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-♪ Money ♪
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-The '90s was a time to cash in.
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Just ask E-Trade.
- What? What is it?
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-He's got money
coming out the wazoo.
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-A financial frenzy...
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-It's a pretty addictive thing
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when you see other people
making so much money.
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- fueled by the magic
words "dot com."
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[ Modem dialing, screeching ]
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Just take your business online.
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-Anybody can access
anything from anywhere.
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-And watch your wealth
magically take off.
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-I was surrounded
by Internet millionaires.
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-What everyone called
this gold rush.
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You didn't want to be left out.
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-But what goes up...
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-This was hubris...
Flying too close to the sun.
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- must... you know the rest.
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-People getting laid off
en masse, companies shuttering.
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-People had to move back in
with their parents.
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{\an8}-I just remember
being devastated.
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♪♪
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[ Dial-up modems screeching ]
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♪♪
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{\an8}-Today, I'm talking to some
city pets.
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{\an8}Ooh! Ooh, ooh, ooh!
Hey, poodles!
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{\an8}Did you know that Pets.com
delivers food, treats, and toys?
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-By the late '90s, Pets.com
would be in a three-way battle
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over where online customers
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would buy their pet food
on the Internet.
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-The online competition
for the pet space
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was incredibly cutthroat.
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-But just a few years earlier,
morning-news anchors struggled
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to even understand
what the Internet was...
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-Can you explain
what Internet is?
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- or how it worked.
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-That little mark with the "A"
and then the ring around it.
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- "At."
- See, that's what I said.
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-Mm-hmm.
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-Um, Katie said she thought
it was "about."
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- Yeah.
- Oh.
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-The information super-highway
can be a confusing mix
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of on-ramps and off-ramps.
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-The Internet starts as a
military communication network
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{\an1}in the '60s and spends the next
20 years being further developed
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in university
computer-science labs.
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But it was the creation
of the World Wide Web in 1990,
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a series of Web pages
connected by hyperlinks,
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that made the Internet
become something
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that the average person can use.
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-Your link to literature,
the arts,
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the world at your fingertips.
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-The free transfer
of information
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in is accessible a way
as possible.
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You know, we're going to make it
so that anybody
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can access anything
from anywhere.
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I was like, "Well,
that's kind of a cool idea."
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-And who better to latch on
to a cool new idea
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than baby boomers Bill Clinton
and Al Gore?
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When they get elected in 1993,
the World Wide Web
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is at the center of their
proposed tech-based economy.
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-Eisenhower had built
the interstate highway system.
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Well, Clinton and Gore
were going to bring in
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the age of the
information superhighway.
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-Clinton makes good on
his promise,
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but he gets some much-needed
help from a company
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that builds an on-ramp
to this new digital future.
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{\an8}I'm Rosanne Siino,
and I was Vice President
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{\an8}of Corporate Communications
at Netscape.
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I was the 19th employee
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and, I believe, the second
female to be hired.
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There was me and a lot of very,
very young, smelly engineers.
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-The company is founded in 1994
by Marc Andreessen,
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a 23-year-old
computer-science grad
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from the University of Illinois,
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and Jim Clark, an established
Silicon Valley entrepreneur.
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-Jim Clark became convinced,
in talking to Marc,
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that the Internet space
was wide open for the taking.
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Yeah, this thing that was
right now being used
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for scientific purposes
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could potentially be used
for commercial purposes.
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He could envision that
we might want to sell things.
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He could envision
that it could be used for,
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you know,
widespread communication.
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-In the early '90s, the Web is
slow and hard to navigate.
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It's the domain of academics
and computer geeks.
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But Clark and Andreessen
have a vision
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to make the Web accessible
to everyone.
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-We ended up sort of
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in the middle of the night
starting this project.
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What we were trying to do was
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put sort of a human face
on the Internet.
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-True to its namesake,
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the browser
is a navigator to the Web,
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making surfing as easy
as point and click.
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-Netscape Navigator was the
first commercial version
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of a Web browser
that spawned Apple Safari.
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It spawned Google Chrome.
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All of a sudden, the power of
the Internet that had been there
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for years was available
to everybody in an easy way.
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Point and click...
The universal language.
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{\an8}I'm Tara Hernandez,
and back in the '90s,
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{\an8}I helped launch
the World Wide Web.
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That's a little much. Let me...
Let me... Let me do that again.
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I was able to witness the birth
of the World Wide Web.
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I like that better.
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I don't want to take credit
for any of that. [ Chuckles ]
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-Netscape was foundational.
This wasn't just a nice-to-have.
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Having the browser
was absolutely essential
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to Internet commerce,
for entertainment,
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for communication,
all these things.
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-I'm Margaret O'Mara.
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I'm professor of history
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at the University of Washington
in Seattle.
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{\an8}The very first e-mail
I sent outside of my building
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{\an8}was in late 1993.
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{\an8}I thought it was amazing.
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{\an8}-Is everybody listening?
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{\an8}To begin, let us introduce you
to our first college recruit.
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-Wow!
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-I am, in fact,
the first college recruit.
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-With Netscape recruiting
employees fresh out of college,
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traditional workplace culture
of tech giants like IBM
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is getting replaced.
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Geeks run this startup,
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and they write
the rules as they go.
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{\an1}-Imagine going into a frat house
that has an adult living there,
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and that adult is Jim Clark.
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And Jim Clark is trying to help
a bunch of young college boys
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figure out that they're now
doing something
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that has to be ready
for business.
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-One of the engineers
I worked with
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brought in a remote-control car
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and attached a very early
remote camera on it.
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Didn't work very well.
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We had little traditions
like saving our cans
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and building things out of them.
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We had a massive
rubber-ball fight.
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[ Indistinct shouting ]
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We really kind of made it
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a space that we enjoyed
being in.
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-There was a lot of silliness
going on,
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but also a lot of hard work.
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-Netscape people got into work
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and maybe didn't go home
that night,
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maybe worked all the way
through the night.
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-I have a nice couch.
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Little mattress under there
I can sleep in.
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-Work became the life.
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And that was sort of
the only life you had.
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That tied into that concept
of sort of manic innovation.
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-Hey, what did your
doctor say, Tara?
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-My doctor said,
interestingly enough,
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that I work too much.
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[ Laughter ]
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-The Web's ruled by
the under-30 set.
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In '94, 30-year-old Jeff Bezos
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creates Amazon
out of his garage.
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The same year, Yahoo!,
a searchable Web directory,
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is launched by 20-somethings
Jerry Yang and David Filo.
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-Yahoo! had an exclamation point
at the end of its name.
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Like, it was
Yahoo-exclamation-point.
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Like, that was the way you had
to print it in the newspaper.
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So this playfulness
with the frontmen...
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Kind of of these
young, geeky types
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that clearly weren't the
popular jocks in high school.
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-We are trying to get him
into long pants.
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-[ Laughs ]
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-And I have threatened
I don't know how many times...
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-Marc represented sort of
the "this is what's coming."
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You know, it's not this
polished, you know,
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suit-and-tie kind of thing.
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-Andreessen's rise from geeky
undergraduate to tech rock star
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is whispered about
in Silicon Valley.
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But his story goes mainstream
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when he lands
the cover of "Time" magazine.
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-A year into Netscape,
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"Time" magazine saw
how exciting all of this was
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and how perfect of a face
Marc Andreessen was.
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Young and nerdy,
perfect for the moment.
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So they came up with this idea
of putting him on a throne,
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kind of looking like a guy
who just came out of college.
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[ Camera shutter clicks ]
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And he had no shoes on.
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-And everybody gets focused
on his toenails.
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"Why isn't this kid
clipping his toenails?"
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And I'm like, "Why are people
looking at his feet?" [ Laughs ]
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-He was evidently the first
person to appear on a cover
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of "Time" magazine
with bare feet.
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-Netscape and
its shoeless co-founder
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helps to redefine the image
of an American success story.
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Sales double every few months,
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and Netscape grows to control
80 percent
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of the browser market.
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But Jim Clark,
the adult in the room,
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sees problems on the horizon.
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-We were making money,
which was good,
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but we weren't... certainly
not profitable.
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So Jim was very concerned
about, "Let's grow fast."
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We have... you know, speed was
what we had on our side.
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Don't do things 100 percent.
Do them 80 percent.
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Do them 80 percent.
Get them out there.
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Get people onboard with us,
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and try to outrun Microsoft.
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Microsoft was a behemoth
at the time.
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-20-year-old Microsoft rules
the personal-computer market.
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But its founder, Bill Gates,
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is slow to see
the potential of the Internet,
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even dismissing it as a fad
to Tom Brokaw in 1994.
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-A lot of people just getting
onto the Internet because they
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feel that they have to get onto
the playing field, so to speak.
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-Well, it's very hip to be
on the Internet right now.
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-But just a year later, Gates
realizes the 'net is no fad.
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Microsoft begins developing
Internet Explorer,
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a browser to compete
with Navigator.
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Netscape sees a war coming...
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One that will require
more money to wage.
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-We were a young company.
We needed the cash infusion.
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So the conversation started
to turn to,
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you know, "Should we go public?"
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-Going public allows a company
to raise capital quickly.
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And that's just what Netscape
needs to compete with Microsoft.
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In the summer of 95, this young
company launches an IPO,
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an initial public offering,
to sell shares to investors.
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-We decided it really was
to the advantage of...
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To seize the moment,
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just seize the moment
and go public,
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even though we'd only been
in business
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not even a year and a half.
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-At 11:00 a.m. this morning,
Netscape stock went public
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and Wall Street went bonkers.
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-Netscape went IPO
August 9, 1995.
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Also known as
the day Jerry Garcia died.
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00:10:20,954 --> 00:10:22,723
Whether or not he died
undiscussed
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00:10:22,747 --> 00:10:24,725
is a discussion
for the philosophers.
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-Initially offered at a price
of $28 a share,
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Netscape shot up to $72
within minutes.
