Disney snapping up the Fox Family Channel sent some shockwaves through Hollywood.
But across the whole U.S.? Barely a blip.
The real nationwide headline? Dunn.
Only this time, it wasn't the usual "godlike" Dunn the news had built up over the years. Nope—this was a full-on fall from grace!
It started with a few whispers in small Wall Street rags, but by June, the chatter was everywhere. Even the heavy-hitting Wall Street Journal dropped a bombshell headline: "Stock God Crashes: Dunn Walker's Short Bets Lose $8.7 Billion."
CNN, Fox, NBC—they all piled on. Even ABC, which usually couldn't care less about finance, went all out with wall-to-wall coverage!
Bottom line: this summer, the "miracle man" Dunn wasn't so miraculous anymore.
Dunn? He was loving it. This was exactly what he wanted.
A little fame? Who cares?
Making bank—that's what counts!
Last year, Dunn went big shorting NASDAQ, and tech companies took a collective bath. The SEC clamped down hard on Dunn Capital's financial moves after that, tying their hands.
Another easy shorting spree like last year? Not happening.
But now? Things were looking up!
After six months of shorting NASDAQ and the NYSE—and taking a brutal hit—media outlets were predicting Dunn Capital's fortune had shrunk by at least 30%!
The second that narrative hit, the regulatory heat on Dunn Capital eased up.
Scott Swift even called Dunn, buzzing with excitement. The SEC had just greenlit them for normal trading in the financial markets again.
Total freedom!
Dunn was brimming with confidence. Every time he thought about the market shakeup coming in a few months, a sly, almost creepy grin crept across his face.
Yeah, they'd eaten a big loss, but Dunn Capital still had over $2.2 billion in cash flow ready to roll!
Back then, shorting rules in the U.S. stock market were wide open—no limits.
Ten-times leverage, twenty-times, even a hundred-times? All doable!
A hundred-times leverage was too wild for Dunn—too risky. One wrong move, even with his foresight, could wipe him out.
But twenty-times leverage? That was manageable.
With $2.2 billion and a twenty-times leverage short, he could single-handedly move over $40 billion in the market…
When the "9/11 attacks" hit, even if stocks only dropped 10% on average, that's a $4 billion profit!
Scary just thinking about it!
"Nah, gotta keep it low-key. Low-key's the move!"
Dunn was getting a little spooked. Too much money could burn a hole in your pocket.
Especially with the movie market lately—Never Sinking was killing it at the box office, and Mr. & Mrs. Smith was set to hit North America the next weekend, June 22nd.
To dodge any jealous eyes, he needed to lay low for a bit!
Of course, Dunn's tumble from the pedestal wasn't the only big news rocking the country. The other bombshell? Jack Welch officially stepping down as chairman and CEO of General Electric!
Dunn's second meet-up with Jack Welch happened at Apple.
Welch, a legend in manufacturing, was in Silicon Valley for a seminar. Afterward, Jobs invited him to Apple to check out his latest brainchild—the iPod music player.
It wasn't some top-secret thing. The design was done, and they were just running final internal tests.
Barring any surprises, it'd hit the market in October.
Welch had launched tons of iconic hardware in his day. One glance at the iPod, and he slapped Dunn's shoulder like he'd cracked a code. "Now I get why you went all-in on Apple stock no matter the cost. This thing's gonna boost their stock by at least 20%!"
Dunn smirked inwardly. Twenty percent? That's nothing!
But on the outside, he kept it humble. "Mr. Welch, I didn't invest in Apple because I knew they'd churn out something this good."
"Oh?" Welch raised an eyebrow. "Steve, is it because of you?"
Jobs shook his head. "Yes and no!"
Welch's brow furrowed. "What's that mean?"
Jobs gave a wry smile. "It's because of Pixar!"
Welch burst out laughing, pointing at Dunn with a mix of amusement and disbelief. "You've got some serious focus, huh."
Dunn's mind clicked—there it was again, that vibe he'd picked up before.
Last time, at Redstone's birthday bash, he'd caught some odd comments from both Conrad Black and Jack Welch.
Both of them, without missing a beat, took shots at Murdoch and Redstone—those two old geezers.
Sure, it's a quick way to bond in a conversation.
