Social Currency with Sammi Cohen The “PayPal Mafia” Lore: Inside the Elon Musk Coup and the Beginning of Founder Culture
Nov 14, 2025
Discover the thrilling saga of PayPal’s rise from chaotic rivalry to startup powerhouse. Delve into the infamous coup that saw Elon Musk ousted on his honeymoon. Uncover how a group of ambitious misfits revolutionized financial trust and tech culture, leading to the creation of giants like Tesla and LinkedIn. Learn about their grueling work ethic, tribal loyalty, and the unique principles they spread across Silicon Valley. Explore how this iconic origin story reshaped the founder archetype and continues to influence today's tech landscape.
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From Palm Pilots To eBay's Default Payments
- PayPal began as a merger of Confinity and X.com and grew from eBay seller tools into the default way to move money online.
- The company survived technical debt, fraud, and $10M monthly losses through intense work and internal loyalty.
The Honeymoon Coup That Became Legend
- Elon Musk was ousted while on his honeymoon after pushing to move core infrastructure to Microsoft and rebrand to x.com.
- Peter Thiel stepped in as CEO and led immediate cost cuts and anti-fraud measures to stabilize the company.
Survival Focused The Product Strategy
- Tightening anti-fraud systems and focusing on eBay sellers pushed PayPal into explosive growth and an IPO within two years.
- eBay acquired PayPal for $1.5 billion, creating rapid wealth for early employees.