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-Netscape stock price explodes.
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Investors are anxious
to own a piece of the company
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that is bringing the Internet
to the world.
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And everyone with stock
in the company,
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especially its founders
and employees,
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00:10:42,225 --> 00:10:43,786
is poised to get rich.
244
00:10:43,810 --> 00:10:45,538
-In a room that was
full of people
245
00:10:45,562 --> 00:10:47,706
that I considered my peers,
all of a sudden, you know,
246
00:10:47,730 --> 00:10:50,960
the eyes started getting bigger
as the number of zeros
247
00:10:50,984 --> 00:10:53,003
in those calculations
started happening.
248
00:10:53,027 --> 00:10:55,089
And all of a sudden, on paper,
249
00:10:55,113 --> 00:10:56,632
I was surrounded
by Internet millionaires.
250
00:10:56,656 --> 00:10:58,259
Nobody was working.
251
00:10:58,283 --> 00:11:01,220
We were running around
being crazy, drinking champagne.
252
00:11:01,244 --> 00:11:02,721
-When trading closes
for the day,
253
00:11:02,745 --> 00:11:06,141
Netscape is valued
at $2.2 billion.
254
00:11:06,165 --> 00:11:09,603
It's the best opening day for
a stock in Wall Street history.
255
00:11:09,627 --> 00:11:13,732
And Netscape's executives
are multi-multi-millionaires.
256
00:11:13,756 --> 00:11:18,571
-No stock had ever behaved
the way our stock did.
257
00:11:18,595 --> 00:11:21,407
We broke so many records
at the time,
258
00:11:21,431 --> 00:11:25,953
for amount above asking price
that the shares opened at,
259
00:11:25,977 --> 00:11:27,955
the growth in a day.
260
00:11:27,979 --> 00:11:31,041
Nobody had ever seen
anything like it before.
261
00:11:31,065 --> 00:11:33,752
-Early investors who invested
in these companies...
262
00:11:33,776 --> 00:11:36,672
The IPO was all they needed
to get their payday.
263
00:11:36,696 --> 00:11:39,425
-Netscape's success redefines
the letters IPO
264
00:11:39,449 --> 00:11:40,885
into "Internet pays off."
265
00:11:40,909 --> 00:11:42,553
For tech companies,
266
00:11:42,577 --> 00:11:45,431
the road to riches now
runs straight down Wall Street
267
00:11:45,455 --> 00:11:47,474
with an oversubscribed
public offering.
268
00:11:47,498 --> 00:11:49,894
And for investors,
the key is to get in early
269
00:11:49,918 --> 00:11:51,478
on an Internet company
270
00:11:51,502 --> 00:11:53,647
and wait to collect
your jackpot.
271
00:11:53,671 --> 00:11:55,190
-People started to say,
"How do I get
272
00:11:55,214 --> 00:11:56,775
a piece of this
Internet business,
273
00:11:56,799 --> 00:11:59,236
this World Wide Web thing
that's going on here?"
274
00:11:59,260 --> 00:12:03,991
-And while some warned it felt
like a get-rich-quick scheme,
275
00:12:04,015 --> 00:12:07,369
the new tech-savvy investors
countered by asking,
276
00:12:07,393 --> 00:12:09,496
"Who wants to get rich slow?"
277
00:12:09,520 --> 00:12:13,900
-People were buying boats
and cars, vacation homes.
278
00:12:18,571 --> 00:12:19,673
-By mid-decade,
the U.S. stock market
279
00:12:19,697 --> 00:12:21,884
is reaching historic highs,
280
00:12:21,908 --> 00:12:26,597
but browser company Netscape's
hugely successful IPO in '95
281
00:12:26,621 --> 00:12:29,516
shifts the attention
of America's best and brightest
282
00:12:29,540 --> 00:12:33,646
away from careers in finance
and out west to Silicon Valley,
283
00:12:33,670 --> 00:12:35,522
where almost daily,
an Internet company
284
00:12:35,546 --> 00:12:38,817
is launched to capitalize
on the World Wide Web.
285
00:12:38,841 --> 00:12:40,569
{\an8}-People were graduating
from business school
286
00:12:40,593 --> 00:12:43,572
{\an8}and coming out to the Valley
to work in a startup
287
00:12:43,596 --> 00:12:45,491
or start a startup of their own.
288
00:12:45,515 --> 00:12:48,327
-There were 20,000 new
college graduates
289
00:12:48,351 --> 00:12:50,871
that showed up every year
in the Bay Area.
290
00:12:50,895 --> 00:12:52,831
And you would go to bars
and there were, you know,
291
00:12:52,855 --> 00:12:55,000
tons of people...
Young people your age
292
00:12:55,024 --> 00:12:58,420
who were all working
at Internet startups.
293
00:12:58,444 --> 00:13:00,547
-If you went out into
Silicon Valley,
294
00:13:00,571 --> 00:13:02,383
you saw venture capitalists
everywhere,
295
00:13:02,407 --> 00:13:04,802
{\an8}meeting with young guys...
296
00:13:04,826 --> 00:13:07,846
{\an8}mainly guys...
Pitching crazy ideas.
297
00:13:07,870 --> 00:13:10,015
Sometimes pitching,
not-so-crazy ideas,
298
00:13:10,039 --> 00:13:13,644
but many of them were
kind of outlandish ideas.
299
00:13:13,668 --> 00:13:16,480
-But as long as the idea
ended in "dot com,"
300
00:13:16,504 --> 00:13:18,357
it was likely to get funded.
301
00:13:18,381 --> 00:13:21,568
-You have Kozmo.com
with bicycle couriers
302
00:13:21,592 --> 00:13:23,320
who were delivering
a pint of Ben & Jerry's
303
00:13:23,344 --> 00:13:25,114
and a Blockbuster video
to your door.
304
00:13:25,138 --> 00:13:27,741
-I think I'll go get a video
and some chocolate ice cream.
305
00:13:27,765 --> 00:13:29,493
-You're gonna go out for that?!
306
00:13:29,517 --> 00:13:32,454
Kozmo.com has videos
and ice cream.
307
00:13:32,478 --> 00:13:35,958
-And decades before Bitcoin,
flooz.com tries to create
308
00:13:35,982 --> 00:13:37,751
an online digital currency...
309
00:13:37,775 --> 00:13:41,130
One you can trust because, well,
Whoopi Goldberg tells you to.
310
00:13:41,154 --> 00:13:43,007
-It's just like money.
You send it by e-mail.
311
00:13:43,031 --> 00:13:45,050
They spend it at some
of the Web's coolest stores.
312
00:13:45,074 --> 00:13:47,261
And you come out hip
[Snaps fingers] and smart.
313
00:13:47,285 --> 00:13:50,889
-There was Webvan,
which did grocery delivery.
314
00:13:50,913 --> 00:13:53,726
Hello, Instacart, you know?
Same thing 20 years earlier.
315
00:13:53,750 --> 00:13:55,394
Maybe they were ahead
of their time,
316
00:13:55,418 --> 00:13:57,271
but they were building
the airplane while in flight.
317
00:13:57,295 --> 00:13:59,148
Everything was moving so fast.
318
00:13:59,172 --> 00:14:02,067
-And if none of these new
wonders of the World Wide Web
319
00:14:02,091 --> 00:14:04,069
has answers to life's mysteries,
320
00:14:04,093 --> 00:14:06,363
Razorfish.com is there
with its promise
321
00:14:06,387 --> 00:14:09,158
to find solutions
to hard problems.
322
00:14:09,182 --> 00:14:11,994
-Maybe it's indiscreet of me
to ask how much you're worth,
323
00:14:12,018 --> 00:14:13,579
but how much are you worth?
324
00:14:13,603 --> 00:14:15,748
-I don't know. That may be
indiscreet of you to ask.
325
00:14:15,772 --> 00:14:18,292
Um, somewhere around
$180 million.
326
00:14:18,316 --> 00:14:21,920
-That was the kind of crazy
that fueled people to believe
327
00:14:21,944 --> 00:14:25,841
that you could do anything
and get millions.
328
00:14:25,865 --> 00:14:27,968
-This was hubris...
Flying too close to the sun.
329
00:14:27,992 --> 00:14:32,389
It was just stupid money
chasing after stupid things.
330
00:14:32,413 --> 00:14:35,934
-As stock prices
for dot-com companies rise,
331
00:14:35,958 --> 00:14:39,146
so do the number
of extravagant dot-com parties.
332
00:14:39,170 --> 00:14:41,190
-People were buying new cars.
333
00:14:41,214 --> 00:14:45,527
People were buying boats,
vacation homes in Lake Tahoe.
334
00:14:45,551 --> 00:14:47,237
But the parties... boy,
335
00:14:47,261 --> 00:14:50,741
everybody wanted to get invites
to the best parties.
336
00:14:50,765 --> 00:14:53,160
-The Razorfish guys
threw a legendary...
337
00:14:53,184 --> 00:14:54,620
And not in a good way...
338
00:14:54,644 --> 00:14:57,289
Belly-dancer party
where drag queens served
339
00:14:57,313 --> 00:15:00,334
White Castle burgers
to 2,000 guests.
340
00:15:00,358 --> 00:15:02,753
-I believe it became more of
a competition
341
00:15:02,777 --> 00:15:04,588
to throw the best party
342
00:15:04,612 --> 00:15:07,382
than it did
to create the best product.
343
00:15:07,406 --> 00:15:10,844
-Rents and house prices rise,
and Silicon Valley parking lots
344
00:15:10,868 --> 00:15:13,013
fill up with expensive
and flashy cars.
345
00:15:13,037 --> 00:15:15,682
-All of a sudden, a lot of money
started showing up.
346
00:15:15,706 --> 00:15:17,059
There was a Ferrari dealership
347
00:15:17,083 --> 00:15:18,977
that was not too far away
from Netscape.
