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Jobs to sell some Apple
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June 2, 1997: 9:43 a.m. ET
Stock obtained in NeXT acquisition; New OS seen cannibalizing customers
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NEW YORK (CNNfn) -- Apple Computer Inc. co-founder Steven P. Jobs has filed to sell 1.5 million shares in the troubled computer maker, which would liquidate virtually his entire stake in the company.
The shares, which make up approximately 1.19 percent of the outstanding stock, were obtained in connection with $430-million-purchase of NeXT Software Inc., according to documents filed with the Securities and Exchange Commission. The filing was made Friday after the closing bell.
Jobs intends to keep just one share of Apple stock.
The Cupertino, Calif.-based computer maker acquired NeXT in February in hopes to integrate its technologies to develop a new operating system, now code-named "Rhapsody."
To be sure, Apple confirmed many analysts' concern in the filing by conceding that Rhapsody's release could cannibalize the customer base for its current Mac-OS.
"Rhapsody may not be fully backward-compatible with all existing applications, which could result in a loss of existing customers," the company said.
Apple has already started to integrate NeXT's knowledge base into its business strategies. Avie Tevanian, formerly head of research and development under Jobs, has been named head of Apple's software research, a trade article recently reported.
Yet, success still depends on several factors, including acceptance of the new OS by third-party software developers.
Shares of Apple Computer (AAPL) were up 5/16 at 16-15/16 in early Monday trading.
With a proposed offering price as high as 16-13/16, Jobs could raise as much as $25 million in the offering. No proceeds will go to the company.
A high-drama transaction marked Jobs' return to the company he co-founded and once headed before losing a power struggle to now-former CEO John Sculley.
But, Jobs has returned to a very different company -- one that is struggling with a series of quarterly losses in the face of declining market share.
In the filing, Apple reiterated that it won't return to profitability until the fourth quarter, if not later. As of the second quarter, its market share has dropped to 3.1 percent from 5.8 percent in the U.S. and to 4.0 percent from 7.3 percent worldwide, the company said citing industry sources.
-- Robert Liu
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