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To: achilles2000
As for the license, I don’t believe there is one. Jobs wanted to look at what Xerox had, and ultimately I believe Xerox said he could take a look in exchange for letting Xerox have 100,000 Apple shares (pre-IPO) for $1 million. “Taking a look” means Jobs got tours and could inspect the technology while on the tours.

That 100,000 for $1,000,000 is a misreporting of the actual facts. Xerox BOUGHT nothing. Apple GAVE Xerox 1,000,000 shares of Apple pre-IPO common stock with a face value of $7 a share in exchange for the visit. Why would Xerox pay Apple to visit them? Apple PAID Xerox For the visits and the right to use what they learned.

79 posted on 10/22/2011 10:48:20 AM PDT by Swordmaker (This tag line is a Microsoft product "insult" free zone.)
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To: Swordmaker

Try to stop hyperventilating and listen. First, common stock does not have a “face value”. Second, the value in what Apple gave Xerox was the bargain price. Xerox obtained to the right to buy shares pre-IPO at a price that was substantially below what everyone expected the IPO offering price to be. In fact, the IPO price was $22/share, which obviously vindicated taking the option on the 100,000 shares.

Apple, like, most new companies was using its stock as a form of currency, and there were also probably tax benefits for Xerox in that it was probably able to treat part of its gain on the shares as capital gains.

So, yes, Apple paid Xerox for the visits, which is what I wrote. The payment, however, took the form of an option. Xerox made out very well.


83 posted on 10/22/2011 5:17:34 PM PDT by achilles2000 ("I'll agree to save the whales as long as we can deport the liberals")
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