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Apple ponders Newton sale
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April 10, 1997: 9:16 a.m. ET
Apple looks to sell operating system for hand-helds to Sun Microsystems
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NEW YORK (CNNfn) -- Apple Computer is reportedly in talks about the possible sale of its Newton division to Sun Microsystems.
USA Today said that Apple is looking to cut costs and sees the sale of Newton, the operating system for its hand-held MessagePad computer and its eMate portable for children, as way to enable it to focus on its core Macintosh business. Neither company would comment on the talks.
The price of a possible deal is difficult to discern. Two years ago, Apple wanted $200 million but earlier this year a group of investors offered $20 million for Newton and Pippin, Apple's Internet surfer/game player.
The eMate, which retails at $700, and MessagePad, priced at $1,000, are selling well but so far the division has not turned a profit.
As a whole, Apple has lost $936 million over the past five quarters and is in the midst of another restructuring which will involve cutting costs and laying off employees.
Apple hopes to sell the division and have the buyer make eMates for Apple to sell. Sun Microsystems could use the MessagePad as a mobile network computer, USA Today said.
The two companies have been in talks before. Last year, Apple rejected Sun Microsystems' bid to buy Apple and rumors of merger talks resurfaced again last week, but the talks seemed to be about Newton and Java, Sun's programming language.
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