Warner Bros. Shake-Up

Scotts Valley, South Bay, San Francisco, Netflix headquarters office.

Dawn spent 50 million US Dollars to acquire Netflix, the online DVD rental website jointly founded by Marc Randolph and Reed Hastings.

Tom Rothman had made a special trip to the Bay Area to meet with Netflix's senior executives and instructed them to continue innovating its personalized movie recommendation system.

"Heh, looks like things must have been rough over at Netflix if they signed the contract so quickly?"

In Dawn's office, Aaron smiled as he looked at Tom Rothman, who had returned from the Bay Area.

Tom Rothman nodded. "They've been losing money all along, and finding investors hasn't been easy either."

Aaron understood. "With only 300,000 subscribers, losses were inevitable."

"By the way, DreamWorks' distribution business must not be easy now, right?"

Paramount, Columbia Pictures, Universal, and Disney Animation had all targeted DreamWorks' release schedule. The theaters would certainly make moves as well.

"Ha, it's getting harder and harder. Jeffrey Katzenberg is going door to door now, negotiating for theater screens for DreamWorks' films."

"Still, Steven Spielberg's reputation is just too great. Projects associated with him still have a huge market."

Aaron tapped the desk. "It doesn't matter. We've already done what needed to be done. Disney's own incompetence can't be blamed on anyone else."

"Michael Eisner is hosting a banquet at his Beverly Hills mansion tomorrow night. He'll probably bring this up again."

Michael Eisner was power-hungry and far too arrogant. He suppressed dissent, favored his own people, and now even Roy Disney, who had always supported him, no longer approved of his management style.

Tom Rothman nodded. "The three people at DreamWorks are all capable, and none of them lack resources. If they truly unite, they'll still be very difficult to deal with."

Aaron merely smiled without speaking.