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1
00:00:01,871 --> 00:00:03,438
Did Microsoft
start bundling their
browser with their PCs?
2
00:00:03,481 --> 00:00:05,396
That would take a huge
bite out of our market share.
3
00:00:05,744 --> 00:00:06,919
Did they just threaten us?
4
00:00:06,963 --> 00:00:08,356
Maybe that's a good thing.
5
00:00:08,399 --> 00:00:10,488
Maybe they just broke the law.
6
00:00:10,532 --> 00:00:12,969
AOL's big deal with
Microsoft didn't miraculously
lift their stock price
7
00:00:13,013 --> 00:00:14,188
and now they're
crawling back to us.
8
00:00:14,231 --> 00:00:16,146
Let them find
another lifeline.
9
00:00:16,190 --> 00:00:18,409
You can
stop selling, we're in.
We'll be in touch.
10
00:00:18,453 --> 00:00:20,759
Alright.
11
00:00:20,803 --> 00:00:23,110
This guy who has been
calling himself Michael Fenne
is really David Kim Stanley,
12
00:00:23,849 --> 00:00:25,590
fugitive of the law.
13
00:00:25,634 --> 00:00:28,028
Why did Advance
Equities give Pixelon
$10 million-plus?
14
00:00:29,246 --> 00:00:32,423
Because they wanted to
take Pixelon public and
pump it and dump it on
15
00:00:32,467 --> 00:00:35,209
unsuspecting shareholders
and make a lot more money.
16
00:00:36,079 --> 00:00:38,516
We're
onto something here,
guys, I can feel it.
17
00:00:38,560 --> 00:00:41,171
Mike, Ed, I think
you guys feel it.
18
00:00:41,737 --> 00:00:43,217
We're connecting
people to each other.
19
00:00:43,260 --> 00:00:44,522
It's kinda powerful.
20
00:00:44,566 --> 00:00:46,437
We're actually not based here.
21
00:00:46,481 --> 00:00:48,744
Todd and I, we started
a little company
based out of New York.
22
00:00:48,787 --> 00:00:49,875
Hmm.
23
00:00:49,919 --> 00:00:51,094
It's this
online community.
24
00:00:51,138 --> 00:00:52,791
It's called TheGlobe.com.
25
00:00:52,835 --> 00:00:56,317
TheGlobe.com
that just got a $20
million in investments?
26
00:01:02,149 --> 00:01:05,239
You wanna
what an IPO feels like?
27
00:01:07,154 --> 00:01:09,460
It feels like
you're about to die.
28
00:01:09,504 --> 00:01:11,375
.
29
00:01:11,419 --> 00:01:12,811
.
30
00:01:12,855 --> 00:01:16,424
Jump already!
31
00:01:19,427 --> 00:01:21,429
You're standing
at heaven's gate,
32
00:01:21,472 --> 00:01:24,345
your whole life is
flashing before your eyes,
33
00:01:26,303 --> 00:01:28,697
and there's a judgment coming.
34
00:01:33,441 --> 00:01:36,879
Hey, hey,
hey, stop, stop!
35
00:01:38,707 --> 00:01:43,190
Um, look uh, before
you make a decision
you cannot take back,
36
00:01:43,538 --> 00:01:45,148
I need you to listen to me.
37
00:01:45,192 --> 00:01:47,977
I know it doesn't feel
like it right now, but:
38
00:01:48,020 --> 00:01:49,979
You. Matter.
39
00:01:50,022 --> 00:01:53,243
Why don't you just
come on down, huh?
40
00:01:53,287 --> 00:01:55,593
I'll make you
a chamomile tea,
41
00:01:55,637 --> 00:01:58,640
and we can
chat this thing right
on out, that sound good?
42
00:01:58,901 --> 00:02:00,903
It's a metaphor.
43
00:02:00,946 --> 00:02:02,078
For real?
44
00:02:02,122 --> 00:02:03,862
We're
in a metaphor here.
45
00:02:03,906 --> 00:02:05,125
C'mon, man!
46
00:02:05,168 --> 00:02:06,778
You know,
how about this!
47
00:02:06,822 --> 00:02:08,867
Next time we're in metaphor,
48
00:02:08,911 --> 00:02:10,782
you let me know,
okay, so I'm not out here
49
00:02:10,826 --> 00:02:13,785
having a friggin'
heart attack?!
50
00:02:44,512 --> 00:02:47,079
If you thought the Internet
bubble was about to burst,
51
00:02:47,123 --> 00:02:49,125
think again.
52
00:02:49,169 --> 00:02:51,736
While the Nasdaq,
points were up more than
70 points, a record high.
53
00:02:51,780 --> 00:02:55,784
Internet darling,
Yahoo is closing in
on a gain of 2,000%.
54
00:02:55,827 --> 00:02:58,569
I think Wall Street
both built and ruined the web.
55
00:02:58,613 --> 00:03:04,227
So there was just
the rush, the machine, that
was investors getting IPOs,
56
00:03:04,271 --> 00:03:05,794
getting the pop and
getting out.
57
00:03:05,837 --> 00:03:08,013
We we're always told, "you
want the long-term investor,"
58
00:03:08,057 --> 00:03:11,060
well, long-term
meant maybe 18 hours.
59
00:03:11,800 --> 00:03:14,411
Felt like a money-making
scheme for everybody involved.
60
00:03:14,455 --> 00:03:17,371
The usual roles for valuing
a stock such as revenues and
61
00:03:17,414 --> 00:03:19,329
earnings no longer apply.
62
00:03:19,677 --> 00:03:23,333
Suddenly the major
requirements that had
existed in the past for,
63
00:03:23,377 --> 00:03:26,031
for being able to do
an IPO just went away.
64
00:03:26,554 --> 00:03:28,643
Nobody knew really how to
measure this type of stuff.
65
00:03:28,686 --> 00:03:30,601
eToys says heavy advertising
66
00:03:30,645 --> 00:03:32,777
is necessary to
establish a brand name.
67
00:03:32,821 --> 00:03:34,910
The most important
thing for these companies to
do right now is to establish
68
00:03:34,953 --> 00:03:37,260
their market position,
not to be profitable.
69
00:03:37,521 --> 00:03:39,480
Companies
with only a website
were going public and
70
00:03:39,523 --> 00:03:42,091
making tens of
millions of dollars,
71
00:03:42,134 --> 00:03:45,747
or hundreds of millions or
billions of dollars on paper.
72
00:03:45,790 --> 00:03:48,706
All of a sudden you
were printing millionaires
out of nowhere,
73
00:03:49,359 --> 00:03:51,970
there was this
paper that suddenly you
could sell because these
74
00:03:52,014 --> 00:03:54,016
companies were going public.
75
00:03:54,495 --> 00:03:58,238
GeoCities went public last
August was up about 340%.
76
00:03:58,977 --> 00:04:04,722
Valuation prior to,
let's call this the Internet
boom, wouldn't have mattered,
77
00:04:05,157 --> 00:04:09,858
but because the media
paid such attention to the
initial public offerings
78
00:04:10,554 --> 00:04:14,732
at the time that if you
weren't worth a billion dollars
and your competitor was,
79
00:04:15,907 --> 00:04:18,388
it was almost like this
stain on your company.
80
00:04:18,823 --> 00:04:23,219
The myth-making was part
of the product making.
81
00:04:25,221 --> 00:04:28,050
Mmhm,
there you go, mmm.
82
00:04:28,093 --> 00:04:30,052
.
83
00:04:31,227 --> 00:04:34,186
Have a
wonderful, positive day.
84
00:04:34,230 --> 00:04:35,666
.
85
00:04:53,031 --> 00:04:55,207
You know what I
see in every cubicle here?
86
00:04:55,251 --> 00:04:56,339
A millionaire!
87
00:04:56,383 --> 00:04:57,471
That means you.
88
00:04:57,514 --> 00:04:59,995
And you. And you.
89
00:05:00,038 --> 00:05:02,998
And, hey, don't think I
forgot about your niece,
you have her come see me,
90
00:05:03,041 --> 00:05:04,652
we'll fix her up with a job.
91
00:05:04,695 --> 00:05:05,870
Hey buddy.
92
00:05:05,914 --> 00:05:07,481
Highlights bring
out your eyes.
93
00:05:07,524 --> 00:05:09,700
Never discount the
value of a makeover.
94
00:05:10,440 --> 00:05:12,399
Hey people!
95
00:05:12,442 --> 00:05:13,878
Oh, hey, I'm
glad you're here, we need
to talk about something.
96
00:05:13,922 --> 00:05:16,141
Hey, you are on it.
Isn't he on it?
97
00:05:16,185 --> 00:05:18,143
Hey, you all are on it.
98
00:05:18,187 --> 00:05:22,147
The energy in here is
electric, I can feel it
coursing through each and
99
00:05:22,191 --> 00:05:23,845
every one of you.
100
00:05:23,888 --> 00:05:26,456
I know you feel it
too, cause you all are
making history in here.
101
00:05:26,804 --> 00:05:31,200
This is the biggest,
star-studded musical
event ever, 'kay?
102
00:05:31,722 --> 00:05:34,029
A little bit country, a
lot rock and roll, and
everything in between.
103
00:05:34,072 --> 00:05:36,901
So keep moving forward
to get it done.
104
00:05:37,249 --> 00:05:38,686
Get-It-Done.
