Microsofts % Stake in Apple?

Discussion in 'Apple, Inc and Tech Industry' started by iZac, Jul 12, 2007.

  1. iZac macrumors 68000

    iZac

    Joined:
    Apr 28, 2003
    Location:
    Shanghai
    #1
    I know Steve sold $150,000,000 of shares (is that correct?) to microsoft in 1997, i wonder if any of you wallstreet whizz kids could tell me what percentage stakehold that was in apple, and what financially equates to with Apples current stock price. Also if anyone knows if Microsoft sold these shares at any point?

    Id like to know the exact facts when i come accross people who tell me "microsoft owns apple" +_+

    cheers!
     
  2. hcuar macrumors 65816

    hcuar

    Joined:
    Jul 23, 2004
    Location:
    Dallas
    #2
    Microsoft didn't buy stock, it bought stock options. They sold short and never actually owned stock. I don't know more details than that, but Microsoft does not own any portion of Apple.
     
  3. bartelby macrumors Core

    Joined:
    Jun 16, 2004
    #3
    Some history:

     
  4. iZac thread starter macrumors 68000

    iZac

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    Apr 28, 2003
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    Shanghai
  5. IJ Reilly macrumors P6

    IJ Reilly

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    #5
    That history is accurate but for one statement: The "look and feel" lawsuit had been dismissed years earlier, so it could not have been a factor in the 1997 agreement with Microsoft. The other important and often overlooked aspect of this deal was the "technology sharing" agreement between the two companies. We don't know precisely which technologies the companies agreed to share, so this has been a source of lively speculation ever since. One thing we can strongly suspect is that the $150 million investment, the Office and MSIE deal were window-dressing for the "real" deal behind the scenes.
     
  6. bartelby macrumors Core

    Joined:
    Jun 16, 2004
    #6
    For the sake of the OPs argument though. It shows Microsoft no longer own any shares from the 1997 deal. Whether they own any now, I don't know.
     
  7. Queso macrumors G4

    Joined:
    Mar 4, 2006
    #7
    Microsoft as a corporation don't own any Apple shares now. Whether Gates or Allen do personally is another matter.

    I can guarantee Ballmer doesn't. Probably why he gets so mad when something happens to make the stock go up :)
     
  8. Alloye macrumors 6502a

    Joined:
    Apr 11, 2007
    Location:
    Rocklin, CA
    #8
    What's really funny is how much richer Microsoft execs would be if they had AAPL shares instead of MSFT. :eek:

    (Speaking as a former Microsoft employee who accumulated five years worth of under-water MSFT options. :mad:)
     
  9. korndog2003 macrumors regular

    korndog2003

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    May 31, 2007
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    Keyser, WV, USA
  10. Queso macrumors G4

    Joined:
    Mar 4, 2006
    #10
    A token gesture to show they were backing the Mac platform. It was only non-voting stock so they had no say in how the company was run, and by 2001 the last of it was sold.
     
  11. MisterMe macrumors G4

    MisterMe

    Joined:
    Jul 17, 2002
    Location:
    USA
    #11
    It is my understanding that the "real deal" was about QuickTime. Apple had caught Microsoft red-handed stealing QuickTime--to the point that mispellings in the source code were copied. Apple could have sued which would have been a long protracted process and would have netted Apple nothing in the end. Instead, Steve Jobs said "Let's not fight, let's do business."

    The deal had the intended consequence of reassuring shaky Macintosh customers that the Mac was viable. An unintended consequence was that the $150 million settlement led a lot of people who can't do math that Microsoft had bought Apple. Sales of Office 98, [one of] Microsooft's concessions in the deal, made boatloads of money for the Redmond Monopoly.
     

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