I am Hollywood

[Chapter 1179: Refusal to Reconcile]

Although both movies were the third installments in their respective franchises, the performance of The Matrix Revolutions paled in comparison to the tremendous success of The Mummy 3. The film, handled by Amblin Entertainment after taking over from Firefly Group, only raked in $139 million at the North American box office. Its global earnings barely exceeded $400 million, both figures setting new lows for the series.

With a production and promotion budget exceeding $200 million, the global earnings of $400 million were nowhere near enough for Amblin to recoup its costs. Producers like Steven Spielberg could only hope that subsequent DVD sales and television deals would help mitigate the losses.

On the flip side, during that summer, another mid-budget production from Amblin, American Beauty, with a $15 million budget, achieved remarkable success, earning $130 million in North America and $350 million worldwide. However, Amblin's overall film division still faced severe losses, a situation that hastened the partners' decision to split ways.

Additionally, unexpected successes came from comedy stars Ben Stiller and Adam Sandler with There's Something About Mary and Big Daddy respectively. There's Something About Mary managed to achieve an excellent box office of $170 million with a $23 million production budget, while Big Daddy, costing slightly more at $34 million, still grossed $160 million in North America - both films exemplifying how small investments could yield substantial returns.

The success of these two movies heralded the rise of another two comedy giants in Hollywood following Jim Carrey.

From the box office performances, Firefly Group's Iron Man and Cars grossed over $500 million combined in North America, easily securing the top spot. Following closely were Fox and Universal; Fox's There's Something About Mary and Shrek amassed a total of $430 million, while Universal's Mummy 3 surpassed $300 million in North America. However, their romantic entry Notting Hill only crossed the $100 million mark, resulting in a cumulative North American box office of $420 million, slightly trailing behind Fox.

Warner, MGM, Paramount, and Columbia's films all struggled in the summer, collectively earning less than $300 million at the North American box office. Unlike previous years where independent films occasionally broke into the charts, this year only Amblin's The Matrix Revolutions and American Beauty managed to accumulate $260 million, making them the sole independent films to barely compete with the seven major studios.

This situation could largely be attributed to the tightening overseas capital investment in Hollywood in recent years and the monopolistic hold that the seven major studios had on film promotion and resources after their mergers. It seemed all but inevitable that once Amblin went under, the seven studios would entirely dominate Hollywood, leaving no room for new contenders.

...

As summer came to a close, the year-end season loomed closer. Eric's Gravity was set to debut on November 19, just a little over two months away, with the first eight-second teaser trailer releasing at the end of August.

Renovations on IMAX and 3D theaters around the globe were nearing their final adjustments. Including costs for real estate acquisitions and software updates, Firefly Group had poured over $1.9 billion into its ambitious '4200' plan.

While the group's aim was to promote the 3D and IMAX formats, many viewed it as merely Eric's extravagant maneuver to support his upcoming film. Ultimately, the public remained unaware of the detailed marketing strategy, and the media thrived on sensationalized reports. Given that Gravity only cost $100 million to make, the comparison with such massive expenditures inevitably tainted its actions with notions of recklessness. Thus, outsiders were doubtful of Firefly Group's initiative to promote 3D and IMAX.

However, such immense investment easily attracted attention, making Gravity one of the most anticipated films of 1999.

...

After spending a few days with Cindy on Martha's Vineyard, Eric returned to Manhattan. It was now the second week after the Firefly Group initiated litigation against @Home and Microsoft. The patent evidence provided by the two Firefly companies was indisputable, causing @Home's stock to plummet for over a week, with its initial $7.6 billion market cap dropping to just $2.6 billion.

In response to Yahoo's lawsuit, @Home's board, amid confusion, surprisingly sought help from Microsoft, even leaking news that Microsoft was about to acquire @Home. Yet, Microsoft, which had been in talks with @Home, promptly denied the acquisition rumors. Both parties understood that this dispute was essentially a collision between Microsoft and Firefly; conceding the acquisition would mean shouldering the burden of @Home.

Yahoo demanded $1 billion in compensation from @Home. Despite its multibillion-dollar valuation, even draining @Home wouldn't yield that sum. However, if Microsoft bought @Home at this juncture, it would be like the fat sheep willingly walking into the tiger's mouth -- Microsoft could easily cough up $1 billion.

As for Firefly Electronics' lawsuit against Microsoft's forthcoming Zune player, while the case wouldn't be resolved anytime soon, a week after the lawsuit was filed, the San Francisco district court issued an injunction preventing Microsoft from launching the Zune until the trial concluded. Although Microsoft quickly lodged an objection, it still canceled the planned Zune advertisements set to air on North American television.

Being another company that often relied on patent monopolies to suppress competitors, Microsoft understood that developing its search engine and digital music player businesses meant maneuvering around Firefly's patent barriers. Hence, Microsoft executives quickly reached out to Firefly, hoping for a reconciliation.

Initially, Bill Gates was reluctant to deal with Eric directly, opting for Microsoft President Steve Ballmer to make a few phone calls. However, with no results, Gates flew back to Manhattan once again.

...

In the Upper West Hydee, led by Eric's bodyguard to an unassuming apartment, Gates surveyed the modest building, puzzled as to why Eric would reside there, casting slight disdain in his mind. But when the door opened to reveal an attractive woman in flat sandals, towering over him with a perpetual smile and long legs, any lingering sense of satisfaction he had evaporated instantly.

