Day in Tech History

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


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<img decoding="async" class="size-medium wp-image-20069" data-tf-not-load src="http://vid.geekazine.com/dith/uploads/2012/10/ht_microsoft_cc_120823_wg1-300x168.jpg" alt="Microsoft Logo" width="300" height="168" srcset="https://cache.dayintechhistory.com/wp-content/uploads/2012/10/ht_microsoft_cc_120823_wg1-300x168.jpg 300w, https://cache.dayintechhistory.com/wp-content/uploads/2012/10/ht_microsoft_cc_120823_wg1.jpg 640w" sizes="(max-width: 300px) 100vw, 300px" />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.

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