Reed Hastings' attempt to persuade Blockbuster to acquire his company, Netflix, for $50 million has ended in failure!
Looking at the negotiation without the benefit of hindsight, Reed Hastings' defeat seems perfectly normal.
It's the era of the dot-com bubble burst, and internet-related companies like Netflix are naturally met with skepticism.
In the past few months alone, over a hundred internet companies have gone bankrupt.
Even if Netflix's business model were truly promising, with Blockbuster's resources and connections, couldn't they build their own "Netflix" for $50 million?
Stepping out of Blockbuster's headquarters, Reed Hastings glanced back at the building, then checked his watch.
From the moment he entered to the moment he left, barely 20 minutes had passed.
A slight smirk curled at the corner of Reed Hastings' lips.
His assistant, Shawn Anderson, let out a long sigh, his face full of bitter disappointment.
The failure to sell Netflix meant the company's cash flow was on the verge of collapse. If they wanted to avoid bankruptcy, there was only one path left—layoffs!
Shawn Anderson's position was precarious. If Netflix started cutting jobs, the company would prioritize keeping core business talent. Even as Reed Hastings' assistant, he faced the very real threat of being let go.
Shawn glanced cautiously at Reed Hastings, expecting to see defeat or despair. To his shock, there was none of that. Instead, Reed's face carried a hint of mockery and disdain.
When Reed Hastings cast a scornful look back at Blockbuster, Shawn's eyes nearly popped out of his head.
Boss, seriously?
At a time like this, was he really fantasizing about Blockbuster failing to adapt, watching their empire crumble?
Even if Blockbuster were to collapse, with their massive assets and influence, it would take at least a decade for them to burn through it all. Netflix, on the other hand, could face bankruptcy in the short term if they didn't secure funding soon.
Noticing Shawn's anxious expression, Reed Hastings smiled faintly. "By the way, Shawn, have you ever seen a movie called Wedding Crashers?"
"Yeah, I have. It's a hilarious comedy. Produced by Dunn Pictures, right?" Shawn nodded mechanically.
Reed Hastings grinned. "Do you know who the female lead in Wedding Crashers is?"
Shawn tilted his head, thinking for a moment before shaking it. "I just remember she was a sweet-looking girl, some small-time actress."
"Her name's Reese, Reese Witherspoon."
"Oh, right, Witherspoon!"
Shawn wasn't sure if he genuinely remembered or was just going along with it. He looked at Reed curiously, unsure where this was going.
As the two slowly walked away from Blockbuster's headquarters, Reed Hastings continued, "Funny thing is, Miss Witherspoon and us? We've got a bit of a connection."
Shawn Anderson chuckled, shaking his head. "Reed, you're joking, right? Sure, we're in the movie business, but we're still a long way from rubbing shoulders with movie stars."
Reed gave him a deep, knowing look. "Shawn, I've told you before—pay more attention to our alumni network. It's good for business!"
Shawn blinked, confused. "Alumni network? Wait, are you saying Reese Witherspoon went to Stanford? No way!"
Reed shot him a playful, half-smiling glance. "Surprised?"
"What? Is that for real?"
Shawn was genuinely taken aback.
Reed's eyes narrowed slightly as he gazed at the stream of cars in the distance. "You know Google? The most-used search engine in the world right now. Founded by two of our Stanford buddies—two younger alumni, at that. When Google was raising funds, it was through Reese Witherspoon's connection that they got linked up with Dunn Walker."
"Dunn Walker?" Shawn's eyes lit up, his surprise growing. "You mean the Dunn from Hollywood?"
"That's the one," Reed said with a smile. "You might not know this, but Miss Witherspoon is Dunn's secretary."
Shawn's jaw dropped, his expression freezing.
To think such a big deal was happening in his own alumni circle, and he had no clue—it was downright embarrassing.
"Reed, I think I get what you're driving at. You're thinking… we could reach out to Dunn Walker through our fellow alum?"
"Exactly!"
Shawn frowned, thinking it over. "That's tough. I'm a fan of Dunn's work, so I know a bit about him. Half a year ago, he made a fortune in the stock market and even landed on the rich list. But… he's still an outsider in our field."
Some things he left unsaid.
Not long ago, Dunn had poured a massive amount of money into buying Apple stock and even joined their board. To Shawn, that seemed like throwing money away—downright foolish.
Reed Hastings, however, fell into deep thought. Did Dunn really not know how to invest?
