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Plotting a Coup
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Jobs was not good at taking no for an answer. He went to Sculley’s office in early May8 }* R- P) Z0 x2 y$ g
1985 and asked for more time to show that he could manage the Macintosh division. He
7 l& k6 c, f a2 }- x. Rwould prove himself as an operations guy, he promised. Sculley didn’t back down. Jobs; {( s; _+ p# q9 g( H, z2 d' g
next tried a direct challenge: He asked Sculley to resign. “I think you really lost your& \5 |1 ]: ?; s4 Y1 D( p3 O
stride,” Jobs told him. “You were really great the first year, and everything went wonderful.
7 ?' ^' z! n" m3 m6 u8 ]' l" W FBut something happened.” Sculley, who generally was even-tempered, lashed back,
" {) @- M& x) ^" G% kpointing out that Jobs had been unable to get Macintosh software developed, come up with
2 ^ Z4 C- d2 U8 mnew models, or win customers. The meeting degenerated into a shouting match about who
& I# B0 E; p' L! dwas the worse manager. After Jobs stalked out, Sculley turned away from the glass wall of
I- c: f( T2 R xhis office, where others had been looking in on the meeting, and wept.
! q% I6 l9 l9 D, b1 t" X8 b' \6 a; pMatters began to come to a head on Tuesday, May 14, when the Macintosh team made
4 i% I8 |7 g" F9 H4 P% J2 Pits quarterly review presentation to Sculley and other Apple corporate leaders. Jobs still had
8 Q! L3 _; v) H f% G% g6 ~not relinquished control of the division, and he was defiant when he arrived in the
, X; j2 F7 j* `" i, @, T' I! zcorporate boardroom with his team. He and Sculley began by clashing over what the# o. B& X' d) V: h7 u& ~* X4 R# n
division’s mission was. Jobs said it was to sell more Macintosh machines. Sculley said it! e4 @! d9 c: Y) {$ t
was to serve the interests of the Apple company as a whole. As usual there was little
. r+ r1 W8 ?% {$ N* o4 ^cooperation among the divisions; for one thing, the Macintosh team was planning new disk
4 I; {1 D) A+ Y2 B& Adrives that were different from those being developed by the Apple II division. The debate,
. A) z: n9 v8 ~- x" Laccording to the minutes, took a full hour.
7 T9 a- w8 P9 v1 BJobs then described the projects under way: a more powerful Mac, which would take the
* i: t0 h E/ s# |3 tplace of the discontinued Lisa; and software called FileServer, which would allow7 a/ v+ U7 q0 h1 v
Macintosh users to share files on a network. Sculley learned for the first time that these
# l7 R4 |) l5 _" _2 E- Kprojects were going to be late. He gave a cold critique of Murray’s marketing record,
; [5 a* I- D" \8 w/ EBelleville’s missed engineering deadlines, and Jobs’s overall management. Despite all this,1 K, q" ?. m8 i; M% j; n: R8 S7 \) s6 S
Jobs ended the meeting with a plea to Sculley, in front of all the others there, to be given
0 @# {( w8 q5 b+ Ione more chance to prove he could run a division. Sculley refused.
3 @/ ^$ v* @9 ~6 g& n0 n5 eThat night Jobs took his Macintosh team out to dinner at Nina’s Café in Woodside. Jean-
$ I; R2 r( B# w# _$ G$ |+ nLouis Gassée was in town because Sculley wanted him to prepare to take over the* k/ Q5 ]* `' N) N, f
Macintosh division, and Jobs invited him to join them. Belleville proposed a toast “to those ' ^- `2 j8 z' Q8 B- l, o
. C; J+ u0 T) n$ wof us who really understand what the world according to Steve Jobs is all about.” That; F$ R1 I9 a3 R9 W$ E6 l
phrase—“the world according to Steve”—had been used dismissively by others at Apple) B2 Z/ U7 \9 p! s
who belittled the reality warp he created. After the others left, Belleville sat with Jobs in his
: R* B; z/ [$ `4 A2 A) JMercedes and urged him to organize a battle to the death with Sculley./ h) {& L. j4 ~$ ?) A
Months earlier, Apple had gotten the right to export computers to China, and Jobs had* h' f6 K+ g* Z. }* g) I
been invited to sign a deal in the Great Hall of the People over the 1985 Memorial Day* x" a8 ]3 T( U) d
weekend. He had told Sculley, who decided he wanted to go himself, which was just fine/ e* c5 v, h6 C
with Jobs. Jobs decided to use Sculley’s absence to execute his coup. Throughout the week& q$ y+ d3 G. o8 d* `# z9 `$ Y; ^( e8 s( @
leading up to Memorial Day, he took a lot of people on walks to share his plans. “I’m going" r/ G2 B1 P% w6 c, D% H7 H
to launch a coup while John is in China,” he told Mike Murray.9 Z" G" O0 a: b3 K. m
Z% K2 |4 ?) aSeven Days in May* w" n$ a# R* ^9 B4 F) K) m7 T
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Thursday, May 23: At his regular Thursday meeting with his top lieutenants in the
9 J7 v+ n, ?: r, }7 cMacintosh division, Jobs told his inner circle about his plan to oust Sculley. He also
% g% H1 g; v3 g# f& ?" r6 H! ?$ tconfided in the corporate human resources director, Jay Elliot, who told him bluntly that q1 ~ d" I% v- m4 S, t5 c9 k
the proposed rebellion wouldn’t work. Elliot had talked to some board members and urged
. s2 m# B1 z6 }9 Y. \/ othem to stand up for Jobs, but he discovered that most of the board was with Sculley, as l9 ?1 u) H3 l# ^1 k& C3 o6 p- X
were most members of Apple’s senior staff. Yet Jobs barreled ahead. He even revealed his
3 g- @0 i( x/ M- @. E P0 S: Rplans to Gassée on a walk around the parking lot, despite the fact that Gassée had come& X6 _& ?5 X4 \3 ^4 I
from Paris to take his job. “I made the mistake of telling Gassée,” Jobs wryly conceded- O0 S/ F2 b- Y: Z
years later.% P2 m/ I( y6 k. n( H1 ]& w( @
That evening Apple’s general counsel Al Eisenstat had a small barbecue at his home for
; S! I# r0 b2 U8 ?. }; \, t: |Sculley, Gassée, and their wives. When Gassée told Eisenstat what Jobs was plotting, he3 {" }* \) m* I4 \2 ?
recommended that Gassée inform Sculley. “Steve was trying to raise a cabal and have a; X: L* ^5 {/ z& Q( E! h; S
coup to get rid of John,” Gassée recalled. “In the den of Al Eisenstat’s house, I put my
- d3 @5 ^. p0 zindex finger lightly on John’s breastbone and said, ‘If you leave tomorrow for China, you
& ^' [9 y- i4 F: c3 ?could be ousted. Steve’s plotting to get rid of you.’”
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Friday, May 24: Sculley canceled his trip and decided to confront Jobs at the executive( O: r' o5 B7 i. k! l$ S: |0 Q
staff meeting on Friday morning. Jobs arrived late, and he saw that his usual seat next to( \7 M) N+ e3 ]+ D8 X! ]( w
Sculley, who sat at the head of the table, was taken. He sat instead at the far end. He was5 o8 }- s2 C/ {9 |6 l
dressed in a well-tailored suit and looked energized. Sculley looked pale. He announced
- B: Q8 x7 w, C) U' w5 x9 e# A0 _# R pthat he was dispensing with the agenda to confront the issue on everyone’s mind. “It’s
0 S+ t: q+ ]0 I2 [# a2 r$ t# hcome to my attention that you’d like to throw me out of the company,” he said, looking+ m1 L+ ~+ N! r# N& @( l8 T, S
directly at Jobs. “I’d like to ask you if that’s true.”. b4 R9 K6 @- o
Jobs was not expecting this. But he was never shy about indulging in brutal honesty. His
8 X& j8 }6 ?9 meyes narrowed, and he fixed Sculley with his unblinking stare. “I think you’re bad for
* |+ K$ u6 q- J( RApple, and I think you’re the wrong person to run the company,” he replied, coldly and$ Z. V j5 s2 v# Y5 w9 B* q
slowly. “You really should leave this company. You don’t know how to operate and never3 q% d1 A" ?% H9 s/ Y2 t
have.” He accused Sculley of not understanding the product development process, and then
8 T3 b6 a3 p# phe added a self-centered swipe: “I wanted you here to help me grow, and you’ve been
N, _3 s" _& f3 Tineffective in helping me.”
