Planet Money

Podbit · Planet Money

We almost had a smartphone in the 90s. Why did it fail?

Explore episode Jun 26, 2026

Where this was said

Lesson 2: Too Much Money, Too Many Investors

At 17:46 · chapter starts 16:40

The second failure mode Epstein identifies is excess capital and an overwhelming investor syndicate. General Magic attracted money from Sony, AT&T, Motorola, Panasonic, Mitsubishi, Apple, and Philips — effectively the entire communications technology industry. So many competing companies were in the room that investor meetings had to open with an antitrust lawyer listing topics that couldn't be discussed. The investors created expectation and lock-in: General Magic was committed to a product vision long before it understood whether that vision was right. Epstein's prescription is counterintuitive — the company would have been better served by staying very small and lean for years, letting the costs stay contained while the team figured out what they were actually building before the financial commitments spiraled.

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