[HN Gopher] PC-86-DOS
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       PC-86-DOS
        
       Author : kencausey
       Score  : 76 points
       Date   : 2021-09-03 16:45 UTC (6 hours ago)
        
 (HTM) web link (www.os2museum.com)
 (TXT) w3m dump (www.os2museum.com)
        
       | [deleted]
        
       | Crontab wrote:
       | This website has had so many interesting articles over the years.
       | I really appreciate it.
        
       | cmrdporcupine wrote:
       | Reading the history of Seattle Computer Products at
       | https://en.wikipedia.org/wiki/Seattle_Computer_Products it's kind
       | of depressing ... out of the whole deal with Microsoft they seem
       | to have ended up with an initial $75k from Microsoft in 1981
       | ($225k in today's dollars) and then an out of court settlement
       | for $925k in 1985 ($2.3m in today's dollars).
       | 
       | EDIT: It does seem like the actual programmer, Tim Patterson, did
       | better out of it. After working for SCP, he worked a couple
       | stints at Microsoft, and wrote and sold MSX-DOS for the MSX
       | machines as well.
        
         | garaetjjte wrote:
         | Filfre has, as always, great story about it:
         | https://www.filfre.net/2012/05/the-ibm-pc-part-2/
         | https://www.filfre.net/2012/05/the-ibm-pc-part-3/
         | 
         | >Paul Allen negotiated an agreement with SCP owner Rod Brock in
         | January, implying that Microsoft had a whole stable of
         | customers eager to run 86-DOS. The deal would essentially allow
         | Microsoft to act as middleman -- or, if you like, retailer --
         | in these transactions. For each customer to whom they sold a
         | license for 86-DOS, they would pay SCP $10,000, or $15,000 if
         | the license also included the source code. [...] One clause
         | buried in the contract might have raised a red flag: "Nothing
         | in this licensing agreement shall require Microsoft to identify
         | its customer to Seattle Computer Products." Brock later said,
         | "That seemed strange to us, but we agreed to go along." In
         | reality, of course, Microsoft had no stable of eager licensees.
         | They had just one, the biggest fish of all: IBM. Microsoft sold
         | just one license under the agreement, acquiring IBM's operating
         | system for them complete with source for just $25,000.
        
           | ttul wrote:
           | Honestly, that's why you hire good counsel when doing an OEM
           | agreement. It's not an easy type of agreement to write. So
           | many potential loopholes by which either party can screw the
           | other, as Microsoft clearly did here.
        
         | WalterBright wrote:
         | If Tim had invested the proceeds in MSFT, he'd have done all
         | right.
         | 
         | Of course, history is full of "what ifs" which can drive one
         | crazy.
        
           | ffhhj wrote:
           | What if...
           | 
           | > After Microsoft objected to Brock's "exaggerated
           | interpretation" of the agreement and informed Brock that his
           | license was nontransferable, Brock sued for US$60 million.
           | The ensuing lawsuit was highly technical and grew to fill
           | hundreds of pages in the months leading up to trial. The
           | trial began at the end of 1986 and lasted three weeks. An
           | out-of-court settlement was reached while the jury was
           | deliberating. Microsoft paid SCP US$925,000 and reclaimed its
           | license for DOS.
           | 
           | Wow! $60M would have killed the 80's version of MicroSoft.
        
             | cmrdporcupine wrote:
             | And imagine if Brock had settled for $925,000 worth of MSFT
             | instead of cash. MSFT was $0.10 at IPO in 1986 (accounting
             | for splits, actual price was $21 pre-split) , so he'd have
             | had about 9.5 million shares (after all splits). If he'd
             | kept the stock, it'd be worth $2.9 billion now. Not
             | including any dividends.
             | 
             | EDIT: Also, clearly the "$60M" was not a number conjured
             | out of thin air. That's basically Microsoft's market cap at
             | IPO. Suppose Brock was fundamentally trying to make the
             | point that MS's entire financial success had been built off
             | of this deal.
        
               | WalterBright wrote:
               | I wish I could tell my past self to buy MSFT!
        
               | gscott wrote:
               | Buy now, with going to the cloud the stock will just go
               | up.
        
         | xenadu02 wrote:
         | Too bad they didn't insist on some shares in the deal. That
         | would have paid off quite well!
        
           | kencausey wrote:
           | I doubt that Microsoft looked like a great bet in 1981.
        
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       (page generated 2021-09-03 23:02 UTC)