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To: Cold Heat
It took them a while and one has to give great credit to Microsoft for infusing cash into apple and essentially saving the company via stock purchases in 1997..

Sorry, but that is another false meme. Microsoft did not save anyone but Microsoft with that $150 million purchase of five year restricted, preferred stock in Apple for which Apple merely had to print a few pieces of paper. Apple had over $2 Billion in cash and other liquid asset at the time, and in fact had just expended $450 Million buying NeXT from Steve Jobs, and had three quarters in the black, and was well on its way to recovery when Steve Jobs negotiated a settlement of Apple's Patent and Copyright lawsuit against Microsoft on the theft of Apple's QuickTime IP found in Microsoft's Windows Video Player. The judge involved in the case had already told Microsoft they were looking at a multibillion dollar judgement if it proceeded to trial.

At the same time the Clinton justice department was looking to breaking Microsoft up into three companies over just such anti-competitive practices as theft of IP from smaller companies. Bill Gates wanted no such lawsuit occurring while they fought this DOJ investigation.

I have READ the three interlocking agreements exercised as part of this lawsuit settlement. In settlement of the lawsuit, Apple would:

In settlement of the lawsuit, Microsoft would:

Apple came out smelling like a rose with the huge benefits. . . that cost them essentially nothing. . . while Microsoft got the short end of the stick.

Any company that is "bailing out" another company requires VOTING stock and a presence on the bailee's board of directors, to have a say in how the company being bailed out is run. That did not happen. Apple was not in trouble and the money was used for advertising and donations to schools in Michigan. They certainly do not buy five-year restricted stock without voting rights that they cannot SELL for five years!

That money was in settlement of the lawsuit which Microsoft was guaranteed to lose. There was literally "smoking gun" evidence, such as the social security number and the maiden name of one of Apple's software engineer STILL in Microsoft's Window's Video Viewer code. Microsoft NEEDED this to go away, and knew they were over the barrel. Funny thing was, this time, they were not even really the thieves, but they were the beneficiaries of the thieves.

Over the next five years, Microsoft paid even more money to Apple. . . the licensing fees that were un-named. Forensic Accountants have gone back over the books of both companies years later and estimate those payments most likely totaled over $2 BILLION, and funded Apple's development of the iPod and later the iPhone.

99 posted on 10/06/2015 9:54:39 PM PDT by Swordmaker ( This tag line is a Microsoft insult free zone... but if the insults to Mac users continue...)
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To: Swordmaker

I think you are reading into it what you want to see...

According to analysts and reported in the financial press, like Bloomberg..etc..Apple was worth less than 3Billion and weeks away from a bankruptcy.

Yes, the deal pretty much sucked for MS...but I recall at the time the Gates and Jobs both believed the each of them would benefit from the others success,and if Apple failed it would hurt MS in the longer run.

I believe that to be true.

But it really ticked me off that later on Apple beat up MS daily in it’s ads and used MS as a foil to build sales..

But then Jobs was never known for his kindness...lol


100 posted on 10/06/2015 10:07:57 PM PDT by Cold Heat
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