Chapter 47: A Valuation of One Hundred Million Dollars

White Software's valuation was very difficult; no one really knew its revenue details. Based on data gathered from other companies, they had sold at least seventy thousand software packages in August. This means White Software had at least seven million in revenue for August. Adding to this the business from other adapter cards, reaching eight million wasn't a challenge. It was no secret that Big Blue wanted to buy in. The IT industry wasn't that big, and such news couldn't be hidden. As the frontrunner in microcomputers, Apple also wanted to invest. No matter how much stock they got, they at least wanted a seat on the board. Since someone was interested in buying shares, Wall Street naturally needed to provide a valuation. Clearly, Morgan Stanley's performance was once again disappointing. A valuation of one hundred million dollars clearly couldn't reflect White Software's value. Other than the fools on Wall Street, no one in the industry would give such a valuation. The company might earn that much next year, so was this valuation meant to be a joke? If it were really that cheap, Big Blue would have already made a move. Apple wouldn't be shy about acquisition either, even if it meant some financial risk; they definitely wouldn't back off. William White was quite speechless about all the outside fuss. When did he ever say he wanted to sell the company? Even without launching any new products, the revenue wouldn't drop much in the next two years. Furthermore, to evaluate a software company statically was absurd. Don't you understand what stocks are? Stocks relate to a company's future cash flow. We have so many R&D projects you all choose to ignore. Go assess the steel companies then; at least nobody would care about that, and you won't make mistakes. Usually, William White wouldn't be this harsh, but Wall Street was really bothering him. He hadn't invited them to evaluate anyway, so did they find it funny to do this over and over again? Wall Street was totally stunned by his tirade. They hadn't experienced someone telling them what a stock truly was, bypassing the usual argument of undervaluation directly. In facing such humiliation, Wall Street seemed to lose their cool. A valuation of one hundred million dollars was already given grudgingly. The initial estimate was ten million dollars, and in a few months, it had increased tenfold, yet that wasn't satisfactory? Wall Street's discomfort was overwhelming. The most embarrassed was Morgan Stanley; even Apple was considering changing its underwriter, definitely not accepting their valuation. They always do this, offering all sorts of professional advice regardless of whether it's needed. Looking down on companies beneath them made them too arrogant, ignoring client suggestions, always preaching. Without personal interest involved, William White wouldn't bother. But now it was different. He would launch Series A funding next year, and 10% wouldn't cut it. So this valuation was misleading, and he didn't want to send wrong signals to investors, making valuation disputes inappropriate next year. In the face of such circumstances, even Morgan Stanley had no way to respond. This valuation was controversial internally, with opinions both overstating and understating it; one hundred million dollars was an average guess. These bastards were used to making judgments about others' companies. Unlucky for them, they ran into someone very particular, which indeed caused trouble this time. After a bout of verbal assault, William White continued his subsequent projects. With the software company operating normally, there wasn't much for him to worry about. Finishing movie post-production was more important. ... "Boss, Eddie Murphy's here. Said he has an appointment with you," Linda, the secretary, said while seeing her boss was still busy. "Okay, take him to my office. I'm about five minutes away." "Sure thing, boss." A man focused on his work is quite appealing, and Linda was a little dazed. But alas, Linda could only silently admire him. "Eddie, take a seat, make yourself comfortable." "Linda, grab us some coffee, will ya?" "Sure, boss." Eddie Murphy had a bit of a slick look; anyway, the brothers liked that. As long as there was enough money in the pocket, they could sport a gold chain yards long. "Eddie, have you been robbing a jewelry store?" "Haha, boss, don't tease me. You know, to not be looked down upon, I gotta show off a little." "No wonder gold prices are skyrocketing! Looks like you really have made some dough," William White said, winking. "Boss, could you consider me for your next flick?" "Huh, no one else signed you up for anything? You're pretty hot right now, aren't ya?" William White was a bit surprised. "All scripts that want to ride the wave. If I take them, it might hurt my popularity." "Alright then, next year. There's a series coming up. Have your agent talk to the legal department later." "Okay, thanks, boss." "You ain't even asking about the script?" "Your scripts are foolproof; no need to check." Eddie Murphy's pay would be negotiated by his agent. Friends are friends, but business is business. No need for unnecessary courtesy. William White still planned to gain more with less. This era was not for big productions; one mishap and you could lose everything. He planned to build strength through small productions. When the old folks couldn't hold on anymore, he'd step in to scoop the benefits. ... The summer in Los Angeles was quite unbearable. Despite the air conditioning, William White was still sweating buckets. Even the husky lying at his feet was unhappy, its long tongue drooped on the ground. "Dumb dog, let's head home." Responding to its master's call, the husky was excited, pulling its cute and funny antics. Though quite silly, one couldn't deny the husky was utterly endearing. Every time he saw Jason, he couldn't avoid mocking him a little. It was hard to understand how one could mix up a husky with a German shepherd. If his German was so poor, he'd better not show off. A small dog might not be a big deal, but with other things, it'd be absurd. School was about to start soon, and although he still needed to finish some exams, it likely wouldn't be a big problem. A student with a great influence, the school would be pretty gentle, as long as you didn't overdo things. They wouldn't kick you out. Even poor students were given a break like this, so there was definitely preferential treatment for the top students. This was true everywhere; good students always received various privileges. ***** https://www.patreon.com/Sayonara816.