This week has brought intriguing insights into Apple’s history, particularly the narrative of Softbank founder Masayoshi Son’s $17B bet based on a gentleman’s agreement with Steve Jobs.
Commonly referred to as Masa, the Japanese businessman – who intriguingly held the title of the richest person in the world for three days – deduced that Apple was likely developing a phone, two years prior to its reveal …
While not a familiar name in the United States, Masa briefly claimed the status of the world’s wealthiest individual for three days, just before the dot-com bubble burst at the beginning of the century.
After suffering substantial financial losses, the iPhone became a pivotal factor in his economic revival. Today, he stands as the globe’s leading investor, engaging in a trillion dollars’ worth of transactions over the last two decades.
An excerpt from Wired, taken from a new biography of Masa, recounts his realization that Apple must have been developing a phone and the risk he embraced based on an unspoken agreement with Steve. Author Lionel Barber narrates the events.
During a trip to California in the summer of 2005, he presented Jobs with his own sketch of a mobile-enabled iPod featuring a large display and utilizing the Apple operating system. He anticipated that this new device would be capable of processing data and images. Jobs dismissed the idea but unintentionally offered hints about the upcoming iPhone.
Jobs: “Masa, spare me your lousy drawing. I have my own.”
Masa: “I don’t need to share my crumpled paper, but when your product is ready, make sure to give it to me for Japan.”
Although Jobs wouldn’t disclose further details, Masa caught a glimpse of a smile on the Apple CEO’s face. After further persuasion, Masa secured a follow-up meeting at Jobs’ Tudor-style home in Palo Alto. At that gathering, Masa asserts that Jobs tentatively agreed to grant SoftBank exclusive distribution rights for the iPhone in Japan. “Well, Masa, you’re nuts,” stated Jobs. “We haven’t spoken to anyone else, but you were the first to see me. I’ll give it to you.”
Jobs’ word was sufficient for Masa, prompting his company Softbank to acquire the carrier Vodafone Japan for $17B. This acquisition enabled Softbank to establish a consumer business that would significantly increase in value once they secured exclusive Japanese rights to the iPhone 3G, the first model compatible with local networks. The agreement was indeed finalized, and the gamble obviously paid off immensely.
Masa is known for his flair for storytelling, yet the events do appear to corroborate some element of his account, with Steve’s recognition of the man’s vision and audacity likely influencing the outcome significantly.
Photo: Apple
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