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As the rest of the room sat frozen, Sculley finally lost his temper. A childhood stutter that
; ]% c* I9 [$ Y% K' M3 l6 a* phad not afflicted him for twenty years started to return. “I don’t trust you, and I won’t7 F- p# k9 h+ B( x
tolerate a lack of trust,” he stammered. When Jobs claimed that he would be better than
1 W; P1 [' g0 Y7 iSculley at running the company, Sculley took a gamble. He decided to poll the room on5 u- ~# K( M8 Z, l* v# i( k
that question. “He pulled off this clever maneuver,” Jobs recalled, still smarting thirty-five
( q* X! W7 P0 v! T7 F6 ?+ Fyears later. “It was at the executive committee meeting, and he said, ‘It’s me or Steve, who# J: K& q4 K6 u, I1 I
do you vote for?’ He set the whole thing up so that you’d kind of have to be an idiot to vote& \. q2 ~6 k% V1 h V$ e
for me.”& t e! L/ U* k, i( y
Suddenly the frozen onlookers began to squirm. Del Yocam had to go first. He said he
/ @- P$ ]0 r# T8 g4 vloved Jobs, wanted him to continue to play some role in the company, but he worked up the" U, F0 t! K$ r" y: x# t& W" n
nerve to conclude, with Jobs staring at him, that he “respected” Sculley and would support
% ]% m) ?" k: [0 Yhim to run the company. Eisenstat faced Jobs directly and said much the same thing: He# [+ Q# I1 {$ m ?4 C% ^) d. @( v
liked Jobs but was supporting Sculley. Regis McKenna, who sat in on senior staff meetings
1 _( I- P1 b7 q% I4 ~, q0 x* Yas an outside consultant, was more direct. He looked at Jobs and told him he was not yet" R, f" M: o1 [3 V! R- e, O6 p7 O
ready to run the company, something he had told him before. Others sided with Sculley as
+ n% U B4 b% L+ ewell. For Bill Campbell, it was particularly tough. He was fond of Jobs and didn’t. S+ f3 A/ s2 T, ~3 h3 Q
particularly like Sculley. His voice quavered a bit as he told Jobs he had decided to support' \$ X# A( I# r; R8 K7 B4 q8 L" j
Sculley, and he urged the two of them to work it out and find some role for Jobs to play in! r; x+ U9 s" O' u
the company. “You can’t let Steve leave this company,” he told Sculley.( n9 _% x7 N. S) n
Jobs looked shattered. “I guess I know where things stand,” he said, and bolted out of the* a& }- n7 E3 [; \, u
room. No one followed.
/ k4 `) P1 J) s: wHe went back to his office, gathered his longtime loyalists on the Macintosh staff, and
3 [# _5 _2 O {) o+ {) Rstarted to cry. He would have to leave Apple, he said. As he started to walk out the door,; ]; g( d4 e" O% ?
Debi Coleman restrained him. She and the others urged him to settle down and not do
+ G% z. d- }6 ^7 T6 Yanything hasty. He should take the weekend to regroup. Perhaps there was a way to prevent0 w% M' B5 | Y+ ]
the company from being torn apart.
P$ ^8 B" Y4 ^: [6 T3 HSculley was devastated by his victory. Like a wounded warrior, he retreated to/ {/ {) e' U$ P8 A m5 a+ y
Eisenstat’s office and asked the corporate counsel to go for a ride. When they got into: U4 d. M- K6 Q0 y e
Eisenstat’s Porsche, Sculley lamented, “I don’t know whether I can go through with this.”" |8 k# N+ M9 ~+ l4 A* K
When Eisenstat asked what he meant, Sculley responded, “I think I’m going to resign.” y) f0 j. ?- K
“You can’t,” Eisenstat protested. “Apple will fall apart.”: C* j* N5 Z8 D9 J3 ~# \
“I’m going to resign,” Sculley declared. “I don’t think I’m right for the company.”
% t* D" w9 I; R; k# d1 I9 }" R“I think you’re copping out,” Eisenstat replied. “You’ve got to stand up to him.” Then he
, m5 V( k7 c; E! l; }drove Sculley home.# H1 C, D+ G9 D
Sculley’s wife was surprised to see him back in the middle of the day. “I’ve failed,” he
' ^. G" U. j) h% Zsaid to her forlornly. She was a volatile woman who had never liked Jobs or appreciated her, G! P* |* Y, {3 H2 `2 M3 r
husband’s infatuation with him. So when she heard what had happened, she jumped into
6 v/ N: \( m( X+ u+ ?her car and sped over to Jobs’s office. Informed that he had gone to the Good Earth
- @- o, H) u1 w1 N# W6 W Orestaurant, she marched over there and confronted him in the parking lot as he was coming
/ T: [- F: L4 Aout with loyalists on his Macintosh team.2 V* ~# a$ Q9 B+ G0 q
“Steve, can I talk to you?” she said. His jaw dropped. “Do you have any idea what a4 e; j! V. ~# m
privilege it has been even to know someone as fine as John Sculley?” she demanded. He
. Q2 @0 L. K) I3 \3 faverted his gaze. “Can’t you look me in the eyes when I’m talking to you?” she asked. But
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/ f8 b5 T$ ~0 xwhen Jobs did so—giving her his practiced, unblinking stare—she recoiled. “Never mind,
7 F2 d7 w+ V& vdon’t look at me,” she said. “When I look into most people’s eyes, I see a soul. When I look+ u B3 S) g2 v
into your eyes, I see a bottomless pit, an empty hole, a dead zone.” Then she walked away.
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Saturday, May 25: Mike Murray drove to Jobs’s house in Woodside to offer some advice:% ?$ e$ S5 @9 n( h, G& M) \
He should consider accepting the role of being a new product visionary, starting
4 T5 Q( M0 `. ^2 R- t7 tAppleLabs, and getting away from headquarters. Jobs seemed willing to consider it. But8 v) e/ H( g/ I5 ?4 x
first he would have to restore peace with Sculley. So he picked up the telephone and# f9 O* _: a q& i9 B) Z& \
surprised Sculley with an olive branch. Could they meet the following afternoon, Jobs _% I9 S1 h8 |$ B
asked, and take a walk together in the hills above Stanford University. They had walked
" H N' d( j& K9 y/ I6 u% Ethere in the past, in happier times, and maybe on such a walk they could work things out.
_1 m. ~) I/ h+ h1 NJobs did not know that Sculley had told Eisenstat he wanted to quit, but by then it didn’t
+ ~' M+ p- s5 Y# }3 m, Mmatter. Overnight, he had changed his mind and decided to stay. Despite the blowup the
' M) n4 g% ]2 V; Jday before, he was still eager for Jobs to like him. So he agreed to meet the next afternoon.
, {$ a: S' ~- L; eIf Jobs was prepping for conciliation, it didn’t show in the choice of movie he wanted to4 p+ E8 ~" G- b$ ^
see with Murray that night. He picked Patton, the epic of the never-surrender general. But9 b r2 j5 x( v. [7 e8 F
he had lent his copy of the tape to his father, who had once ferried troops for the general, so8 h6 P) y0 S- y) t: A) G
he drove to his childhood home with Murray to retrieve it. His parents weren’t there, and
& Q: H$ H: R7 Lhe didn’t have a key. They walked around the back, checked for unlocked doors or0 f2 M4 ~( Y, G& U1 q9 Z$ R
windows, and finally gave up. The video store didn’t have a copy of Patton in stock, so in: q% ^: L0 h. e3 K8 \2 ~/ K
the end he had to settle for watching the 1983 film adaptation of Harold Pinter’s Betrayal.
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* K q/ [. |" K( M9 D/ E: P; D* ~Sunday, May 26: As planned, Jobs and Sculley met in back of the Stanford campus on
, T7 P, _7 K5 t: H7 m9 X6 o, |$ tSunday afternoon and walked for several hours amid the rolling hills and horse pastures.9 r8 Q$ v R7 K
Jobs reiterated his plea that he should have an operational role at Apple. This time Sculley
# r( w8 s1 v9 r* S& kstood firm. It won’t work, he kept saying. Sculley urged him to take the role of being a. }% g/ G) R. j7 @0 H
product visionary with a lab of his own, but Jobs rejected this as making him into a mere
' _ {8 s5 Z6 m" }; T- o“figurehead.” Defying all connection to reality, he countered with the proposal that Sculley+ ^4 a5 E; U3 v. `$ o% U9 N8 X
give up control of the entire company to him. “Why don’t you become chairman and I’ll
# k8 }3 _2 i! u; |: nbecome president and chief executive officer?” he suggested. Sculley was struck by how/ v ~ u8 [' G% @2 G
earnest he seemed.
- h2 q, l" G% Q. ^# |% E# M& M& c% u“Steve, that doesn’t make any sense,” Sculley replied. Jobs then proposed that they split
7 b. J$ H/ m2 y: q5 m5 P! L+ }2 `the duties of running the company, with him handling the product side and Sculley
5 a% h& |' Y: V, k+ s8 Rhandling marketing and business. But the board had not only emboldened Sculley, it had
?9 P5 L# V, u4 n3 ?/ Kordered him to bring Jobs to heel. “One person has got to run the company,” he replied.( r" H; w2 ^2 }! i' u! l! K
“I’ve got the support and you don’t.”
