The next morning, hotel staff delivered the day's major newspapers.
Tom spread several papers across the coffee table.
The Los Angeles Times featured a front-page headline photo of Silicon Valley Online's bell-ringing ceremony.
Frank and Tom stood at the center, beaming.
The headline was bold: "California Miracle: The Internet Express Accelerates at Full Speed."
Frank read aloud a passage from the article:
"Silicon Valley Online's successful IPO marks the Internet industry's official transition from conceptual exploration to commercial monetization. This young company, born in Redwood City, has demonstrated the boundless potential of the new economy to Wall Street through its virtual social network and innovative revenue models. Its closing price of $17.13 is the highest tribute to California's spirit of innovation."
"Well written," Tom said, lifting his coffee mug. "They've even spun our little detail about borrowing Sega's servers into an upgraded version of the Silicon Valley startup myth. The media loves these underdog success stories these days."
Donald opened the Wall Street Journal.
"The comments here are more focused on the capital side. They analyzed Silicon Valley Online's user growth curve and per-user value. Their conclusion is that traditional P/E valuation models no longer apply to Internet companies. As long as the user base is growing, temporary losses can be accepted by the market. Besides, you're still profitable."
Takuya Nakayama sat opposite, flipping through a stack of faxes.
These were briefing documents that Sega Japan Headquarters had faxed over overnight.
"The American media is talking about the American Dream, while the Japanese media is playing up national pride," Nakayama said, pushing the faxes to the center of the coffee table.
The headlines on copies of several major Japanese newspapers were bolded.
[ Sankei Shimbun ]: Sega of North America's Listing on Nasdaq—Japanese Capital Leads the Global Internet Wave.
[ Nikkei ]: From Game Consoles to Virtual Networks—Sega Completes a Century-Spanning Transformation.
Some tabloids were even more sensationalist:
Sega: The True Pioneer of the Internet Age.
The Nakayama Family's Foresight: Controlling the Lifeblood of America's Web.
Tom shook his head as he looked at the translated headlines.
"These media outlets are causing us trouble. If US regulators see this, our acquisition will face intense scrutiny."
Frank frowned. "They're just flattering Sega. Silicon Valley Online operates completely independently and has no connection to the console business at our Tokyo headquarters."
"Don't worry about them," Takuya Nakayama said, gathering the faxes and tossing them into the trash. "After the economic bubble burst in Japan, the public needs this kind of morale-boosting news. What they care about is newspaper sales. As long as we don't publicly acknowledge these claims, the U.S. regulators won't use the media's rhetoric as evidence. After all, they don't have the time to follow every foreign media outlet's chatter."
He paused, then turned to Frank. "We need to continue our PR efforts in California. Sponsor more local university computer labs and establish some venture funds. We need to make Silicon Valley Online the definitive representative of tech innovation in California. Only then can we secure more resources in this market."
Frank nodded and took notes. "Understood. I'll have the Public Relations Department contact Stanford and Berkeley. The sponsorship funds will come directly from this round of funding."
John watched the two strategize and gave Donald a meaningful look.
"I'm increasingly glad we didn't get bogged down in valuation during the Series A funding round. Takuya, you understand business better than anyone on Wall Street."
"It's just a matter of aligning interests," Takuya Nakayama said with a smile. "We're all in this together now. The faster the company grows, the more competitors we'll have to fend off. Going public was just the first step to securing the capital for expansion. Silicon Valley Online is far from being in the clear."
Tom drained the rest of his coffee in one gulp.
"Then let's make the company even bigger. We need to reach at least Microsoft's level of influence."
Outside the suite, Manhattan had fully awakened.
The interwoven sounds of traffic and police sirens heralded the start of a new trading day.
Two days later, Redwood City, California.
The street outside Silicon Valley Online's headquarters was completely gridlocked.
Roadside parking spots, usually occupied by only a few food delivery trucks, were now packed with black sedans bearing New York and Boston license plates.
A long line formed at the visitor registration desk in the lobby, with suited representatives from investment firms clutching business cards, trying to bypass the receptionist.
The local San Jose Mercury News had to print an extra three editions, with the front page dedicated entirely to a K-line chart of Silicon Valley Online's first day of trading.
News of the valuation spread like wildfire, and hundreds of venture capitalists, checkbooks in hand, flew into San Francisco International Airport overnight, booking up every hotel in Redwood City and the surrounding areas.
Capital's nose for profit is always the sharpest.
A $1.7 billion valuation had created a new wealth myth in Silicon Valley.
As long as a business plan included the words "Internet," "online," or "virtual community," it could secure six-figure seed funding in a coffee shop.
Even a college student who had just learned to code could find investors willing to buy him coffee at Starbucks.
In the CEO's office on the third floor of Silicon Valley Online, the blinds were half-drawn, shutting out the noise from downstairs.
Frank tossed a thick stack of business cards onto his desk, the papers scattering across the surface, each bearing the logo of a major corporation or foundation.
"It took me half an hour to drive into the parking garage this morning," Frank said, loosening his tie and pouring himself a glass of ice water. "Even my reserved parking spot was taken by a hedge fund manager claiming to be from the East Coast."
"The guy was standing next to my car, holding a three-page business plan, and insisted on pitching me his R&D ideas for five minutes. Security tried to remove him, but he refused to leave, shouting that he had $20 million ready to wire at a moment's notice."
Tom, lounging on the sofa, chuckled as he flipped through the day's newspaper.
"Be grateful. Sega of North America's switchboard has been completely overwhelmed. Operators are handling hundreds of calls a day, all asking if we're still planning to spin off and list our subsidiaries. Some even asked if Sega would do contract manufacturing for online pet food." Tom tossed the newspaper back onto the coffee table. "Redwood City is practically dripping with dollars. Last night at my usual pub, the bartender was discussing the commercial applications of the TCP/IP protocol with me. He's barely touched a computer, but he was confidently claiming he'd start selling alcohol online."
Takuya Nakayama leaned back in his office chair, twirling an unlit cigar in his hand.
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