105
00:05:38,729 --> 00:05:40,209
Okay!
106
00:05:40,252 --> 00:05:42,559
It's amazing what can
happen once money arrives.
107
00:05:43,604 --> 00:05:47,825
And the idea was to
have this big crazy party
with all this you know,
108
00:05:48,696 --> 00:05:51,351
high-name talent I
think to you know to
market the company,
109
00:05:51,742 --> 00:05:53,788
to be able to say
hey, look, look at
what we're doing.
110
00:05:53,831 --> 00:05:56,704
Remember,
we're announcing to the world,
111
00:05:57,444 --> 00:06:00,011
Pixelon is number one
in Internet broadcasting.
112
00:06:01,056 --> 00:06:05,582
"Coming to you live,
full motion, full
screen, full speed.
113
00:06:06,496 --> 00:06:09,325
Pitch-perfect."
Write that down.
114
00:06:09,673 --> 00:06:11,414
Pitch-perfect.
115
00:06:11,458 --> 00:06:13,373
Oh, hey, that ain't
nothing compared to the
vision I had last night.
116
00:06:13,416 --> 00:06:16,027
The heavens suddenly
parted and what
was previously dark
117
00:06:16,071 --> 00:06:19,161
was suddenly
illuminated and clear,
so very, very clear.
118
00:06:19,814 --> 00:06:22,991
The writing, right in
front of my eyes, big
gold letters: iBash.
119
00:06:23,905 --> 00:06:26,429
We eventually
settled on iBash,
which was a suggestion that
120
00:06:26,473 --> 00:06:29,258
I had made so I'm
actually the person
who named iBash.
121
00:06:30,346 --> 00:06:32,043
iBash.
122
00:06:32,087 --> 00:06:33,436
It's not bad, man.
123
00:06:33,480 --> 00:06:35,395
It's absolutely good.
124
00:06:35,438 --> 00:06:37,005
Right?
125
00:06:37,484 --> 00:06:39,747
Oh hey,
we gotta' talk budget.
126
00:06:39,790 --> 00:06:41,444
Hey, no
limited thinking.
127
00:06:41,488 --> 00:06:43,664
I made you a promise whatever
you need, you'd have.
128
00:06:46,101 --> 00:06:49,800
iBash was
going to be a way that
Pixelon could immediately
129
00:06:49,844 --> 00:06:53,369
hit the market with
a huge amount of content.
130
00:06:53,891 --> 00:06:56,633
Hey, we
gotta get the Who.
131
00:07:06,774 --> 00:07:08,732
You know what I mean?
132
00:07:10,081 --> 00:07:13,433
With Internet
Explorer 3.0, we finally
had something on Netscape,
133
00:07:14,085 --> 00:07:16,740
we finally had something that
we were frankly proud of.
134
00:07:16,784 --> 00:07:21,223
Uh, up to that point
in time the browsers that we
shipped were kind of a joke and
135
00:07:22,180 --> 00:07:25,053
it was the first
one in which we actually
won competitive reviews.
136
00:07:25,575 --> 00:07:27,751
That really was
their first browser
where they took,
137
00:07:27,795 --> 00:07:29,666
I don't know exactly
what the numbers were,
138
00:07:29,710 --> 00:07:33,714
but they started
to take a big chunk
of our market share.
139
00:07:34,105 --> 00:07:37,369
They bundled
Internet Explorer into
their operating system with
140
00:07:37,413 --> 00:07:39,937
Windows 95 or somewhere
141
00:07:39,981 --> 00:07:45,943
in there for free in their
operating system which
was 90% of the market.
142
00:07:47,075 --> 00:07:50,121
That was a devastating blow.
143
00:07:50,687 --> 00:07:53,037
How long?
144
00:07:53,081 --> 00:07:56,171
Three, four
quarters before it blows
up our bottom line.
145
00:07:57,302 --> 00:07:59,043
It's the
damn definition of
predatory pricing!
146
00:07:59,087 --> 00:08:01,524
Which last time I checked,
was anti-trust level illegal.
147
00:08:01,568 --> 00:08:03,134
Am I wrong?
148
00:08:03,178 --> 00:08:04,527
There's definitely
an argument to be made, but...
149
00:08:04,571 --> 00:08:06,181
Nobody can
compete against free.
150
00:08:06,224 --> 00:08:08,313
Plus it's still an
inferior piece of coding.
151
00:08:08,357 --> 00:08:10,098
Roberta,
whadya got for us?
152
00:08:10,141 --> 00:08:12,143
Our focus needs
to be on the consent
decree Microsoft signed
153
00:08:12,187 --> 00:08:13,754
with the government.
154
00:08:13,797 --> 00:08:15,799
It forbids the company from
using its operating system and
155
00:08:15,843 --> 00:08:17,975
software dominance
to squash competition.
156
00:08:18,019 --> 00:08:19,542
Which is exactly
what they're doing.
157
00:08:19,586 --> 00:08:21,370
Is that right?
Doesn't surprise me.
158
00:08:21,413 --> 00:08:23,372
Okay, Microsoft is evil.
Got it.
159
00:08:23,415 --> 00:08:25,417
Did you all hear
the part where Jim says
we have three or four
160
00:08:25,461 --> 00:08:26,680
quarters before we're dead?
161
00:08:26,723 --> 00:08:29,900
You sure guys
don't want to sit down?
162
00:08:29,944 --> 00:08:32,642
We gotta staunch the
bleeding before everyone sees
just how badly we've been hit.
163
00:08:32,686 --> 00:08:36,080
We get out of the
water where the shark
has the advantage and
164
00:08:36,124 --> 00:08:38,692
back in the forest where
the bear has the advantage.
165
00:08:38,953 --> 00:08:41,129
Sharks and bears, oh my.
166
00:08:41,172 --> 00:08:45,786
I'm saying we make have
to build something that is
undeniable so companies and
167
00:08:45,829 --> 00:08:48,876
consumers have no choice
but to come back to us.
168
00:08:49,746 --> 00:08:51,879
E-commerce,
business-to-business.
169
00:08:51,922 --> 00:08:54,403
What's gonna' stop
Microsoft from ripping that
out from under us as well?
170
00:08:54,446 --> 00:08:55,926
Oh, I don't know. Laws?
171
00:08:55,970 --> 00:08:57,624
Let me handle that.
172
00:08:57,667 --> 00:08:59,756
We can't force the
DOJ to prosecute, but
we can give them all the
173
00:08:59,800 --> 00:09:01,323
ammunition they'll need.
174
00:09:01,366 --> 00:09:03,673
Alright.
Thanks, Roberta.
175
00:09:06,023 --> 00:09:11,202
Look, we're small and
agile, and they need to keep
feeding the Window's beast.
176
00:09:12,552 --> 00:09:15,729
So why don't we keep
our heads down, focus
on what we can control.
177
00:09:17,339 --> 00:09:19,384
Got it?
178
00:09:24,172 --> 00:09:25,521
.
179
00:09:25,565 --> 00:09:28,524
Hello.
Blow us a kiss up here.
Nice spoon.
180
00:09:30,047 --> 00:09:31,919
TheGlobe.com.
181
00:09:31,962 --> 00:09:33,964
Join a club, telekinetics.
182
00:09:37,228 --> 00:09:38,403
Hey baby!
183
00:09:38,447 --> 00:09:40,492
Gettin' lonely up here.
184
00:09:40,536 --> 00:09:42,233
Hey, hey, hey.
185
00:09:42,277 --> 00:09:43,931
.
186
00:09:43,974 --> 00:09:45,541
Who wants buffalo wings?
187
00:09:45,585 --> 00:09:47,412
From telekinetics to
football fanatics,
188
00:09:47,456 --> 00:09:48,979
you'll find thousands
of clubs to choose from.
189
00:09:49,023 --> 00:09:50,198
TheGlobe.com.
190
00:09:50,241 --> 00:09:52,069
Build
a world around you.
191
00:09:52,113 --> 00:09:53,244
The Internet
market was simply
heating up more and more.
192
00:09:53,288 --> 00:09:55,638
GeoCities had just
filed to go public.
193
00:09:55,682 --> 00:09:59,686
eBay and Yahoo and Netscape,
they were just really
rocketing and we realized,
194
00:10:00,904 --> 00:10:05,082
dammit, even with
Mike's 20 million,
we can't stay private,
195
00:10:05,909 --> 00:10:08,042
we're gonna actually
have to go public.
196
00:10:08,564 --> 00:10:13,264
We had this
huge amount of traffic, but
we did not have that paired
197
00:10:14,091 --> 00:10:16,224
with a working business model.
198
00:10:16,267 --> 00:10:20,358
We had to support what
used to be tens of thousands
of paying members and now
199
00:10:20,402 --> 00:10:25,276
millions of free members
and so we had to pay for
more servers, server farms,
200
00:10:25,799 --> 00:10:28,497
more electricity,
and more employees
and more programmers.
201
00:10:28,540 --> 00:10:31,239
Millions of dollars
were rapidly vanishing.
202
00:10:32,109 --> 00:10:34,546
These IPOs are
becoming this rite of passage
203
00:10:34,590 --> 00:10:36,679
that legitimizes
these companies,
204
00:10:36,723 --> 00:10:39,551
that distinguishes
the interesting Internet
companies from the best
205
00:10:39,595 --> 00:10:41,205
Internet companies.