, D' c3 \; C5 e, C: S6 K4 h+ t! oOn his way home, Jobs stopped at Mike Markkula’s house. He wasn’t there, so Jobs left/ M& q2 a `% H0 ^! h
a message asking him to come to dinner the following evening. He would also invite the2 r, x2 G. q) u. f8 T: R6 A/ T
core of loyalists from his Macintosh team. He hoped that they could persuade Markkula of
2 Y" Z, _$ Q) G8 d! f& dthe folly of siding with Sculley.6 `* N' m. ~& i9 ?6 y9 c3 f
% x* V9 e( c/ p. A4 Z6 dMonday, May 27: Memorial Day was sunny and warm. The Macintosh team loyalists—' \% A5 U# ^( ]9 u
Debi Coleman, Mike Murray, Susan Barnes, and Bob Belleville—got to Jobs’s Woodside
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- Q8 r; ~* l) r0 e8 ahome an hour before the scheduled dinner so they could plot strategy. Sitting on the patio2 P" p4 i9 y# v, N
as the sun set, Coleman told Jobs that he should accept Sculley’s offer to be a product
% S! e' E% g) h. G2 y3 A+ Rvisionary and help start up AppleLabs. Of all the inner circle, Coleman was the most
" z$ r7 K" P. x7 ]willing to be realistic. In the new organization plan, Sculley had tapped her to run the
4 j T4 n1 F. c" cmanufacturing division because he knew that her loyalty was to Apple and not just to Jobs.
* l+ P$ A& T3 K8 l: aSome of the others were more hawkish. They wanted to urge Markkula to support a
0 n: \8 O8 b2 ~1 f% l/ e/ z5 mreorganization plan that put Jobs in charge.
5 K k0 V! v6 L5 d% jWhen Markkula showed up, he agreed to listen with one proviso: Jobs had to keep quiet.5 w) m) |/ {9 q$ p6 L2 V3 U- p& z
“I seriously wanted to hear the thoughts of the Macintosh team, not watch Jobs enlist them8 z" Q0 j7 j( [+ L- I
in a rebellion,” he recalled. As it turned cooler, they went inside the sparsely furnished
* o2 @1 N1 m: I% i4 a3 ^- Jmansion and sat by a fireplace. Instead of letting it turn into a gripe session, Markkula. G- `) Y; `7 M+ \
made them focus on very specific management issues, such as what had caused the. O0 M" w" N, e# N4 I3 ^( X/ K
problem in producing the FileServer software and why the Macintosh distribution system
: Z/ c+ L z1 h* {5 r8 |had not responded well to the change in demand. When they were finished, Markkula
7 ^' q' M2 a) t9 U- Z+ U2 Nbluntly declined to back Jobs. “I said I wouldn’t support his plan, and that was the end of
/ _& e4 m3 J+ L1 ~4 d3 pthat,” Markkula recalled. “Sculley was the boss. They were mad and emotional and putting
& e+ K! U$ G6 o7 d( f& A3 Ptogether a revolt, but that’s not how you do things.”0 W6 L+ b* T) S7 w; J3 v4 F
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Tuesday, May 28: His ire stoked by hearing from Markkula that Jobs had spent the previous
, P4 ?, g& @* r2 A: A2 e# R) Nevening trying to subvert him, Sculley walked over to Jobs’s office on Tuesday morning., m; h- j8 o" w. d$ l0 l) t
He had talked to the board, he said, and he had its support. He wanted Jobs out. Then he
" P3 p- w: r. d, p Qdrove to Markkula’s house, where he gave a presentation of his reorganization plans.
4 a: o4 h4 K& z) O6 F; u, W' Y; dMarkkula asked detailed questions, and at the end he gave Sculley his blessing. When he
' p# d( s) I# u3 y4 |5 [got back to his office, Sculley called the other members of the board, just to make sure he( R6 D" i. l/ I% \
still had their backing. He did.9 \) X5 B2 x% T& i/ |
At that point he called Jobs to make sure he understood. The board had given final
; A& C* U" W% y8 X; S7 U* @: Yapproval of his reorganization plan, which would proceed that week. Gassée would take4 Q/ M% h& V. f5 h8 d# _
over control of Jobs’s beloved Macintosh as well as other products, and there was no other5 c* b/ t, Z* {1 P0 [" U- w3 {" m8 h
division for Jobs to run. Sculley was still somewhat conciliatory. He told Jobs that he could
; G6 e' {% B2 Z- q. v! o2 S! M( |stay on with the title of board chairman and be a product visionary with no operational
* C$ o% [' y2 V1 fduties. But by this point, even the idea of starting a skunkworks such as AppleLabs was no
# C0 {) _, j+ A( M. xlonger on the table.
9 c2 p) _6 H$ @" E, hIt finally sank in. Jobs realized there was no appeal, no way to warp the reality. He broke" U/ P2 r( B; G/ P' u# ~# h; c
down in tears and started making phone calls—to Bill Campbell, Jay Elliot, Mike Murray,
6 y2 ^" D) b& a1 T9 v$ O6 Zand others. Murray’s wife, Joyce, was on an overseas call when Jobs phoned, and the
/ ]* D* |; L: Doperator broke in saying it was an emergency. It better be important, she told the operator.3 ]8 m) U3 o, o7 }
“It is,” she heard Jobs say. When her husband got on the phone, Jobs was crying. “It’s
4 w. x( n, [2 N9 k Oover,” he said. Then he hung up.7 P; l/ c. d' s
Murray was worried that Jobs was so despondent he might do something rash, so he/ e8 f d" W! f) ?
called back. There was no answer, so he drove to Woodside. No one came to the door when
) A% h u5 D4 Khe knocked, so he went around back and climbed up some exterior steps and looked in the m B0 h3 V' O" `7 f8 |
bedroom. Jobs was lying there on a mattress in his unfurnished room. He let Murray in and' k# ?) Z/ d* h
they talked until almost dawn.
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3 n" K: X, k. ~/ C4 @$ VWednesday, May 29: Jobs finally got hold of a tape of Patton, which he watched
: y. u# T+ M6 C) F5 R0 ^( o- GWednesday evening, but Murray prevented him from getting stoked up for another battle.% r, B, s. q9 c+ _. @. H* F# |4 }
Instead he urged Jobs to come in on Friday for Sculley’s announcement of the
) i3 Y6 _6 I; ?, r9 u0 }reorganization plan. There was no option left other than to play the good soldier rather than
6 y, Q& z7 i* t6 P- S* Sthe renegade commander.& i' Z+ K p$ i. c0 M6 `
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Like a Rolling Stone
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7 m/ U: o( }! R/ I; i% h3 IJobs slipped quietly into the back row of the auditorium to listen to Sculley explain to the3 [ m( ?" ]3 L F! j& ` L8 G
troops the new order of battle. There were a lot of sideways glances, but few people( \& u( x' H; {$ _
acknowledged him and none came over to provide public displays of affection. He stared! w/ [: S! j# V9 K% h2 A
without blinking at Sculley, who would remember “Steve’s look of contempt” years later.
, H# f9 m2 I, U# i% Z& {“It’s unyielding,” Sculley recalled, “like an X-ray boring inside your bones, down to where# Q$ v1 W. l* I& N' t
you’re soft and destructibly mortal.” For a moment, standing onstage while pretending not
9 r! [' E4 P# i+ `; R3 x' qto notice Jobs, Sculley thought back to a friendly trip they had taken a year earlier to5 l: E8 r6 L) i' u% f, U+ L1 `
Cambridge, Massachusetts, to visit Jobs’s hero, Edwin Land. He had been dethroned from
+ U" ~# _3 w7 ^# Dthe company he created, Polaroid, and Jobs had said to Sculley in disgust, “All he did was; L) ^! h; H( G6 ?& x
blow a lousy few million and they took his company away from him.” Now, Sculley
8 j$ o7 @4 G- ?. Q- [reflected, he was taking Jobs’s company away from him.; Q' `3 | W, [8 |
As Sculley went over the organizational chart, he introduced Gassée as the new head of a
8 D+ L3 \) ]- s+ L* ?1 l, Z, qcombined Macintosh and Apple II product group. On the chart was a small box labeled
. J2 R2 n4 l' m- r“chairman” with no lines connecting to it, not to Sculley or to anyone else. Sculley briefly% b1 f3 a" Q9 l. I* v6 A
noted that in that role, Jobs would play the part of “global visionary.” But he didn’t
9 v' T9 k$ L$ G! y7 Vacknowledge Jobs’s presence. There was a smattering of awkward applause.
, ]3 j. p2 S5 P9 e. |1 ]Jobs stayed home for the next few days, blinds drawn, his answering machine on, seeing
" C" Z5 q u! Q. E% A0 t$ Oonly his girlfriend, Tina Redse. For hours on end he sat there playing his Bob Dylan tapes,
' k/ ^$ M5 C) B7 Mespecially “The Times They Are a-Changin.’” He had recited the second verse the day he
" y1 p+ w1 ?/ n( d6 Tunveiled the Macintosh to the Apple shareholders sixteen months earlier. That verse ended
8 V0 C3 F V/ F* H pnicely: “For the loser now / Will be later to win. . . .”
) [$ K! L. _* |1 nA rescue squad from his former Macintosh posse arrived to dispel the gloom on Sunday/ c P3 I, M$ X. i
night, led by Andy Hertzfeld and Bill Atkinson. Jobs took a while to answer their knock,' r- X. T. I6 O. E3 z
and then he led them to a room next to the kitchen that was one of the few places with any0 Y( _- |5 f5 j2 @
furniture. With Redse’s help, he served some vegetarian food he had ordered. “So what* e- p. `$ u9 A4 d3 t! c" {
really happened?” Hertzfeld asked. “Is it really as bad as it looks?”5 c5 x8 u a- q* S' Y2 x; G* ]/ x
“No, it’s worse.” Jobs grimaced. “It’s much worse than you can imagine.” He blamed
^2 Y" z/ c& h- \: zSculley for betraying him, and said that Apple would not be able to manage without him.
