Childhood friends Bill Gates and Paul Allen found Microsoft on April 4, 1975, in Albuquerque, New Mexico. It was created to develop a BASIC interpreter for the Altair 8800, one of the first commercially successful personal computers. The company relocated to Bellevue, WA on January 1, 1979.
In 1980, Microsoft entered into a partnership with IBM to provide the operating system for the upcoming IBM PC. However Microsoft did not have one, and they purchased a non exclusive license for $25,000 to $50,000 from Seattle Computer Products (SCP) where programmer, Tim Paterson had developed an operating system called QDOS (Quick & Dirty Operating System), later renamed 86-DOS. The Operating system acquisition was strategic move that established MS-DOS as an industry standard. Microsoft and SPC later reached and agreement for $1M which gave Microsoft a full license for the operating system.
IBM officially introduced its Personal Computer (Model 5150), on August 12, 1981. Microsoft went public on March 13, 1986, at $21 per share. Its subsequent growth made Bill Gates the world's youngest billionaire by 1987.
Photo Credit: PaulAllen.com
