Many people may believe that Apple Inc. was founded solely by Steve Jobs and Steve Wozniak, but the company’s origins include a third co-founder, Ronald Wayne. Despite his crucial role in the company’s early days, Wayne sold his stake just 12 days after its founding, leading to a nearly forgotten legacy. This article delves into Wayne’s contributions, the contrasting fortunes of the company’s leaders, and the surprising trajectory of Steve Jobs following his departure from Apple.
Ronald Wayne: The Forgotten Co-Founder
While it is widely perceived that Apple was launched by only two individuals, it was actually co-founded by three people, including Ronald Wayne, who provided all the early funding for the company. In 1976, Wayne was awarded 10% of Apple’s equity, a significant share that he opted to sell back to Jobs and Wozniak for just $2,300 after just twelve days. This decision could be regarded as one of the worst financial missteps in history, considering that stake would be worth approximately $340 billion today. Even if he had only retained 1%, he would still be holding shares valued at about $34 billion.
Wayne’s story often prompts a related inquiry: why was Steve Jobs only valued at around $10 billion when he passed away? Interestingly, the majority of Jobs’ wealth did not originate from Apple shares. This raises the question—how could the visionary behind one of the world’s most successful companies amass a seemingly modest fortune?
A Brief History of Apple
Founded in 1976, Apple began gaining traction in the tech industry in the early 1980s. By 1982, Apple’s annual revenues had exceeded $1 billion. In a strategic move for leadership, Apple appointed John Sculley as CEO in 1983. Sculley, previously the CEO of Pepsi-Cola, was persuaded by Jobs with the memorable pitch: “Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world?“.
The initial collaboration between Jobs and Sculley yielded the successful launch of the Macintosh computer, famously introduced with a memorable Super Bowl advertisement in 1984. However, their partnership quickly deteriorated as Jobs’ management style became increasingly problematic, described by many as “erratic” and “unreasonable.” By April 1984, in response to persistent negative feedback, Apple’s board exercised its authority to limit Jobs’ role significantly, relegating him to a largely symbolic position.
In 1985, following internal turmoil and the failure of Apple’s latest products, Jobs resigned from the company he helped create. At the time of his departure, he owned a 20% stake in Apple. Out of anger, he sold off the vast majority of his shares, retaining only one to continue receiving the company’s annual report, resulting in a payout of around $100 million after taxes.
Establishing NeXT and Pixar
After departing Apple, Jobs founded NeXT Inc. with a personal investment of $7 million. Despite initial setbacks and financial struggles, NeXT secured significant investment from billionaire Ross Perot, enabling it to stay afloat. By 1994, NeXT turned a profit, totaling $1.03 million for the year.
Meanwhile, Jobs had also purchased The Graphics Group from George Lucas in 1986 for $10 million, which rebranded as Pixar. Despite financial difficulties, Pixar achieved monumental success with the release of “Toy Story” in 1995 and continued to dominate the animation industry.
Disney’s Acquisition and Jobs’ Wealth
In 2006, Disney acquired Pixar for $7.4 billion. This transaction transferred 138 million shares of Disney stock to Jobs, valued at around $3.7 billion at the time. When he passed away on October 5, 2011, Jobs had a net worth of approximately $10.2 billion, with the bulk stemming from his Disney shares rather than Apple.
Jobs’ widow, Laurene Powell Jobs, inherited a significant portfolio, including approximately 130 million shares of Disney and 5.5 million shares of Apple, potentially worth as much as $50 billion today had she kept her holdings intact. Instead, she has sold a considerable portion to build a diverse investment portfolio, now estimated at about $10 billion—one of the wealthiest women globally.
Reflecting on Possibilities
Had Steve Jobs remained with Apple, holding onto his original 20% stake, he could have been valued at roughly $680 billion today, vastly outpacing current records. This hypothetical scenario raises questions about both Jobs’ legacy and the unforeseen paths that life may present. His exile from Apple may have catalyzed the rise of other pivotal ventures like Pixar, shaping not just his own future, but the landscape of technology and entertainment as we know it.
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