0 L9 z7 j8 V" o4 P. ]1 }His role as chairman, he complained, was completely ceremonial. He was being ejected
: ~" T- x* V3 ^, u) \2 mfrom his Bandley 3 office to a small and almost empty building he nicknamed “Siberia.”8 |7 u* P2 l) p
Hertzfeld turned the topic to happier days, and they began to reminisce about the past.
. B4 L+ L" }& }6 B7 U0 h. v- mEarlier that week, Dylan had released a new album, Empire Burlesque, and Hertzfeld
- w! a, m: [/ a, `2 n% }* Hbrought a copy that they played on Jobs’s high-tech turntable. The most notable track,
) h& a9 I+ V- ^1 M“When the Night Comes Falling from the Sky,” with its apocalyptic message, seemed
) }& p6 O) `/ Uappropriate for the evening, but Jobs didn’t like it. It sounded almost disco, and he 6 x/ W* @3 a8 _+ l1 W0 ^
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gloomily argued that Dylan had been going downhill since Blood on the Tracks. So
. [. |8 d B: c5 y. s0 L& _Hertzfeld moved the needle to the last song on the album, “Dark Eyes,” which was a
4 W: P. m6 `' u$ s! Lsimple acoustic number featuring Dylan alone on guitar and harmonica. It was slow and- L( U0 v0 `' C4 S. A6 H! B
mournful and, Hertzfeld hoped, would remind Jobs of the earlier Dylan tracks he so loved.
" S( e- w) J1 B5 G, OBut Jobs didn’t like that song either and had no desire to hear the rest of the album.' K+ C7 B. m& p% Y# Q, E2 Q
Jobs’s overwrought reaction was understandable. Sculley had once been a father figure" z8 f' I9 `: L8 i7 t; y7 m5 w
to him. So had Mike Markkula. So had Arthur Rock. That week all three had abandoned
[9 U; L6 @7 V( a7 Q" O. A u; {him. “It gets back to the deep feeling of being rejected at an early age,” his friend and% [+ T2 x0 O) ?, a2 V
lawyer George Riley later said. “It’s a deep part of his own mythology, and it defines to
9 ]0 e' `7 O$ r. L' Xhimself who he is.” Jobs recalled years later, “I felt like I’d been punched, the air knocked2 q' Z0 D7 N/ [& ^
out of me and I couldn’t breathe.”/ z6 a" M0 x+ e L4 A! s
Losing the support of Arthur Rock was especially painful. “Arthur had been like a father; m- E( x/ B5 _/ u
to me,” Jobs said. “He took me under his wing.” Rock had taught him about opera, and he$ m, \8 d* z5 l+ m
and his wife, Toni, had been his hosts in San Francisco and Aspen. “I remember driving
1 P. \; }9 @4 Z0 r2 h1 iinto San Francisco one time, and I said to him, ‘God, that Bank of America building is" p* m6 T- H, G/ B+ W9 `
ugly,’ and he said, ‘No, it’s the best,’ and he proceeded to lecture me, and he was right of
' h% u# J- N, @/ n) \$ pcourse.” Years later Jobs’s eyes welled with tears as he recounted the story: “He chose2 z. }1 ?, x: s) N
Sculley over me. That really threw me for a loop. I never thought he would abandon me.”/ V! R- H, \, r( S! x7 C
Making matters worse was that his beloved company was now in the hands of a man he% U* o6 ^3 K+ {
considered a bozo. “The board felt that I couldn’t run a company, and that was their
[- `$ y; |0 L1 qdecision to make,” he said. “But they made one mistake. They should have separated the; a: z3 u! f7 Q0 v7 r6 n! W
decision of what to do with me and what to do with Sculley. They should have fired ]3 T Y( V5 J. q3 u) t1 M
Sculley, even if they didn’t think I was ready to run Apple.” Even as his personal gloom
8 \& d2 }% o7 A# Islowly lifted, his anger at Sculley, his feeling of betrayal, deepened. {) Q5 U! K6 f' N% |
The situation worsened when Sculley told a group of analysts that he considered Jobs4 S/ q! q5 c1 t" x
irrelevant to the company, despite his title as chairman. “From an operations standpoint,4 U; V2 c( j2 w9 w# H7 H8 N
there is no role either today or in the future for Steve Jobs,” he said. “I don’t know what) O) G. ~+ \2 p
he’ll do.” The blunt comment shocked the group, and a gasp went through the auditorium.. [; n9 y5 t t7 f& |# _" X
Perhaps getting away to Europe would help, Jobs thought. So in June he went to Paris,% Z' k x n: w: h
where he spoke at an Apple event and went to a dinner honoring Vice President George H.6 @( u2 O$ @& r- y
W. Bush. From there he went to Italy, where he drove the hills of Tuscany with Redse and
' |! M. m7 f V b/ zbought a bike so he could spend time riding by himself. In Florence he soaked in the
! l8 a5 H+ y6 s) E& Q* earchitecture of the city and the texture of the building materials. Particularly memorable
+ I" v, D: q& |1 _2 e2 M4 [4 ?: owere the paving stones, which came from Il Casone quarry near the Tuscan town of
0 ~6 H/ V& ^: d! g+ yFirenzuola. They were a calming bluish gray. Twenty years later he would decide that the
B9 d, M. e+ _) Q6 O8 g2 Mfloors of most major Apple stores would be made of this sandstone.
H7 G! o: {2 E% [! fThe Apple II was just going on sale in Russia, so Jobs headed off to Moscow, where he7 Z% x f8 A& b& H
met up with Al Eisenstat. Because there was a problem getting Washington’s approval for3 U4 h, n) s4 k$ k% `
some of the required export licenses, they visited the commercial attaché at the American
. r% K. V% s* Q- w/ O% z" q2 jembassy in Moscow, Mike Merwin. He warned them that there were strict laws against
& d! y A. Q5 {6 W/ F0 \sharing technology with the Soviets. Jobs was annoyed. At the Paris trade show, Vice9 [* j' k( e: I. B9 |0 A& I9 y
President Bush had encouraged him to get computers into Russia in order to “foment& v* }- N3 B A; \8 r1 a2 `% h3 i
revolution from below.” Over dinner at a Georgian restaurant that specialized in shish
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~' M3 Q/ d% p. j8 P) f& ^* a5 C' z6 tkebab, Jobs continued his rant. “How could you suggest this violates American law when it/ z# r- \+ } Y$ ]" R
so obviously benefits our interests?” he asked Merwin. “By putting Macs in the hands of4 @ n$ p* ?0 R7 D
Russians, they could print all their newspapers.”
$ N9 ~2 X# R8 j! GJobs also showed his feisty side in Moscow by insisting on talking about Trotsky, the
e: h4 \) n* x& |! O' Qcharismatic revolutionary who fell out of favor and was ordered assassinated by Stalin. At
, e! o- j2 `/ |3 T9 D; Bone point the KGB agent assigned to him suggested he tone down his fervor. “You don’t- P/ b: z) H/ h) X) }
want to talk about Trotsky,” he said. “Our historians have studied the situation, and we
1 m8 I- ^: M Pdon’t believe he’s a great man anymore.” That didn’t help. When they got to the state9 P( h/ n" ]3 o5 t+ G2 z# P0 B
university in Moscow to speak to computer students, Jobs began his speech by praising- U0 `8 H, {& x( T5 C- H, S. W
Trotsky. He was a revolutionary Jobs could identify with.5 q% L, X3 B2 \: O! m# ], ]
Jobs and Eisenstat attended the July Fourth party at the American embassy, and in his/ E& t Q# g; o
thank-you letter to Ambassador Arthur Hartman, Eisenstat noted that Jobs planned to2 D1 e; w6 \' Y* {
pursue Apple’s ventures in Russia more vigorously in the coming year. “We are tentatively; z5 x) ~& e/ \7 l& g, a5 }
planning on returning to Moscow in September.” For a moment it looked as if Sculley’s: m/ i+ t: u; H$ x! H/ R5 {
hope that Jobs would turn into a “global visionary” for the company might come to pass.
