This week has provided a fascinating glimpse into Apple’s history, particularly through a narrative exploring how Softbank’s founder, Masayoshi Son, took a $17 billion risk based on an informal agreement with Steve Jobs.
Commonly referred to as Masa, the Japanese businessman – who briefly held the title of the world’s richest man for three days – anticipated that Apple must have been developing a phone, two years ahead of its official announcement.
Although not widely recognized in the U.S., Masa made headlines when he became the wealthiest individual worldwide for a brief period, just prior to the dotcom crash at the dawn of the millennium.
After experiencing significant financial losses, the introduction of the iPhone was pivotal in his return to wealth. Currently, he stands as the globe’s foremost investor, having completed a trillion dollars’ worth of transactions over the last two decades.
A Wired excerpt from a recent biography of Masa highlights his epiphany regarding Apple’s work on a phone, as well as the precarious gamble he undertook rooted in an unrecorded arrangement with Jobs, as documented by author Lionel Barber.
During a trip to California in the summer of 2005, he presented Jobs with his own design for a mobile-enabled iPod, featuring a large screen and utilizing Apple’s operating system. He speculated that this new device would have the capability to handle both data and images. Though Jobs dismissed the concept, he couldn’t resist hinting at the iPhone’s existence.
Jobs: “Masa, don’t give me your crappy drawing. I have my own.”
Masa: “I don’t need to present my scribble, but once your product is ready, please consider me for distribution in Japan.”
While Jobs didn’t disclose further specifics, Masa caught a glimpse of a smile on the Apple CEO’s face. After further discussion, Masa managed to secure a follow-up at Jobs’ Tudor-style house in Palo Alto, where he claims Jobs tentatively agreed to grant SoftBank exclusive distribution rights for the iPhone in Japan. “Well, Masa, you’re a bit out there,” said Jobs. “We haven’t spoken to anyone else, yet you reached out first. I’ll give it to you.”
For Masa, Jobs’ word held weight, prompting Softbank’s acquisition of Vodafone Japan for $17 billion. This move established a consumer business that would significantly increase in value with the exclusive Japanese rights to the iPhone 3G, the first model compatible with local networks. The deal was indeed sealed, and the risk ultimately yielded substantial returns.
While Masa is known for spinning colorful tales, many elements of his account resonate with reality, and Jobs’ recognition of Masa’s vision and courage likely played a crucial role in their collaboration.
Photo: Apple
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