Comments on: Microsoft Could Have Made Billions Off of Apple Stock – UPDATED http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/ Video, Technology, Digital LifeStyle, Macintosh Tips, and Opinions Thu, 06 Oct 2011 00:18:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Spanner http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-179155 Spanner Tue, 07 Apr 2009 21:22:25 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-179155 Joe, What do you mean Microsoft is "not a trading institution".... surely its traded on NASDAQ and on the Dow Jones Index? Next you say Microsoft "sold its (Apple) shares in 2000 and 2001" but then say it converted them too common stock. Was there 2 tranches of shares as I heard MS sold its Apple shares in 2002? Excuse my ignorance! Joe,

What do you mean Microsoft is “not a trading institution”…. surely its traded on NASDAQ and on the Dow Jones Index?

Next you say Microsoft “sold its (Apple) shares in 2000 and 2001″ but then say it converted them too common stock. Was there 2 tranches of shares as I heard MS sold its Apple shares in 2002?

Excuse my ignorance!

]]> By: Joe http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-47687 Joe Thu, 25 Oct 2007 17:32:47 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-47687 There is no evidence that Microsoft ever sold off the common stock shares. The initial investment was for non-voting prefered stock shares which are handled differently than common stock, in 2000 and 2001 they were converted to common stock as Jonathan Lehr pointed out. The total amount of shares is less than 5% of Apple's common stock, so they would not be listed as a major holder of 5% or more, Microsoft is not a trading institution, so they wouldn't reported as owners under that heading. Basically, without having direct access to Microsoft's stock portfolio, there is no way to know whether they sold the stock or not. The only quotes from Microsoft employees I've ever seen on this matter come from an Engineer unfamiliar with the details of the deal and a short confirmation from a Microsoft PR rep that confirmed that the original agreement between Apple and Microsoft had been concluded, neither of which gave any indication as to what happened to the Apple common stock. There is no evidence that Microsoft ever sold off the common stock shares. The initial investment was for non-voting prefered stock shares which are handled differently than common stock, in 2000 and 2001 they were converted to common stock as Jonathan Lehr pointed out. The total amount of shares is less than 5% of Apple’s common stock, so they would not be listed as a major holder of 5% or more, Microsoft is not a trading institution, so they wouldn’t reported as owners under that heading. Basically, without having direct access to Microsoft’s stock portfolio, there is no way to know whether they sold the stock or not.

The only quotes from Microsoft employees I’ve ever seen on this matter come from an Engineer unfamiliar with the details of the deal and a short confirmation from a Microsoft PR rep that confirmed that the original agreement between Apple and Microsoft had been concluded, neither of which gave any indication as to what happened to the Apple common stock.

]]> By: » How Much Did Microsoft Lose By Selling Apple Stock? »  InsideMicrosoft - part of the Blog News Channel http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40879 » How Much Did Microsoft Lose By Selling Apple Stock? »  InsideMicrosoft - part of the Blog News Channel Wed, 22 Aug 2007 23:05:45 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40879 [...] by a ReelSmart post with some very strange math that claims the stock would somehow be worth over $50 billion, via [...] [...] by a ReelSmart post with some very strange math that claims the stock would somehow be worth over $50 billion, via [...]

]]> By: Stephen Antonucci http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40846 Stephen Antonucci Wed, 22 Aug 2007 13:59:17 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40846 Thanks Jonathan for the input and information. But isn't true that MS invested the original 150 million in 1997? There have been two AAPL splits and three for MS stock in that period. Anyway, the point to this post was to point out that MS buying AAPL shares had a potential huge windfall, larger than if they bought their own stock with the main point is that MS did not save Apple. Apple saved Apple. The numbers I collected may have been off, but I think the point prevailed. Thanks Jonathan for the input and information. But isn’t true that MS invested the original 150 million in 1997? There have been two AAPL splits and three for MS stock in that period.

Anyway, the point to this post was to point out that MS buying AAPL shares had a potential huge windfall, larger than if they bought their own stock with the main point is that MS did not save Apple. Apple saved Apple. The numbers I collected may have been off, but I think the point prevailed.

