SpaceX and the Quest

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SpaceX and the Quest ( spacex-and-quest )

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arrive at the office on a flatbed,” Kimbal said. “But Elon always thought big.”* As a bonding exercise one weekend, Musk, Ambras, a few other employees and friends took off for a bike ride through the Saratoga Gap trail in the Santa Cruz Mountains. Most of the riders had been training and were accustomed to strenuous sessions and the summer’s heat. They set up the mountains at a furious pace. After an hour, Russ Rive, Musk’s cousin, reached the top and proceeded to vomit. Right behind him were the rest of the cyclists. Then, fifteen minutes later, Musk became visible to the group. His face had turned purple, and sweat poured out of him, and he made it to the top. “I always think back to that ride. He wasn’t close to being in the condition needed for it,” Ambras said. “Anyone else would have quit or walked up their bike. As I watched him climb that final hundred feet with suffering all over his face, I thought, That’s Elon. Do or die but don’t give up.” Musk continued to be a ball of energy around the office as well. Ahead of visits by venture capitalists and other investors, Musk would rally the troops and instruct them all to get on the phone to create a buzzy atmosphere. He also formed a video-game team to participate in competitions around Quake, a first-person-shooter game. “We competed in one of the first nationwide tournaments,” Musk said. “We came in second, and we would have come in first, but one of our top players’ machine crashed because he had pushed his graphics card too hard. We won a few thousand dollars.” Zip2 had remarkable success courting newspapers. The New York Times, Knight Ridder, Hearst Corporation, and other media properties signed up to its service. Some of these companies contributed $50 million in additional funding for Zip2. Services like Craigslist with its free online classifieds had just started to appear, and the newspapers needed some course of action. “The newspapers knew they were in trouble with the Internet, and the idea was to sign up as many of them as possible,” Ambras said. “They wanted classifieds and listings for real estate, automotive, and entertainment and could use us as a platform for all these online services.” Zip2 acquired a trademark for its “We Power the Press” slogan and the influx of cash kept Zip2 growing fast. Company headquarters were soon so crowded that one desk ended up directly in front of the women’s bathroom. In 1997, Zip2 moved into flashier, more spacious digs at 444 Castro Street in Mountain View. It irritated Musk that Zip2 had become a behind-the-scenes player to the newspapers. He believed the company could offer interesting services directly to consumers and encouraged the purchase of the domain name city.com with the hopes of turning it into a consumer destination. But the lure of the media companies’ money kept Sorkin and the board on a conservative path, and they decided to worry about a consumer push down the road. In April 1998, Zip2 announced a blockbuster move to double down on its strategy. It would merge with its main competitor CitySearch in a deal valued at around $300 million. The new company would retain the CitySearch name, while Sorkin would head up the venture. On paper, the union looked very much like a merger of equals. CitySearch had built up an extensive set of directories for cities around the country. It also appeared to have strong sales and marketing teams that would complement the talented engineers at Zip2. The merger had been announced in the press and seemed inevitable. The opinions on what happened next vary greatly. The logistics of the situation required the two companies to go over each other’s books and to figure out which employees would be fired to avoid a duplication of roles. This process raised some questions about how frank CitySearch had been with

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