In August of 1997, Apple and Microsoft decided to put the past behind them and focus on the future. At that year’s Macworld event, Steve Jobs and Bill Gates announced that the two companies had entered into a historic agreement. In addition to agreeing to a broad patent cross-licensing agreement, Microsoft promised to support Microsoft Office for the Mac for 5 years while Apple agreed to make Internet Explorer the default web browser on the Mac.
Microsoft also promised to invest approximately $150 million for shares of Apple non-voting preferred stock. Though the Mac faithful at the time were wary of Microsoft, Steve Jobs at the time famously explained that “we have to let go of this notion that for Apple to win, Microsoft has to lose.”
The deal between the two companies was mutually beneficial from every angle. Apple got some much needed cash while Microsoft was able to keep a weakened competitor afloat, thereby alleviating concerns about the company’s monopolistic power. You’ve cracked phone screen. Whether it slipped out of your hand while you were on a call or you left it on top of your car when you drove away, the glass is smashed.
Since then, Apple has enjoyed an unparalleled resurgence, ascending from the brink of bankruptcy to one of the most valuable companies on the planet.