]]> By: Jonathan Lehr http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40840 Jonathan Lehr Wed, 22 Aug 2007 11:32:15 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40840 A little fact-checking <i>prior to</i> publication might be in order. Microsoft bought $150 million of convertible preferred shares which automatically converted to common stock at a conversion price of $8.25 per share upon sale. Microsoft sold the shares in two blocks, one in September 2000, and the other in the first quarter of 2001, converting their preferred shares to a total of 17.8 million shares of common stock. One two-for-one split of Apple shares has occurred since that time, so if Microsoft still owned their original preferred shares, they would convert today to 35.6 million shares. At $127.57 per share (the price of AAPL at yesterday's close), that would amount to $4.54 billion, or 30 times the original amount invested. A little fact-checking prior to publication might be in order. Microsoft bought $150 million of convertible preferred shares which automatically converted to common stock at a conversion price of $8.25 per share upon sale. Microsoft sold the shares in two blocks, one in September 2000, and the other in the first quarter of 2001, converting their preferred shares to a total of 17.8 million shares of common stock.

One two-for-one split of Apple shares has occurred since that time, so if Microsoft still owned their original preferred shares, they would convert today to 35.6 million shares. At $127.57 per share (the price of AAPL at yesterday’s close), that would amount to $4.54 billion, or 30 times the original amount invested.

]]> By: ray http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40799 ray Wed, 22 Aug 2007 01:04:07 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40799 You also forget that Microsoft issues dividends, while Apple does not. You also forget that Microsoft issues dividends, while Apple does not.

]]> By: Stephen Antonucci http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40792 Stephen Antonucci Tue, 21 Aug 2007 22:16:30 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40792 Thanks for pointing out my errors. I originally thought these numbers were already adjusted for the splits, they apparently were not. I updated the post, the numbers were wrong, but the story is the same. Thanks for pointing out my errors. I originally thought these numbers were already adjusted for the splits, they apparently were not.

I updated the post, the numbers were wrong, but the story is the same.

]]> By: dennis http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40791 dennis Tue, 21 Aug 2007 22:06:14 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40791 apple stock split in 2005 so many facts off apple stock split in 2005

so many facts off

]]> By: Nate http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40784 Nate Tue, 21 Aug 2007 19:38:53 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40784 You're forgetting the fact that Microsoft's stock has split 3 times since 1997. The actual value of $150M of Microsoft stock in 1997 is around $1.9B as of close on Friday. While its not as impressive as the $18B that you'd get from Apple, its certainly a lot better than the number you gave. Get your facts straight. You’re forgetting the fact that Microsoft’s stock has split 3 times since 1997. The actual value of $150M of Microsoft stock in 1997 is around $1.9B as of close on Friday. While its not as impressive as the $18B that you’d get from Apple, its certainly a lot better than the number you gave. Get your facts straight.

]]> By: Stephen Antonucci http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40781 Stephen Antonucci Tue, 21 Aug 2007 18:44:57 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40781 I checked it out. You are right. I guess they wished didn't now. Shows a big hole in the Microsoft saved Apple saga that is falsely portrayed by some. Thanks Siva! I checked it out. You are right. I guess they wished didn’t now. Shows a big hole in the Microsoft saved Apple saga that is falsely portrayed by some. Thanks Siva!

]]> By: DBL http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40780 DBL Tue, 21 Aug 2007 18:44:01 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40780 What's your evidence for Microsoft even still having these shares? According to many sources I have read over the years, Apple stopped reporting Microsoft as a major shareholder in around the year 2000. What’s your evidence for Microsoft even still having these shares? According to many sources I have read over the years, Apple stopped reporting Microsoft as a major shareholder in around the year 2000.

]]> By: Siva http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/comment-page-1/#comment-40779 Siva Tue, 21 Aug 2007 18:35:21 +0000 http://www.reelsmart.com/2007/08/21/microsoft-has-made-billions-off-of-apple-stock/#comment-40779 Except microsoft already sold those shares back in 2001. Except microsoft already sold those shares back in 2001.

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