[Chapter 557: A Company with Trillion-Dollar Potential]
Linton certainly knew that selling tickets through the internet was the best solution to this problem, and he admired Jeff Bezos's talent. But business was business -- flaws had to be pointed out, and interests had to be fiercely protected.
"You make some valid points," Linton said. "Let me ask you this: how many registered users does Amazon have?"
"2.6 million. We already have 2.6 million registered users," Bezos replied confidently.
"But the U.S. population exceeds 230 million. Even if you exclude seniors and children who don't attend concerts, the target audience should be over 150 million. Only 2.6 million users? That's a far cry from offering tickets fairly and openly to the entire American public, don't you think?"
"True, but if we announce it ahead of time, anyone interested in buying can register on Amazon's platform early. Registration is free, with no hurdles at all."
"I see. You're using this concert ticket sale to attract new users to your platform."
"You caught me. But it's a win-win arrangement. You solve the problem of fair, open ticket sales across America, and I get to grow my user base. To show good faith, Amazon isn't charging any service fees for this ticket sale."
"You really know how to seize an opportunity. But it's clear who benefits more here. Let me stop you there -- the tickets sell out, you get 10 million new users with ease, easily surpassing your current user base. Think about how much promotional money you save, and how much faster your company grows. A few tickets fees are nothing."
"Alright, what are your demands? Speak freely and I'll see what I can do."
"Your company's still small. If I ask you for too much money, you can't afford it; too little and it's meaningless. So here's what I want: a promise."
"What kind of promise? Go ahead."
"I believe in you and your vision for Amazon. Winnie from Mangrove Capital led your Series A investment, but she didn't secure the right of first refusal for follow-up rounds. I don't need to lead future rounds either. Just guarantee that Mangrove Capital has the right to co-invest in Amazon's future fundraising, and that our 15% ownership stake doesn't get diluted."
Bezos was surprised by Linton's confidence in him and his company but saw no real harm in the request; maintaining a 15% stake wouldn't threaten his control. More importantly, Amazon's unique share structure safeguarded his control from the start. Since he didn't need investors to found the company, he had the upper hand.
From the angel round onward, he implemented a dual-class stock system: venture capitalists received Class A shares, while he held Class B shares. The difference? Class A shares had one-tenth the voting power of Class B shares. Class B shares could convert to Class A, but not the other way around.
This setup essentially ensured he wouldn't lose control in future financing. Still, out of caution, he avoided letting any investor hold too much equity. With that in mind, he immediately agreed, "Alright, let's do it your way. I'll sign the agreement with Mangrove Capital soon."
"Good, I'll call Daniel now." Linton picked up the phone and simply told Daniel about selling tickets through Amazon. Daniel was all in without hesitation.
After hanging up, Linton turned to Bezos and said, "I've informed Daniel. You can meet him directly at Universal Records."
"Thanks. I also have another cooperation proposal I'd like you to consider."
"Oh? What's that?"
"How about selling the merchandise for movies jointly released by Universal Pictures and Linton Films on the Amazon platform as well? It's another win-win opportunity -- it could effectively boost your movie company's peripheral product sales."
"In principle, I agree. But I think you shouldn't have too high expectations."
"Why not?"
"Do you know under what circumstances customers usually buy movie merchandise?"
"After watching the film, when they're moved by the story or characters?"
"Exactly. Honestly, most movie merchandise purchases are impulse buys. People buy them at the theater's gift shop immediately after a movie because they're emotionally charged. But once they get home and cool off, that desire fades. That's why I'm not very optimistic about selling movie merchandise on Amazon. But you can still try -- it can't hurt."
"Thanks for the advice. I still want to give it a shot."
"Alright, you should talk to the distribution departments of those studios. I'll give them a heads-up."
...
Once Bezos was gone, Winnie turned and settled in Linton's lap, "Darling, why do you value him so much? Is he really that good?"
"Don't underestimate him. Look at how clear his vision is for Amazon's future. Whom have you seen with such long-term clarity? Bill Gates? Jerry Yang? Mike Chambers? Probably not. More importantly, I believe his projection of mass online shopping becoming a norm is very plausible."
"Online shopping does seem promising. So, you think Amazon has huge growth potential."
"Definitely. The e-commerce market is limitless. One giant company will inevitably dominate this field. By our previous logic, online shopping will soon stand shoulder to shoulder with brick-and-mortar stores. Imagine if one company captures over 30% of the U.S. retail market and likely expands globally. Can you estimate what its market cap might be?"
"That's terrifying to think about. I can't even imagine how much it would be -- more than Coca-Cola's market cap?"
"Coca-Cola's market cap is about $230 billion now, but you're underestimating computers and the internet. I predict Microsoft could surpass it as early as next year."
"You mean Microsoft will become the world's most valuable company? And further in the future, Amazon might even overtake Microsoft?"
"Microsoft's rise is certain. Beyond that? It's hard to say. But e-commerce's market ceiling is sky-high. If one monopoly titan emerges, its valuation will start in the trillions of dollars. Whether Amazon holds that title depends on Bezos and his company's development, but so far they hold a decisive lead."
