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Chapter 177: Steve Jobs Returns to Apple
🕑 Added 2025-01-01 10:01:43 +0000 UTCAside from acquiring Marvel as a major strategic decision, Gilbert's other significant investment in Apple, which had been a loss-making venture, finally saw a major turnaround.
After years of struggle, Apple was on the brink of filing for bankruptcy this May, but Gilbert intervened and prevented it.
Over the years, despite being met with skepticism from his investors, particularly David, Gilbert had consistently purchased Apple shares from various major shareholders, increasing his holdings to approximately 6.4%.
This stake made Gilbert a legitimate major shareholder of Apple. However, Apple had significantly depreciated in value and was now effectively a liability.
Gilbert's actions baffled many. What could possibly justify his continuous investment in a failing company like Apple? Did Gilbert, the genius investor who founded Facebook and Banana, see something others didn't?
After some deliberation, most investors still concluded that Apple was a lost cause.
The only plausible explanation left? Gilbert had lost his mind.
In June, Apple held another board meeting, where Gilbert once again advocated for bringing Steve Jobs back to the company.
When Gilbert initially proposed this idea years ago, the board had dismissed it, as many of the shareholders responsible for ousting Jobs were still present.
But now, the circumstances had changed.
Jobs had risen to prominence with Pixar Animation Studios, which had gone public, giving him a net worth of $1 billion. Meanwhile, Apple's valuation was plummeting toward the $1 billion mark.
More importantly, Apple's numerous products and ventures had left it heavily indebted. Given the current rate of losses, Apple wouldn't be able to repay its debts by their due dates, leaving the company vulnerable to asset liquidation by creditors.
Faced with this dire situation, Apple's board began to take Gilbert's proposal seriously.
Eventually, with the majority in favor and a minority opposed, the board reached a consensus: Steve Jobs would be invited back to lead the company.
Once the decision was made, Gilbert personally visited Pixar Studios to meet Steve Jobs.
"Steve, I just came from Apple's board meeting. The decision has been made—they want you to return and take the helm of the company," Gilbert announced.
Jobs, who had been anticipating this opportunity for years, nodded with determination.
"Thank you, Gilbert. Thank you for your support."
"You're welcome, Steve," Gilbert said, patting Jobs on the shoulder. "Get ready. I'm looking forward to seeing you revive Apple."
With the matter settled, Gilbert facilitated Jobs' return to Apple by injecting another $200 million into the company and securing an additional $150 million from Microsoft.
With this renewed cash flow, Apple did not immediately focus on repaying its debts. Instead, it acquired NeXT Computer, a company founded by Jobs, making him a shareholder in Apple once again.
Shortly before Gilbert's birthday, Apple held another board meeting, where Jobs was officially appointed CEO, marking his return to the company after a ten-year absence.
After taking over, Jobs didn't rush into drastic changes. He began by analyzing the company's situation, scrutinizing every product line and ongoing development project.
Having spent years preparing himself, Jobs had a clear understanding of the market.
Following his observations, he proposed several initiatives: discontinuing unprofitable product lines and halting the development of projects catering only to current market trends.
In a high-level meeting, Jobs emphasized:
"Apple must focus on the future, creating products that people will need, not what they need now.
We need to build our ecosystem—a self-sustaining chain where every product we develop integrates seamlessly within the Apple environment.
This ecosystem idea was suggested by Gilbert, and I find it incredibly visionary. It will be our strategic focus going forward."
Perhaps it was this ecosystem concept that intrigued Jobs. Recognizing Gilbert's visionary ideas in electronics and the internet, Jobs personally visited Gilbert at his estate.
"Steve, do you know what the most terrifying thing is?" Gilbert asked.
"What is it?"
Gilbert toyed with a Nokia phone in his hand and said, "This."
"A phone? Why would it be terrifying? It's just a communication tool," Jobs replied, puzzled.
"Years ago, people said the same thing. Phones were just clunky communication devices, heavier than bricks. But look at them now—they fit in one hand, can make calls, and send texts. Phone ownership is skyrocketing," Gilbert explained.
He tossed the Nokia phone into the trash, startling Jobs, and continued:
"But in my view, the future of phones isn't just as communication tools. They'll become mobile entertainment terminals.
Imagine combining a camera, gaming console, music player, and video player into one small device, with the ability to access the internet anytime, anywhere. What do you think that would lead to?"
