Apple grabs $150m Microsoft lifeline

Apple Computer yesterday grabbed hold of a lifeline from a source that only a short while ago would have seemed unthinkable - Bill Gates and the Microsoft Corporation.

Stunning delegates at a MacWorld convention in Boston, Steve Jobs, an Apple co-founder, unveiled a sweeping shake-up of the Apple board and announced that Microsoft would invest $150m (pounds 94m) in stock in the company.

"If we want to see Apple move forward," a clearly energised Mr Jobs declared, "we have to let go of a few things here. We have to let go of the notion that for Apple to win, Microsoft has to lose."

The extraordinary news was warmly welcomed by investors, who quickly pushed up Apple shares trading on the Nasdaq in New York. By midday, they were up $7 to $27 a share.

The announcements offered a rare beam of sunshine for Apple, which has lost more than $1.5bn over the last 18 months and was most recently rocked by the July ousting of its fourth chief executive, Gilbert Amelio, in its brief 21-year history.

Among those joining the board will be Mr Jobs as well as the founder of the Oracle Corporation, Larry Ellison, who earlier this year flirted with a buyout of the company. Other newcomers are Jerome York, the former chief financial officer of IBM, and Bill Campbell, the chief executive of Intuit.

Those resigning their positions are, most notably, Mike Markkula, a former Apple chairman and board member for 20 years, as well as Katherine Hudson and Bernard Goldstein.

As well injecting money into Apple, Microsoft will offer a new version of its Office software designed for use on the Macintosh platform. In the meantime, Apple has agreed to bundle Microsoft's still-struggling Microsoft Internet Explorer into its Mac Operating System.

There was some suggestion that Mr Gates may be anxious to keep Apple afloat to forestall a scenario where, following an Apple demise, a virtual monopoly hold by Microsoft on the software market would inevitably attract negative attention from fair competition regulators in Washington.

In a satellite appearance before MacWorld, Mr Gates called the new deal "very exciting".

He added: "We think Apple makes a huge contribution in the computer industry. And we think it's going to be a lot of fun helping out."

While some die-hard Mac fans may be appalled by the bear-hug from the company's long-time foe, Mr Jobs appealed for humility.

"We need all the help we can get. We better treat Microsoft with a little gratitude," he said.

There was no announcement on who will replace Mr Amelio or, indeed, who will assume the chairmanship of the new Apple board. However, speculation was rife that Mr Jobs may be selected for either or both the positions.

PROMOTED VIDEO
Arts and Entertainment
Jamie Dornan stars as Christian Grey in the Fifty Shades of Grey movie
filmFirst look at Jamie Dornan in Fifty Shades of Grey trailor
News
Lars Ulrich of Metallica performs on the Pyramid Stage at Glastonbury 2014
music
Sport
Shinji Kagawa and Reece James celebrate after the latter scores in Manchester United's 7-0 victory over LA Galaxy
football
Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
Sport
Farah returns to the track with something to prove
Commonwealth games
Life and Style
fashion Designs are part of feminist art project by a British student
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
film
News
Very tasty: Vladimir Putin dining alone, perhaps sensibly
news
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
Top guns: Cole advised the makers of Second World War film Fury, starring Brad Pitt
filmLt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a uniform
Life and Style
Listen here: Apple EarPods offer an alternative
techAre custom, 3D printed earbuds the solution?
News
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
News
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
Arts and Entertainment
A scene from Shakespeare in Love at the Noel Coward Theatre
theatreReview: Shakespeare in Love has moments of sheer stage poetry mixed with effervescent fun
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Service Charge Accountant

£20,000 - £22,000 per annum: Recruitment Genius: This Property Management Grou...

IT Transition Manager - Stirling - Banking - £400

£400 - £420 per day: Orgtel: IT Transition Manager - Banking - Scotland - £400...

Test Lead - Financial Reporting - Banking - London

£350 - £400 per day: Orgtel: Test Lead, London, Banking, Financial Reporting, ...

Business Analyst, Retail Bank, £375-400p/d

£375 - £400 per day + competitive: Orgtel: My client, a leading bank, is curre...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game