- Y0 o, }# _$ l) F# p& o$ Z, bBut it was not to be. Something much different was in store for September.) n2 y9 T6 |% a- e0 A* q3 h
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CHAPTER EIGHTEEN8 n* I) B# F& V% E" P+ [6 r
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5 [( }1 I! |, C, _! D( v, ]& eNeXT8 `4 z7 K0 G0 \
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3 N; P% G+ a( QPrometheus Unbound
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' q4 s1 j; b$ B0 iThe Pirates Abandon Ship; _5 y* V2 l$ z& I! g
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Upon his return from Europe in August 1985, while he was casting about for what to do& v! E) ~/ {$ C5 G
next, Jobs called the Stanford biochemist Paul Berg to discuss the advances that were being- Z! y" |/ A. z7 O- ?5 v4 z
made in gene splicing and recombinant DNA. Berg described how difficult it was to do: x: M* J% {9 M0 ~, g8 ?
experiments in a biology lab, where it could take weeks to nurture an experiment and get a
4 G0 |! W8 G, f1 m+ e& e7 Bresult. “Why don’t you simulate them on a computer?” Jobs asked. Berg replied that
1 h$ w# X) u$ H( _6 P5 t0 vcomputers with such capacities were too expensive for university labs. “Suddenly, he was6 N9 d. G/ |1 I+ O# U
excited about the possibilities,” Berg recalled. “He had it in his mind to start a new
" Z( `$ E3 N! m9 V" x1 `/ [( e0 V/ @: R5 Tcompany. He was young and rich, and had to find something to do with the rest of his life.” " z1 R/ V/ c" n4 E
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/ V' f7 b/ Y) t3 }5 W9 uJobs had already been canvassing academics to ask what their workstation needs were. It( t% {4 l2 d5 U1 y: W+ @
was something he had been interested in since 1983, when he had visited the computer
6 V/ \) ]' J7 `4 f i5 ^science department at Brown to show off the Macintosh, only to be told that it would take a
( p+ d: |2 I3 _; z% j0 Hfar more powerful machine to do anything useful in a university lab. The dream of
- ^0 y- E) b; Cacademic researchers was to have a workstation that was both powerful and personal. As
1 y, A. N: o5 D! ahead of the Macintosh division, Jobs had launched a project to build such a machine, which$ F. R) O3 c2 L
was dubbed the Big Mac. It would have a UNIX operating system but with the friendly- _. A9 O* L$ |9 q# V! \" @
Macintosh interface. But after Jobs was ousted from the Macintosh division, his& b r1 H* K% a* W7 u, _8 @) x
replacement, Jean-Louis Gassée, canceled the Big Mac.' Q8 n) }! q, s4 \) J
When that happened, Jobs got a distressed call from Rich Page, who had been
& {/ l& a, z9 Y! S* L) ^engineering the Big Mac’s chip set. It was the latest in a series of conversations that Jobs
5 q) Q/ k. w$ N: r) xwas having with disgruntled Apple employees urging him to start a new company and P9 ~/ P% K0 U; b
rescue them. Plans to do so began to jell over Labor Day weekend, when Jobs spoke to Bud
+ l* `7 [0 N6 L0 Y" Q# nTribble, the original Macintosh software chief, and floated the idea of starting a company to
' C- @5 Q3 |9 q3 D4 ^7 P' ^build a powerful but personal workstation. He also enlisted two other Macintosh division
: w& X) Z# b" r4 [employees who had been talking about leaving, the engineer George Crow and the4 K+ m$ b( c5 F, T
controller Susan Barnes.
- U) o6 W# T% b+ ^+ {: [4 NThat left one key vacancy on the team: a person who could market the new product to
6 c$ @) ]/ f+ u; T& wuniversities. The obvious candidate was Dan’l Lewin, who at Apple had organized a+ |" [9 i% P* @7 v( {7 U( S$ Q
consortium of universities to buy Macintosh computers in bulk. Besides missing two letters' \+ }: j6 F5 ^
in his first name, Lewin had the chiseled good looks of Clark Kent and a Princetonian’s
8 u7 p2 X2 `: P8 d3 epolish. He and Jobs shared a bond: Lewin had written a Princeton thesis on Bob Dylan and. ^" J0 j9 M* s1 |+ I" H
charismatic leadership, and Jobs knew something about both of those topics.0 @) Y' r( h! Y* A5 _
Lewin’s university consortium had been a godsend to the Macintosh group, but he had6 A c5 i. n4 G# T$ T& a
become frustrated after Jobs left and Bill Campbell had reorganized marketing in a way: f5 F2 t2 \" M3 [' \& }0 J
that reduced the role of direct sales to universities. He had been meaning to call Jobs when,$ ^1 x5 }3 v5 d7 D/ k8 J+ t
that Labor Day weekend, Jobs called first. He drove to Jobs’s unfurnished mansion, and N1 s2 o" I' r. \1 a: A+ m4 o
they walked the grounds while discussing the possibility of creating a new company. Lewin
9 f' z$ u9 d' ywas excited, but not ready to commit. He was going to Austin with Campbell the following
3 v7 N z) O# M9 A( B: ^week, and he wanted to wait until then to decide. Upon his return, he gave his answer: He
0 T% A3 x, r0 `, o: g( r$ g/ E7 bwas in. The news came just in time for the September 13 Apple board meeting.
( o* F& X* K1 x- |Although Jobs was still nominally the board’s chairman, he had not been to any meetings& h8 H- L( h- a5 l s* D8 U
since he lost power. He called Sculley, said he was going to attend, and asked that an item4 d `' ~5 {0 |# V8 o
be added to the end of the agenda for a “chairman’s report.” He didn’t say what it was u: F' n$ g6 k- R
about, and Sculley assumed it would be a criticism of the latest reorganization. Instead,
! S2 `3 X3 C) z0 Z' Twhen his turn came to speak, Jobs described to the board his plans to start a new company.
_; u( C: X) _% y \“I’ve been thinking a lot, and it’s time for me to get on with my life,” he began. “It’s
2 @. K N) B" t/ ^3 _obvious that I’ve got to do something. I’m thirty years old.” Then he referred to some! d$ I3 \( I! j* Y5 g: \% J: c
prepared notes to describe his plan to create a computer for the higher education market.
9 r7 L o& L4 x$ z a/ e+ v' {; u$ IThe new company would not be competitive with Apple, he promised, and he would take
1 F) K6 V! b* U9 M4 R1 f N4 bwith him only a handful of non-key personnel. He offered to resign as chairman of Apple,
) e6 v" j& {- n9 A0 O" gbut he expressed hope that they could work together. Perhaps Apple would want to buy the$ e! `" h' [; z
distribution rights to his product, he suggested, or license Macintosh software to it. ; C! @- ^ ]/ c) b
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( F/ j. \' f z5 B* H$ l1 B l" DMike Markkula rankled at the possibility that Jobs would hire anyone from Apple. “Why+ g0 l5 L4 k Q2 N
would you take anyone at all?” he asked.( |" j- `% S7 k, R! Q
“Don’t get upset,” Jobs assured him and the rest of the board. “These are very low-level
) q# x5 g9 M+ N. mpeople that you won’t miss, and they will be leaving anyway.”
* }0 Y% g" M" f: W- P% oThe board initially seemed disposed to wish Jobs well in his venture. After a private1 z% L2 W: [' |* L8 Y
discussion, the directors even proposed that Apple take a 10% stake in the new company" @; ^; e6 o1 r) I
and that Jobs remain on the board.
, I; i+ G) j) s" S) ^. i6 o% @That night Jobs and his five renegades met again at his house for dinner. He was in favor; `6 L, ~( E. {% O+ B. W3 s5 `
of taking the Apple investment, but the others convinced him it was unwise. They also: Z! g/ w% R! D
agreed that it would be best if they resigned all at once, right away. Then they could make a
z% N4 S: s4 o2 U3 y* M" ~: y+ Oclean break. k% t0 w4 c! @% q9 x$ \* [
So Jobs wrote a formal letter telling Sculley the names of the five who would be leaving,
5 J$ T4 z: s# dsigned it in his spidery lowercase signature, and drove to Apple the next morning to hand it
7 ^" ~5 `- T4 Mto him before his 7:30 staff meeting.
2 s( \+ ~6 T7 J" x- ]- O9 H. q7 _“Steve, these are not low-level people,” Sculley said.1 c8 a. k f S3 n1 g& N
“Well, these people were going to resign anyway,” Jobs replied. “They are going to be
" |6 i# \/ i, S" }( Ohanding in their resignations by nine this morning.”$ O' i6 R$ j3 p1 b, r, H+ M
From Jobs’s perspective, he had been honest. The five were not division managers or
$ F6 i" B3 ^( Gmembers of Sculley’s top team. They had all felt diminished, in fact, by the company’s new* {( m# y/ L" {7 p: d, e5 @
organization. But from Sculley’s perspective, these were important players; Page was an
3 v8 \" ^3 D* K, Q% R0 MApple Fellow, and Lewin was a key to the higher education market. In addition, they knew- D: w/ L8 Z( g6 i
about the plans for Big Mac; even though it had been shelved, this was still proprietary4 G+ A/ z( m2 T/ H$ J! X) \
information. Nevertheless Sculley was sanguine. Instead of pushing the point, he asked
. b+ @& T7 G# |+ |7 E% [: {8 eJobs to remain on the board. Jobs replied that he would think about it.
3 j' z( m, G$ o. h% fBut when Sculley walked into his 7:30 staff meeting and told his top lieutenants who
# F/ t T1 `6 B8 z/ @+ Wwas leaving, there was an uproar. Most of them felt that Jobs had breached his duties as1 i2 b9 u, O$ F* Z5 z
chairman and displayed stunning disloyalty to the company. “We should expose him for the: C1 F- Y3 m( ?- k. k) d
fraud that he is so that people here stop regarding him as a messiah,” Campbell shouted,* H9 F& J' S, \/ g7 k' f
according to Sculley.
