The super orders worth over $200 million caused a nationwide stir, making it clear to everyone that this was a lucrative business. The involvement of politicians seemed unnecessary.
This was just the first order, and there would likely be ongoing demand in the future. If the market responded positively, explosive growth was possible.
Some wondered if there could really be such a massive demand for game consoles alone. This question was on Wall Street and throughout American society.
Their questions would soon be answered. Customers in Europe and the foot basin had needs that would likely match or exceed Miguel's order.
Regarding the order price and payment terms, the foot basin representatives quickly signed the contract without much negotiation. Obtaining a production authorization was no easy task. While a 10% share of the sales was considered high, the additional conditions were somewhat challenging.
William White's condition was that no similar machines could be developed during the cooperation and for 18 months afterward. This was to slow down the competition from getting too fierce too quickly.
The three companies felt some discomfort with this condition. Giving up was not an option; this business was worth over a billion dollars annually. Failure would only widen the gap between them.
Research and development wasn't feasible either. In two years, any game they developed would likely be outdated. They ultimately agreed to a twelve-month exclusivity period, as neither party wanted to drag things out.
However, some speculated that offering three manufacturers was a tactic to drive down prices. William White and the others had already set a tacit understanding about the final retail price, with a maximum 5% price difference.
Critics argued this was a monopoly and price manipulation, but there was no concrete evidence. The foot basin industry associations maintained this unspoken agreement. No company would risk damaging the market, as their primary goal was profitability, not price wars.
While some disgruntled parties had left the negotiation table, they now needed to bring the product to market quickly and establish their own sales channels.
The legendary world began expanding rapidly, with several headhunting companies poaching talent from Atari. The benefits, high salaries, and stock options were unmatched, making it hard to find a similar company in the country.
Other politicians were hesitant, but the California government welcomed William White's companies, as they brought in a significant number of jobs and boosted the local economy. They couldn't afford to offend this young entrepreneur. Even a troubled family could start a company in Houston; the options were plentiful.
The legendary world's operations bewildered Wall Street, leaving many wondering where the money came from.
They quickly discovered that William White used the three games as collateral, securing a $60 million credit line from Sumitomo Bank. There were rumors that they had initially offered $100 million, but William White declined.
Given the current order volume, which included many leased machines, the $60 million was deemed sufficient to address capital issues.
Wall Street had counted on William White's financing, whether equity or collateral, but this businessman was resolute. He never intended to rely on Wall Street for funds.
With interest rates near 20%, servicing such loans would be challenging. Starting an A round of financing wasn't easy either. If they knew you were desperate for cash, they would swallow most of your shares, and you'd be lucky to retain 15%.
This was common practice for most publicly traded companies. When your stock went public, you might lose up to 10%.
The United States lacked the concept of a private company. Companies belonged to everyone rather than individuals. If you could maintain a good rate of return, you could continue as the boss. If you couldn't meet their expectations, they could easily oust the founder. This was the norm on Wall Street.
William White wasn't foolish. If he had only retained 15% of the shares, his interests would be significantly less than they were now. He could lose control of the company at any time, something he couldn't accept. He had a long-term plan, and taking excessive risks wasn't part of it.
Wall Street wondered if this was another cash-printing machine. William White's companies were characterized by significant cash flow, and over time, this feature would become more apparent.
Even those less familiar with finance recognized that these were high-quality assets. Wall Street couldn't comprehend why someone would willingly hand over such valuable assets when they seemingly had so many of them.
However, William White had no intention of financing through Wall Street.