"Over a trillion in market cap? Impossible!" Even Winnie, who trusted Linton, was stunned.
"You have to look at it from a growth perspective. With the internet's expansion, is it so unbelievable that online shopping can reach that level? The market can definitely support a trillion-dollar company."
"No wonder you insist on keeping your 15% stake. That's a massive opportunity."
"Exactly. If it really materializes, the stakes involved will be enormous."
"Okay, since you say so, I'll keep a close eye on our investments in Amazon and seize every chance to increase our shares."
"That's not all. You should also monitor other internet startups in e-commerce. Though Amazon leads by a wide margin, others might still break through."
"Got it. I'll instruct William Lee to focus on e-commerce ventures."
"How's the Marvel stock acquisition going?"
"Smooth. Marvel itself gave up trying to save the company and was heading for bankruptcy. Their stock was worthless, and everyone was trying to sell before the bankruptcy ruling. In less than a week, we bought 31% of the shares on the secondary market using over ten different accounts."
"What about Goodman's side?"
"They're progressing well too, having acquired 23% from many small shareholders."
"Good. Keep going. I want to take Marvel private with 100% ownership."
"Okay. I'll keep a close watch."
"Alright, that's enough serious talk. Let's do something we enjoy next."
"You bad guy, you're up to something mischievous in broad daylight again."
---
With Linton's approval, Jeff Bezos quickly finalized the agreement with Daniel for selling concert tickets through Amazon.
For Daniel, this was a fantastic opportunity -- solving the challenge of publicly and fairly selling tickets nationwide while saving a substantial amount in sales fees.
Typically, ticket sales channels charge over 20% in fees for concerts. Even superstars, with higher ticket prices, see fees of no less than 15%.
With two concerts and 35,000 tickets available to the public after some reserved seats, each averaging $500, total sales would hit $17.5 million.
At a 15% channel fee, that's $2.625 million saved -- not a small change. Naturally, Daniel couldn't be happier.
As for whether internet ticket sales would upset audiences, Daniel trusted that Linton had thoroughly considered every detail, so no extra action was needed on his part.
Bezos was ecstatic; essentially, he had used $2.6 million worth of ticket fees to promote Amazon nationwide to millions of new users -- an absolute win.
Soon after, Universal Records and Amazon jointly held a press conference announcing the decision to sell Linton's concert tickets online via Amazon to ensure everyone in America had a fair chance.
During the Q&A, Bezos detailed the online ticket purchase process, distributing an easy-to-understand flowchart to all reporters for better coverage.
As expected, one journalist asked, "Online shopping isn't mainstream yet. Most people have no idea how to buy concert tickets online. How do you ensure everyone can smoothly complete their ticket purchase?"
Bezos was ready: "Tickets for Linton's Los Angeles concert will officially go on sale in exactly two weeks at 8 p.m.; tickets for the New York concert will go on sale a month later. Everyone will have plenty of time to familiarize themselves with Amazon's shopping process, which is extremely simple.
As long as you can use the internet, following the steps I gave you, you'll master it within three minutes. Plus, buying tickets on Amazon means you don't have to drive to a box office or stand in line. No matter where you are in the States, you can complete your purchase sitting comfortably in front of your computer. We believe this will provide an excellent ticket-buying experience."
When asked how to ensure fairness in ticket sales, he confidently answered, "Before sales begin, all tickets will be fully listed by price on the Amazon site. Everyone who logs in to buy tickets for Linton's Los Angeles show will see the available number in each price category. With each purchase, the count decreases by one until sold out, when it hits zero.
The entire sales process is transparent -- everyone has the same opportunity. Whether you get a ticket depends on your speed and luck."
...
Following the announcement, the media flooded coverage of the Amazon-Universal partnership selling Linton's concert tickets online. Most outlets published Bezos's flowchart in full.
By and large, the coverage praised the cooperation, hailing Universal for genuinely listening to fans and finding a practical solution.
Of course, conservative voices criticized the move, claiming online shopping was unreliable and that Universal's strategy disrupted traditions and business ecosystems.
Others pointed out that although internet users in America had risen to over 60 million, many were still unfamiliar or unexposed to the web, raising concerns about protecting those people's interests.
More complaints came from residents of Los Angeles and New York, who were unhappy that their home-field advantage in ticket buying vanished; now they had to compete equally with the entire nation, souring their mood.
Unsurprisingly, traditional ticket agencies were working behind the scenes, fiercely protecting their interests.
Bezos seized the opportunity and organized online campaigns on key forums to promote this cooperation, including his Amazon shopping flowchart.
...
Predictably, due to Linton's concert buzz and saturated media coverage, Amazon's registered users surged rapidly.
On the very first day, registrations shot up by over 3 million, surpassing the platform's original user base. Even better, nearly 1 million people actually shopped on Amazon that day, placing book orders.
User registrations and orders continued growing fast thereafter.
Amazon's team was thrilled but faced a tough challenge: they had to urgently recruit staff and expand their server capacity.
Bezos began seriously considering launching a Series B funding round.
*****
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