Apple Sold to Microsoft - DirectX 6 - More IE Bugs

The Continuing Crisis

•Following the release of DirectX 5 several months back, Microsoft has already announced that version 6 will be released April 1998. Reportedly the behemoth is doing this to support more 3D video technologies and other useless tripe that will be built into Windows '98 (memphis). Of course their products are always at least 4 months later than the original release date, so expect DX 6 about the same time W98 goes on sale in winter 1998.

What Did They Buy Today?

•Call the weather service, has hell frozen over? Apparently so, because Apple Computer WILLINGLY sold 7% of itself PLUS most of its valuable patents and copyrights to MICROSOFT!!!!! That news was greeted by boos and jeers when Apple co-founder and former CEO Steve Jobs announced it at the 1997 MacWorld conference. Jobs himself is back in Apple management as a board member, along with Oracle CEO Larry Ellison and several other experienced managers.

Microsoft paid between $150 and $250 million for seven precent of Apple plus the right to use some key technologies like Quicktime multimedia. Microsoft's share of the company will come in the form of 'non-voting' stocks, which legally mean Ms has no control over the company, but that isn't entirely true. The monopoly agreed not to sell any of the stock until August 2000. Apple has agreed to make Ms Internet Exploder the default browser for its Macintosh computers. Netscape's web browser will be included, just not as the default.

Apple apparently contacted Microsoft and started the deal on their own. A lot of people have speculated that they needed Ms' money to pay back some upcoming debts, but rumors say Apple found a hole in their patent infringement lawsuit against Microsoft and the money was a payoff to keep everything quiet. What does Update think? Apple needed the money and Microsoft had it, Apple's lawsuits were going nowhere. (Apple agreed to drop all legal actions against the behemoth once the money had been paid.)

What does Microsoft get out of all this? Almost everything. They have partial control over Apple, NeXT (which Apple partially owns) and Job's former company Pixar (the computer animation people). They also get the rights to some key technologies (some of which they were previously using without permission; see lawsuit mentioned above), and they can take another large piece out of Netscape. Since they now control an estimated 75-95% of the earth's computers, the multiplatform compatability issues surrounding Java are dead (as Java may soon be). This also keeps the antitrust lawyers off their tail for a few more years since their biggest competitor is being kept alive through artificial means.

Finally, what's The MSBC's position on the buyout? As before, we support Apple's technology but we do not support the company.

Bug O' The Week

•Microsoft reports that it is investigating yet another bug in Internet Exploder. This time the bug would allow 'malicious programmers' to retrieve images from a user's hard disk or network using Java. The bug affects IE 3.x and 4.x for all Windows platforms. No word why it only affects images, nor why a hacker would want to steal pictures.

MSBC MarketWatch

MSFT Stock Price^{*132 7/8}

Bill Gates' Worth$37.2 Billion

*As Of Closing, 08/15/97
Thanks to Bill Gates Personal Wealth Clock.

Other News From The Wires

Microsoft Apple Deal: Smokescreen?From Techweb

Consortium Segregates the BusFrom Wired News

Microsoft Got Dividends In Apple DealFrom Wired News