mithomas@bsu-cs.bsu.edu (Michael Thomas Niehaus) (07/07/89)
APPLE TO SELL ADOBE SHARES
CUPERTINO, California--July 6, 1989--Apple Computer,
Inc. today announced its intention to sell all of the
3,423,792 shares of Common Stock of Adobe Systems
Incorporated that Apple currently holds, representing
approximately 16.4 percent of Adobe's outstanding
shares. Apple acquired the shares in November 1984
at an aggregrate price of approximately $2.5 million,
in connection with a product development arrangement
between the companies. Based on the price of Adobe
Stock on June 30, 1989, the shares have a current
value of approximately $91 million.
Albert Eisenstat, senior vice president and secretary
of Apple, stated, "Adobe's PostScript products have had a
significant role in the success of Apple's Macintosh
products, and our companies continue to have a mutually
beneficial relationship. We are selling the shares
principally to take advantage of the significant
appreciation in Adobe Stock that has resulted from
Adobe's success."
Apple indicated that it further believes that now
is an appropriate time for Apple to sell its Adobe
shares because Apple's current development directions
are diverging from those of Adobe. Apple is developing
certain technologies that are competitive with
technologies of Adobe. On May 9, 1989, Apple announced
to developers and the public plans for font software,
which software is expected to be included in the next
major release of Apple's Macintosh System Software.
Apple believes that this technology will offer to
Macintosh users uniform font generation capabilities
across a broad range of output devices, including screen
displays, laser and non-laser printers and other devices.
Apple may make certain components of this techology
available to third parties, including font trademark
owners. Apple is also in the process of negotiating
directly with certain font trademark owners to obtain
licenses for use on Apple computers, font software and
printers of the owners' font trademarks, some of which
are currently being utilized through a sublicense from
Adobe.
Apple also indicated today that it is developing
an alternative interpreter for the PostScript page
description language used in certain of Apple's LaserWriter
printers. Apple stated that it desires to have the
flexibility to determine what additional features and
enhancements should be provided in its PostScript language
interpreter and to avoid the payment of license fees to
Adobe on certain printer products. In all likelihood,
any such PostScript interpreter alternative would initially
be offered in new Apple printer products. Apple currently
believes that its font software and interpreter could be
available sometime between the spring of 1990 and the
fall of 1990.
Apple believes that certain of its customers will
continue to request the Adobe implementations on certain
existing and future printer products, notwithstanding the
availability of alternatives from Apple. For this
reason, Apple currently intends to continue to support
the Adobe interpreter and related technologies on such
printer products, even if and after Apple offers its
alternatives.
Apple believes that, to the extent it successfully
produces and achieves customer acceptance for any of its
alternatives to the PostScript interpreter, font software
and related trademarks currently provided by Adobe,
revenues to Adobe from Apple could, over a period of
years, decrease substantially and eventually be eliminated.
However, Apple believes that any decline in such revenues
would be gradual.
Apple will be selling the shares to Morgan Stanley & Co.
Incorporated and Hambrecht & Quist Incorporated for resale to
the public in an underwritten offering.
[From AppleLink, 07/06/89]
-Michael
--
Michael Niehaus UUCP: <backbones>!{iuvax,pur-ee}!bsu-cs!mithomas
Apple Student Rep ARPA: mithomas@bsu-cs.bsu.edu
Ball State University AppleLink: ST0374 (from UUCP: st0374@applelink.apple.com)bmug@garnet.berkeley.edu (BMUG) (07/07/89)
In article <8126@bsu-cs.bsu.edu> mithomas@bsu-cs.bsu.edu (Michael Thomas Niehaus) quotes an AppleLink news release: (stuff deleted about Apple selling all of its Adobe stock) >Apple acquired the shares in November 1984 >at an aggregrate price of approximately $2.5 million, >in connection with a product development arrangement >between the companies. Based on the price of Adobe >Stock on June 30, 1989, the shares have a current >value of approximately $91 million. A tidy profit. OK, so if you were Apple Computer, with $91 million to spend, what would you do with the money? We all know it would be neat to extend Mac warranties to five years, etc., but let's be real. For instance, what company would you buy, and why? Or would you sink all of it into R&D? Or should Apple purchase the site of Club Med in CanCun for its tired and weary employees? If you have an insightful or witty suggestion, reply via email and I'll provide a short summary, depending on the aggregate replies and interest. John Heckendorn /\ BMUG ARPA: bmug@garnet.berkeley.EDU A__A 1442A Walnut St., #62 BITNET: bmug@ucbgarne |()| Berkeley, CA 94709 Phone: (415) 549-2684 | |