206
00:10:41,249 --> 00:10:42,946
We met with all
the major banks.
207
00:10:42,990 --> 00:10:46,428
But there were two
banks in particular that
were hungry for this and
208
00:10:46,471 --> 00:10:49,083
they hadn't had yet a breakout
IPO in the tech sector.
209
00:10:49,779 --> 00:10:52,608
I guess we made the
fateful decision of going
with the Bear Stearns.
210
00:10:53,000 --> 00:10:54,654
So...
211
00:10:55,263 --> 00:10:58,222
We'd seen Lycos become a
multi-hundred-million-dollar
company.
212
00:10:58,266 --> 00:11:00,355
We'd seen Excite become a
multi-hundred-million-dollar
company.
213
00:11:00,398 --> 00:11:03,227
We'd seen Netscape become
a multi-hundred-million,
or billion-dollar company.
214
00:11:03,271 --> 00:11:07,492
And these other startups had
similar audience sizes to
us and were maybe building
215
00:11:07,536 --> 00:11:09,799
technologies that
were comparable.
216
00:11:11,758 --> 00:11:14,412
-Listen, a little too much
like Geocities...
-Nevermind Geocities...
217
00:11:15,239 --> 00:11:17,677
And so,
those comparables of
traffic size and audience
218
00:11:17,720 --> 00:11:20,201
started to equate,
get that higher valuation.
219
00:11:20,244 --> 00:11:21,855
Aren't those
numbers a little high?
220
00:11:21,898 --> 00:11:23,726
Maybe
not high enough?
221
00:11:23,770 --> 00:11:27,121
So before we
went on the road show, uh,
the bankers and Mike and Ed
222
00:11:27,164 --> 00:11:29,514
wanted us to have a
particular professional look.
223
00:11:30,472 --> 00:11:31,995
We did not
know how to pitch.
224
00:11:32,039 --> 00:11:34,302
We did not know how to dress.
225
00:11:34,345 --> 00:11:37,218
We did not know any part
of the process really.
226
00:11:37,609 --> 00:11:41,135
They asked
us to also get a coach
who could teach us how to
227
00:11:41,178 --> 00:11:43,572
present properly and
the physicality of it,
228
00:11:43,615 --> 00:11:46,923
because Todd and I each
had these little weird
idiosyncratic behaviors
229
00:11:48,011 --> 00:11:50,057
that needed to be addressed.
230
00:11:50,535 --> 00:11:53,451
Think of
online community like
your offline community.
231
00:11:53,843 --> 00:11:55,932
Except much bigger.
232
00:11:55,976 --> 00:11:58,065
In the next few years there's
going to be 100 million
people on the Internet.
233
00:11:59,022 --> 00:12:01,111
Do you have
to take a piss?
234
00:12:01,155 --> 00:12:02,765
Uh, no.
235
00:12:02,809 --> 00:12:05,768
We didn't understand
the communication style,
236
00:12:05,812 --> 00:12:08,640
and this was incredibly
frustrating to Steph.
237
00:12:08,684 --> 00:12:11,078
Are you defending
the goal on a free kick?
238
00:12:11,121 --> 00:12:13,210
No.
239
00:12:13,254 --> 00:12:14,995
Then why are
you standing there with your
hands in front of your balls?
240
00:12:15,909 --> 00:12:17,127
.
241
00:12:17,171 --> 00:12:19,129
Huh?
242
00:12:19,521 --> 00:12:22,524
Now we're
totally vulnerable if they
do kick a soccer ball at us.
243
00:12:22,785 --> 00:12:25,527
Something you want
to share with the class?
244
00:12:25,570 --> 00:12:27,529
No.
We're good.
245
00:12:27,747 --> 00:12:32,360
Todd and I had
always been dressing
totally casually.
246
00:12:33,753 --> 00:12:38,192
The bankers and Mike and Ed
were all in agreement this
is a traditional road show,
247
00:12:38,888 --> 00:12:42,370
we need to look like we're
professionals and we need to
look as old as we can look.
248
00:13:05,088 --> 00:13:06,742
.
249
00:13:06,960 --> 00:13:08,091
Oh, crap.
250
00:13:08,135 --> 00:13:09,440
Servers are down.
251
00:13:09,484 --> 00:13:11,225
Uh, I'm sorry, I gotta go.
252
00:13:12,617 --> 00:13:14,532
I'll go.
253
00:13:14,576 --> 00:13:16,578
No, no,
you're definitely better
dealing with the grownups.
254
00:13:16,621 --> 00:13:17,666
Am not.
255
00:13:17,709 --> 00:13:19,799
Nice try.
256
00:13:19,842 --> 00:13:21,539
How great will
it be when we can just get
back to running our company?
257
00:13:21,583 --> 00:13:23,367
With 30 million
more in capital to play with.
258
00:13:23,411 --> 00:13:25,108
This is actually
happening, isn't it?
259
00:13:25,152 --> 00:13:26,457
This is
actually happening!
260
00:13:30,331 --> 00:13:33,725
We had
been complaining to the DOJ,
loudly, and getting nowhere;
261
00:13:33,769 --> 00:13:36,598
but the bundling
gave us our strongest
argument for antitrust.
262
00:13:36,641 --> 00:13:40,428
We wrote a
220 page white paper that
compiled all Microsoft's
263
00:13:40,471 --> 00:13:42,082
crimes and misdemeanors.
264
00:13:42,125 --> 00:13:43,648
The reality of the
265
00:13:43,692 --> 00:13:45,085
high-technology industry.
266
00:13:45,128 --> 00:13:46,434
And read
like a pot boiler.
267
00:13:46,477 --> 00:13:48,044
Good for consumers.
268
00:13:48,088 --> 00:13:49,916
Oh, hey Roberta.
269
00:13:49,959 --> 00:13:53,049
Yeah, there was talk of
publishing it as a book,
court of public opinion.
270
00:13:53,093 --> 00:13:55,747
The title wasn't exactly sexy.
271
00:13:57,010 --> 00:13:59,360
Jim Barksdale
thought that releasing
the white paper to the public
272
00:13:59,403 --> 00:14:01,362
would make the
company look weak.
273
00:14:01,405 --> 00:14:04,278
The main thing about
a smoking gun is it means
someone's been shot.
274
00:14:04,713 --> 00:14:07,411
So it was decided
that the white paper would
have an audience of one.
275
00:14:07,455 --> 00:14:10,023
The DOJ said that if we
presented "credible evidence"
276
00:14:10,066 --> 00:14:12,112
they'd jump on it
like a dog on a bone.
277
00:14:12,155 --> 00:14:15,071
All of Microsoft's actions
have been completely legal.
278
00:14:15,376 --> 00:14:19,423
Of course the entire
DOJ team investigating
at the time consisted of
279
00:14:19,467 --> 00:14:22,296
two lawyers in a
San Francisco field office.
280
00:14:25,560 --> 00:14:28,955
So things moved a helluva
lot slower than we had hoped.
281
00:14:35,831 --> 00:14:38,616
From what I saw
Pixelon's goal was to...
282
00:14:38,660 --> 00:14:41,010
You have to understand,
it was before YouTube,
283
00:14:41,054 --> 00:14:43,926
so there wasn't any idea
of an online video portal,
284
00:14:43,970 --> 00:14:46,711
and I think that's what
Pixelon was really going for,
285
00:14:46,755 --> 00:14:50,498
was to be able to have
this destination where you
could go watch a ton of video.
286
00:14:50,977 --> 00:14:55,503
The idea was to get as
much content populated
on the site as possible.
287
00:14:55,764 --> 00:14:59,202
You switch here,
change input, it gets run
through the intake encoder.
288
00:14:59,986 --> 00:15:01,422
Okay.
289
00:15:01,465 --> 00:15:02,989
Then I edit output
and upload to the server.
290
00:15:03,032 --> 00:15:04,468
And now it's on our website.
291
00:15:04,512 --> 00:15:06,601
Okay.
292
00:15:06,644 --> 00:15:09,691
The technology
that we were utilizing at
Pixelon was definitely new and
293
00:15:09,734 --> 00:15:12,955
it was definitely
interesting and there wasn't
a lot like it out there.
294
00:15:14,043 --> 00:15:16,480
Full screen, TV style
video on the Internet.
295
00:15:16,524 --> 00:15:19,962
There just weren't
a lot of people that were
doing that kind of thing.
296
00:15:20,006 --> 00:15:23,661
So he told
you about the box?
297
00:15:23,705 --> 00:15:25,446
Yeah,
what's up with that?
298
00:15:25,489 --> 00:15:27,970
He said he spoke with
the CIA, that he's
got it booby trapped?
299
00:15:28,014 --> 00:15:29,276
Yeah, I know.
300
00:15:29,319 --> 00:15:30,407
It's weird.
301
00:15:30,451 --> 00:15:33,367
Just don't look,
don't touch, don't ask.
302
00:15:33,410 --> 00:15:35,282
Ok.
303
00:15:35,325 --> 00:15:38,938
That black rack
mounted box was off limits
for anybody to open.
304
00:15:39,721 --> 00:15:44,552
It was explained to us that
each of them had been booby
trapped to prevent reverse
305
00:15:44,595 --> 00:15:49,035
engineers from opening
it up and stealing the
technology out from under us.
