[Chapter 46: Ready to Spend]
After finalizing the agreement, John couldn't wait to tell Jim that the transfer could happen immediately. Before the $50 million in his own account had even warmed up, $42 million was transferred to the bank account Jim had provided. This meant that John officially owned 3 million shares of Netscape's freely tradable stock, ready to cash out anytime.
Sure enough, as his account balance dropped, the bank's client manager called him to confirm the transaction. It was normal for the bank to be cautious when large sums came in and then quickly left. After explaining that the funds were used to acquire shares of a company, John eased their worries. At the same time, Sequoia Capital completed a purchase of 1 million shares.
Yes, Don Valentine bought those shares on behalf of Sequoia Capital, and Jim even popped open a bottle of champagne to celebrate. John couldn't help but wonder with a bit of amusement how Jim would feel knowing these 4 million shares could be worth hundreds of millions someday -- would he still be in the mood to celebrate?
After the celebration, John and Don Valentine's group said their goodbyes. Don joked, "Looks like I ended up investing along with you, so if it tanks, I'm coming to you for compensation."
He laughed and told John, "You actually lost out by buying at the IPO price; usually, people buy below it. That meant Sequoia had to buy at the IPO price too, losing out on a few million."
Only then did John realize the intricacies involved and sighed, recognizing he still had a lot to learn. But thinking about Netscape's future stock price, he didn't feel he had lost -- after all, it was a win-win deal.
---
Next, John visited Yahoo!, which had been constantly evolving. From the original 10 people, all of whom had become managers, the company had rapidly grown to nearly 500 employees, according to Jerry Yang.
John marveled at how Yahoo! was developing faster and stronger than in his previous life. He believed that once it went public, it would be even more successful than before.
He even thought about suggesting to Jerry Yang that when the Google duo pitched to Yahoo! in the future, they should just buy Google outright and bring the founders under Yahoo!'s umbrella.
While chatting with Jerry Yang and the others, John also mentioned the up-and-coming e-commerce site Amazon and asked Jerry to keep an eye out and let him know if any news came up.
He explained it was just an online bookstore founded by Jeff Bezos, but since Yahoo! was the internet's gateway, being listed there would make Amazon's rise much smoother.
Hearing that John had spent $42 million to buy 3 million freely tradable shares of Netscape left Jerry, David Filo, and Tim Koogle speechless. They could only admire John's boldness and wish him luck.
After some more light conversation, he prepared to return to Los Angeles.
---
The ringing phone interrupted John lounging on his sofa in his apartment.
"Hello, who's this?" Clearly annoyed by the call interrupting his comfortable rest, John answered.
"Sorry to bother you, Mr. Leighton. This is the client manager from Citibank. I'd like to know if you have time tomorrow to visit the Citibank Los Angeles branch to upgrade your account. There are some formalities."
"Okay, that works. By the way, I think Citibank has real estate agents too, right? If so, can you arrange one for me to meet while I'm there tomorrow?"
"No problem, we'll have everything ready for you. Won't keep you any longer, see you tomorrow."
...
After hanging up, John shrugged to Zach.
"John, why do you need a real estate agent?"
"Zach, don't you think we're living a little too modestly? No matter what, we're millionaires now. We still have $8 million in the bank. Perfect time to buy a house -- not anything fancy, just something around $2 or $3 million to live in comfortably."
"What? Spend $2 or $3 million?"
"Exactly. Wonder how big a house that would get me," John muttered. He'd clearly underestimated the buying power of the dollar in 1995.
At that time, the dollar was strong -- not like the heavily devalued currency of the future -- and the U.S. real estate market was at a low point. The next decade would be a boom period that eventually led to the subprime mortgage crisis.
So buying a house for $2 or $3 million in '95 would likely turn into a $10 million+ property over the years. In Hollywood, that would be a nice, respectable home -- not too big, not too small.
After all, the super-rich celebrities with mega-mansions were rare, with most stars simply being well-off but not owning ten-million-dollar houses. Those huge estates in Beverly Hills mostly belonged to entertainment moguls; only a handful of A-list celebrities could afford them.
"John, a $2 or $3 million house isn't small -- it's a mansion for sure, with several thousand square feet, gardens, and even a pool."
"Really? You're sure?"
"Of course."
Seeing Zach's confident reply, John realized he had made a mistake thinking in future dollars; after all, it's only '95.
"Alright, I'm set on buying a house for myself. Zach, having money means living comfortably -- what's the point of having all that if you can't enjoy it?"
Hearing this, Zach rolled his eyes but said nothing. After all, it was John's personal choice.
This was John's philosophy: money was for enjoyment. Now that he had wealth, he'd raise his quality of life first. Once he hit the top and had the means, he might consider helping others.
He had no respect for those who wore their wealth as a badge or for those billionaires who donated huge sums supposedly for charity, just to avoid estate taxes.
As for worrying about estate taxes now? That was too far ahead. Maybe when he got old, he'd play that game too -- no one wants their lifetime wealth to just slip away to others without a fight.
Having made the decision, John thought about his "girlfriend," Charlize Theron. If he moved, would she want to move in with him?
Zach shrugged, saying he didn't know and that John should figure that out himself. John rolled his eyes at Zach's nonchalant reply.
In the end, he concluded the house needed to be bought; as for Charlize, well, he'd just have to try convincing her.
---
That night, when John told Charlize about his plan to buy a villa, she was surprised. Learning he had borrowed $50 million and already spent $42 million left her completely shocked; to her, John's tens of millions sounded overwhelming.
However, when John brought up moving in together, she hesitated. She wanted to break into the entertainment industry and thought it was unwise to expose their relationship too early.
Plus, she was still struggling financially, living with a guy several years younger might damage her reputation. She feared rumors would ruin her chances.
So Charlize said she needed to think it over and explained her concerns. John understood and told her it wasn't a decision to rush -- she should take her time.
*****
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