Paul Allen was a American industrialist, investor, musician, sports team owner, and philanthropist. Paul Allen net worth was $20 billion at the time of his death on October 15, 2018.
He earned most of his fortune as a co-founder of Microsoft, the software conglomerate he started with his childhood friend Bill Gates.
Microsoft and Financial Investments
On the day Microsoft went public in 1986, Allen owned 25% of the company’s equity.
Although his exact stake at the time of his death remains unknown, it had dropped below 5% in 2000, which meant Microsoft no longer needed to report his holdings.
At his death, most of Allen’s wealth was tied to the real estate, private equity, and energy sectors.
He owned more than one million square feet of retail, office, and industrial space in California, New York, Washington, and Oregon.
Through his investment vehicle, Vulcan Capital, he was an early investor in companies such as Uber, DreamWorks, Plains All America, and Ticketmaster.
Despite his successes, he lost $8 billion of his own money trying to expand broadband too early.
Paul Allen Early Life
Paul Gardner Allen was born on January 21, 1953, in Seattle, Washington, to Kenneth and Edna Allen.
He attended Lakeside School, a private high school in Seattle, where he befriended Bill Gates.
Despite their two-year age difference, they shared a deep interest in computers, often using a mainframe system owned by their school.
Allen later snuck into computer labs and logged in as an administrator, even posing as a graduate student to gain extra programming time.
He eventually received a perfect SAT score of 1600 and enrolled at Washington State University but dropped out after two years to work as a programmer for Honeywell in Boston.
He then convinced Gates to drop out of Harvard to start Microsoft.
Paul Allen Founding Microsoft
Allen and Gates founded Microsoft in Albuquerque, New Mexico, in 1975.
Their breakthrough came when they offered to design a programming language for the Altair 8800, a small and inexpensive computer.
This language, called BASIC, was a success. They trademarked Microsoft on November 26, 1976, and the company went public on March 13, 1986.
Allen’s 25% stake was worth $195 million after the first day of trading.
Although he left Microsoft in the mid-1980s after a management dispute with Gates, he remained on the company’s board of directors until 2000.
Paul Allen Vulcan Capital
Allen invested the proceeds from his Microsoft shares into his private venture firm, Vulcan Capital, which he founded with his sister Jody Allen in 1986.
Vulcan owns the Maaco and Meineke car care brands, has developed nearly seven million square feet of real estate, and was a founding investor in DreamWorks SKG.
Vulcan Aerospace, another of Allen’s ventures, financed the SpaceShipOne project, which won the $10 million Ansari X Prize in 2004.
At his death, Vulcan Aerospace was building the world’s largest airplane, intended for orbital rocket launches.
Paul Allen Sports Team Ownership
Allen owned three professional sports teams: the Seattle Seahawks, Seattle Sounders FC, and the Portland Trail Blazers.
He purchased the Seahawks in 1997 for $194 million, saving the team from relocation to Southern California.
Under his ownership, the Seahawks built a new stadium, hired coach Pete Carroll, and won a Super Bowl.
Paul Allen Art Collection
Throughout his life, Allen amassed a valuable art collection, including pieces by Jasper Johns, Paul Cezanne, Sandro Botticelli, and Claude Monet.
In August 2022, it was announced that 150 pieces from his collection would be auctioned by Christie’s, with proceeds expected to exceed $1 billion, all going to charity.
Paul Allen Yacht
Allen’s yacht, the “Octopus,” was 414 feet long and, at its completion in 2003, was the world’s largest yacht.
It features a swimming pool, basketball court, music studio, two helicopters, seven boats, jet skis, and two submarines.
The yacht cost $200 million to build and $384,000 a week to run.
Paul Allen Health and Death
Allen was diagnosed with Stage 1-A Hodgkin’s lymphoma in 1982, which was successfully treated with radiation therapy.
In 2009, he was diagnosed with non-Hodgkin lymphoma, which was also treated successfully until it returned in 2018.
He passed away from septic shock on October 15, 2018, at 65 years old.
Paul Allen Personal Life
Allen was a dedicated philanthropist, contributing more than $2 billion towards the advancement of science, technology, health, and human services.
In 2013, his band, The Underthinkers, released a blues-rock album, “Everywhere at Once.”
Allen played electric guitar alongside notable musicians like Joe Walsh of the Eagles and Chrissie Hynde of the Pretenders.
His properties are held in a living trust, with his sister Jody Allen and her children as beneficiaries. There are no plans to sell the Seattle Seahawks, which remain in the Paul G. Allen Trust.
Paul Allen Real Estate
Allen’s real estate portfolio included properties across the United States and abroad. Highlights include:
- Santa Fe: Purchased the former estate of artist Georgia O’Keefe, Sol y Sombra, in 2000 for $12.2 million.
- Utah: Acquired Trees Ranch, a 2,066-acre property in 2013, for just under $25 million.
- Atherton: Bought a Silicon Valley property with his sister in 2013 for $27 million.
- NYC: Owned a penthouse at 4 East 66th Street and a full-floor apartment, sold in 2022 for $101 million.
- Idaho: Owned two properties near Tetonia, totaling 3,600 acres.
- Hawaii: Purchased a 10.3-acre compound in 1997 for $11 million.
- South of France: Owned an 18-bedroom mansion, Villa Maryland, in Cap Ferrat.
- Washington: Acquired the 387-acre Sperry Peninsula on Lopez Island in 1996 for $9 million.
- Mercer Island: Held eight houses on 10.8 acres in a wealthy Seattle suburb.
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Conclusion
Paul Allen’s legacy extends beyond his immense wealth and business achievements.
As a co-founder of Microsoft, he played a pivotal role in shaping the tech industry.
His ventures in real estate, private equity, aerospace, and sports team ownership reflect his diverse interests and business acumen.
Allen’s philanthropic efforts and contributions to science, technology, and the arts have left a lasting impact, ensuring that his influence will be felt for generations to come.