348
00:15:19,001 --> 00:15:20,521
{\an8}I don't know that
I personally knew anyone
349
00:15:20,545 --> 00:15:21,897
{\an8}who bought a Ferrari.
350
00:15:21,921 --> 00:15:23,732
{\an8}I probably would have
mocked them.
351
00:15:23,756 --> 00:15:28,153
But it was there, and it was
there because they had buyers.
352
00:15:28,177 --> 00:15:31,907
A lot of these companies are
traded on the Nasdaq exchange,
353
00:15:31,931 --> 00:15:35,869
which just starts going
hockey stick.
354
00:15:35,893 --> 00:15:37,454
Extraordinary numbers.
355
00:15:37,478 --> 00:15:40,165
And getting reported
in the business press,
356
00:15:40,189 --> 00:15:42,417
you know, story after story
after story,
357
00:15:42,441 --> 00:15:45,504
the average reader is like,
"Oh, my gosh, what's going on,
358
00:15:45,528 --> 00:15:47,506
and how do I get a piece of it?"
359
00:15:47,530 --> 00:15:51,426
{\an8}-Enter CNBC, who, early on,
becomes the go-to cable network
360
00:15:51,450 --> 00:15:55,639
{\an8}for Americans looking to get in
on the dot-com action.
361
00:15:55,663 --> 00:15:57,975
Future Fox News mastermind
Roger Ailes
362
00:15:57,999 --> 00:16:01,019
transforms the
almost-forgotten network...
363
00:16:01,043 --> 00:16:04,148
-Biotech stocks, which looked
good yesterday, are down.
364
00:16:04,172 --> 00:16:06,024
- into a channel
where financial news
365
00:16:06,048 --> 00:16:08,735
is reported in the breathy,
action-packed style
366
00:16:08,759 --> 00:16:11,405
previously reserved
for sports reporting.
367
00:16:11,429 --> 00:16:15,951
-CNBC turns buying and selling
stocks, or profiling companies,
368
00:16:15,975 --> 00:16:19,288
into something like watching
ESPN and seeing sports teams.
369
00:16:19,312 --> 00:16:22,374
-The audience responds to
the insider style of reporting,
370
00:16:22,398 --> 00:16:25,836
often live from the floor
of the New York Stock Exchange.
371
00:16:25,860 --> 00:16:28,088
-It's a pretty addictive thing
when you see other people
372
00:16:28,112 --> 00:16:29,923
making so much money.
373
00:16:29,947 --> 00:16:33,051
-The constant stock ticker and
all of this information was...
374
00:16:33,075 --> 00:16:35,345
Usually, only Wall Street
brokers had access to.
375
00:16:35,369 --> 00:16:36,805
-In the past, trading stocks
376
00:16:36,829 --> 00:16:39,057
was a relatively
expensive proposition
377
00:16:39,081 --> 00:16:42,477
that required working through
old, established brokerage firms
378
00:16:42,501 --> 00:16:44,980
who preferred
old, established money.
379
00:16:45,004 --> 00:16:48,192
And well-known firms like
EF Hutton were happy to help.
380
00:16:48,216 --> 00:16:49,818
-What is your broker saying?
381
00:16:49,842 --> 00:16:52,762
-Well, my broker's EF Hutton,
and Hutton says...
382
00:16:54,555 --> 00:16:58,577
-When EF Hutton talks,
people listen.
383
00:16:58,601 --> 00:17:00,370
-But all that changes
in the '90s
384
00:17:00,394 --> 00:17:03,081
with what's termed
"the digital disruption."
385
00:17:03,105 --> 00:17:06,001
Discount brokerage services
like E-Trade and Ameritrade
386
00:17:06,025 --> 00:17:07,961
start advertising
their services.
387
00:17:07,985 --> 00:17:10,172
- Let's buy 100 shares.
- All right, click it in there.
388
00:17:10,196 --> 00:17:11,673
- Okay.
- How about 500?
389
00:17:11,697 --> 00:17:13,884
- 100, Stewart.
- [ Imitates chicken clucking ]
390
00:17:13,908 --> 00:17:18,096
{\an1}-Now anyone with a little dough
can join the stock-buying craze.
391
00:17:18,120 --> 00:17:20,641
And while investors no longer
need expensive brokers
392
00:17:20,665 --> 00:17:22,100
to buy stocks,
393
00:17:22,124 --> 00:17:24,937
they are drawn to free
professional advice.
394
00:17:24,961 --> 00:17:26,897
-Analysts are brought
on to CNBC.
395
00:17:26,921 --> 00:17:30,067
They are... you know,
suddenly become celebrities.
396
00:17:30,091 --> 00:17:33,111
-CNBC regularly features
Internet stock analysts
397
00:17:33,135 --> 00:17:35,781
like Henry Blodget
and Mary Meeker,
398
00:17:35,805 --> 00:17:38,450
who push certain companies
and downplay others.
399
00:17:38,474 --> 00:17:40,953
-What people didn't realize
is they're coming on and they're
400
00:17:40,977 --> 00:17:43,872
pumping up stocks that their
companies have investments in.
401
00:17:43,896 --> 00:17:46,291
They have a stake
in what they're selling.
402
00:17:46,315 --> 00:17:49,127
When you have someone who's
a really telegenic young analyst
403
00:17:49,151 --> 00:17:51,922
like Henry Blodget
on CNBC saying,
404
00:17:51,946 --> 00:17:54,716
"Oh, yeah, this is this company,
this is why it's great,
405
00:17:54,740 --> 00:17:57,094
this is why I rated a buy,"
you're like, "I'm gonna go
406
00:17:57,118 --> 00:17:58,971
on my E-Trade account
and I'm gonna buy that.
407
00:17:58,995 --> 00:18:00,597
That makes a lot of sense."
408
00:18:00,621 --> 00:18:03,600
And, you know,
people made money that way.
409
00:18:03,624 --> 00:18:06,103
-As newly formed
digital companies go public
410
00:18:06,127 --> 00:18:09,815
and celebrate
as their stock prices soar,
411
00:18:09,839 --> 00:18:12,567
Netscape... that company
that got the party started...
412
00:18:12,591 --> 00:18:14,069
Finds itself being targeted
413
00:18:14,093 --> 00:18:16,571
by the most powerful
corporation in tech...
414
00:18:16,595 --> 00:18:18,240
Microsoft.
415
00:18:18,264 --> 00:18:19,700
-Netscape was, of course,
416
00:18:19,724 --> 00:18:21,994
one of Microsoft's
software developers,
417
00:18:22,018 --> 00:18:25,163
and we were invited up
to their campus,
418
00:18:25,187 --> 00:18:27,332
as all other
software companies were,
419
00:18:27,356 --> 00:18:32,337
to show what we were
developing on Windows 95.
420
00:18:32,361 --> 00:18:35,173
I remember one of my
employees called me.
421
00:18:35,197 --> 00:18:37,175
She said, "Rosanne,
you're not gonna believe
422
00:18:37,199 --> 00:18:39,803
who's hanging around
at our booth.
423
00:18:39,827 --> 00:18:42,264
Bill Gates... he just is
staring at our browser.
424
00:18:42,288 --> 00:18:44,891
He just won't leave."
He was tuning in.
425
00:18:44,915 --> 00:18:47,144
They wanted to create
something just like this.
426
00:18:47,168 --> 00:18:48,937
-And they did.
427
00:18:48,961 --> 00:18:52,524
In 1995, Microsoft launches
the Internet Explorer browser
428
00:18:52,548 --> 00:18:56,862
{\an1}and includes it with every copy
of its Windows operating system.
429
00:18:56,886 --> 00:18:59,948
Netscape discovers few are
willing to buy their browser
430
00:18:59,972 --> 00:19:02,200
when they get Microsoft's
for free.
431
00:19:02,224 --> 00:19:05,704
-Once Internet Explorer started
to become the de facto
432
00:19:05,728 --> 00:19:07,664
on every new computer
that was purchased
433
00:19:07,688 --> 00:19:09,333
that had the Windows
operating system,
434
00:19:09,357 --> 00:19:11,960
you know, the market share
just plummeted quickly.
435
00:19:11,984 --> 00:19:13,962
-This was the way
Microsoft had learned
436
00:19:13,986 --> 00:19:17,341
to kill software companies.
437
00:19:17,365 --> 00:19:21,762
-Netscape sues, and Microsoft
will also face antitrust charges
438
00:19:21,786 --> 00:19:23,263
for using the power of Windows
439
00:19:23,287 --> 00:19:25,766
to slam shut
other software companies.
440
00:19:25,790 --> 00:19:30,604
-That whole process did
end up eventually causing
441
00:19:30,628 --> 00:19:32,856
a judgement against Microsoft,
442
00:19:32,880 --> 00:19:35,609
but it really was
too little, too late
443
00:19:35,633 --> 00:19:38,278
{\an8}and certainly too late
for Netscape.
444
00:19:38,302 --> 00:19:41,198
{\an8}-As of 1:30 this morning...
445
00:19:41,222 --> 00:19:43,116
-[ Woman sobs ]
446
00:19:43,140 --> 00:19:46,870
- I concluded negotiations
and agreed
447
00:19:46,894 --> 00:19:49,831
to sell our company to AOL.
448
00:19:49,855 --> 00:19:52,334
-Congratulations, Skippy.
You've got mail.
449
00:19:52,358 --> 00:19:57,089
-It was a very sad day
with my beloved colleagues
450
00:19:57,113 --> 00:19:59,341
who had put their heart and soul
into this company
451
00:19:59,365 --> 00:20:01,093
and really believed in it.
452
00:20:01,117 --> 00:20:04,054
-The quote that came out
of this article was,
453
00:20:04,078 --> 00:20:06,348
"Netscape lived fast,
died young,
454
00:20:06,372 --> 00:20:07,766
and left a tired corpse."
455
00:20:07,790 --> 00:20:09,768
-In four short years,
Netscape goes
456
00:20:09,792 --> 00:20:12,312
from Internet trailblazer
to Microsoft roadkill.
