September 2, 1997 10:15 AM ET=20
Apple acquires Power Computing
By Margaret Kane, ZDNN
=A0 There's always one surefire way to settle with the competition. Buy 'em=
Apple Computer Inc., fresh from bloody battles with its clone makers, did
just that today, announcing it will buy the core assets of Power Computing
Corp. in a deal worth $100 million.
The Cupertino, Calif., company has been fighting with its clone makers
since the return of founder Steve Jobs, who argued that the licensing deals
were not as beneficial to Apple as they could be. Last week, Apple
surprised the cloners by announcing it would end the program that allows
them and licensees to upgrade to the Mac OS 8. Apple had already stopped
accepting applications for new clone certifications.
Power Computing, a $400 million business, was the strongest of the clone
makers and one of the most vocal in opposing Apple's new policies. It was
also the site of the first victim of the clone wars, when its President and
Chief Operating Officer Joel Kocher left the company last month.
Kocher, a former Dell Computer Corp. executive, had been an outspoken
opponent of Apple's new policies, and his ouster paved the way for Power to
settle with Apple. Talks had been under way, and the companies were rumored
to be discussing a possible settlement.
Instead, they announced today that in exchange for $100 million of Apple
stock, Apple will acquire Power Computing's key assets, including its
customer database, the right to retain certain employees and the license to
distribute the Mac OS.
Power Computing will keep its name and sell Mac OS-compatible machines
through the end of the year.
"Power Computing has pioneered direct marketing and sales in the Macintosh
market," Jobs said in a release. "We look forward to learning from their
experience and welcoming their customers back into the Apple family."
--- Rohit Khare /// MCI Internet Architecture (BOS) /// firstname.lastname@example.org Voice+Pager: (617) 960-5131 VNet: 370-5131 Fax: (617) 960-1009