Portrait of Steve Ballmer
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Steve Ballmer on Bill Gates

Longtime colleague/friend (strong) Position evolved

TL;DR

Steve Ballmer maintains a complex, historically close relationship with Bill Gates that has since become distant following business disagreements.

Key Points

  • Gates hired Ballmer as Microsoft's 30th employee in 1980, offering him an 8% stake in the company after it was incorporated.

  • Ballmer was the best man at Bill Gates' wedding to Melinda French, underscoring their close early relationship.

  • Ballmer cited a key strategic difference, specifically his push into hardware like smartphones, as contributing to his relationship breakdown with Gates after he left the CEO role.

Summary

Steve Ballmer's professional history is intrinsically linked with Bill Gates, beginning when Gates hired him as Microsoft's 30th employee in 1980 after Ballmer left Stanford business school. The two shared a "brotherly relationship" described by one executive as a "mind meld," with Ballmer succeeding Gates as CEO in 2000, though Gates initially retained technological vision oversight. Their intense working relationship was characterized by combative debates, but the transition of authority reportedly caused tension, leading Gates to once storm out of a meeting.

Following Ballmer’s departure from Microsoft, the relationship reportedly became strained, with Ballmer stating in 2016 that he and Gates had "drifted apart," a shift he attributed partly to a fundamental strategic disagreement over the importance of entering the hardware business, particularly smartphones, which Gates did not support. Despite this personal distance and past professional friction over business strategy, Ballmer still holds a significant stake in Microsoft and has maintained professional interactions, such as when the search committee for the next CEO included Gates.

Frequently Asked Questions

Steve Ballmer has stated that he and Bill Gates have "drifted apart" since Ballmer left his role as Microsoft CEO. He characterized their relationship before that time as "brotherly" but noted that differences in strategic direction contributed to the distance.

The former CEO indicated that a primary cause of the strain was a fundamental disagreement over strategy, particularly his strong push into the hardware business, which Gates did not support. This strategic divergence, combined with the pressures of the stock price stagnating, created a combustible situation.

Yes, Bill Gates hired Steve Ballmer to join Microsoft in 1980, making him the company's 30th employee. Gates recruited him from his MBA program at Stanford, offering him a significant stake in the company.