306
00:15:49,818 --> 00:15:54,910
So the booby
trap was a acid pill, it
was explained to us that
307
00:15:55,258 --> 00:15:57,565
as soon as the case was open,
308
00:15:57,608 --> 00:16:01,221
an acid pill would break,
spilling acid into the computer
309
00:16:02,048 --> 00:16:04,615
and destroying the
internal components of it.
310
00:16:05,138 --> 00:16:08,619
I'm not really
sure if the protection inside
there was supposed to harm the
311
00:16:08,663 --> 00:16:12,058
individual going in there
or destroy the technology.
312
00:16:12,101 --> 00:16:14,843
My sense of things
was it was supposed to
destroy the technology.
313
00:16:16,018 --> 00:16:18,325
That rumor came
down from the top.
314
00:16:25,114 --> 00:16:26,289
So, I was thinking.
315
00:16:26,333 --> 00:16:27,899
Uh-huh.
316
00:16:27,943 --> 00:16:29,989
With our broadcasting
the Iowa Straw Poll next week.
317
00:16:30,032 --> 00:16:32,774
Hey, did I tell
you that my good friend
Ronnie Reagan called to
318
00:16:32,817 --> 00:16:35,168
congratulate me on our deal?
319
00:16:35,211 --> 00:16:37,605
Yeah, just yesterday.
320
00:16:37,648 --> 00:16:41,304
He and Nancy are very
excited about what Pixelon's
doing do for the GOP,
321
00:16:41,348 --> 00:16:44,003
bringing 'em into
the Internet age.
322
00:16:44,351 --> 00:16:47,049
Exactly, it's
our biggest event so
far, so I was thinking,
323
00:16:47,093 --> 00:16:49,399
we should do a test run.
324
00:16:49,443 --> 00:16:51,271
Why would I do that?
325
00:16:51,314 --> 00:16:53,012
Well, to find out
if there are any kinks and,
326
00:16:53,055 --> 00:16:56,406
if there are, iron them out.
327
00:16:56,450 --> 00:16:58,060
You think
there are kinks?
328
00:16:58,104 --> 00:17:00,193
No, no, no, I'm not
saying there are any kinks.
329
00:17:03,544 --> 00:17:05,763
I'm just
messing with you, Barry.
330
00:17:05,807 --> 00:17:09,593
I appreciate your
diligence, but this is
way above your pay grade.
331
00:17:09,637 --> 00:17:13,119
Engineering and high-tech
stuff's best left to me
and my programmer, okay?
332
00:17:16,122 --> 00:17:18,950
Barry, you look exhausted.
333
00:17:20,256 --> 00:17:21,649
Very pale.
334
00:17:21,692 --> 00:17:23,172
Are you tired?
335
00:17:23,216 --> 00:17:25,435
Yeah, I've been
working 18-hour shifts.
336
00:17:25,479 --> 00:17:27,176
Ok.
337
00:17:27,220 --> 00:17:29,613
Here's what I want you to do.
338
00:17:29,657 --> 00:17:31,267
I want you to go home,
339
00:17:31,311 --> 00:17:33,095
take the rest of the
day off, just get
some sleep, okay?
340
00:17:33,139 --> 00:17:34,531
Thanks.
341
00:17:34,575 --> 00:17:36,272
But if you do a test
run, if I could be there.
342
00:17:36,316 --> 00:17:39,623
"Even a fool,
when he holdeth his
peace, is counted wise;
343
00:17:39,667 --> 00:17:43,279
and he that shutteth
his lips is esteemed a
man of understanding."
344
00:17:43,323 --> 00:17:46,021
Proverbs 17:28.
345
00:17:46,065 --> 00:17:50,765
The Lord fuels us to do his
work, but the body is weak.
346
00:17:55,248 --> 00:17:57,293
.
347
00:17:57,337 --> 00:17:59,426
Where the
hell is the DOJ?
348
00:17:59,469 --> 00:18:01,123
Gathering their evidence.
349
00:18:01,167 --> 00:18:03,865
The wheels of justice don't
turn on Netscape time.
350
00:18:03,908 --> 00:18:05,780
How much more credible
does it have to get?
351
00:18:05,823 --> 00:18:08,913
We can't mistake a clear
view for a short distance.
352
00:18:09,740 --> 00:18:11,525
Things Marc Andreessen
doesn't like:
353
00:18:11,568 --> 00:18:13,744
nostalgia, parties
and physical displays
354
00:18:13,788 --> 00:18:16,704
of just touching.
355
00:18:16,921 --> 00:18:18,619
Not necessarily in that order.
356
00:18:18,662 --> 00:18:20,882
I never took
you for someone whose
plan for the future
357
00:18:20,925 --> 00:18:22,753
relies on white knights.
358
00:18:22,797 --> 00:18:26,888
Yeah, well
screw you and the patience
you're trying to teach me.
359
00:18:27,149 --> 00:18:29,195
My pleasure.
360
00:18:29,238 --> 00:18:32,589
You know, I learned
a while ago that if you make
your mission real clear and
361
00:18:32,633 --> 00:18:34,939
a lot of smart
people work on it,
you'll figure it out.
362
00:18:35,244 --> 00:18:37,507
We got a simple mission
and you know it's
never really changed.
363
00:18:37,551 --> 00:18:40,119
Keep the Internet open.
364
00:18:40,162 --> 00:18:42,860
Keep creating
products that are
important and relevant,
365
00:18:42,904 --> 00:18:45,733
make a whole lot
of people's lives
a whole lot better,
366
00:18:46,037 --> 00:18:48,562
something we call
changing the world.
367
00:18:48,779 --> 00:18:51,130
Yeah!
368
00:18:52,479 --> 00:18:55,743
So your job is
to keep running as fast as
you can toward that cliff.
369
00:18:56,874 --> 00:19:00,095
My job is to keep
moving the cliff.
370
00:19:01,792 --> 00:19:03,751
We were ready to
go on the actual road show.
371
00:19:03,794 --> 00:19:07,102
We wanted to go as fast
as we could because
our competitors,
372
00:19:07,146 --> 00:19:08,321
they, they, you know,
373
00:19:08,364 --> 00:19:10,410
GeoCities, they had
already gone public.
374
00:19:10,453 --> 00:19:14,718
They were safely on the
other side, flush with cash,
and we were sitting here
375
00:19:14,762 --> 00:19:17,895
hurrying up trying to see
if we could make it before
this IPO window closed.
376
00:19:18,592 --> 00:19:22,204
To refresh your memory,
a road show's where you
go and whore yourself out
377
00:19:22,248 --> 00:19:24,467
to all the major
institutional investors
378
00:19:24,511 --> 00:19:26,730
and big money managers
in the country to drum up
379
00:19:26,774 --> 00:19:28,384
interest in your IPO.
380
00:19:28,428 --> 00:19:30,169
You get five minutes to tell.
381
00:19:30,212 --> 00:19:32,693
These stodgy, grey-haired
guys what the Internet is,
382
00:19:32,736 --> 00:19:34,695
and why they need to own
a piece of your company.
383
00:19:34,956 --> 00:19:37,437
All in 10
luxurious, fun-filled days.
384
00:19:38,089 --> 00:19:39,700
Yay.
385
00:19:39,743 --> 00:19:41,441
Remember the
Netscape road show?
386
00:19:41,484 --> 00:19:43,399
Goodness.
387
00:19:43,443 --> 00:19:48,448
Thank you uh for having
us and thank you for
inviting the entire world.
388
00:19:49,536 --> 00:19:50,928
.
389
00:19:50,972 --> 00:19:53,061
Yeah, ours
wasn't quite like that.
390
00:19:54,671 --> 00:19:57,108
So what
do you guys think?
391
00:20:04,028 --> 00:20:07,293
Mm. Any questions?
392
00:20:09,077 --> 00:20:11,166
We started
on our road show,
393
00:20:11,210 --> 00:20:14,952
which is expensive
and time consuming.
394
00:20:14,996 --> 00:20:18,478
And in that time the
NASDAQ really falls apart.
395
00:20:19,522 --> 00:20:21,872
Wall Street is growing tired
with the Internet itself.
396
00:20:21,916 --> 00:20:24,962
The once red hot initial
public offering market
has cooled recently.
397
00:20:25,441 --> 00:20:26,921
Things were a bit in a flux,
398
00:20:26,964 --> 00:20:28,575
investors were definitely
a little cautious here.
399
00:20:28,618 --> 00:20:31,186
Nearly 80 new issues have
been yanked so far this year.
400
00:20:32,056 --> 00:20:33,449
I mean,
it was unbelievable.
401
00:20:33,493 --> 00:20:35,495
I mean, you couldn't
script this thing.
402
00:20:35,538 --> 00:20:38,019
Like we just filed to go
public and you're telling
us the market just died?
403
00:20:39,281 --> 00:20:41,065
Thank God
only five more cities.
404
00:20:41,109 --> 00:20:42,980
Six.
405
00:20:43,024 --> 00:20:45,069
Did that guy
really say, "Well I guess
all you young people
406
00:20:45,113 --> 00:20:47,768
will have to go back to
working for a living now?"
407
00:20:48,029 --> 00:20:51,075
At least he
didn't keep leaving the
room to check his stocks.
