Steve Jobs returned to Apple in 1997 and later said it was 90 days from going bankrupt. He struck a deal with Apple's biggest rival - Microsoft - to survive: they invested $150 million in non-voting preferred Apple stock. When Jobs announced it at Macworld Boston, Bill Gates appeared live via satellite on a giant screen above the stage. The crowd booed. Jobs later called it his worst staging mistake ever.
Microsoft Saved Apple - $150 Million and a Stage Full of Boos
In the summer of 1997, Apple was weeks from collapse. The company had burned through cash, lost billions, and laid off thousands. Steve Jobs - just returned as interim CEO after being pushed out 12 years earlier - walked into a near-insolvent company and faced a stark choice.
90 Days From Disaster
Jobs would later reveal the full scale of the crisis at the All Things D conference, saying Apple was "90 days from going bankrupt." The company needed cash and it needed it fast. Jobs began cutting product lines, but survival required an outside lifeline. The solution he landed on was the last thing anyone expected: he called Microsoft.
The Enemy Steps In
Apple and Microsoft were bitter rivals. Apple had spent years in court claiming that Windows had stolen the look and feel of the Mac's graphical interface. In August 1997, the two companies ended their legal war. Microsoft agreed to invest $150 million in non-voting Apple preferred stock, committed to developing Microsoft Office for Mac for at least five more years, and settled all outstanding patent disputes. In return, Apple dropped the lawsuit and agreed to make Internet Explorer the default browser on every Mac.
The Worst Staging Mistake of His Life
Jobs announced the deal on August 6, 1997 at Macworld Boston. The moment he had planned as a triumph turned into something else entirely. Bill Gates appeared live via satellite on a massive screen behind Jobs - looming so large over the stage that the audience erupted in boos and jeers. The visual was hard to ignore: it looked like Big Brother from Apple's own 1984 ad, only now Gates was the giant face looking down. Jobs later told biographer Walter Isaacson: "That was my worst and stupidest staging mistake of my life." He said it "made me look small, and Apple look small, and as if everything was in Bill's hands."
Jobs Thanked Him Anyway
Despite the crowd's hostility, Jobs closed the announcement with a line that became famous: "Bill, thank you. The world's a better place." The $150 million bought Apple the breathing room it needed. Within three years, the iMac had launched, the stock had recovered, and the company was on its way to becoming the most valuable in history. Microsoft sold its Apple shares in 2003 for around $550 million - and Apple never looked back.
Frequently Asked Questions
Why did Microsoft invest $150 million in Apple in 1997?
Was Apple really close to bankruptcy in 1997?
Why did the crowd boo when Bill Gates appeared at Macworld 1997?
What did Microsoft get in return for investing in Apple?
How did the Microsoft investment help Apple recover?
Verified Fact
Verified Jun 15, 2026 · 6 sources checked
Source: CNBCShow verification details
Verified 2026-06-15. 6 sources checked. Primary source: Microsoft press release Aug 6 1997 (news.microsoft.com/source/1997/08/06/...) + Fortune/Isaacson biography (fortune.com) + TNW All Things D report (thenextweb.com/news/steve-jobs-90-days) + Stratechery keynote transcript + Inc.com $550M sale. Claims checked: - CORRECTED: original text said 'Bill Gates invested $150 million' - it was MICROSOFT (corporate) that invested, not Gates personally. Corrected to 'Microsoft... invested' in text and social_text. - CORRECTED: '90 days from going bankrupt' framing - this is Jobs's own later phrasing (All Things D conference, June 2 2010), not an objective contemporary fact. Corrected text to 'later said it was 90 days from going bankrupt'. Article already correctly attributes to All Things D. Caption updated to 'by Steve Jobs's own account'. - CORRECTED: 'non-voting Apple stock' upgraded to 'non-voting preferred Apple stock' to match Microsoft press release and article. - CONFIRMED: Date August 6 1997 - confirmed via Microsoft press release dated Aug 6 1997. - CONFIRMED: Macworld Boston - confirmed across all sources. - CONFIRMED: Gates appeared via satellite on giant screen (live satellite feed) - confirmed Stratechery keynote transcript (Jobs said 'via satellite downlink'). - CONFIRMED: Crowd booed - confirmed across all sources (mixed: boos + jeering + some applause). - CONFIRMED: Jobs 'worst and stupidest staging mistake of my life' - Isaacson biography, reported Fortune Oct 2011. Short form 'worst staging mistake ever' is acceptable paraphrase; full quote in article. - CONFIRMED: 'Bill, thank you. The world's a better place' - confirmed across CNBC, Benzinga, TechPP. - CONFIRMED: $550 million Microsoft sale in 2003 - confirmed Inc.com + multiple sources. Held ~6 years (1997-2003). Shares converted preferred to common ~2001, sold on market 2002-2003. - ENGINE: engine=2 = Engine-1. Jobs+Gates are recognizable-on-sight and they ARE the story. engine_note corrected to reflect Engine-1 classification. mainstream_novelty=1 means passes_vetoes=false. - MAINSTREAM NOVELTY: Confirmed honest at 1. One of the most-retold tech stories of the 1990s/2000s. Do NOT inflate to 2. - source_url (cnbc.com 2017) covers all headline specifics. Discrepancies corrected: 3 (entity attribution, 90-days framing, preferred stock precision). No remaining issues.