December 21, 1996 8:00 AM ET
Apple to buy NeXT
By John Dodge

  Apple Computer Co. late Friday night announced plans to purchase NeXT Software for $400 million -- a deal that returns NeXT founder and Apple co-founder Steven P. Jobs to the company that started the personal computer revolution 20 years ago.

NeXT will be merged into one operation, which will be owned and managed by Apple. After a ten year hiatus, Jobs will return, reporting to Apple chairman and CEO Gil Amelio.

"As we looked at various partners for our operating system development, we discovered that Apple and NeXT had surprisingly complementary products, technologies, and services. The more we looked at the two companies, the more we realized that we each were strong where the other faced challenges. In many ways, we filled the blanks in each others' strategies," Amelio said. Specifically, Amelio said Apple needed "a truly modern operating system.," and NeXT needed Apple's 26 million Macintosh installed base.

Apple will pay $350 million to buy NeXT's shares and $50 million to pay off NeXT's debts.

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