"Hello, Mr. Gates," the girl said, showing no inclination to introduce herself. She slightly stepped aside and added, "Eric is waiting for you."

Gates was unaware of Carmen Kass's naturally distant demeanor, and after years of flattery, he misinterpreted her attitude as rudeness, transferring his irritation to Eric.

Walking into the apartment, he found Eric leisurely flipping through a magazine on the couch, and the recent pressing matters flooded back, making him want to kick someone. Of course, that was merely a thought; considering maintaining decorum in front of a beautiful woman, and given their age and physical differences, any conflict would only end badly for him.

"Hi, Bill," Eric said, rising to shake Gates' hand, gesturing for him to sit.

As Eric spoke, he noticed Carmen heading toward the kitchen and called out, "Carmen, that's fine; Bill will be leaving soon."

Carmen paused, softly acknowledging, and turned to the bedroom. Gates's expression soured; it seemed like even courtesy was too much to ask for.

Learning from the previous encounters, Eric didn't feel like putting on a facade anymore. After all, he couldn't drink.

With Carmen's figure disappearing, the atmosphere grew tense for a few seconds until Gates broke the silence, "Eric, what do you want?"

Setting down the magazine, Eric looked across, "Bill, I think the question is really what you want. On Microsoft's side, Firefly has shown its goodwill without reservation. I've always wished to maintain a cooperative relationship with Microsoft, but what do I get in return? I help Microsoft solve your biggest headache, and you try to break the contract?"

Gates retorted, "Microsoft didn't break any contracts; every version of Windows still ships with Yahoo! Browser pre-installed."

"That's because Microsoft's attempts failed," Eric shot back. "Are you going to deny that the sudden hearing initiated by the Justice Department has nothing to do with Microsoft?"

Gates hesitated before replying, "That was Steve's doing."

"I don't care about that," Eric shrugged. "So, it doesn't matter who you throw under the bus."

Gates tried to adopt a casual posture but ended up sitting up straighter, conceding, "Fine, Eric. I think we need to discuss how to resolve this matter."

Eric cut straight to the chase, asking, "So, what are Microsoft's terms?"

"Acquisition of relevant patents for @Home and Zune in return," Gates paused, his expression determined. "Microsoft won't pursue the patent infringements that Yahoo's mini music store devices pose on your software patents. We can also grant Yahoo certain patent licenses."

Eric laughed, "So that's all?"

"Eric, you must understand that the tablet devices Yahoo is developing can't avoid infringing on Microsoft's patents either way. This is a win-win situation."

Eric remembered that Microsoft had indeed been charging various patent fees from Android and that its Windows system had amassed a huge software patent pool, making it hard for any software OS to escape Microsoft's patents.

Of course, there were exceptions, primarily involving Apple. Apple's graphical OS predated Microsoft's and accumulated a considerable patent arsenal, alongside a history of controversies surrounding copycatting, which meant Microsoft seldom targeted Apple in patent disputes.

"If that's the case," Eric said, a cold smile creeping onto his lips, "Bill, congratulations, you've effectively drained my last bit of patience. I expected you to show up with substantial goodwill, but all you did was threaten me. Thus, the Firefly system won't seek a reconciliation with Microsoft. You can return to Seattle and get ready to sue over the mini music store. Rest assured, whether in search engines or digital music players, Microsoft can forget about getting involved."

Eric's words ignited Gates's temper, and he raised his voice, "Then Microsoft can equally push for a ban on Firefly Electronics' tablet. Eric, you should consider the repercussions."

"It seems you've overlooked something," Eric replied. "In operating systems, while Windows is dominant, it's not the only one out there. Regardless of how it's painted, Windows ultimately copied Apple's Macintosh. So, without Microsoft, Firefly Electronics can obtain OS patents from Apple. Conveniently, Firefly has also invested a considerable amount in Apple, so if necessary, I could even outright acquire Apple."

"Apple's system is outdated," Gates countered, raising his voice. "You should know why Microsoft keeps that company around. If Firefly acquires Apple, Microsoft can immediately take action against that entity."

"I only need the patents; I don't care if Apple goes under," Eric replied, still maintaining a cool tone with a hint of amusement. "Moreover, if Firefly completely acquires Apple, then Windows would also be required to utilize the Firefly system's patents."

"And what about Jobs? Do you think he would want you to acquire Apple?"

"Jobs had been ousted from Apple before; he can be ousted again. After all these years, it should be clear to everyone that he doesn't hold much weight when it comes to capital. I admire his talent, but when it comes down to it, Firefly would prioritize its interests," Eric concluded, pointing toward the door, "So, Bill, you can leave now."

Gates had never been known for being easy-going. He stood abruptly but hesitated, saying, "Eric, what you're doing doesn't help anyone."

"If I compromise with Microsoft, would that really be beneficial?" Eric scoffed, shooting a glance at Gates. "Your recent attitude has made it crystal clear that Firefly and Microsoft could never have a close partnership. I can no longer hold onto that hope. Even if Firefly reaches a reconciliation with Microsoft this time, what's to stop future conflicts? I genuinely believe that Microsoft is not a company that can be trusted."

*****

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