Late in the evening, Simon returned to his mountain mansion in Woodside around 10 PM after attending a business gathering in Silicon Valley at Larry Ellison's invitation.
As he entered the villa's living room, Allison and Claire came out to greet him together.
Simon wasn't surprised to see Claire there and greeted her with a smile. Handing his coat to Allison, he asked Claire, "How's the preparation for the new generation iCam going?"
Claire, walking closely beside Simon, replied, "We're in trial production now, and we'll start stocking next month. Boss, do you want to come over to see it tomorrow?"
They reached a side lounge off the living room, and Simon sat on the sofa, saying, "Maybe next time. I have to leave by noon tomorrow."
Claire nodded and casually sat beside Simon, saying, "Boss, several Wall Street investment banks have contacted me about Tinkobel's IPO. When do you think would be a good time for us to go public?"
Allison poured a cup of coffee and handed it to Simon. As she stepped back, she couldn't help but glance at Claire, who was leaning slightly closer to their boss.
Simon, sitting in the middle of the long sofa, had Claire on one side, leaving the other side empty. Allison hesitated slightly but didn't follow through with the plan she and Claire had privately discussed to sit on Simon's other side. Instead, she chose a single armchair nearby. Worried that her expression might give something away, she picked up a file from the coffee table to cover her face, occasionally looking up to follow the conversation between the two.
Simon didn't notice these small details and smiled, saying, "If you're in a hurry for everyone to know you're already a little rich, we can certainly proceed with the IPO quickly."
The iCam series was selling very well, and although Tinkobel had several R&D projects running simultaneously, it wasn't short on funds.
Moreover, Tinkobel didn't have venture capitalists eager to cash out through an IPO. As the largest shareholder with a 70% stake, Westeros Company not only didn't need to cash out but could also continue to provide funding for the company. Therefore, there was no urgent need for an IPO.
Unless there were considerations beyond economic ones, Simon even preferred that all Westeros system companies remain private indefinitely.
Companies like Cisco, Nokia, America Online, and the soon-to-be-public Daenerys Entertainment were exceptions. As the most crucial part of Westeros's consumer electronics industry layout, Tinkobel's product areas were not sensitive, so there was no problem keeping the company private for the long term.
Claire was slightly disappointed with Allison's temporary retreat and moved closer to Simon. She didn't have the intention of pursuing an IPO for Tinkobel, just brought up a random topic: "But Cisco and America Online's stocks have recently reached nearly $50 billion in high value. Many analysts believe the tech sector has peaked, making now the best time for an IPO."
Simon took a sip of coffee, enjoying the pleasant scent from Claire's body. He noticed that although Claire wore the familiar blouse and black trousers he often saw her in, her neckline was open, revealing a hint of pink lace underneath.
Not hiding his gaze, Simon smiled and took a few more looks, teasing, "C, you didn't secretly invest in tech stocks and are now trying to get information out of me, did you?"
Claire leaned further, making it easier for Simon to look, and admitted immediately, "I invested $5 million, all loans. Boss, if I lose it, I'll have to ask for your help."
Simon asked, "When did you buy in?"
"Last year."
"Did you leverage it?"
"Only doubled."
"Hmm."
Claire saw Simon nodding noncommittally and gently grabbed his arm, shaking it slightly, "Boss, should I sell now?"
"Another year won't hurt."
Claire pressed, "And after a year?"
Simon looked at Claire, who had clung to his arm, and shook his head, "I don't know either."
Seeing that Simon didn't reject her advances, Claire didn't push further. She narrowed her light blue eyes and rubbed herself gently against him, her lips slightly parted.
Allison, watching from the side, felt her cheeks heat up. As the two became more intimate, she finally stood up, saying, "Boss, I'll go rest first."
"Don't go."
Before Simon could say anything, Claire spoke up, then whispered something in his ear.
In the quiet living room, Claire's voice was clear. Hearing Claire reveal her most private secrets, Allison felt like a deer caught in a trap, her face turning red, and she was at a loss for what to do.