457
00:20:12,336 --> 00:20:13,772
It left behind an Internet
458
00:20:13,796 --> 00:20:16,817
with seemingly unlimited
commercial potential,
459
00:20:16,841 --> 00:20:20,237
until one company proves
there are boundaries.
460
00:20:20,261 --> 00:20:21,905
Crossing those boundaries
can have
461
00:20:21,929 --> 00:20:24,199
devastating financial
consequences.
462
00:20:24,223 --> 00:20:25,909
-Part of the story
of the dot-com boom
463
00:20:25,933 --> 00:20:28,811
is many people
lost their fortunes.
464
00:20:33,691 --> 00:20:35,168
-In the late '90s,
a company will launch
465
00:20:35,192 --> 00:20:36,753
whose name becomes
a shorthand for the excess
466
00:20:36,777 --> 00:20:38,797
and greed that dooms
the decade of the dot-coms.
467
00:20:38,821 --> 00:20:40,298
-It is not about the fame
468
00:20:40,322 --> 00:20:41,967
or the success
or anything like that.
469
00:20:41,991 --> 00:20:43,635
It's just about the animals,
you know,
470
00:20:43,659 --> 00:20:46,596
and, uh, are you getting
the whole thing?
471
00:20:46,620 --> 00:20:48,682
That company is Pets.com.
472
00:20:48,706 --> 00:20:51,935
But in 1998, Pets.com is
simply one of the first
473
00:20:51,959 --> 00:20:55,772
online retailers to sell
pet supplies to Americans.
474
00:20:55,796 --> 00:20:59,359
Its CEO, Julie Wainwright,
prepares to face competition
475
00:20:59,383 --> 00:21:01,653
from both
brick-and-mortar pet stores
476
00:21:01,677 --> 00:21:04,823
and other Web entrepreneurs
hoping to cash in
477
00:21:04,847 --> 00:21:06,658
on the online pet market.
478
00:21:06,682 --> 00:21:08,743
Wainwright needs
to build out Pets.com
479
00:21:08,767 --> 00:21:11,538
as fast as she can,
no matter the cost.
480
00:21:11,562 --> 00:21:13,457
{\an8}-You know, that's a rule
of Silicon Valley...
481
00:21:13,481 --> 00:21:16,334
Elbow everyone out of the way
so you can be first to market
482
00:21:16,358 --> 00:21:19,195
and you can dominate the market
and be the market.
483
00:21:21,447 --> 00:21:24,050
-The office was in a garage
in the south of Market,
484
00:21:24,074 --> 00:21:26,761
which is where all the
auto-repair shops were.
485
00:21:26,785 --> 00:21:28,430
I'm Oscar Yuan.
486
00:21:28,454 --> 00:21:31,766
{\an8}I was employee number
30-something at Pets.com.
487
00:21:31,790 --> 00:21:33,977
Everyone brought their dogs
and their cats,
488
00:21:34,001 --> 00:21:36,021
and so right there,
right from the beginning,
489
00:21:36,045 --> 00:21:38,231
you knew it was different.
490
00:21:38,255 --> 00:21:40,066
But what was really unique
was just the energy.
491
00:21:40,090 --> 00:21:41,776
There was a buzz.
492
00:21:41,800 --> 00:21:43,737
They were hiring me for an
assistant marketing manager.
493
00:21:43,761 --> 00:21:45,489
The business itself
was secondary.
494
00:21:45,513 --> 00:21:48,492
I was getting into what everyone
called this gold rush.
495
00:21:48,516 --> 00:21:50,285
The Internet...
It was what was happening.
496
00:21:50,309 --> 00:21:51,786
You didn't want to be left out.
497
00:21:51,810 --> 00:21:54,206
-Early on,
Pets.com gets a boost
498
00:21:54,230 --> 00:21:56,458
when one of the Web's
most successful pioneers
499
00:21:56,482 --> 00:21:59,211
decides to put his own money
into the company.
500
00:21:59,235 --> 00:22:01,630
-One of the major investors
was Jeff Bezos.
501
00:22:01,654 --> 00:22:04,382
Even back then, Amazon, even
though they only sold books,
502
00:22:04,406 --> 00:22:07,469
was kind of seen
as the forefront of e-commerce.
503
00:22:07,493 --> 00:22:10,889
And so the investment
from Jeff was exciting.
504
00:22:10,913 --> 00:22:14,309
He came to the office, and he
went around talking to everyone
505
00:22:14,333 --> 00:22:16,186
and asking what we were doing.
506
00:22:16,210 --> 00:22:19,231
And a lot of us joined
a little bit on... on faith,
507
00:22:19,255 --> 00:22:21,483
so every little nugget
that you had
508
00:22:21,507 --> 00:22:23,735
that gave you faith that
we were doing the right thing
509
00:22:23,759 --> 00:22:25,904
was a huge confidence booster.
510
00:22:25,928 --> 00:22:29,908
-In fact, Amazon is already
worth a staggering $30 billion.
511
00:22:29,932 --> 00:22:34,204
Bezos, always looking to expand
his piece of online commerce,
512
00:22:34,228 --> 00:22:37,082
buys a 50-percent stake
in Pets.com,
513
00:22:37,106 --> 00:22:39,834
now locked in a three-way
competition to capture
514
00:22:39,858 --> 00:22:44,506
the online piece of the
$23 billion pet-products market.
515
00:22:44,530 --> 00:22:48,677
-Discover paradise
at Petopia.com.
516
00:22:48,701 --> 00:22:51,513
[ Dog barks ]
The Internet Pet Paradise.
517
00:22:51,537 --> 00:22:53,348
-There were three big players.
518
00:22:53,372 --> 00:22:57,143
There was Petopia, Pets.com,
and then there was PetSmart.
519
00:22:57,167 --> 00:23:00,772
-The online competition
for the pet space
520
00:23:00,796 --> 00:23:03,984
was incredibly cutthroat.
521
00:23:04,008 --> 00:23:07,112
My roommate from New York
also got a job,
522
00:23:07,136 --> 00:23:11,283
and it was a competing
pet-food Web site.
523
00:23:11,307 --> 00:23:13,702
She said, "But now,
if you work at Pets.com,
524
00:23:13,726 --> 00:23:15,412
we can't be friends anymore."
525
00:23:15,436 --> 00:23:17,747
She goes, "You have no idea
what it's like
526
00:23:17,771 --> 00:23:20,041
in the dot-com world."
527
00:23:20,065 --> 00:23:21,918
-We were determined to be
the number-one...
528
00:23:21,942 --> 00:23:23,503
The winner in the pet category.
529
00:23:23,527 --> 00:23:25,797
We felt like we were
transforming the economy, right?
530
00:23:25,821 --> 00:23:29,259
We were giving people access
to a huge number of products
531
00:23:29,283 --> 00:23:31,344
that they weren't able
to access before,
532
00:23:31,368 --> 00:23:33,722
transforming how commerce works.
533
00:23:33,746 --> 00:23:36,641
-But buying products online
is not something people
534
00:23:36,665 --> 00:23:38,268
naturally think about doing.
535
00:23:38,292 --> 00:23:40,729
{\an8}-People needed time to really
get the idea that,
536
00:23:40,753 --> 00:23:42,897
{\an8}"Oh, I can buy anything
and have it delivered to me."
537
00:23:42,921 --> 00:23:45,942
{\an8}Like, that whole notion was
still a little bit like,
538
00:23:45,966 --> 00:23:48,820
{\an8}"Really? I'm gonna my
credit card on the Internet?"
539
00:23:48,844 --> 00:23:52,866
-To help change that, Pets.com
hires ad agency Chiat/Day.
540
00:23:52,890 --> 00:23:54,534
-Chiat/Day was
541
00:23:54,558 --> 00:23:57,370
one of the hottest agencies
in the '80s and '90s,
542
00:23:57,394 --> 00:23:59,956
and it began in the '80s,
certainly,
543
00:23:59,980 --> 00:24:04,419
with the iconic 1984 Apple
Super Bowl spot...
544
00:24:04,443 --> 00:24:06,963
The dystopian sort of future.
545
00:24:06,987 --> 00:24:08,256
-Aah!
546
00:24:08,280 --> 00:24:11,509
-We shall prevail.
547
00:24:11,533 --> 00:24:13,928
-They also did the
"Think Different" campaign
548
00:24:13,952 --> 00:24:15,764
for Apple in the mid-'90s.
549
00:24:15,788 --> 00:24:19,142
And then there was Taco Bell
with the Chihuahua.
550
00:24:19,166 --> 00:24:22,979
Chiat was known at the time
for taking brands
551
00:24:23,003 --> 00:24:26,316
from being brands
to being a part of culture.
552
00:24:26,340 --> 00:24:28,193
I'm Scott Duchon.
553
00:24:28,217 --> 00:24:32,030
I was a copywriter
at Chiat/Day many moons ago,
554
00:24:32,054 --> 00:24:37,118
{\an8}and I am one of the creators
of the Pets.com sock puppet.
555
00:24:37,142 --> 00:24:38,495
Sorry.
556
00:24:38,519 --> 00:24:40,705
-I'm gonna free the socks.
557
00:24:40,729 --> 00:24:43,833
- You're welcome.
- [ Whistling ]
558
00:24:43,857 --> 00:24:45,168
-Sorry?
559
00:24:45,192 --> 00:24:47,420
-Run! I got you!
Fly away from here! Go!
560
00:24:47,444 --> 00:24:49,923
- "Why a sock puppet?"
is a question I've asked myself
561
00:24:49,947 --> 00:24:51,341
for 20 years now.
562
00:24:51,365 --> 00:24:52,676
No. [ Laughs ]
563
00:24:52,700 --> 00:24:54,803
-Pets.com. executives
love the idea,
564
00:24:54,827 --> 00:24:56,554
and a mascot is born.
565
00:24:56,578 --> 00:24:59,307
-It's Pets.com Sock Puppet.