Jobs, a true genius with a keen sense of technology, immediately recognized the potential of Gilbert's futuristic vision.
"Are you suggesting that Apple should focus on phones?" Jobs asked.
"I'm merely painting a picture of what could be. As for how to make it happen, that's your expertise," Gilbert replied with a smile. "I trust you'll lead Apple to unprecedented heights."
For once, Jobs, known for his arrogance, felt a hint of humility. "I think you'd be better suited to lead Apple."
"No, Steve," Gilbert shook his head. "I'm a filmmaker. I might have wild ideas, but turning them into reality? That's your talent."
Jobs chuckled. "It seems I'll need to consult with you often. You bring the ideas, and I'll make them real. We're a perfect team."
"Perhaps," Gilbert said, laughing along.
Before leaving, Gilbert handed Jobs a beautifully hand-drawn illustration of a girl wearing headphones and holding a compact device that resembled a music player.
"Is this a Walkman?" Jobs asked.
"You could say that," Gilbert shrugged. "But I'd call it an MP3 player. The idea came to me from one of my movies. You can use it as a starting point for Apple's future."
Jobs carefully tucked the drawing away as though it were a treasure.
"Thank you, Gilbert. Apple owes its survival to you. I won't let you down. I'll lead Apple, not just back to its peak, but to even greater heights."
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Jobs returned to Apple and locked the illustration in a safe, marking it as a top company secret. He immediately convened the development team to propose a compact music player concept.
"Do you mean a Walkman?" an engineer asked.
"No," Jobs replied. "A Walkman requires tapes, which are bulky and inconvenient. I envision a device that stores music digitally on a chip and includes playback functionality."
"What will we call this device?" another engineer asked.
After a moment of thought, Jobs said, "MP3 iPod."
Apple quickly began development. By October, a prototype was ready, receiving positive feedback during trials. This prototype marked the beginning of Apple's recovery, with its stock price climbing as the company moved away from the brink of bankruptcy.
Although the MP3's technology wasn't particularly advanced, competitors soon flooded the market with similar products. Apple continued refining the MP3 while simultaneously laying the groundwork for its ecosystem and turning its attention to the mobile entertainment terminal Gilbert had envisioned—what Jobs called the smartphone.
Meanwhile, Gilbert's investor, David, had quietly acquired an 11% stake in Marvel from various shareholders, making Gilbert a major shareholder.
As of now, only two entities held more shares: Perelman, with 30%, and the toy company Toy Biz, which sought to gain complete control over Marvel.
Perelman, aware of the rivalry, began playing both sides, waiting for the highest bidder.
At this time, Gilbert was vacationing in New Zealand.
"The scenery here is stunning. It's preserved much of its natural beauty—perfect for filming," Gilbert said, framing a scene with his hands.
Charlize Theron, who had just finished filming The Devil's Advocate, accompanied him on the trip. Hearing this, she asked, "You're not thinking of something, are you?"
"Actually, I am," Gilbert replied. "What do you think about using New Zealand as the filming location for The Lord of the Rings?"
Theron, being Gilbert's confidante, was well aware that he had acquired the rights to The Lord of the Rings years ago.
However, knowing its reputation as an epic tale difficult to adapt, she expressed concern. "Are you sure about this? Can it succeed?"
"Trust me, Sally. It will," Gilbert assured her.
Such a monumental project wasn't something Gilbert could manage alone. Upon returning home, he planned to discuss it with producer Kane Wexman, asking him to set up a base in New Zealand next year to begin preparations.
At the same time, Gilbert also planned to work with the studio's screenwriters to begin adapting The Lord of the Rings into a screenplay.
Using Peter Jackson's original films as a reference, Gilbert intended to perform a "surgical operation" on the original movies, cutting unnecessary scenes and subplots.
While the original trilogy was undeniably excellent, it was excessively long, severely affecting theater scheduling and, in turn, its box office performance. Streamlining it was a necessary decision.
Notably, Peter Jackson, upon learning that the rights to The Lord of the Rings were in Gilbert's hands, made a strong request to be the director for the project.
However, this request was mercilessly declined by Gilbert. He had acquired the rights specifically to direct the project himself, not to hand it over to someone else.
After returning from New Zealand, Gilbert officially submitted the screenplay for his seventh feature film, The Sixth Sense.