408
00:20:53,991 --> 00:20:56,255
You know, according
to the bottle, you're
actually supposed to wash
409
00:20:56,298 --> 00:20:58,561
cold medicine down
with gin, not vodka.
410
00:20:58,605 --> 00:21:00,389
It's soothing.
411
00:21:00,694 --> 00:21:03,349
170 other companies have
already pulled their IPOs.
412
00:21:03,392 --> 00:21:05,176
174.
413
00:21:05,220 --> 00:21:07,004
Everyone's asking,
why are we out here?
414
00:21:07,048 --> 00:21:09,268
We're either
braver or dumber.
415
00:21:09,311 --> 00:21:11,139
And more in need of money.
416
00:21:11,182 --> 00:21:13,315
Oh, thank you
for driving that point home,
417
00:21:13,359 --> 00:21:15,099
that would have been
totally lost on me.
418
00:21:15,143 --> 00:21:18,277
Want to go into how
if this doesn't happen
we'll have to fire,
419
00:21:18,320 --> 00:21:20,931
why don't you tell
me how many people, since
you always go into it.
420
00:21:20,975 --> 00:21:22,019
Always?
421
00:21:22,063 --> 00:21:25,240
You want to get
into always now?
422
00:21:33,770 --> 00:21:35,772
-Alright, one more.
423
00:21:37,513 --> 00:21:39,428
Why don't you work?
424
00:21:41,212 --> 00:21:42,910
This sucks!
425
00:21:43,214 --> 00:21:44,694
C'mon, why don't you work?
426
00:21:44,738 --> 00:21:47,218
No, no, no, no!
427
00:21:49,220 --> 00:21:51,875
Oh, suck it, ah!
428
00:21:52,136 --> 00:21:53,355
No!
429
00:21:53,399 --> 00:21:55,749
Damn it, Sean!
What?
430
00:21:56,053 --> 00:21:57,751
"What?"
431
00:21:58,665 --> 00:22:01,058
I think I broke it.
432
00:22:02,408 --> 00:22:05,802
Yep, we're gonna have
to change the installer code.
433
00:22:06,194 --> 00:22:10,285
Three engineers,
12 hour days, add
on 3 more days, guys.
434
00:22:11,373 --> 00:22:12,548
I'm sorry.
435
00:22:12,592 --> 00:22:14,028
No, not sorry.
436
00:22:14,071 --> 00:22:15,334
Booze.
437
00:22:15,377 --> 00:22:17,597
Tequila, please.
438
00:22:17,640 --> 00:22:19,860
Top shelf, none of
that no label crap.
439
00:22:22,079 --> 00:22:26,823
Bribery booze was a
glorious tradition where
every time the build team
440
00:22:26,867 --> 00:22:29,217
got completely hammered by
something the engineers did,
441
00:22:29,260 --> 00:22:31,132
um, usually, inadvertently,
442
00:22:31,175 --> 00:22:33,134
they would bring
us some booze.
443
00:22:33,177 --> 00:22:36,093
And by version 4 of
the Navigator, actually we
were kinda calculating how
444
00:22:36,137 --> 00:22:39,401
successful the
development of the Navigator
was going by how much
445
00:22:39,445 --> 00:22:41,055
booze the build team had.
446
00:22:41,360 --> 00:22:43,057
We'd drink it all too!
447
00:22:43,100 --> 00:22:45,276
It was like, oh, God,
it's 10:00 at night,
who wants a shot, right?
448
00:22:45,581 --> 00:22:47,627
Totally unprofessional,
but it was awesome.
449
00:22:47,844 --> 00:22:50,020
Who wants a shot?
450
00:22:51,892 --> 00:22:53,720
.
451
00:23:05,732 --> 00:23:07,777
Okay.
452
00:23:08,604 --> 00:23:10,737
Ah, it's hideous.
453
00:23:10,780 --> 00:23:14,088
You know,
Microsoft was in town,
they had this big like
454
00:23:14,131 --> 00:23:16,917
cardboard or plastic
board you know "e" logo,
455
00:23:18,353 --> 00:23:21,791
and uh yeah they
bring it over and they
plant it right in front
456
00:23:21,835 --> 00:23:23,663
of Netscape headquarters.
457
00:23:23,706 --> 00:23:26,405
Unbelievable.
458
00:23:26,709 --> 00:23:28,581
"It's just not fair.
459
00:23:28,624 --> 00:23:30,887
Good people should'nt
have to feel bad.
460
00:23:30,931 --> 00:23:33,107
The IE team."
461
00:23:33,324 --> 00:23:36,110
That's their
idea of funny, what the
hell does it even mean?
462
00:23:36,153 --> 00:23:38,808
They talk trash as
lame as they write code.
463
00:23:39,330 --> 00:23:40,941
I do
remember that event.
464
00:23:40,984 --> 00:23:42,464
.
465
00:23:42,508 --> 00:23:45,075
You know, I just thought
it was a desperate act.
466
00:23:45,119 --> 00:23:48,165
I remember thinking that
it made them look dumb.
467
00:23:49,515 --> 00:23:53,736
You know, it's sort of like,
when you're a big giant and
you have to go stomp on the
468
00:23:53,780 --> 00:23:56,086
smaller competitor?
469
00:23:56,696 --> 00:24:00,439
You give the smaller
competitor credibility.
470
00:24:00,656 --> 00:24:03,529
Word spread
quickly and somebody
got the brilliant idea,
471
00:24:03,572 --> 00:24:06,053
like oh well
we've got Mozilla.
472
00:24:06,096 --> 00:24:09,796
Mozilla, was this
dinosaur like creature which
was our mascot for our company
473
00:24:09,839 --> 00:24:14,888
and our browser and so
we put that on top of their
brand and put a market share
474
00:24:14,931 --> 00:24:17,717
number up there and said,
"We're still dominant."
475
00:24:18,457 --> 00:24:21,068
Yeah, whoo!
476
00:24:25,855 --> 00:24:29,032
I can't believe they
gave us this opportunity to
have this totally symbolic,
477
00:24:29,076 --> 00:24:33,210
Mozilla's totally stomping
on Internet Explorer and
uh, it was really glorious.
478
00:24:49,618 --> 00:24:51,446
.
479
00:24:58,409 --> 00:25:03,110
What Pixelon
said was that they had
a super whizzbang codec that
480
00:25:03,153 --> 00:25:05,460
blew away everybody else.
481
00:25:05,504 --> 00:25:07,288
And that was their big lie.
482
00:25:07,331 --> 00:25:11,466
Pixelon had
never streamed anything
live at this point.
483
00:25:12,293 --> 00:25:15,296
We did stream the
Iowa Straw Pole.
484
00:25:17,254 --> 00:25:19,256
Yeah!
485
00:25:19,300 --> 00:25:21,911
.
486
00:25:21,955 --> 00:25:25,654
Whoo, congratulations!
487
00:25:30,180 --> 00:25:32,879
When we streamed
the Iowa Straw Pole that
was the first time it was
488
00:25:32,922 --> 00:25:37,013
exposed that Pixelon
had no capability of
doing anything live.
489
00:25:37,057 --> 00:25:41,104
We tapped into I think
it was Iowa Public Television
and we were actually
490
00:25:41,148 --> 00:25:44,368
receiving that
signal via satellite
from the satellite truck
491
00:25:44,412 --> 00:25:46,719
that we'd just paid
100 grand for encoding
492
00:25:46,762 --> 00:25:50,200
it, but not with
Pixelon's technology.
493
00:25:51,898 --> 00:25:53,682
It wasn't possible.
494
00:25:53,726 --> 00:25:56,511
The claim was
that the technology
was proprietary,
495
00:25:56,555 --> 00:25:59,906
it was all built
in house from the
ground up by Pixelon.
496
00:26:00,689 --> 00:26:03,605
Searches that I did
with the U.S. Patent office
497
00:26:03,649 --> 00:26:07,000
didn't turn up a
single registered patent.
498
00:26:07,870 --> 00:26:09,872
People did see
it on the Internet.
499
00:26:09,916 --> 00:26:12,440
They didn't see it
full-screen, full motion.
500
00:26:12,483 --> 00:26:14,964
Plenty more,
this is just for the toast.
501
00:26:15,008 --> 00:26:17,924
.
502
00:26:21,362 --> 00:26:23,799
The technology
that's supposed to
be delivering this over the
503
00:26:23,843 --> 00:26:26,672
Internet is the thing
that we're supposed
to be delivering.
504
00:26:27,324 --> 00:26:31,851
When it came time for
us to actually demonstrate
that, we failed.
505
00:26:32,678 --> 00:26:34,810
Not only did we fail,
we didn't even try.
506
00:26:35,724 --> 00:26:42,165
We used Windows
Media Encoder and the
Windows Media Player to
507
00:26:43,602 --> 00:26:46,256
actually facilitate that.
508
00:26:49,129 --> 00:26:52,349
Bear Stearns told us all the
institutions are spooked.
509
00:26:53,655 --> 00:26:57,354
Everyone was saying it
looks like we're entering
a recessionary period.
510
00:26:57,398 --> 00:27:00,706
If we couldn't
go public, it was game
over for going public.
511
00:27:01,924 --> 00:27:04,361
Hey, can I
still get into the IPO?
512
00:27:04,405 --> 00:27:06,450
Too late for
friends and family?
513
00:27:06,494 --> 00:27:08,061
You are neither.
