The true architects of the virtual item monetization model—the directives that arrived via overseas calls from Tokyo—were completely stripped from the official narrative.
The American media present at the scene tacitly accepted this narrative logic in its entirety.
A grassroots tech genius contributes the idea, venture capital provides the angel investment, and ultimately, the company rings the bell on Nasdaq and becomes wildly rich.
This was the business case Wall Street found easiest to sell.
A Nikkei reporter based in the United States raised his hand to ask a question.
"Mr. Marshall, as a subsidiary of Sega, will Silicon Valley Online's future strategic planning be subject to interference from Tokyo Headquarters?"
Frank leaned into the microphone and replied.
"Silicon Valley Online is an independent American tech company. Our Board of Directors consists of North American management and representatives from venture capital firms. Sega of North America, as an early financial investor, respects the independent decision-making authority of the management team. The company's day-to-day operations are entirely managed by the North American team, and there is no cross-border interference."
This response completely distanced Silicon Valley Online from Sega's Japanese Headquarters.
From the second-floor viewing area, Takuya Nakayama watched Frank and Tom being swarmed by reporters. He turned and walked toward the exit.
On the trading floor's electronic screen, the opening price for SVOL flashed:
$12.50.
Compared to its $9.30 IPO price, this represented a 34.4% surge during the opening period.
Nasdaq traders shouted bids into their phones.
"13 dollars!"
"14.2 dollars! Buying 50,000 shares!"
Massive capital was pouring in.
Wall Street fund managers were using real money to buy into this meticulously packaged American dream.
Within half an hour, trading volume exceeded five million shares, with the turnover rate remaining high.
The market's obsession with the Internet concept materialized that day into continuously climbing numbers.
At 4 PM, the closing bell rang in the Nasdaq trading hall.
The numbers on the electronic screen froze.
Behind Silicon Valley Online's stock code, SVOL, the green digits settled at $17.13.
The total market capitalization reached $1.713 billion.
Compared to its $9.30 IPO price, the stock surged by 84% on its first day.
In a suite at the Pierre Hotel, the cork popped from the champagne bottle, hitting the ceiling before bouncing onto the carpet.
Frank Marshall handed flutes to the group. Golden liquid overflowed the rims, dripping onto his suit cuffs.
He didn't bother to wipe it.
"Yesterday we were still debating whether we'd break $1.8 billion by year-end," Frank said, raising his glass, his breathing slightly hurried. "In just one trading day, we've achieved 90% of that target."
Tom Kalinske loosened his tie and tossed it onto the sofa. He clinked glasses with Frank, the crystal chiming sharply.
"Those Wall Street sharks are insane. I've had three calls already from fund managers who were still on the fence this morning. Now they're begging me, asking if Sega of North America has any more non-public shares to sell."
Donald Valentine of Sequoia Capital sat in an armchair, swirling his champagne.
"Don't sell. $17.13 is nowhere near the peak. We need to completely overhaul Sequoia's internal valuation model. The book return on this investment has already exceeded sevenfold. At next week's partner meeting, I'll propose upgrading Silicon Valley Online's rating to the highest tier."
John from KPCB stood by the window, gazing at the traffic flowing through downtown Manhattan.
"This validates our judgment. The business model of virtual social networking and item sales offers far greater potential than selling physical software. Wall Street needs new investment avenues, and Silicon Valley Online provides a perfect target."
Takuya Nakayama sat in a corner chair, holding a glass of champagne.
"The capital frenzy has just begun," he said after taking a sip and watching the group of men engaged in animated discussion. "This is only the first wave of hot money. Once Silicon Valley Online releases its first public financial report and reveals the profit margins on virtual pet food, the stock price will climb even higher."
Donald turned to look at him.
"Takuya, you're always so calm. At a market capitalization of $1.7 billion, Sega holds 70%. That's enough to buy half the commercial districts in Tokyo."
"That's just book value, Takuya Nakayama said, setting down his water glass. "It's just a number until the six-month lock-up period ends. Our goal is to build an ecosystem. With this funding, Frank, you can start executing your acquisition list."
Frank nodded emphatically.
"I'm flying back to California tomorrow. I've been eyeing a few small teams working on underlying communication protocols for a while.
Now that we own the most valuable Internet stock in the US, they have no reason to refuse a deal involving both stock and cash."
The two landline phones in the suite rang in succession.
Tom picked up one and listened for half a minute before covering the receiver and saying to the room, "It's Paul Allen from Microsoft. He wants to invite us to play golf this weekend in Seattle and discuss pre-installing ICQ on Windows."
"Tell him we're open to discussion, but we won't pay for pre-installation," Takuya Nakayama stated firmly. "ICQ is now a must-have for any Windows installation. They should be the ones begging us to optimize it for their system."
Tom replied briefly into the phone and hung up. Immediately, the other line rang.
Frank picked it up and burst out laughing after listening for a moment.
"George Fischer from Goldman Sachs. He said he's booked a Michelin-starred restaurant in Manhattan for a celebratory dinner tonight and invited all of us."
"Have him send the bill to Sequoia's office," Donald chimed in. "Goldman Sachs made tens of millions in underwriting fees alone, not to mention the other hidden gains. A single meal won't cut it."
John chuckled in agreement.
"George is probably popping champagne in his office right now. An 84% first-day surge—Goldman Sachs has cemented its reputation in tech underwriting. Morgan Stanley is probably scrambling to assign blame internally."
Takuya Nakayama stood up and straightened his suit jacket.
"You all go to the dinner. Mingle with the Wall Street execs and tell them the story of our California-based startup well. I won't be attending."
Tom looked puzzled. "Takuya, you're the biggest winner here. Not only are you avoiding the media spotlight, but you're also skipping the celebration dinner?"
"I've said it before, I'm Japanese. The dinner will be crawling with reporters. We've had enough celebration here." Takuya walked to the door. "If I show up, tomorrow's headlines will be about Japanese capital dominating Nasdaq. That would jeopardize our acquisition plans. You three are the public face of Silicon Valley Online."
"Fine. I don't know if all Japanese are as cool as you are, or if you're just a weirdo," Tom shrugged.
"Because this isn't the first time I've made this much money." Takuya spread his hands and left the suite.
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