- n, ?3 L5 h( ^" fCampbell admitted that, although he later became a great Jobs defender and supportive8 Z! ?5 l; K5 [* Z' Z! q% h7 `
board member, he was ballistic that morning. “I was fucking furious, especially about him
9 k1 R- Y; W/ s, gtaking Dan’l Lewin,” he recalled. “Dan’l had built the relationships with the universities.
7 n n& L/ o% FHe was always muttering about how hard it was to work with Steve, and then he left.”
4 v' b5 @* ?1 u$ k3 d% M, DCampbell was so angry that he walked out of the meeting to call Lewin at home. When his
9 L2 h3 o1 Y3 iwife said he was in the shower, Campbell said, “I’ll wait.” A few minutes later, when she
& y# }' \: e; E9 Isaid he was still in the shower, Campbell again said, “I’ll wait.” When Lewin finally came
& ^: y3 O- V' K8 K! X! Don the phone, Campbell asked him if it was true. Lewin acknowledged it was. Campbell
6 x) E. X3 v% Y+ p5 Q% ?+ whung up without saying another word.
7 j3 {0 k8 [6 KAfter hearing the fury of his senior staff, Sculley surveyed the members of the board.
# W5 V' C0 b& h. V$ i. MThey likewise felt that Jobs had misled them with his pledge that he would not raid
0 J/ P. u I7 q% K9 J( G5 m0 Qimportant employees. Arthur Rock was especially angry. Even though he had sided with: X9 i" D/ f0 n9 o' Z
Sculley during the Memorial Day showdown, he had been able to repair his paternal: c9 e1 w# \. l
relationship with Jobs. Just the week before, he had invited Jobs to bring his girlfriend up
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to San Francisco so that he and his wife could meet her, and the four had a nice dinner in" Q+ I) A E0 ]4 T
Rock’s Pacific Heights home. Jobs had not mentioned the new company he was forming,, l2 A4 o3 E+ Y4 K$ C' B
so Rock felt betrayed when he heard about it from Sculley. “He came to the board and lied$ c/ I N$ U& U" ]" V+ ^; U
to us,” Rock growled later. “He told us he was thinking of forming a company when in fact( {# i7 {8 |8 _( D
he had already formed it. He said he was going to take a few middle-level people. It turned
o; {, f# e) e2 w- \( tout to be five senior people.” Markkula, in his subdued way, was also offended. “He took+ r2 N9 z# }8 P3 S
some top executives he had secretly lined up before he left. That’s not the way you do$ S, C: J2 x" K- @& I
things. It was ungentlemanly.”3 T. S6 W0 b" C1 t7 e: y0 M
Over the weekend both the board and the executive staff convinced Sculley that Apple
9 R& A! i3 C$ j { w8 u- pwould have to declare war on its cofounder. Markkula issued a formal statement accusing8 k6 o& X- h" \ }# c
Jobs of acting “in direct contradiction to his statements that he wouldn’t recruit any key
* k( s5 w% I- W9 Y; G4 N5 rApple personnel for his company.” He added ominously, “We are evaluating what possible
/ R8 ?5 E) v$ j) F/ wactions should be taken.” Campbell was quoted in the Wall Street Journal as saying he% Y1 W5 n& L" w% `( Y/ y. I
“was stunned and shocked” by Jobs’s behavior.# R! V7 L& l" [3 q( f6 a9 O2 t, s" r
Jobs had left his meeting with Sculley thinking that things might proceed smoothly, so he
; B9 G# ~2 Z8 [* ehad kept quiet. But after reading the newspapers, he felt that he had to respond. He phoned% J0 A8 [: }/ m6 v ^
a few favored reporters and invited them to his home for private briefings the next day.
, w/ N9 H' O7 jThen he called Andy Cunningham, who had handled his publicity at Regis McKenna. “I* A, [/ y# F! w; W
went over to his unfurnished mansiony place in Woodside,” she recalled, “and I found him- E7 e; _9 K$ \- X
huddled in the kitchen with his five colleagues and a few reporters hanging outside on the. B0 i, e$ p: n8 u* b
lawn.” Jobs told her that he was going to do a full-fledged press conference and started
' Q7 U- y7 [% K# F c4 L% ispewing some of the derogatory things he was going to say. Cunningham was appalled.7 U A- z5 L# h v8 ~
“This is going to reflect badly on you,” she told him. Finally he backed down. He decided5 l* v0 O8 P O* i1 n3 n" P! J* y v6 i# f
that he would give the reporters a copy of the resignation letter and limit any on-the-record
( v4 A" l2 F% h) p, d1 gcomments to a few bland statements.
0 ~5 d" ?' \- a) n, `Jobs had considered just mailing in his letter of resignation, but Susan Barnes convinced
S5 F: R+ c0 M' whim that this would be too contemptuous. Instead he drove it to Markkula’s house, where9 r. c4 C; ^' N/ l6 n. i
he also found Al Eisenstat. There was a tense conversation for about fifteen minutes; then: |. `4 E5 p( s$ n0 b4 W% e7 ~
Barnes, who had been waiting outside, came to the door to retrieve him before he said
7 T r7 h) d! m1 ?7 m' x' ganything he would regret. He left behind the letter, which he had composed on a Macintosh
" r: k6 ?) l' u. w ]3 n6 ^8 jand printed on the new LaserWriter: ^* M+ [, b, Z
September 17, 19855 z. {; {( B+ F$ v7 @
/ C5 h' Q7 }" z
Dear Mike:8 s/ |# T, C9 s [4 }( E
This morning’s papers carried suggestions that Apple is considering removing me as6 d; }1 h I4 l: }$ m
Chairman. I don’t know the source of these reports but they are both misleading to the
0 c, V/ R+ a% v$ |% {public and unfair to me.
. P. l8 c/ B* H" Y" S) P: @You will recall that at last Thursday’s Board meeting I stated I had decided to start a
9 ?. L7 B% C( ~/ G4 Anew venture and I tendered my resignation as Chairman.
5 G6 ?8 I* u1 e" H' _( S {The Board declined to accept my resignation and asked me to defer it for a week. I
% c' S/ a* k0 S2 X$ C J2 f1 @% ^agreed to do so in light of the encouragement the Board offered with regard to the
2 {8 t' q8 Z7 f4 ]9 U5 hproposed new venture and the indications that Apple would invest in it. On Friday, after I
" U2 F, L: `/ W
4 c$ X0 v( K* U
2 w9 i1 g+ ^/ J+ G1 [- z2 S1 x# ^& G- D
9 v$ g. D, c& y) s, [. l
$ Q) D; W; X' s" F+ Q( w1 y% C
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( B* J. e/ |* C7 }0 {) U) _4 g1 V
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told John Sculley who would be joining me, he confirmed Apple’s willingness to discuss
$ o3 D4 z% f* F+ u# M1 h9 Jareas of possible collaboration between Apple and my new venture.
% ?6 W3 h% I8 x. C: SSubsequently the Company appears to be adopting a hostile posture toward me and the5 A% {5 c0 K9 S2 [' x9 C
new venture. Accordingly, I must insist upon the immediate acceptance of my
1 j& p/ M9 Z# M! \) z+ B4 v. Vresignation. . . .
2 J2 H: p1 k! VAs you know, the company’s recent reorganization left me with no work to do and no; Y8 m7 W9 D( K0 O; U; U( u
access even to regular management reports. I am but 30 and want still to contribute and: W1 p+ c$ {- R! B* S7 g/ `) v
achieve.
4 O2 B0 s/ k ~) p. CAfter what we have accomplished together, I would wish our parting to be both amicable$ S( f9 J3 m% D5 {! k/ K! M' k
and dignified.* \! H/ m3 B6 I/ \$ m' B9 W
9 Z- h# c; m1 f% C' e# GYours sincerely, steven p. jobs1 A* N6 I. s F* w. f5 a' H5 r
% O ?) o' u7 I, J( i$ ?" `# [/ P5 h; g/ h- b, z, J/ u& S
When a guy from the facilities team went to Jobs’s office to pack up his belongings, he saw
1 v9 q" R( J3 z1 X! Z2 za picture frame on the floor. It contained a photograph of Jobs and Sculley in warm
: i& U p, z8 C& B7 h. ^conversation, with an inscription from seven months earlier: “Here’s to Great Ideas, Great
) c9 m/ T/ j' s6 }, ?Experiences, and a Great Friendship! John.” The glass frame was shattered. Jobs had
0 c- ?8 T6 ~4 \hurled it across the room before leaving. From that day, he never spoke to Sculley again.. n' E. q( S1 G# n
, }) l1 t3 G- R$ ^Apple’s stock went up a full point, or almost 7%, when Jobs’s resignation was announced.
