Published 10:18 IST, August 10th 2018
Microsoft Once Saved Apple From Bankruptcy
Throwback: Apple CEO Steve Jobs had admitted, “We have to let go of this notion that for Apple to win, Microsoft has to lose."
Advertisement
Microsoft was founded by Paul Allen and Bill Gates back in 1975 with primary objective to develop and sell BASIC interpreters for Altair 8800 — spark that ignited microcomputer revolution. Redmond tech giant rose to prominence in mid-1980’s as main player in personal computer operating system market. Since 1990’s, y have visibly diversified from operating system market and me a number of corporate acquisitions, ir largest one being LinkedIn and Skype. Both se acquisitions were me much later in 20th century.
However, what many don’t kw is that firm invested $150 million in Apple to save it from bankruptcy in 1997. company’s market capitalisation at that time stood at $149.68 billion, whereas, Apple was valued at merely $2.17 billion.
Advertisement
year 1997 was particularly memorable in techlogy world as for first time ever, Steve Jobs and Bill Gates anunced that two companies h entered a historic agreement. In dition to this, Microsoft promised to support Microsoft Office for Mac while Apple agreed to make Internet Explorer its default web browser. company invested roughly $150 million for shares of Apple n-voting preferred stock. deal was fruitful for both techlogy giants as Apple received much-needed cash and Microsoft was able to alleviate an impression about ir mopolistic power.
Since n, Apple has come a long way toward becoming one of most valuable companies on planet.
Advertisement
This makes one wonder: What really became of Microsoft’s $150 million investment?
Reportedly, Microsoft’s $150 million investment scoured 150,000 shares of preferred stock, convertible to common shares of Apple stock at a price of $8.25, redeemable after a three year period. tably, Microsoft h converted all of its shares into common stock by 2001. By 2003, Microsoft h sold its entire stake in Apple.
Advertisement
It’s quite a wonder to imagine what would have happened if Microsoft h held on to ir Apple shares till date.
Apple stock has been split twice on a 2-for-1 basis since agreement, once in June of 2000 and again in 2005. Assuming that Microsoft’s shares would have split only once, y would ideally in possession of 36.2 million shares. Since Apple was last tring at $604.59, Microsoft’s share would have been worth $21.86 billion.
Advertisement
18:13 IST, April 4th 2018