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Back to #420 Steve Jobs In Exile, with David Senra.

How Did NeXT Get Steve Jobs Back Into Apple?

David Senra, reading Geoffrey Cain, says NeXT got Steve Jobs back into Apple because a product manager named Garrett Rice called Apple, and Jobs then showed up as a different founder.

Apple's chief executive, Gil Amelio, was watching the company bleed money and could no longer build its own operating system. Apple was ready to spend tens of millions of dollars on Be, which Rice heard as a pale imitation of NeXT. Rice asked why they did not just call Apple, and he left the pitch on the answering machine of Ellen, Apple's chief technology officer. He talked about the technology, not about Jobs. Ellen said she had not even thought of NeXT.

Jobs called Amelio, told him Be was the wrong choice, and was invited in. He pitched a strategy built around NeXT, then handed the demo to Avi, the head of software. Amelio saw a precise executive, not the self-absorbed founder he remembered. Jobs took the engineers' concerns seriously instead of waving them off. After a little more than an hour, the team had made a strong impression. Three days later Jobs asked Amelio to his house and opened at $12 a share, about $500 million. Amelio said $12 would not work and that he might get the board to $10.

Transcript

#420 Steve Jobs In Exile ·

Founders

More from this episode

  1. What Did Paul Rand Charge for the NeXT Logo?David Senra, reading Geoffrey Cain, says Paul Rand's price for the NeXT logo was $100,000, whether or not NeXT used it.
  2. How Much Did Ross Perot Invest in NeXT?David Senra, reading Geoffrey Cain, says Ross Perot put $20 million into NeXT for a 16% stake and became the company's largest outside shareholder.
  3. Why Did NeXT's Chip Designers Quit After Their Bonuses?David Senra, reading Geoffrey Cain, says NeXT's chip engineers, Big Dave and Little Dave, took $25,000 bonuses and quit.
  4. What Did Steve Jobs Learn About Overplaying His Hand?David Senra, reading Geoffrey Cain, says Steve Jobs learned never to overplay his hand after a higher-margin IBM deal collapsed.
  5. How Did NeXT Count Unsold Computers as Sales?David Senra, reading Geoffrey Cain, says NeXT booked machines sent to distributors as sales even when no customer had bought one and no money had changed hands.
  6. What Did Steve Jobs Learn From Failing at NeXT?David Senra, reading Geoffrey Cain, says NeXT taught Steve Jobs something he never learned at Apple: how to turn failure into fuel.
  7. Who Did Steve Jobs Feel He Worked for?David Senra, reading Geoffrey Cain, says that by November 1995 Steve Jobs felt he worked for most of the people doing the brilliant work.
  8. Did Steve Jobs Care About the NeXT Sale Price?David Senra, reading Geoffrey Cain, says Steve Jobs did not care about squeezing every penny out of the sale of NeXT.

People

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