Acquiring MGM?!
Well, Kyle had a bold idea. After all, MGM boasted over 5,000 films in its library. These movie rights were not only the backbone of a sizable company, but they also had the potential to generate tens of millions of dollars annually from television networks and the DVD and videotape markets. Kyle felt tempted.
Unfortunately, there's no cash!
A portion of our limited funds must be allocated for tax payments due at the end of April.
"It appears we need to find a way to generate some revenue. Otherwise, not only will the film studio struggle to expand, but we might even fail to produce Spider-Man."
The notion of earning money is appealing, but executing it is incredibly challenging.
It's true, Run Lola Run is set to premiere soon. It has garnered a strong reputation in the original timeline, but it's not anticipated to be a box office hit. Using this film to elevate World Pictures might be beneficial, but the projected box office profits seem limited. As for the final earnings, Kyle remains uncertain since it's not the original film and involves a novice director.
Hoping for wealth from it is simply naive.
"Futures?"
"I recall that this option generates quick profits!"
In a flash, Kyle thought of futures and couldn't help but recall Soros, the finance mogul.
In 1992, he came after the British pound and made a billion dollars in a short time; in 1997, he targeted the Thai baht and the Hong Kong dollar, sparking the Asian financial crisis; in 2012, he shorted the Japanese yen, reaping another billion-dollar profit.
Back in his earlier life, when Kyle had just graduated, he was quite taken with the myth of wealth and had studied the stock market, reading several reports on Soros, giving him a relatively basic understanding of the topic.
However.
Damn, it's already 1996!
There's still over a year left before the assault on the Thai baht in July 1997. What should Kyle choose for his initial money-making venture?
The stock market?
At that moment, Kyle thought about the stock market. After all, a significant portion of his wealth was derived from it, and while it wasn't as lucrative as futures trading, it still yielded substantial returns. Moreover, the late 1990s marked the era of the Internet boom; otherwise, how could such a bubble have emerged?
Netscape, Cisco, Comcast, Microsoft, Apple, Amazon...
Suddenly, a multitude of Internet company names sprang to Kyle's mind.
Netscape?
He quickly dismissed it!
Although Kyle amassed his fortune by taking Netscape public, this very fact made him wary of investing in its stock.
There was no other rationale, he simply understood it too well.
Netscape went public in August 1995, soaring to a stock price of $75 on its launch day, which was a remarkable milestone. As the Wall Street Journal noted, General Motors needed 43 years to reach a market value of $2.7 billion, whereas Netscape achieved it in "about 1 minute."
However, every ascent has its descent.
Microsoft launched and aggressively promoted its IE browser.
The rivalry between Netscape Navigator and Internet Explorer later became known as the "browser war." By December 1997, Netscape's stock price had fallen to below $20 per share, ultimately suffering a decisive defeat at the hands of Microsoft.
"Investing in Netscape now is simply inviting disaster, but shorting it next year could yield some profits."
"Cisco's stock price still has some growth potential, though this year's gains are modest (since the rise from 1998 to 1999 was remarkable). It might be worth considering purchasing some, as you are unlikely to incur any losses."
Apple?
Forget it.
Before Jobs' return in 1997, Apple was still a failing entity, nearly lifeless.
Comcast?
It ranks as the second-largest Internet provider in the United States. By 2020, its market value had surpassed $200 billion. It has been continuously engaged in a strategy of "buying, buying, buying," either acquiring firms or merging with others. Its stock market performance has consistently trended upward, though the growth in 1996-1997 was relatively limited.
Amazon?
Yes, it is indeed a massive corporation. However, it was only founded in 1995 and remains a little-known start-up for now, not going public until 1997.
After mulling it over, Kyle suddenly realised:
While the stock market has the potential to bring wealth, from what I understand, expecting to become rich overnight in the stock market this year is nearly impossible!
(The stock prices of Cisco and Microsoft have indeed been on the rise, yet aiming for overnight wealth is not advisable.)
In an instant, Kyle's aspiration of getting rich through the stock market was crushed!
"Oh my goodness, why is earning money so difficult?"
Kyle let out a deep sigh.
That night, Kyle had little sleep. When he awoke the following morning, he felt drained, but he still compelled himself to rise.
There's no choice; April has already begun. The store managers and financial officers from all SpongeBob SquarePants stores will gather this morning for a meeting to discuss recent business performance.
....
Alice Cafe.
This cafe, located adjacent to the Hollywood Theatre and next door to Kyle's SpongeBob SquarePants store, has become Kyle's regular meeting location at the end of each month.
Save expenses!
"Boss, thanks to the continued success of Toy Story, despite it being out of theatres, our merchandise is still selling well. After accounting for various expenses such as labour, utilities, and rent, the head office's net profit for this month is $70,000," said James, the manager of the head office, who spoke first.
"Boss, the second store has achieved a net profit of $63,000 this month."
"The three stores together generated a net profit of $40,000 this month."
Ultimately, the total net profit from the seven SpongeBob stores reached $345,000, an eight-point drop from the previous month's total of $375,000.
Another decline?
That's correct; the net profit has been on a downward trend since January.
However, Kyle can accept this, considering the waning popularity of "Toy Story." Additionally, since January, Kyle has intentionally reduced the prices of merchandise to boost customer return rates.
When compared to other movie-themed retail stores in Los Angeles, Kyle's SpongeBob SquarePants House still maintains a position within the top three for individual store profits.
Since Kyle was feeling down today, the meeting wrapped up quickly.
Upon leaving the cafe,
"Kyle, how are you doing today?" John inquired with curiosity after the meeting.
"No cash, no joy," Kyle gestured dismissively.
Upon hearing this, John frowned.
Oh no!
With a net profit exceeding $300,000 a month, what's there to be unhappy about? Even if profits might drop in the months ahead, an annual revenue of approximately $3 million is still expected; how could you claim to be broke?!
Of course, John kept this to himself.
After all, their current circumstances put them at different levels, causing them to consider different issues.
"Jenny, are you seriously thinking about purchasing Yahoo stock? I heard that this company is not performing very well. You might end up losing money on that investment."
"It's fine. I don't intend to sell much anyway."
Just then, a conversation caught Kyle's attention.
Yahoo?!
Suddenly, Kyle felt a jolt of shock