514
00:27:08,104 --> 00:27:11,020
I think some degree of
panic was setting in.
515
00:27:11,368 --> 00:27:14,676
You want to be confident
and project how great
things are going, right?
516
00:27:14,720 --> 00:27:18,114
'Cause all the other guys
are living it up and their
careers are going great and
517
00:27:18,158 --> 00:27:19,812
the money's rolling in.
518
00:27:19,855 --> 00:27:24,686
And meanwhile in the
back of your mind you've
got this problem that
519
00:27:24,730 --> 00:27:26,819
your company might just die.
520
00:27:44,619 --> 00:27:46,490
What?
521
00:27:50,451 --> 00:27:52,148
What?
522
00:27:52,192 --> 00:27:53,672
.
523
00:27:53,715 --> 00:27:56,239
What?
524
00:27:59,939 --> 00:28:02,898
What?
525
00:28:05,292 --> 00:28:09,209
I could take you
through the whole thing,
but suffice it to say:
526
00:28:10,558 --> 00:28:12,908
I'd never met anyone
like Jenn before.
527
00:28:25,616 --> 00:28:27,618
Guten morgen!
528
00:28:28,794 --> 00:28:31,057
Okay, I know
what I'm smiling about.
529
00:28:31,100 --> 00:28:33,276
The question is, what
are you smiling about?
530
00:28:34,234 --> 00:28:36,236
We got the call!
531
00:28:36,453 --> 00:28:38,717
Bear Stearns is getting
inbound calls from all
the companies we met with,
532
00:28:39,282 --> 00:28:40,370
they're interested.
533
00:28:40,414 --> 00:28:41,763
IPO, baby.
534
00:28:41,807 --> 00:28:44,723
I-P-O, whoo!
535
00:28:46,420 --> 00:28:47,769
Three days, we
only have until?
536
00:28:47,813 --> 00:28:49,292
Friday.
537
00:28:49,336 --> 00:28:50,729
.
538
00:28:50,772 --> 00:28:53,383
Hello, it's Jerry
from Bear Stearns.
539
00:28:54,210 --> 00:28:56,822
Jerry, I'm here
with Steph right now,
we are so excited.
540
00:28:57,823 --> 00:29:00,608
Bear Stearns called us
up and said, listen the
markets very turbulent,
541
00:29:00,651 --> 00:29:03,742
we strongly recommend you
just get out into the public,
542
00:29:04,438 --> 00:29:06,353
that's what's most important,
543
00:29:06,396 --> 00:29:09,095
take what you can and
just go and do it.
544
00:29:09,573 --> 00:29:11,575
Todd and I,
being as inexperienced
as we were,
545
00:29:11,619 --> 00:29:13,795
we didn't know how
hard we could push back.
546
00:29:13,839 --> 00:29:16,842
If we're getting all this
unprecedented demand that Bear
Stearns was telling about,
547
00:29:16,885 --> 00:29:18,931
why can't we move the price?
548
00:29:18,974 --> 00:29:22,369
Yesterday you told
us we have 45 million
shares of demand for our
549
00:29:22,412 --> 00:29:24,284
three-million share offering.
550
00:29:24,327 --> 00:29:26,590
And two days ago we
couldn't sell a single share.
551
00:29:26,634 --> 00:29:29,158
C'mon, we gotta
get it higher than $8.
552
00:29:29,550 --> 00:29:31,595
Pricing is
a delicate balance.
553
00:29:31,639 --> 00:29:33,859
Ok, you've got to leave
enough meat on the bone
so people will want to keep
554
00:29:33,902 --> 00:29:35,512
coming back and feeding.
555
00:29:35,556 --> 00:29:37,601
Nearly twelve times
demand's "not a little meat."
556
00:29:37,645 --> 00:29:39,168
There has to
be a middle ground.
557
00:29:39,212 --> 00:29:40,691
.
558
00:29:40,735 --> 00:29:41,997
Gesundheit.
559
00:29:42,041 --> 00:29:43,564
Hey, are you lost?
560
00:29:43,607 --> 00:29:44,739
What's your name?
561
00:29:44,783 --> 00:29:46,741
I'm Izzy Young.
562
00:29:50,789 --> 00:29:52,878
Okay, well,
Izzy Young, you can't.
563
00:29:52,921 --> 00:29:55,097
And I'm pretty good
at math, so don't worry,
564
00:29:55,141 --> 00:29:57,578
I can make this
simple for you.
565
00:29:57,839 --> 00:29:59,710
When a company is trading,
566
00:29:59,754 --> 00:30:02,757
the price of its stock
is made by something
called supply and demand.
567
00:30:02,801 --> 00:30:06,674
But in an IPO, the
bankers already figured
that out and they come up
568
00:30:06,717 --> 00:30:08,415
with an offering price.
569
00:30:08,458 --> 00:30:11,679
It's kind of hard
to tell who makes the
most money in IPOs,
570
00:30:11,722 --> 00:30:14,247
so let's see the winnings
if they price it at $8
571
00:30:14,290 --> 00:30:16,553
and it sells at $8.
572
00:30:17,946 --> 00:30:23,299
This bigger pile is for
our guys and this smaller
pile's for the old dudes.
573
00:30:24,257 --> 00:30:26,346
But don't feel too
bad for the bankers.
574
00:30:26,389 --> 00:30:29,131
Grape jelly, ugh.
575
00:30:29,915 --> 00:30:32,743
Ok, now let's see
what happens when the
stock is underpriced.
576
00:30:33,266 --> 00:30:37,270
The stock shoots up like
a rocket on the first day
of trading, blows up 100%!
577
00:30:41,143 --> 00:30:44,755
Bankers, it turns out,
are really good to their
BFFs and big clients,
578
00:30:46,105 --> 00:30:49,456
Friends of Finance, they get
onto IPOs before anyone else!
579
00:30:50,805 --> 00:30:55,244
Ok, now let's see what
happens when the price
for all this triples!
580
00:30:58,813 --> 00:31:02,164
The bank's big clients
can sells the stock right
away for a huge profits.
581
00:31:15,525 --> 00:31:18,267
And pass some
of that back to their
bankers in commissions
582
00:31:18,311 --> 00:31:20,400
and more business.
583
00:31:25,448 --> 00:31:27,929
So yeah, they
get a ton of money,
584
00:31:28,364 --> 00:31:32,107
but everyone else,
these other people who
came onto the scene like
585
00:31:32,151 --> 00:31:35,763
three months ago who
didn't create anything,
get so much more.
586
00:31:37,025 --> 00:31:39,027
It's totally not fair,
587
00:31:39,071 --> 00:31:41,856
but once you
agree to an offering
price, no matter what,
588
00:31:41,900 --> 00:31:43,466
that's all you get.
589
00:31:43,510 --> 00:31:45,642
And that is how
the game is played.
590
00:31:45,686 --> 00:31:48,515
When I grow up, I want to
be an investment banker.
591
00:31:52,084 --> 00:31:57,567
So, the thing is,
I was looking at our encoded
video for the Straw Poll and.
592
00:31:58,481 --> 00:32:00,396
And?
593
00:32:01,745 --> 00:32:03,573
It's
Windows Media Player.
594
00:32:03,617 --> 00:32:05,619
A doctored version, but still.
595
00:32:05,967 --> 00:32:09,623
Lesser minds
cast aspersions, that's
what lesser minds do.
596
00:32:10,537 --> 00:32:12,234
Wrought by jealousy no doubt.
597
00:32:12,278 --> 00:32:15,934
Think, for a minute just how
crazy you sound right now.
598
00:32:16,151 --> 00:32:21,940
And, if, IF, you admit
that you made a mistake
now, I'll forgive you,
599
00:32:23,245 --> 00:32:25,073
there will be beneficence.
600
00:32:25,117 --> 00:32:27,032
There's no mistake.
601
00:32:27,075 --> 00:32:29,425
The Microsoft branding
was scrubbed using a
customization feature that's
602
00:32:29,469 --> 00:32:31,253
actually in
Windows Media Player.
603
00:32:31,297 --> 00:32:33,603
That's quite a story.
604
00:32:33,647 --> 00:32:36,432
And here I thought we'd
come to an understanding
the other day,
605
00:32:36,476 --> 00:32:38,957
about your limitations.
606
00:32:39,261 --> 00:32:41,394
Ok, well you know what?
607
00:32:41,437 --> 00:32:44,397
Despite my limitations,
I was able to see that our
whole company is built around
608
00:32:44,440 --> 00:32:47,487
modifying an existing
program from the biggest
company in the world!
609
00:32:47,530 --> 00:32:50,969
It's completely
illegal and just wrong.
610
00:32:53,623 --> 00:32:55,843
You know, I was
genuinely excited about
being a part this,
611
00:32:55,886 --> 00:32:58,280
something completely
new, but nothing here
makes sense anymore.
612
00:32:58,324 --> 00:32:59,978
Nothing.
613
00:33:00,021 --> 00:33:02,806
You know the
thing about a germ, Barry?
614
00:33:02,850 --> 00:33:07,637
It's nothing, a small
thing really, can't even
see it with the naked eye.
615
00:33:08,638 --> 00:33:11,380
You can wipe it
away with your sleeve
and not even know it.
616
00:33:11,424 --> 00:33:14,688
But if you don't wipe
it out, it spreads.
