Rubén Andrés
WriterWriter at Xataka. I've been working remotely for more than a decade and I'm a strong advocate of technology as a way to improve our lives. Full-time addict of black, sugar-free coffee.
Over the course of his 50-year career, it’s become clear that Microsoft founder Bill Gates has a keen business acumen, despite occasionally making poor decisions. This talent has allowed him to remain among the top 10 wealthiest individuals for nearly four decades.
In his new autobiographical book, Source Code: My Beginnings, Gates reflects on one of his biggest gambles: hiring former Microsoft CEO Steve Ballmer and offering him a significant stake in the company.
College Friends
In his book, Gates reflects on his years as a student at Harvard University. In the fall of 1976, he developed a close friendship with Ballmer, who would succeed him as the head of Microsoft two decades later.
Gates met Ballmer through a mutual friend during a graduate economics class at Harvard. Unlike the other math students, Gates was impressed by Ballmer’s vibrant personality. In his book, he says that Ballmer had “excess energy” and a unique ability to motivate people.
No one realized at the time that the combination of skills Ballmer possessed made him the ideal candidate to help transform Microsoft from a small startup into a global corporation.
At that point, Ballmer was already gaining experience as a sports manager. He was in charge of the college soccer team, managed advertising for the student newspaper, and served as president of Harvard’s literary magazine. In his book, Gates describes how he remembers attending a soccer game and observing Ballmer expend as much energy pacing back and forth and jumping up and down the sidelines as any of the players on the field.
The two quickly connected and became inseparable, engaging in conversations about the future, the power of business, and how to revolutionize the world. They also developed a particular strategy for success: skipping economics classes and cramming for exams at the last minute, yet still managing to pass triumphantly.
In his biography, Gates recounts how the charismatic Ballmer helped expand his social circle during their time at Harvard. Ballmer introduced Gates to the Fox Club, which was known for its “black-tie parties, secret handshakes, and other archaic rules and rituals.” According to Gates, he’d likely have avoided this kind of club if not for his enthusiastic friend.
Steve, Please Come to Microsoft
In 1980, Gates made a pivotal decision that would alter the trajectory of Microsoft and the technology industry. He recognized the need for a strategist–a partner who could manage the sales department while he focused on technology. This is when Gates recalled Ballmer’s exceptional social skills.
Microsoft’s young founders were initially prepared to offer up to 5% of the company’s shares to recruit Ballmer as a director. In the end, due to Ballmer’s impressive negotiation abilities, Gates agreed to grant him 8.75% of Microsoft’s shares.
Years later, Gates reflects on this decision, saying that giving Ballmer that stock was one of his best decisions ever. Microsoft’s success in the decades that followed confirmed the wisdom of this choice, solidifying the company’s position as a leader in the tech industry.
Gates recognized the importance of having someone like Ballmer, who shared a complementary business vision. In his memoirs, he says that the company needed someone who could help it grow as a business. This decision demonstrated Gates’ long-term vision and his willingness to sacrifice immediate gains for greater future profits.
Ballmer’s addition to the team profoundly impacted Microsoft’s trajectory. He brought the energy the company needed, which won Gates over during presentations. He also helped alleviate Gates’ embarrassment in order to boost sales.
However, Ballmer’s years of leadership at Microsoft can’t be regarded as the company’s most brilliant, given that it failed to seize the opportunity in the phone market.
Ballmer’s Return to His True Passion
Ballmer stepped away from the technology world with an 8.75% stake in Microsoft, which saw significant financial success under Satya Nadella’s leadership. Since then, Ballmer has fully dedicated himself to his true passion: basketball.
In 2014, he became the new owner of the Los Angeles Clippers, which has contributed to his status as the world’s 11th richest person, according to Forbes. Ballmer now has a net worth of $121.3 billion, surpassing his friend and mentor.
Image | Dan Farber
Related | Bill Gates Knows Exactly What He’d Do if He Was 20 Years Old: A Startup 100% Dedicated to AI
Log in to leave a comment