5 ms·

I’ve seen a couple examples of a somewhat opposite scenario where founder does well, sells to MBA for a lot, business struggles, founder repurchases for much le

I’ve seen a couple examples of a somewhat opposite scenario where founder does well, sells to MBA for a lot, business struggles, founder repurchases for much less, then brings business back to profitability

tialaramex 4y ago
I remember some of the founders of the first startup I worked for commenting after its acquisition that before being acquired they had been terrified that the huge acquirer would just go "Oh, we should do that" and assign a dozen software engineers to design, implement and ship a rival product, but after acquisition from inside the huge corporation they could see they had nothing to worry about, assigning a dozen software engineers to go ship a rival product would have needed board level determination and nobody in the board knows the first thing about the actual product so that's not going to happen.
WheelsAtLarge 4y ago
DELL and Apple are a good example of your scenario. And Microsoft and Google are examples where the founders handed the company to an MBA and the companies profits greatly increased. But I've seen these happen much less.
- mirntyfirty 4y ago
  Interesting, didn’t cross my mind even though I had an Apple Performa from their dark years. I think I was young enough not to realize some of the flaws.
- nowherebeen 4y ago
  You got Microsoft in the wrong category. Gates gave the reins to Ballmer, an MBA, which tanked the stock. Ballmer was never a founder, he was an employee with early stock. Microsoft flourished when Gates was the CEO. > Ballmer joined Microsoft on June 11, 1980, and became Microsoft's 30th employee, the first business manager hired by Gates > [Ballmer] left the MBA program at Stanford University Ballmer is what Marisa Mayer was (or vice versa). An employee that latched onto a rocket. What made the company successful wasn’t them but the founder. By the time you can hire the 10th employee, risk is already greatly reduced.
  - WheelsAtLarge 4y ago
    The way I remember it is that profit's growth for MS greatly increased under Ballmer but company growth tanked and that's what tanked the stock since MS lost its reputation as a growth stock. But generally speaking Ballmer was not the best choice to take on the company.
    - nemothekid 4y ago
      Yes, Ballmer spent his decade squeezing oil from rocks while completely shitting the bed on anything forward looking; as a result they lost ground on almost every consumer facing product. On the outside Microsoft was starting look like IBM. However his focus on enterprise laid the seeds for 365 and Azure and flourished once Satya made it clear that not everything had to revolve around Windows and Office. I think Gates is also a bit to blame here as I think the story goes that almost every decision that came to the board was shot down unless it meant more windows/office sales
arthurcolle 4y ago
are you thinking of Dell?
quickthrower2 4y ago
Steve Jobs?
- mirntyfirty 4y ago
  Was thinking of a couple observations that aren’t particularly famous but Jobs is in the category too.

tialaramex 4y ago

I remember some of the founders of the first startup I worked for commenting after its acquisition that before being acquired they had been terrified that the huge acquirer would just go "Oh, we should do that" and assign a dozen software engineers to design, implement and ship a rival product, but after acquisition from inside the huge corporation they could see they had nothing to worry about, assigning a dozen software engineers to go ship a rival product would have needed board level determination and nobody in the board knows the first thing about the actual product so that's not going to happen.

WheelsAtLarge 4y ago

DELL and Apple are a good example of your scenario. And Microsoft and Google are examples where the founders handed the company to an MBA and the companies profits greatly increased. But I've seen these happen much less.

mirntyfirty 4y ago
Interesting, didn’t cross my mind even though I had an Apple Performa from their dark years. I think I was young enough not to realize some of the flaws.
nowherebeen 4y ago
You got Microsoft in the wrong category. Gates gave the reins to Ballmer, an MBA, which tanked the stock. Ballmer was never a founder, he was an employee with early stock. Microsoft flourished when Gates was the CEO. > Ballmer joined Microsoft on June 11, 1980, and became Microsoft's 30th employee, the first business manager hired by Gates > [Ballmer] left the MBA program at Stanford University Ballmer is what Marisa Mayer was (or vice versa). An employee that latched onto a rocket. What made the company successful wasn’t them but the founder. By the time you can hire the 10th employee, risk is already greatly reduced.
- WheelsAtLarge 4y ago
  The way I remember it is that profit's growth for MS greatly increased under Ballmer but company growth tanked and that's what tanked the stock since MS lost its reputation as a growth stock. But generally speaking Ballmer was not the best choice to take on the company.
  - nemothekid 4y ago
    Yes, Ballmer spent his decade squeezing oil from rocks while completely shitting the bed on anything forward looking; as a result they lost ground on almost every consumer facing product. On the outside Microsoft was starting look like IBM. However his focus on enterprise laid the seeds for 365 and Azure and flourished once Satya made it clear that not everything had to revolve around Windows and Office. I think Gates is also a bit to blame here as I think the story goes that almost every decision that came to the board was shot down unless it meant more windows/office sales

arthurcolle 4y ago

are you thinking of Dell?

quickthrower2 4y ago

Steve Jobs?

mirntyfirty 4y ago
Was thinking of a couple observations that aren’t particularly famous but Jobs is in the category too.