Paul Allen, a visionary entrepreneur, philanthropist, and sports team owner, was known for his significant contributions to the tech world and beyond. At the time of his death on October 15, 2018, his net worth was estimated at $20 billion. Most of this fortune stemmed from his role as the co-founder of Microsoft, which he launched alongside childhood friend Bill Gates.
Early Life and Education
Paul Gardner Allen was born in Seattle, Washington, on January 21, 1953, to Kenneth and Edna Allen. He had one sibling, a sister named Jody, born in 1959. Allen attended Lakeside School, a private institution where he met Bill Gates. Sharing a mutual interest in computers, the two began experimenting with programming. Their early endeavors included hacking into their school’s mainframe, which was intended to last a year but was exhausted in just three weeks by the duo’s ambitious projects. Despite their youthful mischief, this experience sparked their passion for technology.
Allen’s academic excellence was evident when he scored a perfect 1600 on the SAT. He enrolled at Washington State University but dropped out after two years to pursue a career in programming. Meanwhile, Gates, a few years younger, was attending Harvard. The two decided to co-found a software company, which eventually became Microsoft.
Founding Microsoft
In 1975, Allen and Gates established their company in Albuquerque, New Mexico. Their breakthrough came after reading an report about the Altair 8800 computer in Popular Electronics. Recognizing the potential for home computing, they contacted the manufacturer and offered to develop a programming language for it. This language, called BASIC, was a success even though the pair had never even seen the Altair 8800.
In 1976, they officially registered Microsoft, a name derived from a combination of “microcomputer” and “software.” By 1986, when Microsoft went public, Allen owned 25% of the company, making him a multimillionaire. On the first day of trading, his stake was worth $195 million. However, Allen left Microsoft in the mid-1980s following a management dispute with Gates. Despite his departure, he remained on the board of directors until 2000.
Investing Through Vulcan Capital
After his time with Microsoft, Allen invested the proceeds from his shares into a wide range of ventures. In 1986, he founded Vulcan Capital, a private investment firm. The company’s portfolio included investments in various sectors, such as real estate, technology, and entertainment. Notably, Vulcan Capital was a founding investor in DreamWorks SKG, and it owns brands like Maaco and Meineke. Allen also explored space technology through Vulcan Aerospace, financing the creation of SpaceShipOne, which won the Ansari X Prize in 2004.
One of Allen’s bold ventures included the development of the world’s largest airplane, a project he intended to use for launching orbital rockets. He sold the technology behind SpaceShipOne to Richard Branson, which evolved into SpaceShipTwo.
Sports Ownership
Beyond business, Allen also invested in sports. He owned three professional sports teams: the Seattle Seahawks (NFL), Seattle Sounders FC (MLS), and Portland Trail Blazers (NBA). In 1997, he purchased the Seahawks for $194 million when the previous owner threatened to move the team. During Allen’s tenure, the Seahawks saw significant success, including a Super Bowl victory. He also funded the construction of a new stadium and hired respected coach Pete Carroll.
Impressive Art Collection
Paul Allen had a passion for the arts, amassing a world-class art collection over the years. His collection included works by renowned artists such as Jasper Johns, Paul Cézanne, Edgar Degas, and Georgia O’Keeffe. In 2022, Allen’s estate planned to auction 150 pieces from his collection, with the proceeds set to benefit various charities. These works, expected to fetch over $1 billion, represented his commitment to culture and philanthropy.
The Octopus: A Yacht Like No Other
Allen’s opulence extended to his possessions, with his most famous being his massive yacht, the Octopus. Measuring 414 feet in length, it was the largest yacht in the world when it was completed in 2003. The yacht featured lavish amenities, including a swimming pool, basketball court, music studio, and multiple boats and submarines. The Octopus also had two helicopters. The yacht cost $200 million to build and $384,000 per week to operate.
Health Struggles and Passing
Paul Allen faced several health challenges throughout his life. He was diagnosed with Hodgkin’s lymphoma in 1982 but overcame it after months of radiation therapy. Later, in 2009, he was diagnosed with non-Hodgkin lymphoma, which was treated successfully. However, the cancer returned in 2018, leading to his death on October 15, 2018, at the age of 65 from septic.
Philanthropy and Personal Life
Allen was deeply committed to philanthropy, contributing more than $2 billion to various causes, including advancements in science, technology, health, and human services. His philanthropic endeavors reflected his desire to use his wealth to make a positive impact on the world.
In addition to his business ventures, Allen was a talented musician. In 2013, he and his band, The Underthinkers, released a blues-rock album titled Everywhere At Once. Allen played guitar alongside famous musicians like Joe Walsh and Chrissie Hynde.
Real Estate Holdings
Paul Allen’s real estate portfolio was vast and diverse. He owned properties around the world, including a 4,000-acre estate in Idaho, a mansion in the south of France, and a 10-acre compound in Hawaii. His Seattle-area holdings included multiple homes on Mercer Island and a 387-acre estate in Washington state. Allen’s real estate investments were so valuable that his sister, Jody, became the chairman of the Paul G. Allen Trust after his passing, with no plans to sell these properties.
Notable properties in his collection included:
- Santa Fe: The estate of artist Georgia O’Keeffe, purchased for $12.2 million.
- Utah: The Trees Ranch in southern Utah, acquired for just under $25 million.
- Silicon Valley: A $27 million estate in Atherton, California.
- New York City: A $25 million penthouse on Fifth Avenue.
Legacy and Final Thoughts
Paul Allen’s legacy is marked by his revolutionary role in the creation of Microsoft, his numerous successful investments, and his extraordinary contributions to both the arts and philanthropy. Despite his health struggles, he remained a driven individual, always striving to make an impact. From technology to sports to his stunning real estate holdings, Allen’s influence can be seen in many areas of modern life. His story is a testament to innovation, perseverance, and a commitment to giving back.
