#onthisday in #tech #history -- August 6, 1997 🗓️ Apple and Microsoft Call Truce 🍎 🤗 🪟 At the Macworld Expo in Boston, Steve Jobs announces that Apple and Microsoft have signed a five-year alliance. Bill Gates famously makes his seemingly ominous “big brother” appearance on the large presentation screen during the announcement. As part of the deal, Microsoft committed to continuing development of Microsoft Office for Mac over the next five years, Apple would make Internet Explorer the default web browser on the Mac, Apple and Microsoft would collaborate on Java compatibility, and Microsoft invested $150 million in Apple stock. However, the most important part of the arrangement is that both companies would cross-license all existing patents along with any new patents over the next five years, Apple would drop their long-running series of patent-infringement lawsuits against Microsoft, and Microsoft paid an undisclosed amount of money to Apple. The common assumption in the tech community was that Microsoft’s $150 million investment in Apple saved the company. However, the reality is that with Apple holding $1.2 billion in cash at the time, $150 million was a relatively small sum of money. Some now believe the undisclosed amount of money that Microsoft paid Apple was in fact a secret settlement to the patent-infringment claims, a large part of which was related to Apple’s claim that Intel and Microsoft stole code related to the QuickTime multimedia technology. Estimated at anywhere between $500 million to $2 billion, this was the real meat of the so-called “cross-licensing” arrangement. It was likely this much larger undisclosed amount, plus the approximately $1 billion Apple earned by divesting itself of most of their investment in ARM stock over the course of 1998-1999, along with the show of confidence that Apple would be around at least another five years that gave Apple and Steve Jobs the breathing room needed to reinvent Apple and eventually build it into the most valuable company in the world. From Marcel Brown thisdayintechhistory.com #apple #microsoft #alliance #business #strategy #tech
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In 1997, Microsoft invested $150 million in its struggling competitor, Apple — not out of altruism, but because Microsoft’s survival depended on Apple’s survival. At the time, Apple teetered on the brink of collapse, and Microsoft, under antitrust scrutiny, needed to preserve its failing rival to counter claims of monopoly. This investment coincided with Steve Jobs’ return to Apple, marking a turning point for the company. The deal included a commitment to continue developing Microsoft Office for Mac, ensuring critical software support for Apple users. Apple, in turn, made Internet Explorer its default browser, and the companies resolved ongoing patent disputes. With this lifeline, Jobs spearheaded Apple’s revival. He introduced the colorful and innovative iMac in 1998, revitalizing Apple’s image and financial health. This momentum led to the iPod in 2001, which redefined personal music. What began as Microsoft’s calculated gamble helped set the stage for Apple’s extraordinary resurgence. #148words
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𝗠𝗜𝗖𝗥𝗢𝗦𝗢𝗙𝗧 𝘀𝗮𝘃𝗲𝗱 𝗔𝗣𝗣𝗟𝗘!!! Yes you read it right. Microsoft at one point saved Apple from the verge of bankruptcy in the 1990s! 𝗪𝗛𝗔𝗧 𝗛𝗔𝗣𝗣𝗘𝗡𝗘𝗗:- Apple made some disastrous decisions till the August of 1997, including firing Jobs at one point of time, to end up almost on the verge of bankruptcy. 𝗛𝗢𝗪 𝗗𝗜𝗗 𝗚𝗔𝗧𝗘𝗦 𝗚𝗢𝗧 𝗜𝗡𝗩𝗢𝗟𝗩𝗘𝗗:- The dying market share and bad financial situation of Apple, 𝗠𝗜𝗖𝗥𝗢𝗦𝗢𝗙𝗧 started having a major share in the market. It almost led to Microsoft having almost a 𝗺𝗼𝗻𝗼𝗽𝗼𝗹𝘆 in the market. 𝗕𝗜𝗟𝗟 𝗚𝗔𝗧𝗘𝗦 𝗖𝗔𝗟𝗟𝗘𝗗 𝗨𝗣 𝗕𝗬 𝗨𝗦 𝗚𝗢𝗩𝗘𝗥𝗡𝗠𝗘𝗡𝗧:- Due to the rising monopoly of Microsoft, Bill Gates was constantly called up by the US Government and was repeatedly called to 𝗯𝗿𝗲𝗮𝗸 𝘂𝗽 𝗠𝗶𝗰𝗿𝗼𝘀𝗼𝗳𝘁 𝘁𝗼 𝗱𝗶𝗹𝘂𝘁𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝗵𝗮𝗿𝗲. 𝗠𝗜𝗖𝗥𝗢𝗦𝗢𝗙𝗧 𝗜𝗡𝗩𝗘𝗦𝗧𝗠𝗘𝗡𝗧:- To avoid the breaking up of Microsoft, Gates decided to invest $150 million into Apple to make sure that the competition was still alive. Connect Karan Arora ✨ #apple #microsoft #billgates #technology #tech #competition #stevejobs #iphone #linkedin
