Chasing Stars in Hollywood

News of Disney Chairman and CEO Michael Eisner's sudden heart attack and the announcement of Daenerys Entertainment Group's plan to establish a theme park in Europe quickly spread on Thursday.

Even though only three Disney executives were present when Eisner collapsed, some media outlets quickly linked the two events, speculating that Eisner's heart attack might have been triggered by hearing the "bad news" about Daenerys Entertainment's European Universal Studios.

During this period, Disney had received significant media coverage due to Jeffrey Katzenberg's fallout with Eisner and subsequent departure, Disney President Frank Wells's impending retirement, and Vivendi Group's acquisition attempt. Amidst the media frenzy surrounding Daenerys Entertainment's IPO, Disney still managed to secure considerable attention.

Disney's internal turmoil and years of declining performance had already led federal media and Wall Street to remain pessimistic about this major Hollywood studio.

The news of Vivendi Group's intent to acquire Disney had triggered a brief stock price rebound. However, following Eisner's heart attack and the exposure of Daenerys Entertainment's European Universal Studios plan, Disney's stock price began to fall again on Thursday.

Many media outlets and investors remained focused on Daenerys Entertainment.

With the disastrous performance of Euro Disney—a perpetually unprofitable theme park struggling even to declare bankruptcy—investors wondered if Daenerys Entertainment was doomed to repeat Disney's mistakes.

While it was clear that Daenerys Entertainment had significant financial resources following its recent IPO, there were concerns about the potential waste of funds on such an ambitious project.

However, some voices supported Daenerys Entertainment's move.

As Mark Belford, Daenerys Global Operations Vice President, stated in The Hollywood Reporter, the European film market was significantly larger than Japan's. Establishing a theme park in Europe would greatly benefit Daenerys Entertainment's brand promotion and expansion.

The potential advertising effect from hosting millions of visitors annually at the theme park could far outweigh the park's profitability.

In Simon's memory, Disney's global dominance was significantly bolstered by its theme parks, which added immense brand value, including the long-term loss-making Paris Disneyland.

From the opening of Paris Disneyland in 1992, Simon had been contemplating a similar plan.

The European market, comparable in size to North America's, warranted a Daenerys Entertainment Group theme park. Even if it incurred long-term losses like Paris Disneyland, it was a necessary step.

However, with the planning for Osaka Universal Studios just completed, Simon hadn't rushed to initiate two massive theme park projects simultaneously.

Now, the timing was right.

Releasing the news now not only furthered the plan but also helped Disney's hesitant shareholders decide to sell.

The site planning for the theme park would take at least one to two years. By then, Osaka Universal Studios would be operational, allowing Daenerys Entertainment to smoothly transition its planning team to Europe.

Following the exposure by The Hollywood Reporter in the morning, Daenerys Entertainment published a more detailed article on Eaglet's portal during the day, explaining the necessity of building European Universal Studios.

The market responded directly to Daenerys Entertainment's decision.

On Thursday, Daenerys Entertainment's stock price began to drop from the opening bell. By the afternoon close, it had fallen 2.6%, with its market value decreasing from $117.2 billion to $114.1 billion, losing $3 billion in a single day.

The management at Daenerys Entertainment remained unfazed.

Publicly and privately, Simon had repeatedly emphasized that Daenerys Entertainment's operations would not be influenced by short-term stock price fluctuations but would focus on long-term planning.

If investors didn't agree with Daenerys Entertainment's business philosophy, they were free to sell their shares.

With the current strength of the Westeros system, taking Daenerys Entertainment Group private again would be a breeze.

Meanwhile, Disney was in chaos.

Michael Eisner regained consciousness later that morning. However, his heart condition was dire, with multiple arteries over 98% blocked due to his hereditary heart disease exacerbated by long hours of work. Without immediate surgery, Eisner had less than a year to live.

Moreover, the surgery itself carried high risks.

Reporters gathered outside Mount Sinai Medical Center in Manhattan managed to obtain Eisner's heart examination results despite Disney's tight security.

While most people might not grasp the severity of over 98% arterial blockage, it was clear that Eisner wouldn't be able to resume his duties at Disney anytime soon.

With Disney's stock price slowly recovering due to the acquisition news, Eisner's health crisis and the European Universal Studios announcement caused a 3.3% drop, reducing the company's market value from $6.9 billion to $6.6 billion on Thursday.

By evening, Disney held a press conference to update Eisner's condition and announced that President Frank Wells would temporarily assume Eisner's duties. At the conference, Wells stated he had signed a temporary agreement with Disney to extend his tenure by a year until the company stabilized.

Disney also swiftly appointed Bill Mechanic, head of the Home Entertainment Division, as the new studio president, replacing Jeffrey Katzenberg and overseeing all film affairs.

