Bill Gates

Right, there's actual downside to it also.

And so my understanding of the timeline is there's a $7.5 billion offer on the table. Steve mulls it over, plays with it, is for it, proposes it to the board. And exactly, the board comes back and says, hey, there's not support for this.

And so my understanding of the timeline is there's a $7.5 billion offer on the table. Steve mulls it over, plays with it, is for it, proposes it to the board. And exactly, the board comes back and says, hey, there's not support for this.

Yeah, there was a lot of baggage. I mean, it's just, what, 40 years of baggage. Bill, Steve, old wars, antitrust, bad releases of Windows. Like, you just gotta get it out to move on. And it was Bill and Steve leaving in one fell swoop to clear the path.

Yeah, there was a lot of baggage. I mean, it's just, what, 40 years of baggage. Bill, Steve, old wars, antitrust, bad releases of Windows. Like, you just gotta get it out to move on. And it was Bill and Steve leaving in one fell swoop to clear the path.

Whoa, whoa, whoa. This is volume three, David. Don't. Yeah, yeah, yeah.

Whoa, whoa, whoa. This is volume three, David. Don't. Yeah, yeah, yeah.

They are currently the most valuable company in the world.

They are currently the most valuable company in the world.

I'm sure someone's looking down at their podcast player right now like, why are they acting like they're done? There's so much time after this. Are they just going to play some music?

I'm sure someone's looking down at their podcast player right now like, why are they acting like they're done? There's so much time after this. Are they just going to play some music?

Okay, I have got some start and finish stats on Steve's tenure as CEO. Oh, great. This episode, we started a little bit before Steve took over because we wanted to put the internet chapter in and the antitrust chapter in. But I think everyone kind of feels it by this point. The question really is like, what happened when Steve was running the company? And so here are the numbers.

Okay, I have got some start and finish stats on Steve's tenure as CEO. Oh, great. This episode, we started a little bit before Steve took over because we wanted to put the internet chapter in and the antitrust chapter in. But I think everyone kind of feels it by this point. The question really is like, what happened when Steve was running the company? And so here are the numbers.

And this is the timeframe from 2000 when he was announced as CEO until 2014 when Satya was announced. So a 14-year period. Revenue went from $23 billion to $84 billion. That's a 3.5x over 14 years. Operating income went from $12 billion to $30 billion, so almost a 3x. Important to pay attention to is the price-to-earnings ratio when Steve was announced as CEO was a 75x. That's high.

And this is the timeframe from 2000 when he was announced as CEO until 2014 when Satya was announced. So a 14-year period. Revenue went from $23 billion to $84 billion. That's a 3.5x over 14 years. Operating income went from $12 billion to $30 billion, so almost a 3x. Important to pay attention to is the price-to-earnings ratio when Steve was announced as CEO was a 75x. That's high.

It was real close to an all-time high, which was in the month prior at an 80x. So it is worth pointing out, it still has not been that high to this day. Even today, with all the excitement around Microsoft, AI, everything going on, 40x. Right.

It was real close to an all-time high, which was in the month prior at an 80x. So it is worth pointing out, it still has not been that high to this day. Even today, with all the excitement around Microsoft, AI, everything going on, 40x. Right.

And the dot-com bubble is exploding. Yes. And you're taking over from Bill Gates.

And the dot-com bubble is exploding. Yes. And you're taking over from Bill Gates.

Essentially, if you're doing an analysis of what happened in Steve's tenure and you're trying to grade that, you are implicitly saying, did Steve make a good investment? To be honest, I think Steve took one for the team in taking over as CEO in that moment. He was handed a bit of a garbage sandwich, inheriting something when it is valued that highly.