617
00:33:15,036 --> 00:33:16,385
It divides.
618
00:33:16,429 --> 00:33:20,259
And soon it infects
not only one, but many.
619
00:33:20,302 --> 00:33:24,611
It becomes
like water turned
into blood, fiery hail,
620
00:33:24,654 --> 00:33:28,310
it becomes the pestilence.
621
00:33:28,354 --> 00:33:32,097
For the greater good of all,
I can't let that happen.
622
00:33:33,663 --> 00:33:36,318
That's sad.
623
00:33:37,624 --> 00:33:38,668
I'm sorry, what are you?
624
00:33:38,712 --> 00:33:40,366
You're a germ.
625
00:33:40,409 --> 00:33:43,238
You are a germ, Barry.
626
00:33:43,282 --> 00:33:45,458
Now, get out!
627
00:33:45,501 --> 00:33:47,547
Get out of my office!
628
00:33:47,590 --> 00:33:49,157
Get out of my company!
629
00:33:49,201 --> 00:33:50,811
You hear what I say?
630
00:33:50,854 --> 00:33:54,119
You're fired,
I swear to God, get
your ass out of here!
631
00:34:13,094 --> 00:34:14,704
Good evening, beautiful.
632
00:34:14,748 --> 00:34:17,185
Well, good evening.
633
00:34:19,579 --> 00:34:21,363
I think it's
time for an upgrade.
634
00:34:21,407 --> 00:34:24,584
What do you say we trade
this in and get you a Rolls?
635
00:34:24,845 --> 00:34:26,542
A Rolls Royce?
636
00:34:26,586 --> 00:34:28,718
Now a lot
of folks like the silver,
637
00:34:28,762 --> 00:34:31,330
but they do make a
Peacock Blue that's
quite fetching.
638
00:34:32,418 --> 00:34:34,550
Think on it.
639
00:34:34,942 --> 00:34:36,552
Oh my gosh.
640
00:34:36,596 --> 00:34:38,380
Okay.
641
00:34:38,424 --> 00:34:40,513
You must have had
a good day at work.
642
00:34:40,556 --> 00:34:44,082
Things at
work just keeps getting
better and better.
643
00:34:44,125 --> 00:34:46,040
Really?
644
00:34:46,084 --> 00:34:47,955
Always.
645
00:34:49,609 --> 00:34:51,001
.
646
00:34:53,265 --> 00:34:55,397
We went,
we made a trip to
Washington and met
647
00:34:55,441 --> 00:34:58,313
with the Department
of Justice and
648
00:34:58,357 --> 00:35:01,099
kicked off the anti,
the antitrust law suit.
649
00:35:01,621 --> 00:35:04,841
Finally the
DOJ took on the contempt
case and had it put before
650
00:35:04,885 --> 00:35:06,321
a District Court Judge.
651
00:35:06,365 --> 00:35:08,236
It was out of our
hands at that point.
652
00:35:08,280 --> 00:35:09,933
All we could do
was keep waiting.
653
00:35:09,977 --> 00:35:11,239
Until...
654
00:35:11,283 --> 00:35:12,936
Surprising everyone,
655
00:35:12,980 --> 00:35:15,591
federal judge
Thomas Penfield Jackson
ordered Microsoft to
656
00:35:15,635 --> 00:35:18,159
cease and desist its
practice of forcing PC makers
657
00:35:18,203 --> 00:35:20,466
to carry its Internet
Explorer browser.
658
00:35:20,770 --> 00:35:22,990
What
the government's saying
is that we shouldn't
659
00:35:23,033 --> 00:35:25,166
put as many features
into our products.
660
00:35:25,210 --> 00:35:27,299
It's like telling someone
that can't buy a car,
661
00:35:27,342 --> 00:35:29,127
they've gotta
go buy the motor,
662
00:35:29,170 --> 00:35:30,824
they've gotta go
out and buy the tires,
663
00:35:30,867 --> 00:35:32,826
they've gotta go
out and buy the radio.
664
00:35:32,869 --> 00:35:35,089
The government claims that
Microsoft is trying to
665
00:35:35,133 --> 00:35:39,049
use its overwhelming
dominance in computer
operating systems to compete
666
00:35:39,093 --> 00:35:41,182
unfairly in the browser market.
667
00:35:42,052 --> 00:35:44,794
The Antitrust
Division at the Department
of Justice believes that
668
00:35:44,838 --> 00:35:49,321
no consumer
should be denied the
browser of its choice.
669
00:35:50,365 --> 00:35:51,714
Yes!
670
00:35:53,455 --> 00:35:57,416
That was heartening,
by then it was too late,
and didn't matter that much.
671
00:35:57,459 --> 00:35:59,853
We weren't gonna
profit from it.
672
00:36:01,724 --> 00:36:04,379
We're not gonna make
any sales before Christmas.
673
00:36:04,423 --> 00:36:07,817
I'm afraid this
quarter's gonna line
up with our projection.
674
00:36:08,209 --> 00:36:09,950
An $80 million loss.
675
00:36:09,993 --> 00:36:12,692
In all likelihood,
closer to 90 million.
676
00:36:12,735 --> 00:36:16,174
The analysts are
already snuffling for it
like pigs for truffles.
677
00:36:16,522 --> 00:36:20,178
We scrambled
as best we could finding
markets for what we had and
678
00:36:20,221 --> 00:36:22,528
building new products
for what we didn't have.
679
00:36:22,571 --> 00:36:26,140
I just think we had
a whole new world we
had to figure out.
680
00:36:27,446 --> 00:36:31,363
Marc, we're gonna
have to lay off some
folks in the New Year.
681
00:36:34,540 --> 00:36:37,891
I'll work with HR, make
sure they have the best
terms and packages.
682
00:36:38,718 --> 00:36:42,374
You'll have to come
up with your list.
683
00:36:42,722 --> 00:36:45,942
That's very common
in the tech industry,
and it's very unpleasant.
684
00:36:46,421 --> 00:36:49,555
It was unpleasant for
me, you hate to do that.
685
00:36:51,078 --> 00:36:55,909
We haven't had to do
this before, but I can tell
you it is always painful.
686
00:37:03,395 --> 00:37:05,179
It was really tough.
687
00:37:05,223 --> 00:37:08,704
I cried so hard, I left
work and I went back to
my apartment and hid,
688
00:37:08,748 --> 00:37:10,837
and I was just blubbering.
689
00:37:10,880 --> 00:37:12,665
I just felt awful.
690
00:37:12,708 --> 00:37:15,929
I mean, when you're
so emotionally tied up
with an experience and
691
00:37:15,972 --> 00:37:18,584
with a community,
even if it's a work community.
692
00:37:18,627 --> 00:37:21,978
That was just devastating
for me and for a lot of us.
693
00:37:23,850 --> 00:37:28,463
You look at the
graphic for the word "Pixelon"
and the "X" is a cross.
694
00:37:28,942 --> 00:37:32,250
So Michael, purported
to be a religious man,
I believe there were even
695
00:37:32,293 --> 00:37:34,426
prayer meetings in his
office from time to time.
696
00:37:35,253 --> 00:37:39,257
"We have here only
five loaves and two fish,"
the disciples replied.
697
00:37:39,605 --> 00:37:42,347
"Bring them to me,"
Jesus said.
698
00:37:42,390 --> 00:37:45,045
And he directed the people
to sit in the grass.
699
00:37:45,088 --> 00:37:47,221
I thought
you were Jewish.
700
00:37:47,265 --> 00:37:50,268
I am, but I didn't get
the sense this was optional.
701
00:37:50,311 --> 00:37:53,532
It's odd when you're
in a circumstance like
that because you sorta
702
00:37:53,575 --> 00:37:56,883
take your cues about what
everybody else is doing.
703
00:37:56,926 --> 00:38:00,626
And if everybody else takes
the same cue, everybody
else behaves the same way.
704
00:38:01,496 --> 00:38:04,325
My grandmother,
bless her soul, was a
woman who had the
705
00:38:04,369 --> 00:38:07,328
great gift of making
all of her grandchildren,
706
00:38:07,372 --> 00:38:10,244
and there were
8 of us, feel as if we
were each her favorite.
707
00:38:10,897 --> 00:38:12,725
As I look out
on y'all here,
708
00:38:12,768 --> 00:38:15,945
I can honestly say that
I understand my grandmother.
709
00:38:16,903 --> 00:38:19,601
I love each and every
one of you equally.
710
00:38:20,123 --> 00:38:22,561
Please join hands in prayer.
711
00:38:23,344 --> 00:38:27,827
Lord, we ask your blessing
as we walk the righteous
path towards towards iBash,
712
00:38:28,567 --> 00:38:32,962
serving your mission,
a mission that will nourish
the multitudes and provide
713
00:38:33,006 --> 00:38:35,704
abundance beyond our
wildest imagining.
714
00:38:36,096 --> 00:38:37,663
For this, and all
things, we thank you.
715
00:38:37,706 --> 00:38:38,838
Amen.
716
00:38:38,881 --> 00:38:40,622
Amen.
717
00:38:48,848 --> 00:38:50,980
It was the dot-com era.
718
00:38:51,024 --> 00:38:54,723
Everybody there thought
that they were on the
precipice of great wealth.
719
00:38:54,767 --> 00:38:57,987
It's odd what
that does to people,
it did it to me.