566
00:24:59,331 --> 00:25:00,767
- [ Laughs ]
- Oh.
567
00:25:00,791 --> 00:25:03,103
-But you can call me
Pets.com Sock Puppet.
568
00:25:03,127 --> 00:25:05,313
-Michael Ian Black,
an improv artist
569
00:25:05,337 --> 00:25:08,191
best known for his early '90s
sketch-comedy series
570
00:25:08,215 --> 00:25:09,984
"The State" on MTV,
571
00:25:10,008 --> 00:25:14,906
is hired as the voice and hand
of the Pets.com sock puppet.
572
00:25:14,930 --> 00:25:17,575
-This is the happiest day
of my life!
573
00:25:17,599 --> 00:25:21,121
-This improv approach
was really important to us
574
00:25:21,145 --> 00:25:24,416
as far as the entire tonality
of the campaign,
575
00:25:24,440 --> 00:25:27,377
because pets are not actors.
576
00:25:27,401 --> 00:25:29,713
I don't know if you know this,
but they're not.
577
00:25:29,737 --> 00:25:33,717
And so you need somebody
who could just go with the flow
578
00:25:33,741 --> 00:25:36,553
of... of dogs
starting to do weird shit.
579
00:25:36,577 --> 00:25:39,264
-Oh, yeah. Oh, this is
my kind of party.
580
00:25:39,288 --> 00:25:42,809
-I'm a professional
happy puppet thing.
581
00:25:42,833 --> 00:25:45,770
-It was like the puppet
was created for Michael.
582
00:25:45,794 --> 00:25:49,441
He just knew what to do
with that weird sock.
583
00:25:49,465 --> 00:25:52,402
-Puppets make good money, man!
584
00:25:52,426 --> 00:25:56,656
{\an8}-I'm Melissa Menta,
and I'm a puppet publicist.
585
00:25:56,680 --> 00:26:00,368
The process of Pets.com
hiring me was very quick.
586
00:26:00,392 --> 00:26:04,539
They saw on my resume that
I had the Jim Henson company.
587
00:26:04,563 --> 00:26:07,167
They thought, "Oh, my God,
this is the perfect match."
588
00:26:07,191 --> 00:26:08,835
And I had the job.
589
00:26:08,859 --> 00:26:12,005
-Today, I'm overseeing
some deliveries for Pets.com,
590
00:26:12,029 --> 00:26:14,632
purely in an advisory role.
591
00:26:14,656 --> 00:26:16,885
-The first Pets.com
commercial is filmed
592
00:26:16,909 --> 00:26:18,511
during the summer of 1999.
593
00:26:18,535 --> 00:26:20,764
-And we were packed
really tightly in this van.
594
00:26:20,788 --> 00:26:23,892
And Michael just started
throwing jabs at the driver.
595
00:26:23,916 --> 00:26:26,561
-I like your shorts.
You're a good-looking fella.
596
00:26:26,585 --> 00:26:29,481
-The driver's reactions
are perfectly dry.
597
00:26:29,505 --> 00:26:31,566
And [Laughs]
Michael Ian Black is just
598
00:26:31,590 --> 00:26:34,360
pretending like he knows pets
at different homes.
599
00:26:34,384 --> 00:26:35,820
-I know the guy
who lives in that house.
600
00:26:35,844 --> 00:26:37,989
He's got a snake,
and he's got an iguana.
601
00:26:38,013 --> 00:26:40,408
He was thinking about getting
a cockatoo for a while,
602
00:26:40,432 --> 00:26:42,076
but I kind of
talked him out of it.
603
00:26:42,100 --> 00:26:44,871
-We just rode around, like,
holding our laughter in
604
00:26:44,895 --> 00:26:46,706
so that we didn't
ruin the takes.
605
00:26:46,730 --> 00:26:48,792
-But he... he went ahead.
He got the cockatoo.
606
00:26:48,816 --> 00:26:51,002
And I was wrong, man,
'cause they get along great.
607
00:26:51,026 --> 00:26:53,505
It's like the Brady Bunch with
snakes, iguanas, and cockatoos.
608
00:26:53,529 --> 00:26:55,340
-When we came back,
the van opens,
609
00:26:55,364 --> 00:26:57,926
and we come off, we're like,
"We've got it. It's amazing."
610
00:26:57,950 --> 00:27:00,136
-Did you get all these things
at Pets.com?
611
00:27:00,160 --> 00:27:02,514
Oh, wow,
he's got a stuffed thing.
612
00:27:02,538 --> 00:27:04,265
I love stuffed things.
613
00:27:04,289 --> 00:27:07,018
Come on, I see the delivery
for the parakeet.
614
00:27:07,042 --> 00:27:08,645
Let me go surprise him.
615
00:27:08,669 --> 00:27:11,689
-Pets.com spends a
then-shocking $20 million
616
00:27:11,713 --> 00:27:15,610
for a marketing campaign that
soon transforms the sock puppet
617
00:27:15,634 --> 00:27:17,278
into a TV celebrity.
618
00:27:17,302 --> 00:27:19,030
-Come on, jump! Jump!
Whoo-hoo!
619
00:27:19,054 --> 00:27:20,406
Got it!
620
00:27:20,430 --> 00:27:21,991
-We put out the ads,
and suddenly,
621
00:27:22,015 --> 00:27:23,618
you start getting
people chatting about it.
622
00:27:23,642 --> 00:27:25,703
In today's terms, it would
be called going viral.
623
00:27:25,727 --> 00:27:29,666
{\an8}-And now Al and Katie,
here's one pooch who is a VIP.
624
00:27:29,690 --> 00:27:31,626
{\an8}That's one very important pet.
625
00:27:31,650 --> 00:27:33,586
{\an8}Al, this is your favorite
television commercial.
626
00:27:33,610 --> 00:27:36,256
-Macy's actually reached out
to Pets.com and said,
627
00:27:36,280 --> 00:27:38,132
"We want you to be
in the parade," right?
628
00:27:38,156 --> 00:27:40,802
Usually, it's a huge fight to
get into the Macy's Day Parade.
629
00:27:40,826 --> 00:27:42,387
-Furnished by Pets.com.
630
00:27:42,411 --> 00:27:44,681
You may have seen this
sock puppet on television.
631
00:27:44,705 --> 00:27:48,393
-Look, he's got a stuffed thing!
"I love stuffed things."
632
00:27:48,417 --> 00:27:51,354
-Everybody at Pets.com was glued
to their television.
633
00:27:51,378 --> 00:27:53,147
And I can't help but think,
634
00:27:53,171 --> 00:27:57,068
"I hope those people at Petopia
and PetSmart are jealous."
635
00:27:57,092 --> 00:27:59,362
-Then we did a holiday campaign.
636
00:27:59,386 --> 00:28:00,947
-What is it? I can't wait,
I can't wait, I can't wait.
637
00:28:00,971 --> 00:28:02,907
What is it, iguana?
[ Dog growling ]
638
00:28:02,931 --> 00:28:04,909
Hey, Max, you're gonna
give me a concussion.
639
00:28:04,933 --> 00:28:07,704
Uh-oh, mistletoe!
Who wants to kiss a puppet?
640
00:28:07,728 --> 00:28:10,248
-It was not just a fun,
you know, flash in the pan.
641
00:28:10,272 --> 00:28:11,833
We were actually seeing
the results
642
00:28:11,857 --> 00:28:13,418
of what was happening...
You're seeing site traffic,
643
00:28:13,442 --> 00:28:15,712
which is the huge metrics
that we were looking at.
644
00:28:15,736 --> 00:28:17,922
-Soon, the sock puppet
will deliver his message
645
00:28:17,946 --> 00:28:21,926
about Pets.com in front of
television's biggest audience.
646
00:28:21,950 --> 00:28:25,388
-If you're trying to win
in a competition,
647
00:28:25,412 --> 00:28:28,850
the best way to do that is
to get in front of the millions
648
00:28:28,874 --> 00:28:31,686
and millions of people who watch
the Super Bowl every year.
649
00:28:31,710 --> 00:28:35,815
-There's no bigger stage in the
world of traditional marketing
650
00:28:35,839 --> 00:28:37,567
than the Super Bowl.
651
00:28:37,591 --> 00:28:39,819
-The NFL's Super Bowl
will also end up being
652
00:28:39,843 --> 00:28:41,905
the big game for dot-coms...
653
00:28:41,929 --> 00:28:44,574
A "push all your chips
into the pot" moment
654
00:28:44,598 --> 00:28:47,201
to get noticed,
scare off competitors,
655
00:28:47,225 --> 00:28:50,121
and lock in your
market dominance.
656
00:28:50,145 --> 00:28:52,290
And like any high-stakes game,
657
00:28:52,314 --> 00:28:55,317
there will be
winners and losers.
658
00:29:00,072 --> 00:29:01,633
{\an8}-For companies that can
afford it,
659
00:29:01,657 --> 00:29:03,092
{\an8}advertising during the
Super Bowl is an unrivaled
660
00:29:03,116 --> 00:29:05,303
{\an8}opportunity for your brand
to get noticed.
661
00:29:05,327 --> 00:29:07,639
{\an8}-Every dot-com was buying up
the media space
662
00:29:07,663 --> 00:29:09,015
{\an8}to be on the Super Bowl.
663
00:29:09,039 --> 00:29:11,309
-And that reached its peak
in 2000,
664
00:29:11,333 --> 00:29:13,061
along with the
greatest show on turf...
665
00:29:13,085 --> 00:29:15,813
St. Louis Rams beating
the Tennessee Titans
666
00:29:15,837 --> 00:29:18,316
and Christina Aguilera
and Enrique Iglesias
667
00:29:18,340 --> 00:29:20,318
performing at
the half-time show.
668
00:29:20,342 --> 00:29:22,195
The 88 million viewers
were bombarded
669
00:29:22,219 --> 00:29:25,490
with an almost endless series
of dot-com advertising.
