The rift between Paul Allen and Bill Gates is one of the foundational personal dramas of the personal-computer era and reads like a studio-era contract tussle transplanted into Silicon Valley. In 1982 Allen was diagnosed with Hodgkin's lymphoma and effectively stepped back from day-to-day management of Microsoft, though he remained vice-chairman on the board. As Allen later recounted, Gates began pressing for a larger slice of the company on the grounds that he was doing the heft of the technical and managerial work — at one point proposing a 60–40 split in Gates' favor and then renegotiating it to 64–36. The dispute culminated in 1983 when Gates reportedly tried to buy Allen out for $5 per share. Allen refused to accept the buyout and left the company with his equity intact. When Microsoft went public a few years later, Allen’s retained stake (roughly 25.2%) turned him into a billionaire overnight.
Preparing the daily feature…
AI concept artworkArchive Record · 1980s
The 1980–1983 Share Fight: How a Cancer Diagnosis, a 64–36 Split and a $5 Buyout Offer Made Paul Allen a Billionaire — and Stung a Friendship
Paul Allen & Bill Gates / Microsoft / 1980s
The rift between Paul Allen and Bill Gates is one of the foundational personal dramas of the personal-computer era and reads like a studio-era contract tussle transplanted into Silicon Valley. In 1982 Allen was diagnosed with Hodgkin's lymphoma and effectively stepped back from day-to-day management of Microsoft, though he remained vice-chairman on the board. As Allen later recounted, Gates began pressing for a larger slice of the company on the grounds that he was doing the heft of the technical and managerial work — at one point proposing a 60–40 split in Gates' favor and then renegotiating it to 64–36. The dispute culminated in 1983 when Gates reportedly tried to buy Allen out for $5 per share. Allen refused to accept the buyout and left the company with his equity intact. When Microsoft went public a few years later, Allen’s retained stake (roughly 25.2%) turned him into a billionaire overnight.
The daily feature is taking an intermission. There’s still an entire archive to explore.
