Brian Arbogast on April 8, 2003: "Google not worth $4 billion"

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When I worked at Microsoft, I attended a week-long immersion course called Management Essentials. This is where all of the rising stars at the company are sent to prep them for a transition from individual contributor to manager. It was here I fully realized for the first time that Microsoft was first and foremost a business.

Of course I knew it was a business; but I wasn't truly exposed until that week. I was an IC, passionate about the customers and the technology. But I didn't feel that passion here. It seemed like all these things were mere obstacles to be dealt with, and that software was  a necessary means by which they minted their money. I got the feeling that if crack were legal, Microsoft would be dealing it on every street corner. OK, maybe a bit harsh, but it was quite a wake-up call for a naïve, passionate technophile such as myself. So hopefully you can understand and excuse the hyperbole. It was here that I first started thinking that MSFT probably wasn't a good place for me long-term.

I do remember that my team kicked some serious ass in the Tango business simulation; the facilitator said it was the best he'd ever seen. Not bad for a bunch of tech geeks.

But the most interesting thing from that week that I remember was the evening chat with SVP Brian Arborgast. He gave some great advice about working with others, talking about building up trust, paying into the "trust bank" so if you ever need to make a withdraw, you can. Microsoft is a meritocracy, so be open, honest, and transparent. Those people are rewarded. I know because I found my notebook from the course.

But the most interesting thing--and I'll never forget it even though I didn't write it down--was when I asked about Microsoft's weak position in Internet search, I asked the obvious question: "Why doesn't Microsoft simply buy Google?" Brian's answer: "I don't think the $4 billion it would take is a good investment for the shareholders. We can spend that money better  building out our own search technology." Giving him the benefit of the doubt, this could have just been his nice way of saying "We'd love to, but Larry and Sergey won't sell to us for anything close to reasonable." But if not, then that's the most massive business mistake I've been remotely close to.

Does anyone have details on Microsoft/Google talks in the years before their IPO? I'd love to know the real story here.

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