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MacBytes
Aug 7, 2009, 09:40 AM
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Category: History
Link: 12 years ago today, Steve Jobs and Apple made amends with Microsoft, sort of (http://www.macbytes.com/link.php?sid=20090807104045)
Description:: 12 years ago today, Steve Jobs and Apple made amends with Microsoft, sort of [Video]

Posted on MacBytes.com (http://www.macbytes.com)
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MisterMe
Aug 7, 2009, 02:12 PM
This article is not entirely false but it is misleading. The uninformed reader might infer that Apple surrendered to Microsoft after years of futile warfare between the two companies. The truth is quite different.

Apple had caught Microsoft "dead-to-rights" stealing code from QuickTime for Windows Media. Jobs made a calculation. Apple could enter into another protracted legal battle with Microsoft. It would be a battle that Apple would likely win, but the time and resources devoted to it would likely result in only a pyrrhic victory. Or, Apple could do business with Microsoft. Jobs chose to do business. He got Microsoft to agree to revive development of Office:mac. He also secured $150 million in hush money in the form of non-voting (preferred) stock. At the time, Apple had $4 billion in cash reserves. The people who made and still make a big deal of the $150 million can't do math.

I have always found Apple's agreement to make Internet Explorer its default browser to be laughable. Prior to the agreement, Apple bundled IE and Netscape Navigator with Netscape selected in Internet Preferences as the default browser. After the agreement, Apple bundled IE and Netscape Navigator with IE selected in Internet Preferences as the default browser.

Make no mistake, both Apple and Microsoft benefitted from the deal. The deal reassured many who doubted Apple's viability that the company was here to stay. Office 98 allowed Apple to continue to sell its computers to businesses. Microsoft formed the Macintosh Business Unit to develop Office 98 and other Mac applications. Reports were that Microsoft made more money from each Office 98 sale that Apple made from each Macintosh sale. Of Microsoft's seven business units, MacBU became one of three profitable units. Microsoft eventually sold its Apple stock at a profit.

Even though Apple agreed not to fight Microsoft, it didn't agree not to testify. Apple gave compelling testimony against Microsoft in the Government's antitrust trial.