Microsoft Network

"Strategically, I knew that Bill was blocking an easy play between AOL, the fastest-growing online service, and TCI, the largest cable operator in the country. But I also believed what he was saying about the market, so I asked him, “What are you suggesting? What’s the alternative?” “Well, why don’t you just buy twenty percent of Microsoft Network? This is going wide fast, and it’s certain to be a massive success.” “What are you going to charge me for this?” I asked. “Well, why don’t you pay me the same amount you were going to pay Paul for his block. This could be worth an enormous amount… who knows?” This was a rather rich ask. Gates was seeking, for just 20 percent of his new and untested service, the same price we were about to pay for 25 percent of the leader in the online access business. It might sound a little arrogant, yet it also sounded like the truth."

"To his credit, Bill conceded he had been blindsided by the government’s onerous restrictions and overconfident about the Microsoft Network in the early days of online. “Yeah, John, you know, I’m really sorry about that. Why don’t I just return your Liberty shares?” And that’s exactly what he did, returning the shares in Liberty in 1996, even though Liberty shares over the same two-year period had increased dramatically as well. Bill saw past the profit and saw more in the gesture. He was fair, which is one of the highest compliments one CEO can give another in the blood sport of dealmaking."