Musk, his brother Kimbal, and Greg Kouri founded web software company Zip2 with funds borrowed from Musk's father.[55][25] They housed the venture at a small rented office in Palo Alto.[56] The company developed and marketed an Internet city guide for the newspaper publishing industry, with maps, directions, and yellow pages.[57]
According to Musk, "The website was up during the day and I was coding it at night, seven days a week, all the time."[56] The Musk brothers obtained contracts with The New York Times and the Chicago Tribune,[58] and persuaded the board of directors to abandon plans for a merger with CitySearch.[59] Musk's attempts to become CEO were thwarted by the board.[60] Compaq acquired Zip2 for $307 million in cash in February 1999,[61][62] and Musk received $22 million for his 7-percent share.[63]