Microsoft Money 2007If you are a long time Mac user, it is inevitable that at least one of your Windows loving buddies, will tell you the “absolutely false story” of how Microsoft and Bill Gates saved poor little Apple from death by giving them money in 1997. So how did Microsoft’s $150 million dollar investment in Apple stock do, for Microsoft?

Apple shares (AAPL) were selling at $5.43 a share in 1997, closing Friday at $122.06. The potential gain on these shares: $18.1 BILLION! Note: AAPL was selling at $127.53 up 5.31, and Microsoft shares were $27.99 down 0.27 while I write this. Updated for Apple stock that split twice since 1997, on June 21, 2000 and again on February 28, 2005.

By comparison, if Microsoft bought the same amount of its own shares, then selling at $17.67 and closing at $28.25 Friday, the gain would have been ONLY $89.8 million $1.9 billion. Note: Reader Nate points out correctly that Microsoft’s stock has split 3 times since 1997 making the value closer to 1.9 billion. Microsoft split February 23, 1998, May 29, 1999, and again on Feb 18, 2003. I also updated AAPL for the two splits they have. I originally thought these numbers I saw were already adjusted for the splits, but I guess not.

UPDATE: Microsoft SOLD these shares in 2001!

Do you think Apple Computer was a bad investment for Microsoft? This $150 million in non-voting shares of AAPL made them lots of money — BILLIONS, ended a lawsuit Microsoft was losing (also costing both companies lots of money), and helped get the DOJ off Microsoft’s back in the famous case that they lost as a convicted monopolist! Who helped whom? Your take?

Thanks to UNEASYSilence for pointing this out and starting my rant.

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