When asked about Vivendi Group's acquisition offer, Wells diplomatically stated that it was a matter for Disney's board and major shareholders to consider, and his role was to manage the company.

Compared to Disney's firm rejection when the acquisition news first leaked, Wells's statement was noticeably more flexible.

The next morning, federal media were filled with reports on Hollywood's two major events from the previous day.

The media continued to link the two events.

Most media outlets remained skeptical about Daenerys Entertainment's European Universal Studios plan, revisiting all of Paris Disneyland's failures over the past two years.

While Eisner's sudden collapse had caused temporary chaos at Disney, Wells's statement at the press conference indicated a shift.

During an interview with an ABC reporter that morning, Sid Bass, the head of Disney's major shareholder Bass family, expressed reluctance to sell Disney shares, but his tone suggested he was considering it.

Disney's previous turmoil and decline, Eisner's health crisis, and the uncertainty introduced by Daenerys Entertainment's European Universal Studios plan for Paris Disneyland had significantly increased the likelihood of Disney being sold.

The federal media then realized another issue.

They couldn't let foreign capital continue to erode their cultural industry.

On Friday morning, The Washington Post published a commentary calling on the federal government to take measures to limit foreign acquisitions of major Hollywood studios. The Wall Street Journal also mentioned the media consolidation ban, stating that only the three major American networks could compete with Vivendi Group and create synergies. Therefore, to prevent this acquisition, Congress needed to quickly lift the media consolidation ban.

Responding to media calls, the White House spokesperson at the routine press conference stated that the President was very concerned about protecting the American cultural industry and had been in frequent communication with Congress. However, the final decision lay with Congress.

The spokesperson subtly criticized Congress for its inaction.

The White House even suggested that, if necessary, the President might have the Justice Department veto acquisitions that could affect American cultural development.

Despite Congress being controlled by the Democrats, Clinton's numerous initiatives had been obstructed, leading to strained relations between the White House and Congress.

Congress, unwilling to accept White House criticism, quickly retaliated.

Both sides engaged in a war of words.

The protection of the American cultural industry became a hot topic for Congressional candidates in the run-up to the midterm elections.

However, no one provided a definitive answer on when the media consolidation ban would be lifted.

Simon had been in San Francisco since Wednesday.

Besides overseeing various operations in the internet sector, Simon spent the past few days discussing the upcoming antitrust investigation by the Justice Department with the core management teams of Cisco, AOL, and Eaglet.

To prevent Congress from forming a special investigative committee and putting the Justice Department in a difficult position, the White House had hinted that the antitrust investigation against Cisco, AOL, and Eaglet was inevitable.

Simon had received confirmation that the investigation would begin at the end of July.

Given the White House's desire for a cooperative relationship, Simon wasn't about to resist.

How to cooperate?

The White House wanted achievements and something to show voters, so the Westeros system would deliver.

This approach was far better than an uncoordinated investigation with uncertain outcomes.

Additionally, reaching an understanding early on allowed the Westeros system to help shape public perception.

For example, Eaglet would voluntarily split its software division. Eaglet's software business didn't significantly complement its network operations, so the split wouldn't harm Eaglet's overall development.

Simon had anticipated such a move.

While the split wouldn't impact Eaglet much, it would be portrayed in the media as a major concession. The narrative would emphasize the severe damage Eaglet's software and network businesses had inflicted on the federal internet industry and the necessity of the split to prevent hindering small businesses' growth. It would also depict Daenerys Entertainment's fierce resistance to the government's attempt to split these businesses.

This narrative would satisfy the public and give the White House a political victory, while the Westeros system would streamline Eaglet.

Everyone would be happy.

Besides Eaglet, AOL and Cisco would also make concessions in the antitrust investigation.

AOL would give up its exclusive ten-year contracts with the major telecom operators. Cisco would promise to limit its equipment supply to AOL and other operators, leaving room for small businesses in the market.

Simon wasn't going to make these concessions immediately.

The negotiations and the final implementation of these concessions would span one to two years or longer.

Thus, by Friday, July 22, at 9 a.m., Simon arrived at an office building in Palo Alto, not far from Eaglet's headquarters, to attend the launch of the Instagram website, managed by Girl D.

After three months of development and internal testing, the photo-sharing site Instagram officially launched today.

The final design of the website was very similar to the Instagram Simon remembered: a simple "photo wall."

 Some investors, including a few women involved in Instagram's angel funding, worried that the site's simplicity might lack appeal. Simon, however, had no such concerns.

Simplicity and ease of use were key traits of many successful internet companies. Moreover, a simple interface didn't mean the site lacked features.

Google was a prime example of minimalistic internet design.

For Instagram, the crucial factors were users and rich content. Without these, even the most beautifully designed site would be ineffective.

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