Simon, thoughtfully, didn't wait for Claire to finish and interrupted her with a warm smile, patting the seat next to him, "Come here."
Having heard similar tones from Simon before, Allison didn't want to be like those women, yet found her body unresponsive.
It felt as if she had been enchanted with a spell of obedience.
She sat next to Simon, obediently taking the coffee cup he handed her and placing it on the coffee table. She glanced at Claire on the other side, her breathing growing more rapid.
Simon, handing the coffee cup to Allison, took her chin in his hand, ready to kiss her, but suddenly remembered something and asked, "Where's Alice?"
Both women froze.
From Allison's expression, Simon immediately understood and simply smiled, not stopping his actions.
Having arrived at Simon's Woodside villa with AC and Claire, the housekeeper hadn't interacted much with them and had gone upstairs to wait for Simon.
Despite resting in the afternoon, the fatigue from continuous high-intensity work hadn't fully dissipated. After taking another bath, she lay on Simon's large bed, flipping through a magazine, and unknowingly fell into a deep sleep.
It was a very relaxed deep sleep.
Upon waking, the magazine from last night was still beside her, and the bed showed no sign of Simon.
The curtains hadn't been drawn, and bright sunlight slanted into the bedroom. The windows had been opened, letting in the fresh mountain air, which was very refreshing.
But her mood was inexplicably not good.
Especially when she went downstairs and saw Simon reading the newspaper and having breakfast in the dining room, and the beautifully coordinated scarves around Allison and Claire's necks.
That damn guy!
So, she didn't even respond to Simon's good morning greeting.
With a cold face, she sat at the dining table, feeling that this only made him more proud. Soon, she pretended nothing had happened and ate breakfast, discussed business with him, and followed him to the company.
Who cares!
Because the meeting was impromptu, there was little preparation, and it leaned towards a free discussion.
Everyone was busy, so the meeting lasted just over half an hour. Simon's final request was for Jeff Bezos, Carol Bartz, and Tim Berners-Lee, along with the housekeeper he brought to the meeting, to submit a handwritten priority report to him every month. The report should detail how they handled priority conflicts in Igret's various business development decisions.
After the meeting, Simon rushed to Cisco's headquarters in San Jose to discuss some matters with John Chambers, then boarded a plane to New York by noon. On the East Coast, after fully taking over USA Network, Daenerys Entertainment's TV business needed corresponding adjustments.
Approaching January 20th, Bill Clinton's first anniversary in office was soon.
At this stage, Bill Clinton's political foundation was far less solid than George Bush's, so the White House had been dealing with constant issues all year, becoming quite overwhelmed.
To start his second year in office with a good momentum and boost morale, the White House turned its attention to the internet industry. After all, the Information Superhighway Act was the most important legislation promoted since Clinton took office.
Therefore, in coordination with Silicon Valley, on January 19th, Igret Company released a "1993 Global World Wide Web User Report" ahead of its annual financial report, which the White House immediately followed up on, claiming the internet industry's rapid growth over the past year as its achievement.
The report showed that by December 31, 1993, the global number of World Wide Web users had reached 73 million, covering 116 million internet users.
In the US alone, the number of WWW users reached 46 million, covering 75 million internet users.
Japan followed the US, ranking second with 5.3 million users.
Germany ranked third with 3.8 million users.
The UK was fourth with 2.9 million users.
Canada, neighboring the US, ranked fifth with 2.6 million users.
Australia, a key focus of the Westeros system, also reached 1.5 million WWW users, ranking ninth behind France, Italy, and Spain. With a total population of only 17 million, the WWW penetration rate in Australia was 14%, second only to Canada's 15% and the US's 28%.
Compared to 1992, the number of US WWW users in 1993 soared by 64%, and the growth rate in key overseas countries exceeded 100%.
The report also predicted that in 1994, the number of US WWW users would still grow by more than 50%. In overseas countries like Japan, Germany, and the UK, where the WWW penetration rate was relatively low, the number of WWW users in 1994 would maintain an annual growth rate of over 100% under the rapid rise of the internet industry.
