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Microsoft saved Apple in 1997

Microsoft saved Apple in 1997

How and Why Microsoft saved and helped Apple in 1997 despite of being the toughest competitor ?


Written By: Naman Raj Singh
Views: 537
28/10/20
By InfoBite

Basic Exploration -

Apple was founded on April 1, 1976 in California by Steve Jobs, Steve Wozniak and Ronald Wayne. In 1983 Steve Jobs hired Pepsico CEO John Scully to run Apple. Later Steve Jobs was fired from Apple after John Sculley took all Board Members in his favour.

Steve got fired - 

After John took over Apple, company started declining. All the products of Apple was failing in market. The company was bearing huge amount of losses on yearly basis. After that Steve Jobs started his another company called NEXT. Later on Apple acquired NEXT and brought Steve back in Apple. But till then Apple was damaged badly.

Windows and Apple - 

At that time Microsoft Office was very famous and friendly among PC users. And MS Office was made and operated by Microsoft in Windows OS. MS Office was also the main reason of MacOS (Apple Operating System) failure. So then Steve Jobs decided to approach Bill Gates.

Steve Jobs and Bill Gates - 

Steve asked Bill Gates to invest funds in Apple and also asked him yo give the access of MS Office to APPLE. So in 1997, Bill Gates decided to invest 150 Million USD in Apple. He also gave the access of MS Office to Apple for 5 years.

But why Bill Gates helped his competitor ?

Reason 1 - Microsoft was facing legal lawsuit from Apple as they were blamed for copying design and concepts of Apple. The case was going in favour of Apple. So Steve Jobs offered him that if he would invest in Apple then he will withdraw all legal cases against Microsoft. But this was also not the main reason. As this lawsuit was really a small thing infront of Bill Gates.

Reason 2 - Microsoft inventions were eliminating many players from the market due to which Microsoft was slowly heading towards Market Monopoly. And all these actions of Microsoft was closely being monitored by AntiTrust Regulators. Due to which Department of Justice was ready to file lawsuit against Microsoft to stop them from Monopoly.

Conclusion and What is AntiTrust ?

AntiTrust is basically an organisation which monitors business players market and stops them to create Monopoly. They basically focus on EQUAL AND FAIR Competition between every business player. In INDIA, we have CCI - Competiton Commission of India which monitors Indian Business Players.

Conclusion - This deal benefited more for Microsoft then Apple. Recently Apple became most valued company in the World.

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