Lawsuit Claims Microsoft Intentionally Designed Phones to Track Customers
Remember that one scene in The Social Network where Facebook co-founder Eduardo Saverin eagerly returns to Palo Alto for the site's million-user party, only to be rebuffed by a conniving Sean Parker, Mark Zuckerberg, and an infuriating lawyer who informs him that his shares in the company have essentially been diluted to nothing? Well, according to Microsoft co-founder Paul Allen, decades ago a sneaky Bill Gates and his partners were trying to do something similar to him.
Instead of slinking away like Saverin (only to reemerge brandishing a $600+ million dollar lawsuit), Allen alleges that in 1982 he was eavesdropping on Gates and now-CEO Steve Ballmer scheming to dilute his equity in Microsoft by "issuing options to themselves and other shareholders."
After listening in on the discussion, Allen "burst into the room and confronted Messrs. Gates and Ballmer, both of whom later apologized to him and backed down from their plan," wrote the Wall Street Journal. The moral high ground, and his early stake in the company now worth $13 billion, were preserved. "It was mercenary opportunism, plain and simple," Allen confirmed.
This and numerous other intriguing anecdotes were relayed by The Wall Street Journal and Vanity Fair this week, both of whom were granted access to Paul Allen's blistering memoir of his early years as co-founder of Microsoft with Bill Gates. After parsing the excerpts published of the forthcoming book Idea Man (April 17th), here's a few other episodes we found interesting so far:
And, about that aforementioned Social Network-sounding eavesdropping episode, Microsoft CEO Steve Ballmer had this to say to the Journal through his spokesman: "no comment."
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Erik Hayden
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