670
00:29:25,514 --> 00:29:29,077
-I think there were 17 different
dot-com companies that bought
671
00:29:29,101 --> 00:29:31,913
{\an8}ads at, you know, millions
and millions of dollars apiece.
672
00:29:31,937 --> 00:29:35,166
{\an8}So it became known as the...
The dot-com Super Bowl.
673
00:29:35,190 --> 00:29:38,461
-Internet companies like
HotJobs.com and E-Trade each
674
00:29:38,485 --> 00:29:41,547
pony up two million dollars
for a 30-second spot.
675
00:29:41,571 --> 00:29:44,258
E-Trade, with its chimp mascot,
even calls attention
676
00:29:44,282 --> 00:29:47,845
to the outrageousness
of all this dot-com spending.
677
00:29:47,869 --> 00:29:52,850
♪♪
678
00:29:52,874 --> 00:29:56,896
{\an8}-The 2000 Super Bowl was really
a classic example
679
00:29:56,920 --> 00:30:00,733
{\an8}of tech companies
with money run wild.
680
00:30:00,757 --> 00:30:04,070
-This meeting is a real drag.
681
00:30:04,094 --> 00:30:07,115
Y'all should be
meeting online with WebEx.
682
00:30:07,139 --> 00:30:10,743
-Even RuPaul makes a commercial
appearance shilling for WebEx,
683
00:30:10,767 --> 00:30:13,371
a pre-Zoom Web
video-conferencing service.
684
00:30:13,395 --> 00:30:17,583
-The amount of money to do a
30-second spot is so phenomenal
685
00:30:17,607 --> 00:30:19,252
and was even then.
686
00:30:19,276 --> 00:30:22,547
The idea of that being
your way of marketing,
687
00:30:22,571 --> 00:30:26,259
your way into popular
imagination seems crazy.
688
00:30:26,283 --> 00:30:29,262
-For Pets.com, there's more at
stake than selling pet supplies
689
00:30:29,286 --> 00:30:31,014
to football fans.
690
00:30:31,038 --> 00:30:33,891
About to go public, the company
needs to sell investors
691
00:30:33,915 --> 00:30:36,561
that the future
of pet stores is online.
692
00:30:36,585 --> 00:30:38,187
-For the Super Bowl spot,
693
00:30:38,211 --> 00:30:40,565
we decided to just go back
to the simple premise.
694
00:30:40,589 --> 00:30:44,068
You don't have to leave
to go to a pet store.
695
00:30:44,092 --> 00:30:45,903
-♪ If you leave me now ♪
696
00:30:45,927 --> 00:30:49,490
♪ You'll take away
the biggest part of me ♪
697
00:30:49,514 --> 00:30:52,785
♪ Ooh-ooh-ooh-ooh, no, baby ♪
698
00:30:52,809 --> 00:30:54,912
Please don't go.
699
00:30:54,936 --> 00:30:56,664
-We had a Super Bowl party
700
00:30:56,688 --> 00:30:59,417
watching the ads versus
watching the game.
701
00:30:59,441 --> 00:31:02,754
{\an8}I was working,
but I also knew I was winning
702
00:31:02,778 --> 00:31:05,673
{\an8}because we were getting
the most publicity.
703
00:31:05,697 --> 00:31:09,594
-It was top five on
the "USA Today" ad meter
704
00:31:09,618 --> 00:31:11,971
for the Super Bowl,
so it was a big success.
705
00:31:11,995 --> 00:31:14,474
-The Super Bowl brings
an entirely new level
706
00:31:14,498 --> 00:31:17,351
of fame to the Pets.com mascot.
707
00:31:17,375 --> 00:31:19,937
-A couple days after the
Super Bowl,
708
00:31:19,961 --> 00:31:23,024
I answered the phone, and it was
"Good Morning America."
709
00:31:23,048 --> 00:31:25,485
They said, "We want
the Pets.com sock puppet
710
00:31:25,509 --> 00:31:27,904
to come on and do an interview."
711
00:31:27,928 --> 00:31:30,448
And literally, we finished
"Good Morning America,"
712
00:31:30,472 --> 00:31:35,495
and my flip-top cellphone,
which I had at the time, rang,
713
00:31:35,519 --> 00:31:37,914
and it was Regis and Kathie Lee.
714
00:31:37,938 --> 00:31:40,458
And then it just started
snowballing.
715
00:31:40,482 --> 00:31:42,960
-♪ I got you, babe ♪
716
00:31:42,984 --> 00:31:44,754
♪ I got you, babe ♪
717
00:31:44,778 --> 00:31:46,714
-It was just
one after the other.
718
00:31:46,738 --> 00:31:50,301
"Nightline" and Charlie Gibson
and Diane Sawyer.
719
00:31:50,325 --> 00:31:52,261
-Oh, hey, Charlie, Diane.
720
00:31:52,285 --> 00:31:55,973
I'm here at a big Oscar party
in Hollywood, California.
721
00:31:55,997 --> 00:31:58,768
Now, I wasn't exactly invited.
722
00:31:58,792 --> 00:32:01,562
And technically,
I'm not supposed to be here,
723
00:32:01,586 --> 00:32:03,231
but I'm gonna try to interview
724
00:32:03,255 --> 00:32:05,525
as many celebrities
about their favorite movies...
725
00:32:05,549 --> 00:32:09,570
-We did an Oscar party
at the Beverly Hills Hotel.
726
00:32:09,594 --> 00:32:12,198
And we were just walking around
and talking to celebrities.
727
00:32:12,222 --> 00:32:15,201
-Are you flirting with me,
Anna Nicole Smith?
728
00:32:15,225 --> 00:32:16,494
-Yes, I am.
729
00:32:16,518 --> 00:32:18,329
- How you doing?
- I'm doing good.
730
00:32:18,353 --> 00:32:20,248
How you doing?
- I'm doing good. How you doing?
731
00:32:20,272 --> 00:32:22,792
-Hi.
732
00:32:22,816 --> 00:32:25,670
That was the weirdest moment
of my entire life.
733
00:32:25,694 --> 00:32:27,338
-It was incredible.
734
00:32:27,362 --> 00:32:29,841
-The sock puppet might be
hobnobbing with Hollywood,
735
00:32:29,865 --> 00:32:32,051
but it's not translating
into profits.
736
00:32:32,075 --> 00:32:34,011
Pets.com is spending
four times
737
00:32:34,035 --> 00:32:36,180
as much as they earn
on marketing.
738
00:32:36,204 --> 00:32:38,933
-We were spending a lot of money
on advertising on our team.
739
00:32:38,957 --> 00:32:40,810
We moved to new offices.
740
00:32:40,834 --> 00:32:43,938
Some of the traditional metrics
that we had always measured...
741
00:32:43,962 --> 00:32:45,565
You know, revenue, sales, profit
742
00:32:45,589 --> 00:32:47,859
were almost secondary
at the time,
743
00:32:47,883 --> 00:32:50,194
which is a little bit
counterintuitive.
744
00:32:50,218 --> 00:32:54,031
-Counterintuitive is '90s speak
for flawed business strategy.
745
00:32:54,055 --> 00:32:57,618
Early 2000 visitors to the
Pets.com Web site are rising,
746
00:32:57,642 --> 00:32:59,203
but revenues are falling.
747
00:32:59,227 --> 00:33:02,456
So the company tries
another counterintuitive idea...
748
00:33:02,480 --> 00:33:04,041
Free shipping.
749
00:33:04,065 --> 00:33:06,544
-The free delivery started
to raise a little bit
750
00:33:06,568 --> 00:33:09,172
more of a question
for... for some of us,
751
00:33:09,196 --> 00:33:13,259
like, "How do you deliver
60 pounds of dog food for free?"
752
00:33:13,283 --> 00:33:17,722
-Pets.com hadn't quite
figured out how to ship
753
00:33:17,746 --> 00:33:20,892
the way that we
just take for granted today,
754
00:33:20,916 --> 00:33:23,477
that you can order something
from Amazon this afternoon
755
00:33:23,501 --> 00:33:25,104
and have it tomorrow morning.
756
00:33:25,128 --> 00:33:28,107
-Profits are an afterthought
for 90s dot-coms.
757
00:33:28,131 --> 00:33:29,650
The rules are grow fast,
758
00:33:29,674 --> 00:33:32,195
sell products at a loss
to gain market share,
759
00:33:32,219 --> 00:33:34,739
and spend whatever it takes
on advertising
760
00:33:34,763 --> 00:33:37,783
and brand awareness
to crowd out competitors.
761
00:33:37,807 --> 00:33:40,203
-That certainly was the rule
that Pets.com
762
00:33:40,227 --> 00:33:42,663
was trying to follow...
Was following that playbook.
763
00:33:42,687 --> 00:33:44,707
{\an8}Look, it makes sense
if you're trying to convince
764
00:33:44,731 --> 00:33:46,918
{\an8}a big consumer market
of pet owners
765
00:33:46,942 --> 00:33:50,046
{\an8}to buy things on the Internet
that they used to buy in person,
766
00:33:50,070 --> 00:33:53,090
if you're trying to get ahead
of your competition fast.
767
00:33:53,114 --> 00:33:55,843
-Then Pets.com makes
a fatal miscalculation.
768
00:33:55,867 --> 00:33:59,204
-The public was not as excited
about it as we were.
769
00:34:03,792 --> 00:34:05,353
-The millennium had
come and gone,
770
00:34:05,377 --> 00:34:07,021
and although things like
flannel shirts and Beanie Babies
771
00:34:07,045 --> 00:34:10,942
didn't survive the '90s,
the Internet was here to stay.
772
00:34:10,966 --> 00:34:12,860
For investors in Pets.com,
773
00:34:12,884 --> 00:34:15,655
the aughts is their chance
to finally cash in on the
774
00:34:15,679 --> 00:34:18,574
now well-known e-commerce site.
