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Entrepreneur recounts the greatest learning that allowed him to be rejected by Apple.
Commemorate 10 years since Steve Jobs’s death with a business anecdote.
CEO recommends entrepreneurs not to make the same mistake in negotiations.
As part of the tech mogul’s tenth death anniversary, Ali partovi shared an anecdote from Steve Jobs about how Apple almost bought iLike, but a lie caused the startup to be scrapped entirely.
The thread of Twitter went viral after tribute that Apple made for the co-founder of the company, as many took the opportunity to highlight his contributions in the industry and his personality. The former CEO of iLike was one of those who joined with his experience, as he was fired by himself Jobs upon realizing that he was lying to her during the negotiations to acquire his startup.
“As the world celebrated the life of Steve Jobs, last week I remembered a lesson he taught me. My only meeting with Steve didn’t end well. It’s one of my most painful memories and a warning to CEOs of startups about the danger of pushing advertising too far.“, Begins counting the co-founder of Code.org.
As the world celebrated Steve Jobs’s life last week, I recalled a lesson he taught me. My one meeting with Steve didn’t end well. It’s one of my most painful memories, and a warning to startup CEOs about the danger of taking hype too far. Here’s the story. (1 / n)
– Ali Partovi (@apartovi) October 10, 2021
Steve Jobs anecdote
The tragic story was sparked in 2008 when I like It was beginning to grow in the world of music and, even, it was integrated into the recommendations of some consolidated platforms such as Facebook, iTunes and Windows Media Player. That, coupled with the fact that the company had captured half a million users in the first months of its launch, made companies like Apple set their eyes on the startup.
However, although the creators of the platform managed to reach the electronic mogul, everything fell apart during the financial interview in which they had practically beaten Apple.
Ali partovi and the other two founders of iLike managed to arrange the meeting with Steve Jobs and his right hand, Eddy Cue… the outlook was good and it seemed that they would soon be part of the most famous apple company in the world.
“I like it, they have good arguments. It seems like they will be a good fit for Apple. We want to buy your company ”. I’ll let Eddy clarify the details with you. ” Jobs would have told the young entrepreneurs.
Despite their nerves from the pressure exerted on them by investors, discographies and Facebook, the presentation of iLike seemed a resounding success and only needed to close the deal with a handshake and a signature.
“At this point,” I asked him impetuously, “before you go, can we discuss what range (of money) you are considering? This was a rookie move. I wish my mistakes had ended there. The worst was yet to come, ”says the businessman on his Twitter.
I replied, “Steve, I think we’re worth at least three times that.” / 13
– Ali Partovi (@apartovi) October 10, 2021
… And so iLike lost the deal of his life
Before Steve Jobs leave the meeting and let the young men conclude the contract with Eddy Cue, Ali partovi started the conversation that destroyed everything, asked what was the price with which Apple would value its appreciated application.
After an exchange of figures on the income and valuation of the company until that moment, the CEO of iLike was disappointed to learn that Jobs did not plan to pay them more than they had already achieved at that time, so he replied that the investors of the startup would not accept the deal.
“Steve, I think we are worth at least three times that. What’s more, I know we are worth three times that amount “, was the phrase that cost iLike its entry to the now App Store.
As quickly as he blurted out that little lie, the CEO knew he had screwed it up.
As soon as I blurted out that word, I knew it was a mistake. The distinction between “think” and “know” was a lie. Steve pounced on it instantly. /fifteen
– Ali Partovi (@apartovi) October 10, 2021
“You say you know you are worth more? Do you have another offer? Shit, you’re lying to me. You are full of shit. We’re done”, was Steve Jobs’s answer. That’s where everything died for iLike.
Lesson learned
The former CEO of iLike, Ali partovi, ends your Steve Jobs anecdote with a reflection: “the difference between believing and knowing what your company is worth comes down to one thing … real figures.”
As he concludes in the Twitter thread, the lie about the startup’s valuation bothered Steve Jobs so much that he just left the room and left the founders of iLike stammering justifications in front of Eddy Cue.
Although Apple’s current Senior Vice President of Softwares and Internet Services tried to keep the negotiation open and the entrepreneurs even went so far as to offer the company for much less money, Jobs no longer trusted Partovi.
The deal died forever, Apple launched a Genius bar for iTunes and Facebook, a button similar to iLike, and the startup’s founders ended up selling the company and ending all business relationships.
Never overplay your hand when negotiating a major deal – especially not against a stronger player. There are ways to be a strong negotiator without lying. / 22
– Ali Partovi (@apartovi) October 10, 2021
“Never exaggerate your value when negotiating a big deal – especially not against a stronger player. There are ways to be a strong negotiator without lying. “
“Steve Jobs was an incredible pitcher. His narrative brought the future to life. It taught me to be paranoid about the fine line between hype and lying: it can be as subtle as a word. If you cross that line, you can destroy it. I am grateful to him for this lesson ”, Ali Partovi concludes his narration with clear advice for executives and entrepreneurs.
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