His investment in Apple might be hard to understand, but Google, which he also backed, was growing like wildfire. And then there was another internet company, X…
"By the way, have you heard? X changed its name," Reed said.
X's core business was online payments, something Netflix was also involved in, so Shawn was quick to respond. "Yeah, I heard. X acquired Confinity, and the merged company is now called PayPal. Once they finish integrating, PayPal's set to become the biggest online payment platform."
At this, both Shawn Anderson and Reed Hastings' faces lit up with excitement.
Dunn's investment track record didn't seem half bad!
Google was already the top search engine, and PayPal was on track to dominate online payments.
More importantly, Netflix had an online payment system for its movie rental service.
Netflix and PayPal had a clear foundation for a win-win partnership!
And Netflix wasn't purely an internet company—it was tied to the movie industry. Dunn, a major player in Hollywood who even invested in Hasbro, would surely see the potential in the downstream video rental business, right?
"Back when Google and X were raising funds, Reese Witherspoon was the one who made the introductions. If Dunn's as brilliant as Wall Street makes him out to be, he'll definitely see Netflix's potential!"
Reed Hastings clenched his fist, his face radiating determination.
Blockbuster had been his first choice, but they were too big, too arrogant to take Netflix seriously.
Now, there was only one option left: Dunn Capital.
Whether in Hollywood, Wall Street, or Silicon Valley, Dunn had a big name. If he was as good as his reputation, surely he'd step in to save Netflix?
This was their last shot.
But even if Dunn passed on Netflix, Reed Hastings wouldn't back down.
He had unshakable faith in Netflix's business model. Even if he couldn't raise a single cent, he'd keep Netflix going—cutting salaries, laying off staff, or digging into his own pockets if he had to.
Netflix would have a future!
It was another weekend, and for Dunn, good news was pouring in.
First, Johnny Depp had officially signed a five-movie deal with Dunn Pictures, with a maximum salary of $20 million. His first film, Pirates League: Curse of the Black Pearl, would pay him $8 million.
Second, a certain Hong Kong tycoon named Liu shelled out $3 million in sponsorship to get his "girlfriend" a cameo in a Dunn Pictures blockbuster. Easy money. Bill Mechanic promptly sent them to France to join the Mr. & Mrs. Smith set.
Third, after over two months in theaters, Spider-Man had finally surpassed Star Wars: Episode I – The Phantom Menace at the global box office, hitting $1.19 billion! It was now the second-highest-grossing film in history, just behind Titanic.
Fourth, Dunn's private jet, a Gulfstream V, was finally fully refurbished and ready for service!
With new developments in the Disney drama and Spider-Man breaking Star Wars's box office record, it was cause for celebration. As was tradition, a celebratory party was in order.
Bill Mechanic invited Dunn to come back to Los Angeles for the weekend to join the festivities and discuss the "blacklist" issue.
With his private jet ready, Dunn was thrilled. In this life and the last, this was his first plane!
Dunn invited Natalie, along with A Beautiful Mind stars Crowe Russell and Nicole Kidman, to fly with him on his private jet from the Atlantic's west coast to the Pacific's east coast.
The Gulfstream V was a top-of-the-line business jet for its time, but space was limited. It was designed for just six passengers, with no room for a bedroom, bar, or bathroom.
Those luxuries belonged to converted jumbo jets like the Boeing 747, not the Gulfstream series.
The Gulfstream's advantages were convenience and agility, with annual operating costs of around $3 million.
A Boeing 747 private jet, by contrast, typically required a crew of four or five flight attendants. For a Gulfstream, one was enough.
Speaking of flight attendants, Dunn's eyes couldn't help but drift to the lone attendant on board.
She wore a red-and-white uniform, was in her mid-twenties, and was undeniably attractive. Meeting Dunn's gaze, she flashed a warm smile.
All crew members, including the pilot and attendant, were provided by Gulfstream. If the client wasn't satisfied, they could be replaced.
As far as private jet flight attendants went, she was among the best in the U.S.
Still, Dunn felt something was missing.
She was beautiful, sure, but she lacked the gentle, graceful charm of Asian flight attendants.
"Alright, stop staring at her! You'll scare her off!" Natalie, sitting beside him, discreetly pinched Dunn's arm.
Dunn chuckled softly, lowering his voice. "Relax, I'm not interested in her!"
"Yeah, right!"