775
00:34:18,598 --> 00:34:21,494
-As the market gets higher and
higher and higher and higher,
776
00:34:21,518 --> 00:34:24,038
there was a lot of pressure
for investors to say,
777
00:34:24,062 --> 00:34:25,706
"Oh, no, no, no,
I'm not gonna give you
778
00:34:25,730 --> 00:34:27,708
another round of funding.
779
00:34:27,732 --> 00:34:30,503
You should go public
'cause I want my payday,
780
00:34:30,527 --> 00:34:33,130
'cause I'm gonna make
a lot of money on this."
781
00:34:33,154 --> 00:34:36,634
-Investors may want a payday,
but for Pets.com,
782
00:34:36,658 --> 00:34:40,846
its huge advertising expenses
and losses from free shipping
783
00:34:40,870 --> 00:34:43,307
leaves it $62 million in debt.
784
00:34:43,331 --> 00:34:46,936
So it needs to go public
in order to survive.
785
00:34:46,960 --> 00:34:49,939
-Super Bowl's in end of January,
early February.
786
00:34:49,963 --> 00:34:53,109
Pets.com goes public
only a few weeks later.
787
00:34:53,133 --> 00:34:54,652
And everyone's like, "Okay,
788
00:34:54,676 --> 00:34:56,862
this is gonna be
another rocket ship."
789
00:34:56,886 --> 00:34:59,073
-Anyone with stocks
in Pets.com,
790
00:34:59,097 --> 00:35:01,158
from the executives
to assistants,
791
00:35:01,182 --> 00:35:03,828
prepare to become
overnight millionaires.
792
00:35:03,852 --> 00:35:05,496
-It was exciting
to turn on the news
793
00:35:05,520 --> 00:35:07,373
and actually hear analysts
794
00:35:07,397 --> 00:35:09,250
talk about your company
and what you're doing.
795
00:35:09,274 --> 00:35:11,836
And you get swept up
in the belief
796
00:35:11,860 --> 00:35:14,964
that you're gonna transform
the economy.
797
00:35:14,988 --> 00:35:16,841
-On February 11, 2000,
798
00:35:16,865 --> 00:35:19,927
Pets.com debuts
on the stock exchange,
799
00:35:19,951 --> 00:35:24,348
hoping to raise $100 million
in their initial stock sale.
800
00:35:24,372 --> 00:35:27,852
-All the senior executives had
gone to New York for the IPO,
801
00:35:27,876 --> 00:35:29,854
and the rest of us were...
Were in the office.
802
00:35:29,878 --> 00:35:32,315
We were all checking
the stock price.
803
00:35:32,339 --> 00:35:33,649
We see the stock price creep up,
804
00:35:33,673 --> 00:35:35,151
and there's a good amount
of energy.
805
00:35:35,175 --> 00:35:36,861
And then we see it
kind of creep down.
806
00:35:36,885 --> 00:35:39,405
It settles at 11,
and it sticks at 11
807
00:35:39,429 --> 00:35:41,282
for the rest of the day.
808
00:35:41,306 --> 00:35:44,535
-It's a disappointing price,
but the IPO still raises
809
00:35:44,559 --> 00:35:46,746
$82 million for the company.
810
00:35:46,770 --> 00:35:48,331
CEO Julie Wainwright
811
00:35:48,355 --> 00:35:51,417
tells her staff
it's back to business as usual.
812
00:35:51,441 --> 00:35:54,712
-The day after the IPO,
we all went back to work again.
813
00:35:54,736 --> 00:35:56,422
We continued as we were doing.
814
00:35:56,446 --> 00:36:00,051
There was so much commitment
to what we were building
815
00:36:00,075 --> 00:36:02,720
and had built
that we almost thought of it
816
00:36:02,744 --> 00:36:04,180
as a small road bump
817
00:36:04,204 --> 00:36:06,891
in the grand scheme of...
Of where we were headed.
818
00:36:06,915 --> 00:36:09,226
-Just like every other
dot-com at the time,
819
00:36:09,250 --> 00:36:12,021
it almost didn't matter
if it was gonna succeed.
820
00:36:12,045 --> 00:36:17,068
It was still a future bet that
made it a successful opening.
821
00:36:17,092 --> 00:36:20,905
And so you couldn't really
tell up from down, I think.
822
00:36:20,929 --> 00:36:23,407
-But dot-com frenzy
is on the decline.
823
00:36:23,431 --> 00:36:25,743
The stock market has woken up
to the reality
824
00:36:25,767 --> 00:36:27,286
that many of these companies
825
00:36:27,310 --> 00:36:29,914
are losing much more money
than they're making.
826
00:36:29,938 --> 00:36:32,083
-The Internet may produce
something else...
827
00:36:32,107 --> 00:36:34,085
The next
big wave of bankruptcies.
828
00:36:34,109 --> 00:36:37,213
-The downslide has wiped
$16 billion.
829
00:36:37,237 --> 00:36:39,048
-And a lot of
once-promising companies
830
00:36:39,072 --> 00:36:41,509
are coming to
the end of the line.
831
00:36:41,533 --> 00:36:45,679
-In March 2000, the Nasdaq
hits its high peak
832
00:36:45,703 --> 00:36:47,264
and starts going down,
833
00:36:47,288 --> 00:36:49,642
and investors
start getting cold feet.
834
00:36:49,666 --> 00:36:52,520
And of course, people get
really excited as a group.
835
00:36:52,544 --> 00:36:53,979
And then they're like,
"Wait a minute,
836
00:36:54,003 --> 00:36:55,606
someone's starting
to sell Amazon.
837
00:36:55,630 --> 00:36:57,108
Now I should sell it, too,"
and da-da-da-da-da-da-da.
838
00:36:57,132 --> 00:36:58,609
For all of the growth
of the Internet,
839
00:36:58,633 --> 00:37:00,403
the market itself
and the valuations
840
00:37:00,427 --> 00:37:02,822
were outpacing where it was at.
841
00:37:02,846 --> 00:37:06,158
-At least 135 dot-coms
went belly-up.
842
00:37:06,182 --> 00:37:09,578
-They are roadkill on the
information superhighway,
843
00:37:09,602 --> 00:37:11,705
and the carnage
is just beginning.
844
00:37:11,729 --> 00:37:13,374
-CEO Julie Wainwright
845
00:37:13,398 --> 00:37:15,960
needs a way to weather
the financial storm.
846
00:37:15,984 --> 00:37:18,921
And the sock puppet
seems to be her best bet.
847
00:37:18,945 --> 00:37:22,466
-We ventured into the world
of character licensing,
848
00:37:22,490 --> 00:37:26,762
which can be very lucrative,
so we signed a toy licensee
849
00:37:26,786 --> 00:37:30,015
who manufactured
a Pets.com sock puppet
850
00:37:30,039 --> 00:37:32,852
that wasn't as cool
as the real ones,
851
00:37:32,876 --> 00:37:34,687
but they were pretty cool.
852
00:37:34,711 --> 00:37:38,315
-Then they started to get savvy
with the puppet... dog bowls
853
00:37:38,339 --> 00:37:41,861
and lots of other things that
had the puppet's likeness on it,
854
00:37:41,885 --> 00:37:43,404
and they owned that.
855
00:37:43,428 --> 00:37:45,489
-So, when Wainwright learns
of another pooch
856
00:37:45,513 --> 00:37:48,492
besmirching the sock puppet's
good name in the media,
857
00:37:48,516 --> 00:37:50,077
she's quick to pick a dogfight.
858
00:37:50,101 --> 00:37:52,663
{\an8}-This is what I hear
of Pets.com.
859
00:37:52,687 --> 00:37:56,542
{\an8}I hear your stock's going down
faster than me on a Pekingese.
860
00:37:56,566 --> 00:37:57,877
[ Laughter ]
861
00:37:57,901 --> 00:37:59,962
-Triumph the Insult Comic Dog,
862
00:37:59,986 --> 00:38:02,173
the creation of comedian
Robert Smigel,
863
00:38:02,197 --> 00:38:04,758
is a staple on
"Late Night with Conan O'Brien."
864
00:38:04,782 --> 00:38:07,011
His act includes
making fun of other dogs,
865
00:38:07,035 --> 00:38:10,181
including Pets.com's
beloved mascot.
866
00:38:10,205 --> 00:38:13,517
To stop the alleged damage,
Pets.com slaps Smigel
867
00:38:13,541 --> 00:38:16,729
with a $20 million
defamation lawsuit,
868
00:38:16,753 --> 00:38:19,356
and Conan responds on the air.
869
00:38:19,380 --> 00:38:22,318
-It's literally a sock puppet
suing a sock puppet.
870
00:38:22,342 --> 00:38:23,569
-Well...
871
00:38:23,593 --> 00:38:25,696
-A sock puppet suing
a rubber puppet.
872
00:38:25,720 --> 00:38:29,492
And why can't those two kinds
of puppets learn to get along?
873
00:38:29,516 --> 00:38:30,993
-Take a look at this lawsuit!
874
00:38:31,017 --> 00:38:34,038
Now I know why human beings
wipe their ass!
875
00:38:34,062 --> 00:38:36,540
[ Laughter and applause ]
876
00:38:36,564 --> 00:38:39,168
I just threw away my arm, too.
877
00:38:39,192 --> 00:38:42,755
-There was this fear that
Triumph was gonna ruin
878
00:38:42,779 --> 00:38:46,258
the Pets.com brand
because of all of his insults
879
00:38:46,282 --> 00:38:50,471
and really do some damage
to our, um, brand integrity.
880
00:38:50,495 --> 00:38:53,265
-Well, listen, I like the press
to check it out.
881
00:38:53,289 --> 00:38:56,060
-But the lawsuit backfires,
and Pets.com
882
00:38:56,084 --> 00:38:59,230
ends up on the wrong end
of the publicity stick.
883
00:38:59,254 --> 00:39:01,065
To avoid more bad press,
884
00:39:01,089 --> 00:39:04,318
puppet publicist Melissa Menta
goes to work.