But these guys… on the surface, they were all buddies.
So why were they so sure Dunn wouldn't snitch?
Dunn wouldn't, obviously, but how did they know that?
"Mr. Welch, can I talk to you alone for a sec? I've got a couple questions," Dunn blurted out, curiosity getting the better of him.
Welch gave him a long look and chuckled. "Young guys, huh? Always so impatient."
Jobs caught the drift and jumped in. "Use my office. I've got a meeting anyway."
…
Jobs' office? Straight-up paradise.
No exaggeration—birds chirping, flowers blooming!
A massive floor-to-ceiling window opened up to Apple's orchard outside, dotted with weird, funky trees Jobs had designed himself. It had this sleek, minimalist, almost sci-fi Japanese vibe.
Total artist vibes!
Dunn was Apple's biggest shareholder now—over 13.3%—and Dunn Capital was still pouring cash in, scooping up more.
So, half-host, Dunn played the gracious guide, leading Welch to a pair of bamboo chairs by the window. With birds singing overhead and the soothing view outside, it was pure chill.
"Now this is how you set things up right!" Dunn couldn't help but think.
Silicon Valley, the hub of cutting-edge tech, had the best office vibes in the world—perfect for sparking inspiration in designers and engineers.
Hollywood, though? Stuffy and old-school. They hated splashing cash on fancy offices.
But Hollywood needed creativity way more than Silicon Valley did!
Good thing Dunn Films' new HQ campus was under construction. First phase should be ready by next August.
On top of the original "Dunn Tower" and "Marvel Tower," the latest plans added a multi-purpose auditorium, staff cafeteria, fitness center, "Rose Tower," and a few other buildings.
"He's a design genius!" Welch suddenly piped up, clearly vibing with Jobs' office setup too.
Dunn grinned. "Well, my new HQ's design isn't gonna lose to this place."
Welch smiled cryptically. "And that's exactly why."
"Why what?"
"The answer to what's bugging you."
Dunn's heart skipped a beat. He stared at Welch, those cloudy eyes seeming to see right through him.
Of course, it was just top-tier people-reading skills.
He hadn't nailed Apple's future, that's for sure.
Dunn mulled it over, replaying their last chat, then tested the waters. "Is it… my ambition?"
"Sharp kid!" Welch flashed a thumbs-up.
Dunn shook his head. He'd considered that, but it didn't add up. "I won't deny it, but… Mr. Welch, real talk—last time at Redstone's party, I ran into this weird big shot who straight-up trashed Murdoch in front of me. Even took some digs at Redstone."
Welch nodded. "Ambition shapes your scope. Dunn, in just a few years, you've shot up fast, building a new power in Hollywood. Anyone paying attention—those big players—can't miss it."
"No way!" Dunn's face darkened. "I think I'm pretty guarded. No one's reading my mind that easily, right?"
Welch paused, then cracked up. "Dunn, you've got it wrong!"
"Huh?"
"No one's figuring you out just by looking at you—not even a shrink could pull that off. It's simpler than that. It's your business moves, your strategy."
Dunn went quiet, so Welch kept going. "Dunn Films started as just a movie outfit, so the early days were smooth sailing. But then your setup shifted—TV, animation, toys, online… Your ambition's out in the open. You're not happy with a little film company. You're gunning for a media empire!"
Dunn started connecting the dots. "So… down the road, Dunn Films is bound to butt heads with News Corp and Viacom over interests. We've got shared enemies?"
Welch smirked. "Enemies is a stretch. Let's just say I'm not sold on Murdoch and Redstone, those old fossils."
Dunn let out a breath, finally getting it.
So that's why Conrad Black dropped those weird comments last time. He'd clocked Dunn's fast-growing empire and wanted to buddy up early—maybe team up against News Corp later.
But then Dunn's stomach dropped, his face shifting.
If Black saw it, and Welch saw it, how could a cagey vet like Sumner Redstone miss it?
Dunn Films could take on Disney today. Tomorrow? Viacom could be next!
Especially with TA Network blowing up. Six Feet Under had just premiered—only two episodes in, but it was already the most gripping show in America.
Besides HBO, here was another rival for Showtime.
Redstone…
Would he just let Dunn keep growing?
Things weren't looking so rosy anymore!
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