Untold History: The Third Apple Co-Founder’s Unprecedented Decision

Many are familiar with the inspiring tales of Steve Jobs and Steve Wozniak, the college dropouts credited with founding Apple Inc in 1976. Yet, another name, Ronald Wayne, is often missing from this noteworthy history. Wayne played a crucial role in the company’s formative days but made a decision that is now considered a historic financial misstep.

The Role of Wayne in Apple’s Launch

Ronald Wayne, a forty-something at the time, was an employee at Atari. As a close associate of Jobs, he helped persuade Wozniak to make the dream of Apple a reality. Wayne, as the group’s mediator, even drafted the initial contract, earning him a 10% stake in the company, while Jobs and Wozniak each held 45%.

However, barely two weeks after the contract was signed, Wayne made the unprecedented decision to withdraw his involvement, a move that would later be seen as a colossal financial blunder.

Wayne’s Financial Loss

Wayne sold his Apple stake for a meager $800 and further received $1,500 to relinquish any future claims. Surprisingly, his 10% share today would range between $75 billion and $300 billion, reflecting Apple’s current $3 trillion market cap. However, Wayne likely would have faced dilution of his stake as new investors joined Apple and the company went public.

Wayne’s Reason for Exiting Apple

Though Wayne’s decision may seem misguided looking back, at the time, the 41-year-old justifiably believed he was protecting his financial future. Jobs had borrowed $15,000 to fulfill an Apple order and if the company couldn’t repay, Wayne, as a house, car, and bank account owner, would be liable. Wayne expressed his concerns in an interview with Business Insider in 2017, stating he was “on the hook” if Apple failed.

Wayne’s Early Retirement

Wayne also feared that remaining with Apple would stunt his career growth. He believed that his younger partners, Jobs and Wozniak, would advance while he watched from the sidelines. In a conversation with CNN, Wayne revealed that he feared he’d end up “the richest man in the cemetery.”

Despite facing financial constraints and relying on rental income and Social Security checks, Wayne maintains that he’s “never been rich, but never been hungry either.”

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