed hard to double the price to $32 per share, raising the fundraising goal to $480 million."
"Did Goldman Sachs and the investors buy it?"
"Yeah, when Jim Clark proposed that, everyone thought he was crazy."
"Even you?"
"Of course. Just think about it -- a company only a year and a half old, with browser sales just breaking $100 million and no profit in sight, a valuation of $1.36 billion already sounds wild. Doubling it? You'd think it was a pipe dream, right?"
"So what happened next?"
"Naturally, there was a standoff. You wouldn't believe, Netscape, Goldman Sachs, and all the distributors argued non-stop for three days and three nights. Harsh words, insults flew -- I couldn't even stand it and left after the first day. But Jim's stamina was impressive; he never left those meetings and finally forced Goldman Sachs and the distributors to agree to the new pricing."
"How did he manage that?"
"Two reasons. One, Netscape's browser was a must-have product with no credible competition. Two, Jim was convinced about the internet's future, especially after reading Nicholas Negroponte's book Digital Being. He believed the internet would revolutionize society and humanity at large, and Netscape was the gateway everyone would rely on."
"Those are convincing points, so everyone came around?"
"They did, but honestly, the distributors knew the stock would go up. They just didn't want their profit margin slashed at the last minute. But Jim held firm, and since no one wanted to miss out, all investors agreed in the end. When I first heard, I couldn't believe it -- thought I'd lost my mind!"
"Jim Clark definitely sounds like a madman."
"But he turned out to be totally right. Market response was overwhelming. The $32 stock was impossible to buy at the opening. The first trade was actually at $55 per share. At Nasdaq's bell-ringing ceremony, everyone was astounded. Then all hell broke loose."
"It's true - wealth has a way of making people crazy and drunk on power."
"Darling, Netscape's IPO has shaken Silicon Valley to its core. Just among Netscape insiders, three became centi-millionaires, ten became multi-millionaires, and over thirty millionaires surfaced. Mangrove Capital also got famous, now everyone's calling us lucky. This wealth creation story sent Silicon Valley and the whole internet industry into a frenzy. Within days, massive capital flooded in. Every internet startup became hot. Any pitch could pull in investors scrambling with their checkbooks."
"Is it really that crazy?"
"Worse than you think. I heard dozens of pitches previously rejected by Mangrove Capital all found investors recently -- at higher valuations and under harsher terms than before."
"Don't these investors worry about risk?"
"Nope. They're blinded by Netscape's success and the internet's future. I think the risk for internet venture capital just skyrocketed. Even with great projects, competition is fierce, and the entry bar is insanely high."
"So what's the plan?"
"This market's gone nuts, and VC is inherently risky. Right now, the risk has exploded beyond control. I plan to tighten Mangrove Capital's angel investments -- we'll only back the best. Unless a project comes knocking at our door, angel round deals won't happen. We'll focus on two areas: coach the projects we've already invested in, and get into the growth-stage startups doing well in the market, through their Series A and B rounds. Mind you, later rounds yield less profit, but the risk's also manageable."
"Smart move. Especially now, one has to keep a clear head and manage risk. By the way, how long is the lockup period on our Netscape shares?"
"Six months. Why, something feel off?"
"Just curious... I mean, you said the company just recently hit $100 million in sales with no profit in sight, yet its market cap is over $5 billion. The hype seems entirely based on the internet's potential and Netscape's early monopoly on browsers, right?"
"Hold on -- we're still talking about Netscape here, right? Yeah, the market's definitely overheated."
"I'm not derailing the conversation -- just mixing business with pleasure. But here's the crucial question: does Netscape have a strong patent wall or other technological defenses? Can it keep competitors at bay? What if a formidable rival emerges?"
"Ahh... I get it. I'll have someone dig into that. If Netscape lacks solid advantages, we might start selling shares after the lockup expires. Jim Clark's always worried our stake is too big and could threaten his control."
"Alright, babe, that's the Netscape story."
"Hmm... this time I'm definitely going to win..."
*****
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