When Microsoft's Identity Was A Company 'Run By Bill Gates, Mary Gates' Son' — How His Mother Helped Him Strike Gold With The Game-Changing 1980 IBM Deal

In the early days of Microsoft (NASDAQ:MSFT), Bill Gates credits his mother, Mary Gates, for playing a crucial role in securing a pivotal contract with IBM that set the stage for the company’s success.

What Happened: Mary Gates, a well-known businesswoman and board member of United Way of King County, used her connection with John Opel, then-chairman of IBM (NASDAQ:IBM), to help Microsoft land a significant contract in 1980, reported CNBC.

Check out the current price of MSFT stock here.

Back then, Microsoft was a young company, just five years old. IBM was seeking an operating system for its personal computer project, “Chess.” Despite Microsoft’s potential, IBM was also considering other software companies, including Microsoft’s competitor, Digital Research.

Mary Gates took advantage of the situation to advocate for her son’s company to Opel. After their discussion, Opel brought up Microsoft in conversations with IBM executives. As negotiations with Digital Research began to stumble, Opel remembered Microsoft, as the company "run by Bill Gates, Mary Gates' son," as reported by The Seattle Times., leading IBM to choose Microsoft for the task.

Microsoft, which didn’t possess an operating system at that point, purchased QDOS from Seattle Computer Products and developed MS-DOS. The non-exclusive licensing of MS-DOS to IBM became one of Microsoft’s most lucrative products, emerging as the preferred operating system for nearly every personal computer on the market.

SEE ALSO: Economists On June CPI Numbers: ‘The Absence Of Bad News Is Good News’ — But Fed ‘Unlikely To Sway’ On Interest Rates – Benzinga

Why It Matters: Mary Gates’ influence extended beyond this pivotal deal. She also played a significant role in fostering a billion-dollar friendship between Bill Gates and Warren Buffett in 1991.

Moreover, Bill Gates’ IBM connection doesn’t end here. His ex-wife, Melinda French Gates, revealed that an IBM hiring manager insisted that she join Microsoft in 1987, a decision that significantly impacted her career and personal life.

Despite these successes, Microsoft has also faced its share of missed opportunities in its early days. Bill Gates has admitted to a significant oversight that cost Microsoft a $400 billion opportunity in the mobile sector. However, the company’s early success, largely due to Mary Gates’ influence, has undoubtedly shaped its trajectory.

READ MORE:

• Bill Gates Warns Of ‘Devastating Effects’ Of USAID Funding Cuts: ‘It’s Not Too Late To Reverse Them’
  

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.