Steve Ballmer

And I know all this because there's a great oral history from the Computer History Museum where this whole thing's in a transcript with an interview with Dave Marquardt kind of recalling the whole thing. So Dave flies up to meet with Steve and Steve says, you're asking really interesting questions. You're thinking about our strategy the right way. You don't just want to do a transactional deal.

You really think this is something special. Why don't you meet with Bill? Bill, of course, doesn't have any extra time in his schedule. He says, but I am going to the UW Arizona football game at Husky Stadium. Why don't you come and talk to me there? So of course they go. Bill doesn't pay attention to the game at all. He's just laying out the strategy and grilling Dave and

You really think this is something special. Why don't you meet with Bill? Bill, of course, doesn't have any extra time in his schedule. He says, but I am going to the UW Arizona football game at Husky Stadium. Why don't you come and talk to me there? So of course they go. Bill doesn't pay attention to the game at all. He's just laying out the strategy and grilling Dave and

Talking about software the whole time. So this is fall of 1980. So that's a whole year before the deal gets done. And Dave's remarking at this point in 1980, they're doing $5 million in revenue, $2 to $3 million in profit. They don't need VC money. And yet he was able to get in. So here's the quote. I was just sort of helping them out with the business.

Talking about software the whole time. So this is fall of 1980. So that's a whole year before the deal gets done. And Dave's remarking at this point in 1980, they're doing $5 million in revenue, $2 to $3 million in profit. They don't need VC money. And yet he was able to get in. So here's the quote. I was just sort of helping them out with the business.

In the venture business, you're buying and you're selling at the same time. You're trying to figure out, are these guys crazy? Are they ever going to do anything really interesting? And if so, how do I get myself positioned to be able to help them do it? And so I spent a lot of time up there helping recruit people. I helped to recruit Charles Simone, who was an early key guy.

In the venture business, you're buying and you're selling at the same time. You're trying to figure out, are these guys crazy? Are they ever going to do anything really interesting? And if so, how do I get myself positioned to be able to help them do it? And so I spent a lot of time up there helping recruit people. I helped to recruit Charles Simone, who was an early key guy.

Charles Simone would go on, this is an aside, to write Microsoft Word. And Charles was at Xerox PARC inventing the GUI.

Charles Simone would go on, this is an aside, to write Microsoft Word. And Charles was at Xerox PARC inventing the GUI.

Yes. And he says, and I was working with Steve on business strategy, they had these OEM customers, the PC manufacturers, and they had started to engage with IBM on this operating system. And then are we just going to become a low-cost contract programming shop for IBM, an outsourced sweatshop, or is there some way we can build a business out of this?

Yes. And he says, and I was working with Steve on business strategy, they had these OEM customers, the PC manufacturers, and they had started to engage with IBM on this operating system. And then are we just going to become a low-cost contract programming shop for IBM, an outsourced sweatshop, or is there some way we can build a business out of this?

Which led to the fixed fee to IBM, the retention of the code, which then we could sell to other people, and that's what created the PC industry, basically. So that is his recollection of the whole thing, that he was sort of very helpful in this transformative time for the company. Now, at the same time, you have to look at everyone else's incentives.

Which led to the fixed fee to IBM, the retention of the code, which then we could sell to other people, and that's what created the PC industry, basically. So that is his recollection of the whole thing, that he was sort of very helpful in this transformative time for the company. Now, at the same time, you have to look at everyone else's incentives.

So Dave is only 29 years old, but everyone else is like 23. And so he actually is kind of adult supervision. At the same time, the partnership was still just a partnership and there was a handshake deal for the equity. And so if you're Steve Ballmer at this point in history...

So Dave is only 29 years old, but everyone else is like 23. And so he actually is kind of adult supervision. At the same time, the partnership was still just a partnership and there was a handshake deal for the equity. And so if you're Steve Ballmer at this point in history...

It would be nice to have a forcing function to actually turn this into a corporation so that we can get some shares granted here. So there's a little bit of incentive to say, hey, if we take on an outside investor, we're going to have to restructure.

It would be nice to have a forcing function to actually turn this into a corporation so that we can get some shares granted here. So there's a little bit of incentive to say, hey, if we take on an outside investor, we're going to have to restructure.

Yes. So this would create a little bit of board and governance. So it's not just Bill all the time. Now, Bill, of course, I think is still the controlling shareholder just by the amount of stock that he owns. But there's a board. It's Bill and it's Dave and it's Kei Nishi. It's a three-person board.

Yes. So this would create a little bit of board and governance. So it's not just Bill all the time. Now, Bill, of course, I think is still the controlling shareholder just by the amount of stock that he owns. But there's a board. It's Bill and it's Dave and it's Kei Nishi. It's a three-person board.

Yeah, that's true.