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In 1997, healthy competition took an unexpected turn when Microsoft stepped in to help Apple avoid bankruptcy with a $150 million investment. By committing to keep Microsoft Office on Mac, Bill Gates and Steve Jobs set the stage for a rivalry that would fuel innovation and shape the future of tech. Watch how this iconic moment redefined competition. #techhistory #applevsMicrosoft #innovation #healthycompetition #stevejobs #billgates #techrivalry #binu46
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There will be no iPhone today if Microsoft doesn't want it. In 1997, Steve Jobs and Bill Gates made history when Microsoft invested $150 million in Apple 🍎, a company that was on the brink of bankruptcy: The investment - (Video 📷) On August 6, 1997, Jobs announced the investment at the MacWorld Expo in Boston, with Gates appearing on a 📡 link from Microsoft's Seattle studios. The investment provided Apple with the cash it needed to innovate and create the iMac and iPhone. The reaction - 👀 The investment shocked the tech and business communities, and was described as "surreal" by the New York Times. Jobs told Gates, "Bill, thank you. The world's a better place". The deal - 🤝 As part of the deal, Microsoft received non-voting shares in Apple. Jobs also agreed to make Microsoft's Internet Explorer the default browser on Apple computers. Being in a direct competition, Any thoughts on why MSFT saved Apple ? #stevejobs #apple #billgates #msft
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Head of Operations & Business Strategy in Financial Services, Consulting, Mergers and Acquisitions & Real Estate
Everyone needs help sometimes, even the biggest and strongest Did you know that in the 90s, Apple was close to bankruptcy and was only saved by a $150 million investment from its biggest competitor, Microsoft? It was 1997 and Apple was struggling and losing market share rapidly. To help stabilize the company, Microsoft agreed to buy $150 million in Apple stock and develop software like Microsoft Office for Mac, which gave Apple the financial breathing room it needed to reinvent itself. This partnership helped Apple survive and eventually become one of the most valuable companies in the world. It is an example of an unusual business move that helped shape the tech industry of today. So, do not shy away from asking for help, when it is needed. Apple did and look what it became.
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Founder at Adyviser Media | 500+ Campaigns Delivered | Scaled Brands to 7+ Figures | Expert in AI-Driven Performance Marketing Ecommerce & Lead Generation Interior designers
In 1997, Apple was on the brink of bankruptcy, but Microsoft’s $150 million investment changed everything. With a 7% stake in Apple and a promise to continue developing Microsoft Office for Mac, this deal marked a critical turning point. At the time, Apple was struggling, and Microsoft’s support helped stabilize the company. This controversial partnership set the stage for Apple’s rise to dominance in the tech world. Today, that $150 million investment would be worth $242 billion—proving how collaboration can shape even fierce rivals' futures. #TechHistory #Apple #Microsoft #BusinessPartnership #Innovation #IndustryGameChangers #TechInvestments
