There is an urban myth that Microsoft 'saved' Apple from bankruptcy in 1997 to ensure that Microsoft did not become a monopoly. Microsoft invested $150 million in non-voting shares and this started the rumor that it was done to rescue Apple from certain demise.
The truth is that Microsoft's substantial investment was actually the result of a settlement of a lawsuit that would be settled over a couple of years. The $150 million was just the initial payment. The exact amount of the settlement is not known but has been estimated between $500 million to more than $1 billion.
The legal action was described in an article in 'MacWeek' and excerpts of it read: "Charges of copyright infringement and wrongdoing were raised last week by Apple, which filed an intellectual-property suit against The San Francisco Canyon Co., a small third-party contractor for Apple. But the scope of the court action encompasses industry giants Microsoft Corp. and Intel Corp."
When Steve Jobs made the announcement at Macworld in 1997 that Apple and Microsoft was entering into a 'partnership' the crowd was less than happy. Suddenly the two companies were all cozy. Knowing the facts one has to ask: Who saved who? Yes, Apple could do with $150 million at that time, but it also gave Microsoft a chance to save face.