Therefore, the global number of WWW users was expected to reach 120 million by the end of 1994, covering over 200 million internet users.
The release of this report and the official hype about the internet industry's rapid growth over the past year immediately led to another collective surge in Nasdaq tech stocks.
On January 19th alone, Cisco's stock price rose by 3.9% at the close
, officially breaking the $50 billion market cap mark, becoming the first internet company among many emerging tech stocks to reach a $50 billion market cap.
Following closely, America Online's stock price also broke the $50 billion mark after three consecutive days of rising, closing at $51.5 billion on January 21st.
By the close on January 21st, Cisco's market cap reached $53.6 billion, and America Online's market cap was $51.5 billion. Other companies like Microsoft, Intel, and Oracle hit new highs, even IBM, which had been struggling for years. Under the vigorous reforms of the new CEO Lou Gerstner for over half a year, the company's market cap broke through the $40 billion mark.
The tech stock frenzy attracted more investors to the Nasdaq market and made many self-proclaimed sober investors believe that the tech stock market was overheated. Cisco and America Online, the two $50 billion market cap leaders, were considered to have obvious bubbles.
Each company's annual report would be released within the next two months. However, the capital market, based on the companies' past quarterly financial data, could estimate a rough figure. The high growth rates of new tech companies like Cisco and America Online were undeniable. Still, their market caps exceeding $50 billion seemed exaggerated to many.
By the close on January 21st, there were only four companies in the US stock market with a market cap exceeding $50 billion. Cisco and America Online ranked just below the first-ranked General Electric and the second-ranked American food giant Philip Morris. The two companies' market caps were $76.2 billion and $55.3 billion, respectively.
Comparatively, both General Electric and Philip Morris had revenue ten times that of Cisco and America Online. The net profits of $4.6 billion and $5.9 billion from the last fiscal year of these two companies were equivalent to Cisco's revenue for 1993.
Traditional industrial giants like General Motors and Ford, with annual revenues exceeding $100 billion, had market caps of only $37.1 billion and $29.5 billion by the close on January 21st. The two energy giants, Exxon and Mobil, long seeking a merger, had market caps of $43.6 billion and $35.3 billion by the close on January 21st.
Walmart, which supported the Walton family of five super-rich individuals, had a market cap of only $45.1 billion.
In early 1994, there was still no company with a market cap of $100 billion in the US. For many large companies, the $50 billion mark was a threshold. Breaking through it after a century of struggle was something two new tech companies founded just over ten years ago had easily surpassed, inevitably raising doubts.
Therefore, many hedge funds on Wall Street began establishing short positions against Cisco and America Online's stocks after their market caps exceeded $50 billion, betting that the stocks would significantly pull back in the coming months. The key time point would be the release of the companies' annual reports.
The capital shorting Cisco and America Online believed that with the release of financial reports that couldn't justify their high market caps, the capital market would cool down, leading to a wave of selling and price suppression.
By the close on January 21st, in just a few days, the short positions against Cisco and America Online alone exceeded $6 billion. The total short position in the Nasdaq tech stock market reached $20 billion and was expected to continue growing next week.
Stock hedging is a zero-sum game.
The total $20 billion short position in the Nasdaq tech stock market naturally implied an equivalent long position.
Cersei Capital's Cersei Fund Management Company had quietly increased its hedge fund to $5 billion recently. Of the $20 billion short positions targeting tech stocks, Cersei Fund Management Company had taken a third, amounting to $7 billion.
Cersei Capital wasn't unwilling to take more, but there were also many other bullish capitals in the market optimistic about tech stocks' prospects.
Stock hedging requires capital to first borrow a certain proportion of stocks as collateral assets.
To facilitate many hedge funds in establishing short positions against Cisco, America Online, and other tech companies, Westeros Company and other closely related holding capitals generously lent their tech stock holdings. As long as the commission was high enough, they'd lend as much as needed.
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