June 25, 1981: Microsoft Incorporates, Plans to Buy 86-DOS

Microsoft Logo
Microsoft

1981 – Microsoft goes through a restructure to incorporate in Washington. Bill Gates would become president, Paul Allen was Executive Vice President. Steve Ballmer would come on full-time with a $50,000 year salary.

The reason why they incorporated? On this same day, Paul Allen sends a proposal to Rod Black of Seattle Computer Products for Microsoft to purchase all rights to 86-DOS for $30,000.  At that point, they had only a non-exclusive license (since September 22, 1980). This was a strategic move because Microsoft had a relationship with IBM, and wanted to re-license for the IBM PC.

After a month of negotiations, Seattle Computer agreed to the purchase for $50,000. However, that was not the end of it, as they found out of the IBM deal. They finally settled years later for $1 million.

Subcribe to Day In Tech History:

RSS Feed - iTunes - Google Play - Spotify
Twitter - Facebook

RSS Bandwidth by Cachefly Get a 14 Day Trial

Be a Part of the Sconnie Geek Nation!

Click Here to Support the Sconnie Geek Nation!

In Wisconsin, friends are called "Sconnies". Even if you're not from Wisconsin, you can be part of the Sconnie Geek Nation through my coverage! By pledging, you join the Geek Sconnie Nation! Plus, you help me cover costs so I can continue the coverage of Gadget tech, music tech, and geek culture through the shows.

  • Michael Jackson brings Social Media Down
  • Geocities was hacked
  • AOL hits 30 million users
Play