$ A# n2 u/ e9 K% n' b7 M“East Coast stockholders always worried about California flakes running the company,”$ M( k+ W& L- f) T9 i
explained the editor of a tech stock newsletter. “Now with both Wozniak and Jobs out,) t4 X7 _# m& p0 j. Z0 Z
those shareholders are relieved.” But Nolan Bushnell, the Atari founder who had been an
, M6 Y+ a5 E) h9 aamused mentor ten years earlier, told Time that Jobs would be badly missed. “Where is
$ `) S4 c# _& OApple’s inspiration going to come from? Is Apple going to have all the romance of a new1 B q0 U9 ]/ d' l! G4 h3 k
brand of Pepsi?”2 O/ }* P: y4 B/ ~2 u) e- q1 ?
After a few days of failed efforts to reach a settlement with Jobs, Sculley and the Apple$ Y& P& _: B9 I' u& I
board decided to sue him “for breaches of fiduciary obligations.” The suit spelled out his
% }1 M) n- P: ^$ r ?* T0 Y$ O" t+ ialleged transgressions:
' ]% E" j; p g- ~* j, T. [( eNotwithstanding his fiduciary obligations to Apple, Jobs, while serving as the Chairman of
9 W$ ~* r& X+ T. ]. dApple’s Board of Directors and an officer of Apple and pretending loyalty to the interests8 d% o, U9 a$ ~. n
of Apple . . .
. I* t7 x" j% M2 l% L4 k& J(a) secretly planned the formation of an enterprise to compete with Apple;
8 N! W9 }# ?$ M5 v3 n(b) secretly schemed that his competing enterprise would wrongfully take advantage of2 ?. v* T# |* t4 f( z! V
and utilize Apple’s plan to design, develop and market the Next Generation Product . . .
7 B$ F6 f0 i/ \0 _& @(c) secretly lured away key employees of Apple.
( D0 {* G" f* y
1 Y: f4 H+ n1 I) N- I. BAt the time, Jobs owned 6.5 million shares of Apple stock, 11% of the company, worth3 {! q T, s# ^
more than $100 million. He began to sell his shares, and within five months had dumped
$ f" _; g/ t9 Kthem all, retaining only one share so he could attend shareholder meetings if he wanted. He4 x8 N+ F* b+ Z
was furious, and that was reflected in his passion to start what was, no matter how he spun
* g/ u+ B3 y6 C! wit, a rival company. “He was angry at Apple,” said Joanna Hoffman, who briefly went to
0 m$ {3 ]2 f0 Q6 h2 X4 k8 u% k& m" ^' ?$ J/ k
9 z5 C: }' n k$ s$ m. n; J
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& t0 |: E7 C. d
% w' W. Z, O: Y+ I
+ }) n, [4 R1 Z4 D6 B- E3 ~work for the new company. “Aiming at the educational market, where Apple was strong,+ K/ k; Q' Z( r
was simply Steve being vengeful. He was doing it for revenge.”; ?) ]7 ?' k7 V: @! U
Jobs, of course, didn’t see it that way. “I haven’t got any sort of odd chip on my/ @: {# v) P A/ G2 s W- C
shoulder,” he told Newsweek. Once again he invited his favorite reporters over to his
* Q& ?; j Y2 T0 [Woodside home, and this time he did not have Andy Cunningham there urging him to be
& R" C* s) c# A7 U/ T' bcircumspect. He dismissed the allegation that he had improperly lured the five colleagues
$ {/ O3 B+ C* j6 n1 ]8 w" a' lfrom Apple. “These people all called me,” he told the gaggle of journalists who were! T o8 S( Z1 r/ H0 ?3 o4 Y0 T
milling around in his unfurnished living room. “They were thinking of leaving the
* U9 J, W0 c# P, Fcompany. Apple has a way of neglecting people.”. Z( ?- D3 U; |- X- I
He decided to cooperate with a Newsweek cover in order to get his version of the story
2 V' U) A) C) M/ _" I6 {) {out, and the interview he gave was revealing. “What I’m best at doing is finding a group of
6 u: }! ~/ d5 I; {0 B2 L! n4 s+ [# S" [talented people and making things with them,” he told the magazine. He said that he would
z# C$ z; ^, r3 [6 a# F7 @! oalways harbor affection for Apple. “I’ll always remember Apple like any man remembers
: ]1 z( V; u! y4 d; P) p2 i( cthe first woman he’s fallen in love with.” But he was also willing to fight with its) [" ?3 W5 T3 R8 q' O, s
management if need be. “When someone calls you a thief in public, you have to respond.”
- X. H q+ f8 F% F' QApple’s threat to sue him was outrageous. It was also sad. It showed that Apple was no
) ^. }( p0 q; x% @- x% d6 wlonger a confident, rebellious company. “It’s hard to think that a $2 billion company with" d' H5 N9 W2 `1 L
4,300 employees couldn’t compete with six people in blue jeans.”) r$ { ]& M1 ^& j" e
To try to counter Jobs’s spin, Sculley called Wozniak and urged him to speak out. “Steve
" s& h# I1 y# e/ z7 Scan be an insulting and hurtful guy,” he told Time that week. He revealed that Jobs had I- g" P/ Y$ h' F% A1 U& P- K, k! }
asked him to join his new firm—it would have been a sly way to land another blow against* h- u$ H: _# H3 N' b% L
Apple’s current management—but he wanted no part of such games and had not returned
$ a& ~4 r: r$ b" B1 s" OJobs’s phone call. To the San Francisco Chronicle, he recounted how Jobs had blocked
( @" F5 _) u* ?" p* Hfrogdesign from working on his remote control under the pretense that it might compete; G6 M% H7 }' t4 j0 ^+ g' s7 Z8 B
with Apple products. “I look forward to a great product and I wish him success, but his( s3 Z; j4 L9 l$ U: [2 N
integrity I cannot trust,” Wozniak said.
# w5 A6 u. O# m2 e- a
5 `- O: H2 H# w4 B M( YTo Be on Your Own f0 f2 _& |0 j H
7 J e' d4 |; A- D8 F
“The best thing ever to happen to Steve is when we fired him, told him to get lost,” Arthur
8 U" `- }( h: I' }$ NRock later said. The theory, shared by many, is that the tough love made him wiser and
7 O! K" O) D4 @9 x/ L: G" Q- Jmore mature. But it’s not that simple. At the company he founded after being ousted from
~; P$ P& Q& n0 J U4 xApple, Jobs was able to indulge all of his instincts, both good and bad. He was unbound.
9 W9 |) {+ M' SThe result was a series of spectacular products that were dazzling market flops. This was; L! }7 C: G- A* {1 S% U
the true learning experience. What prepared him for the great success he would have in Act% C$ w+ p8 j4 M" x" r
III was not his ouster from his Act I at Apple but his brilliant failures in Act II./ `% d+ r4 V% S2 p# H6 |8 j
The first instinct that he indulged was his passion for design. The name he chose for his6 c' ^* u" Z- o: I" K2 Z& N
new company was rather straightforward: Next. In order to make it more distinctive, he. ?+ P) s& o- b
decided he needed a world-class logo. So he courted the dean of corporate logos, Paul/ Y" K4 u) K( K5 |) w
Rand. At seventy-one, the Brooklyn-born graphic designer had already created some of the* t& w1 [5 S; _+ I0 z
best-known logos in business, including those of Esquire, IBM, Westinghouse, ABC, and/ ]8 m4 e9 k+ @
UPS. He was under contract to IBM, and his supervisors there said that it would obviously
; u7 G1 e. @+ g4 Nbe a conflict for him to create a logo for another computer company. So Jobs picked up the
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phone and called IBM’s CEO, John Akers. Akers was out of town, but Jobs was so
9 y! ^6 P* M- H- n6 \2 fpersistent that he was finally put through to Vice Chairman Paul Rizzo. After two days,/ P. o& L; e5 x9 S: K2 Z
Rizzo concluded that it was futile to resist Jobs, and he gave permission for Rand to do the$ t% Q( M- \% c4 G W" T
work./ w) `/ p, M2 W- t& m) [% }6 d
Rand flew out to Palo Alto and spent time walking with Jobs and listening to his vision.
% }" d- O. Z7 T( [8 ~% FThe computer would be a cube, Jobs pronounced. He loved that shape. It was perfect and( [6 [( K9 Z4 ~ W1 ^1 Z1 m
simple. So Rand decided that the logo should be a cube as well, one that was tilted at a 28°
2 r3 ^* E- A! B: _* pangle. When Jobs asked for a number of options to consider, Rand declared that he did not, |* \" q" A8 y8 ~3 m4 w9 J4 @
create different options for clients. “I will solve your problem, and you will pay me,” he
& L0 \6 O. C# | x0 ^told Jobs. “You can use what I produce, or not, but I will not do options, and either way
8 f$ U! D5 M/ Y% Wyou will pay me.”
! Q! ^1 {% \1 r# v* _8 HJobs admired that kind of thinking, so he made what was quite a gamble. The company
4 G/ U6 x O) b6 p% D/ kwould pay an astonishing $100,000 flat fee to get one design. “There was a clarity in our$ e! k# y$ z; G! x, Z/ q
relationship,” Jobs said. “He had a purity as an artist, but he was astute at solving business
2 w0 A6 k4 ~& l( ^; eproblems. He had a tough exterior, and had perfected the image of a curmudgeon, but he1 P3 U; U) M: ~1 N
was a teddy bear inside.” It was one of Jobs’s highest praises: purity as an artist.