885
00:39:04,342 --> 00:39:07,905
-I kept saying, "It's got to be
puppet versus puppet,
886
00:39:07,929 --> 00:39:10,491
not puppet versus evil dot-com
887
00:39:10,515 --> 00:39:12,451
that's trying
to take over the world."
888
00:39:12,475 --> 00:39:15,579
The Pets.com sock puppet
should have a press conference
889
00:39:15,603 --> 00:39:19,708
and discuss why he is not
a knock-off of Triumph.
890
00:39:19,732 --> 00:39:25,214
We went to New York, and we
hosted a press conference.
891
00:39:25,238 --> 00:39:27,216
The sock puppet said
he was innocent
892
00:39:27,240 --> 00:39:31,595
because he was an ancestor
of Knickers from the Mayflower.
893
00:39:31,619 --> 00:39:34,014
And the next day,
the cover of the...
894
00:39:34,038 --> 00:39:36,433
I believe it was the
"New York Daily News"...
895
00:39:36,457 --> 00:39:39,061
Had the puppet
on the front cover,
896
00:39:39,085 --> 00:39:41,355
and the words were,
"I am innocent."
897
00:39:41,379 --> 00:39:43,941
And suddenly,
the narrative changed,
898
00:39:43,965 --> 00:39:47,194
and people weren't bashing
Pets.com as much
899
00:39:47,218 --> 00:39:49,697
after that press conference.
900
00:39:49,721 --> 00:39:52,491
-But will saving its
brand integrity be enough
901
00:39:52,515 --> 00:39:54,767
to help the battered
dot-com survive?
902
00:39:59,606 --> 00:40:01,333
-In late 2000,
Pets.com's total debt
903
00:40:01,357 --> 00:40:05,588
is a staggering $147 million.
904
00:40:05,612 --> 00:40:08,424
Even 50-percent shareholder
Jeff Bezos,
905
00:40:08,448 --> 00:40:11,385
already worth $4.7 billion,
906
00:40:11,409 --> 00:40:14,179
isn't willing to chase
good money after bad.
907
00:40:14,203 --> 00:40:16,724
So Pets.com,
once the poster child
908
00:40:16,748 --> 00:40:18,809
for a thriving dot-com,
909
00:40:18,833 --> 00:40:22,479
announces they're shutting down.
910
00:40:22,503 --> 00:40:25,691
-What I notice amongst the
failures is they think
911
00:40:25,715 --> 00:40:28,110
if they just throw
the words dot-com at people,
912
00:40:28,134 --> 00:40:29,903
they will come,
and they won't come.
913
00:40:29,927 --> 00:40:33,324
-There's a cascading line of
companies waiting to go under,
914
00:40:33,348 --> 00:40:34,658
unfortunately.
915
00:40:34,682 --> 00:40:36,660
-I have no idea what
I'm gonna do.
916
00:40:36,684 --> 00:40:38,162
-The message is clear.
917
00:40:38,186 --> 00:40:41,332
In its two years of its
existence, Pets.com,
918
00:40:41,356 --> 00:40:43,000
like many other dot-coms,
919
00:40:43,024 --> 00:40:44,835
had spent their money
frivolously
920
00:40:44,859 --> 00:40:48,380
on over-the-top advertising
and free shipping to customers.
921
00:40:48,404 --> 00:40:50,090
But for Oscar and his coworkers,
922
00:40:50,114 --> 00:40:52,551
their job was about
so much more.
923
00:40:52,575 --> 00:40:54,887
-We believed we were
transforming commerce.
924
00:40:54,911 --> 00:40:56,555
We loved our coworkers.
925
00:40:56,579 --> 00:40:58,766
It was something that
we had dedicated so much time
926
00:40:58,790 --> 00:41:02,519
and energy and commitment to,
and so much belief.
927
00:41:02,543 --> 00:41:05,731
-But it wasn't enough to keep
Pets.com afloat.
928
00:41:05,755 --> 00:41:07,483
-The last day was hard.
929
00:41:07,507 --> 00:41:10,194
We... We showed up for work,
and there were news cameras
930
00:41:10,218 --> 00:41:12,237
and the news teams in front,
931
00:41:12,261 --> 00:41:14,615
and they wanted to talk
to all of us, but we...
932
00:41:14,639 --> 00:41:17,326
We just wanted to get
into the office,
933
00:41:17,350 --> 00:41:19,912
kind of wrap up our things,
say goodbye.
934
00:41:19,936 --> 00:41:24,458
-I just remember
being devastated.
935
00:41:24,482 --> 00:41:26,710
I just remember being
just so sad
936
00:41:26,734 --> 00:41:29,630
and definitely crying a lot.
937
00:41:29,654 --> 00:41:32,257
-We did go to someone's house
after that,
938
00:41:32,281 --> 00:41:34,802
and we held a vigil
for the sock puppet.
939
00:41:34,826 --> 00:41:38,472
This creature made of socks
and a button...
940
00:41:38,496 --> 00:41:41,517
In the end, we almost felt
that he was human, he was real.
941
00:41:41,541 --> 00:41:44,478
He is symbolic of the team
that put all the work into it
942
00:41:44,502 --> 00:41:46,021
and, also, of course,
943
00:41:46,045 --> 00:41:48,691
the era that we all
lived through together.
944
00:41:48,715 --> 00:41:50,693
-It was like a death. It was.
945
00:41:50,717 --> 00:41:52,569
It was like a death of a company
946
00:41:52,593 --> 00:41:55,155
and a group of people
that I love so much.
947
00:41:55,179 --> 00:41:58,975
And I just didn't
want it to end.
948
00:42:01,436 --> 00:42:04,081
-The good times were followed,
short order, by dark times.
949
00:42:04,105 --> 00:42:07,584
You suddenly had people getting,
you know, laid off en masse,
950
00:42:07,608 --> 00:42:09,920
companies shuttering...
All these cool office spaces
951
00:42:09,944 --> 00:42:11,547
in south of Market
in San Francisco
952
00:42:11,571 --> 00:42:13,382
that were just empty.
953
00:42:13,406 --> 00:42:16,510
-Pets.com was the canary
in the dot-com coal mine.
954
00:42:16,534 --> 00:42:20,097
{\an1}By the start of the millennium,
100 million individual investors
955
00:42:20,121 --> 00:42:21,598
across the country
956
00:42:21,622 --> 00:42:24,101
had lost $5 trillion
in the stock market.
957
00:42:24,125 --> 00:42:27,396
-The amount of money lost
was phenomenal.
958
00:42:27,420 --> 00:42:29,982
The people who really got hurt
in the dot-com bust
959
00:42:30,006 --> 00:42:32,109
were mom-and-pop investors...
960
00:42:32,133 --> 00:42:35,404
People who had their money
in tech stocks
961
00:42:35,428 --> 00:42:38,323
that they believed were gonna
be their retirement.
962
00:42:38,347 --> 00:42:40,451
-People had to move back in
with their parents...
963
00:42:40,475 --> 00:42:42,661
Just, you know, were so
devastated or frustrated,
964
00:42:42,685 --> 00:42:45,998
they just got out
of the industry altogether.
965
00:42:46,022 --> 00:42:51,128
-In 2003, CNBC media darling
analyst Henry Blodget
966
00:42:51,152 --> 00:42:53,672
settles fraud charges
related to several companies
967
00:42:53,696 --> 00:42:56,133
he analyzed during
the late '90s.
968
00:42:56,157 --> 00:43:00,637
He's fined $4 million
and banned from the industry.
969
00:43:00,661 --> 00:43:02,973
Julie Wainwright is the CEO
and founder
970
00:43:02,997 --> 00:43:07,186
of the successful luxury
consignment site The RealReal.
971
00:43:07,210 --> 00:43:10,397
And Pets.com's star investor,
Jeff Bezos,
972
00:43:10,421 --> 00:43:12,816
can afford a vanity trip
to space.
973
00:43:12,840 --> 00:43:15,277
{\an8}But before the sock puppet
is put to bed,
974
00:43:15,301 --> 00:43:19,406
{\an8}one final insult would
strike deep when E-Trade,
975
00:43:19,430 --> 00:43:21,742
one of the last dot-coms
standing,
976
00:43:21,766 --> 00:43:25,746
takes aim at Pets.com's
spectacular rise and fall
977
00:43:25,770 --> 00:43:28,332
in a 2001 Super Bowl ad.
978
00:43:28,356 --> 00:43:31,794
-There was the E-Trade ad with
the... the chimp on the horse,
979
00:43:31,818 --> 00:43:33,337
um, looking through this desert
980
00:43:33,361 --> 00:43:35,005
of other failed
Internet companies,
981
00:43:35,029 --> 00:43:38,842
and kind of the last one
that he comes upon is Pets.com.
982
00:43:38,866 --> 00:43:40,928
[ Crashing ]
983
00:43:40,952 --> 00:43:42,930
[ Horse neighs ]
984
00:43:42,954 --> 00:43:44,681
{\an8}There is a little bit
of indignance
985
00:43:44,705 --> 00:43:47,601
{\an8}that they would use you and
the work that you had done,
986
00:43:47,625 --> 00:43:50,187
{\an8}but at the same time,
there's a little bit of pride.
987
00:43:50,211 --> 00:43:52,147
{\an8}We're the finale of this ad,
right?
988
00:43:52,171 --> 00:43:53,857
{\an8}We're the one
that people remember.
989
00:43:53,881 --> 00:43:55,692
{\an8}-Hey, the sock puppet
was the best thing
990
00:43:55,716 --> 00:43:58,529
{\an8}that came out of the '90s,
let's just face it.
991
00:43:58,553 --> 00:44:00,197
{\an8}[ Laughs ]
992
00:44:00,221 --> 00:44:03,450
{\an8}-What sort of message
do you have for all of us?
993
00:44:03,474 --> 00:44:05,810
{\an8}-Don't invest in dot-coms.