720
00:39:10,783 --> 00:39:12,219
It's the IPO.
721
00:39:12,262 --> 00:39:13,829
We're super
excited, there's no question.
722
00:39:13,873 --> 00:39:15,788
We don't know what
it means to be public,
723
00:39:15,831 --> 00:39:17,790
we don't know what
it means to run a publicly
724
00:39:17,833 --> 00:39:20,183
held company but we
understand this is some
rite of passage we're
725
00:39:20,227 --> 00:39:21,750
about to go through.
726
00:39:21,794 --> 00:39:23,839
I basically
had a sleepless night.
727
00:39:23,883 --> 00:39:25,580
You look
like a hundred bucks.
728
00:39:25,624 --> 00:39:28,235
Don't worry,
Bear Stearns will price
me at a tenth of that.
729
00:39:29,802 --> 00:39:32,848
The price that had been left,
that everybody had heard of
was $8 a share,
730
00:39:33,371 --> 00:39:35,460
which was what Bear Stearns
had floated to them.
731
00:39:35,503 --> 00:39:39,159
And Egan got on the
phone with the chairman and
convinced them at some point
732
00:39:39,202 --> 00:39:41,596
to at least budge by a dollar,
733
00:39:41,640 --> 00:39:43,903
so we got from 8
bucks back to 9 bucks.
734
00:39:43,946 --> 00:39:45,687
That's the good news,
we're going public.
735
00:39:47,776 --> 00:39:53,782
The mechanics
for how an IPO actually happen
are sort of cloaked in mystery.
736
00:39:54,914 --> 00:39:58,134
But because of that,
sometimes they don't
always go so smoothly,
737
00:39:58,178 --> 00:40:00,267
and ours was no different.
738
00:40:00,310 --> 00:40:03,705
You know I woke up this
morning and I realized that
today is Friday the 13th.
739
00:40:03,749 --> 00:40:05,490
Why did
you tell me that?
740
00:40:05,533 --> 00:40:07,492
Cause
it's the date.
741
00:40:07,535 --> 00:40:09,668
Of course it is.
742
00:40:09,711 --> 00:40:11,496
I really wish I
didn't know that.
743
00:40:11,539 --> 00:40:13,541
We're so screwed.
744
00:40:17,327 --> 00:40:20,200
This is the
first holding pen, where
they're holding us until
745
00:40:20,243 --> 00:40:22,028
our whole team is there.
746
00:40:22,071 --> 00:40:25,205
We don't know what's going
on, we're just waiting there.
747
00:40:32,865 --> 00:40:34,693
And waiting.
748
00:40:38,348 --> 00:40:39,741
.
749
00:40:40,307 --> 00:40:41,482
Are we going to price?
750
00:40:41,526 --> 00:40:42,701
Is this thing going
through or what?
751
00:40:42,744 --> 00:40:44,398
Yes, yep we are.
752
00:40:44,442 --> 00:40:48,228
Oh, and by the way,
word is it's gonna open
between $20 and $30.
753
00:40:53,363 --> 00:40:55,148
$20?
754
00:40:55,191 --> 00:40:58,020
We weren't so focused
on the fact that we
had locked in at nine,
755
00:40:58,064 --> 00:41:02,503
we were so incredibly
excited that the demand was
so high that they're saying
756
00:41:02,547 --> 00:41:04,940
it's going to open
around 20 bucks a share.
757
00:41:11,947 --> 00:41:14,602
They take us down the
hallway, take us to this
little bullpen area,
758
00:41:14,646 --> 00:41:18,040
where there's a huge
trading floor, where there's
a bunch of senior traders
759
00:41:18,084 --> 00:41:20,086
sitting around their monitors.
760
00:41:20,129 --> 00:41:24,003
Everyone in the
room all looked in our
direction at Todd and I.
761
00:41:24,307 --> 00:41:27,093
And I don't know
what to expect.
762
00:41:27,136 --> 00:41:29,530
I've never seen this
before, I'd never watched
a movie about this before,
763
00:41:29,574 --> 00:41:31,880
I had no concept.
764
00:41:35,405 --> 00:41:39,758
Ace Greenberg
who's the CEO and sort of a
famous CEO of Bear Stearns,
765
00:41:40,236 --> 00:41:42,412
and he's doing card tricks.
766
00:41:42,456 --> 00:41:43,675
That's the chairman.
767
00:41:43,718 --> 00:41:45,328
He does this for every,
768
00:41:45,372 --> 00:41:48,506
sort of every exec
team as they're, they're
about to go public.
769
00:41:50,333 --> 00:41:51,552
Gentlemen.
770
00:41:51,596 --> 00:41:53,206
-Boys.
771
00:41:56,644 --> 00:41:59,473
So, the deal's
not going to open at $20.
772
00:42:01,344 --> 00:42:02,955
It may hit $60!
773
00:42:03,608 --> 00:42:06,175
What the ?
Are you kidding me?
774
00:42:06,480 --> 00:42:10,266
I mean, at this
point, it seems surreal,
like what is going on?
775
00:42:11,224 --> 00:42:13,792
When are you
guys going to tell us,
like, it's a big joke,
776
00:42:13,835 --> 00:42:16,577
or the thing's collapsing
and it's not happening?
777
00:42:16,621 --> 00:42:18,536
That was the last
update we got.
778
00:42:20,320 --> 00:42:22,017
Ace Greenberg.
779
00:42:22,452 --> 00:42:24,585
Todd Krizelman.
Good to meet you.
780
00:42:24,629 --> 00:42:25,978
You too son.
781
00:42:26,021 --> 00:42:28,937
So, you're the guys
making all this fuss, huh?
782
00:42:29,155 --> 00:42:30,983
I guess so.
Yes.
783
00:42:31,505 --> 00:42:32,941
.
784
00:42:32,985 --> 00:42:34,943
Well,
CNBC just picked
up on the discussion,
785
00:42:34,987 --> 00:42:36,510
so fasten your seat belts.
786
00:42:36,554 --> 00:42:38,686
Okay, here we go.
787
00:42:39,295 --> 00:42:40,993
You guys
ready for your lives
to change forever?
788
00:42:41,036 --> 00:42:42,342
Yes.
Yes.
789
00:42:42,385 --> 00:42:44,126
.
790
00:42:45,258 --> 00:42:50,698
Ten, nine,
eight, seven, six, five...
791
00:42:52,091 --> 00:42:54,920
Four, three...
792
00:42:55,703 --> 00:42:58,314
.
793
00:43:00,229 --> 00:43:01,883
87!
794
00:43:01,927 --> 00:43:03,406
87!
795
00:43:03,450 --> 00:43:05,583
.
796
00:43:06,627 --> 00:43:10,239
$87, $87!
797
00:43:15,593 --> 00:43:16,550
Two seconds later.
798
00:43:16,594 --> 00:43:18,726
97!
799
00:43:19,074 --> 00:43:21,555
I mean,
I was, I think there was
like a ring in my ears.
800
00:43:21,599 --> 00:43:24,253
.
801
00:43:24,602 --> 00:43:28,170
It was in every
way life-altering,
in one fell swoop it
802
00:43:28,214 --> 00:43:31,652
completely validated
everything Todd and
I had been telling everyone
803
00:43:31,696 --> 00:43:33,567
about this thing
called the Internet.
804
00:43:33,611 --> 00:43:35,874
It was euphoric.
805
00:43:37,919 --> 00:43:41,140
.
806
00:43:43,751 --> 00:43:45,623
We're
on CNN right now!
807
00:43:49,322 --> 00:43:52,064
Your stock just
made the highest first day
gain in stock market history!
808
00:43:52,107 --> 00:43:54,109
What does it feel like
to be $97 Million Men?
809
00:43:58,287 --> 00:44:00,768
I couldn't believe
what, what was happening.
I'm euphoric.
810
00:44:00,812 --> 00:44:02,422
Euphoria.
811
00:45:21,849 --> 00:45:23,068
Enjoy it boys.
812
00:45:23,111 --> 00:45:25,070
We're a
billion-dollar company.
813
00:45:25,113 --> 00:45:26,680
For now.
814
00:45:27,942 --> 00:45:30,684
And our initial
reaction in the first few
815
00:45:30,728 --> 00:45:33,992
minutes and hours
even was euphoria.
816
00:45:37,822 --> 00:45:40,825
But pretty quickly
it was anger.
817
00:45:42,217 --> 00:45:43,915
They get a ton of money,
818
00:45:43,958 --> 00:45:46,787
but everyone else,
these other people who
came onto the scene
819
00:45:46,831 --> 00:45:48,267
like three months ago,
820
00:45:48,310 --> 00:45:50,095
who didn't even
create anything,
821
00:45:50,138 --> 00:45:52,010
get so much more.
822
00:45:52,053 --> 00:45:57,058
You know,
when a deal goes from
$9 to $87,
823
00:45:58,103 --> 00:46:02,542
that means the company
just left a lot of
money on the table.
824
00:46:03,848 --> 00:46:07,547
It's totally not
fair, but once you agree
to an offering price,
825
00:46:07,590 --> 00:46:10,419
no matter what,
that's all you get.
826
00:46:10,463 --> 00:46:14,336
And that was
obvious pretty quickly.
827
00:46:44,410 --> 00:46:45,803
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