3 ?! y5 Y. {' X2 K/ M, r) ^It took Rand just two weeks. He flew back to deliver the result to Jobs at his Woodside- S6 P8 D, U0 H- R3 @& y l
house. First they had dinner, then Rand handed him an elegant and vibrant booklet that
: ~# R/ ~! L! y; p' k3 Rdescribed his thought process. On the final spread, Rand presented the logo he had chosen.
3 _3 y$ n1 F9 _“In its design, color arrangement, and orientation, the logo is a study in contrasts,” his
5 y" S+ C; c+ hbooklet proclaimed. “Tipped at a jaunty angle, it brims with the informality, friendliness,
. _2 i, X$ f3 I& j0 A3 o0 i ~and spontaneity of a Christmas seal and the authority of a rubber stamp.” The word “next”6 W7 y+ D( a: b: l4 @; f
was split into two lines to fill the square face of the cube, with only the “e” in lowercase.
* A+ L2 m6 |+ o1 I9 o7 v/ FThat letter stood out, Rand’s booklet explained, to connote “education, excellence . . . e =/ o8 Z" t! |, p* {& o" U
mc2.”
: b% g9 S, l" R- B3 r( ~( W3 }It was often hard to predict how Jobs would react to a presentation. He could label it& i/ ~$ G( q1 s: }6 A8 L6 K# a! G
shitty or brilliant; one never knew which way he might go. But with a legendary designer* y$ A, J5 ?- i
such as Rand, the chances were that Jobs would embrace the proposal. He stared at the: U/ ~. P. |( l2 ~' F# D4 X
final spread, looked up at Rand, and then hugged him. They had one minor disagreement:7 ~2 I" O$ t& c* s; ~
Rand had used a dark yellow for the “e” in the logo, and Jobs wanted him to change it to a; g+ l, h9 m1 i6 a
brighter and more traditional yellow. Rand banged his fist on the table and declared, “I’ve- k, o- T: w1 `6 g6 R
been doing this for fifty years, and I know what I’m doing.” Jobs relented.
$ |" Y Y, I, l- WThe company had not only a new logo, but a new name. No longer was it Next. It was. i! a& C/ E+ f; }, @1 F
NeXT. Others might not have understood the need to obsess over a logo, much less pay
4 l: P8 G" \4 Z% ^5 e4 q* q T! E$100,000 for one. But for Jobs it meant that NeXT was starting life with a world-class feel
' N3 B# D }) ?6 [; E4 E0 Zand identity, even if it hadn’t yet designed its first product. As Markkula had taught him, a
. V ?8 o! S7 p% q9 ^' kgreat company must be able to impute its values from the first impression it makes.2 d' e( F, p% W: ?
As a bonus, Rand agreed to design a personal calling card for Jobs. He came up with a3 r0 i) h4 {& R' O0 [2 J' f7 B/ y- d
colorful type treatment, which Jobs liked, but they ended up having a lengthy and heated
/ I2 j1 C' |( w0 v* t2 Gdisagreement about the placement of the period after the “P” in Steven P. Jobs. Rand had5 v% a7 @0 R+ o+ L/ g5 `
placed the period to the right of the “P.”, as it would appear if set in lead type. Steve
; W* I, c+ c$ f6 C. y7 Epreferred the period to be nudged to the left, under the curve of the “P.”, as is possible with 0 @8 ]$ L. E( M
$ {/ g; V# q5 ^/ g* U
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2 C5 R m" s2 d/ F/ T1 F6 P
l$ T6 D+ W8 E! C& M) a5 A6 X1 M. o7 {
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9 A) Z9 i1 T+ b/ D; U) G
: ]5 r7 q. p3 L* Cdigital typography. “It was a fairly large argument about something relatively small,” Susan0 h/ N9 k- W z* T3 j8 z
Kare recalled. On this one Jobs prevailed.
8 y) l# ]+ d( f8 ^" yIn order to translate the NeXT logo into the look of real products, Jobs needed an1 q, ` l$ x2 k% d4 _$ J4 l& b, A" O
industrial designer he trusted. He talked to a few possibilities, but none of them impressed
7 ^5 T/ Y, `2 ~- c! [3 dhim as much as the wild Bavarian he had imported to Apple: Hartmut Esslinger, whose4 h( ~+ ?( c9 O" m, ^# S% }
frogdesign had set up shop in Silicon Valley and who, thanks to Jobs, had a lucrative
, t! i3 J( v3 \' hcontract with Apple. Getting IBM to permit Paul Rand to do work for NeXT was a small7 o2 |& ?2 O- S/ {% e" ^
miracle willed into existence by Jobs’s belief that reality can be distorted. But that was a5 P; k" I5 I' C( L5 S
snap compared to the likelihood that he could convince Apple to permit Esslinger to work/ I# R v7 v; \/ N
for NeXT./ f: A4 O" K' i
This did not keep Jobs from trying. At the beginning of November 1985, just five weeks, i6 p7 O6 s6 }. d7 X1 M2 c# [
after Apple filed suit against him, Jobs wrote to Eisenstat and asked for a dispensation. “I
$ `; W# u5 J3 ~9 o1 lspoke with Hartmut Esslinger this weekend and he suggested I write you a note expressing
! V/ O# ~. G' R4 k! h3 Pwhy I wish to work with him and frogdesign on the new products for NeXT,” he said.
: N3 L% Q: ]3 H+ sAstonishingly, Jobs’s argument was that he did not know what Apple had in the works, but( H c8 O, u% G4 t: A* L, Z6 {4 y
Esslinger did. “NeXT has no knowledge as to the current or future directions of Apple’s" B2 g" F2 T$ B) n1 {
product designs, nor do other design firms we might deal with, so it is possible to
2 X6 u1 g( T# f8 u0 b3 d) ~inadvertently design similar looking products. It is in both Apple’s and NeXT’s best interest
w0 S, `1 e1 x$ t. y9 Eto rely on Hartmut’s professionalism to make sure this does not occur.” Eisenstat recalled
: X( k" b: m# ?7 u2 A# L; h6 ^being flabbergasted by Jobs’s audacity, and he replied curtly. “I have previously expressed
! l! \7 o- \, c4 Fmy concern on behalf of Apple that you are engaged in a business course which involves2 A0 c* W$ b6 ` A6 Q
your utilization of Apple’s confidential business information,” he wrote. “Your letter does
- v" B; j% r+ l: B5 O* Unot alleviate my concern in any way. In fact it heightens my concern because it states that4 C; `$ S5 c. Z1 N3 |
you have ‘no knowledge as to the current or future directions of Apple’s product designs,’ a+ C9 p" H3 E, o( \1 g( O6 z
statement which is not true.” What made the request all the more astonishing to Eisenstat
+ N8 V! l4 r$ o0 i( E5 e+ vwas that it was Jobs who, just a year earlier, had forced frogdesign to abandon its work on" K% t& P; w; a, J5 {: l' a% S
Wozniak’s remote control device.0 p G) U% I* O9 s* S$ c/ Z
Jobs realized that in order to work with Esslinger (and for a variety of other reasons), it/ T7 Q- C9 b! }
would be necessary to resolve the lawsuit that Apple had filed. Fortunately Sculley was
9 H1 x5 _3 t- H: V0 ~willing. In January 1986 they reached an out-of-court agreement involving no financial
/ z) N# l" P2 Y) Q, x) \damages. In return for Apple’s dropping its suit, NeXT agreed to a variety of restrictions:2 R# F* A* e5 K$ w
Its product would be marketed as a high-end workstation, it would be sold directly to
# z/ Q, Y! y) F) J' Q+ Ycolleges and universities, and it would not ship before March 1987. Apple also insisted that
5 ^& Z$ B! z, H. B7 \( \ Rthe NeXT machine “not use an operating system compatible with the Macintosh,” though it
0 L+ t. o2 ?9 ucould be argued that Apple would have been better served by insisting on just the opposite.
) D0 s2 q& S/ s% pAfter the settlement Jobs continued to court Esslinger until the designer decided to wind
. \- N1 e, W2 Q$ r; mdown his contract with Apple. That allowed frogdesign to work with NeXT at the end of
# v! U! `1 |3 m! H) ~1986. Esslinger insisted on having free rein, just as Paul Rand had. “Sometimes you have
N- a4 v. R$ k0 [to use a big stick with Steve,” he said. Like Rand, Esslinger was an artist, so Jobs was
8 n8 ?* S( s7 ?+ nwilling to grant him indulgences he denied other mortals.; o8 d8 N. p& k
Jobs decreed that the computer should be an absolutely perfect cube, with each side6 g# x( C* q; R7 m/ z. X& q
exactly a foot long and every angle precisely 90 degrees. He liked cubes. They had gravitas& x) ^/ \" {9 L0 g( q$ l
but also the slight whiff of a toy. But the NeXT cube was a Jobsian example of design ; r; T, W1 T8 w7 B( ?
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