HOW MICROSOFT SAVED APPLE

Summary from the TLDR Marketing newsletter

Microsoft's 1997 investment and settlement with Apple was less a rescue and more a calculated strategy that benefited both companies. Apple was losing $1 billion a year and had less than 90 days of cash, but it used multiple patent lawsuits to pressure Microsoft into a broader deal worth between $500 million and $2 billion in licensing fees. The agreement included a $150 million equity investment, cross-licensing of patents, guaranteed Microsoft Office support for Mac, and dropped lawsuits that removed billions in potential liabilities. The deal kept Apple alive long enough to launch the iMac and later the iPhone, doubling its desktop market share from 5% to 10% and setting the stage for it to become the world's most valuable company.