Sunday, October 14, 2012

The 1986 Microsoft Prospectus and Stock Performance vs. Google (MSFT; GOOG)

 I saw the comparison chart from Barry Ritholtz (below) and realized we might have the Final Prospectus on the PDF server.
If that had failed I think there's a red herring copy on dead trees around here somewhere.

Thanks to Patrick Lannigan for keeping it alive on the internet.

PROSPECTUS SUMMARY

The following summary is qualified in its entirety by the more detailed information and Consolidated Financial Statements appearing elsewhere in this Prospectus. All information relating to the Company's Common Stock contained in this Prospectus, except as presented in the Consolidated Financial Statements, reflects the conversion of all outstanding shares of Preferred Stock into Common Stock on the date of this Prospectus.

The Company

Microsoft designs, develops, markets, and supports a product line of systems and applications microcomputer software for business and professional use. The Microsoft Software Product Line chart inside the front cover of this Prospectus illustrates the evolution and diversity of the Company's product line. Microsoft’s systems software products include Microsoft® MS-DOS®, a 16-bit microcomputer operating system used on the IBM PC and IBM compatible computers, and computer language products in six computer languages. The Company offers business applications software products in the following categories: word processing, spreadsheet, file management, graphics, communications, and project management. The Company's products are available for 8-bit, 16-bit, and 32-bit microcomputers, including IBM, Tandy, Apple, COMPAQ, Olivetti, AT&T, Zenith, Wang, Hewlett-Packard, DEC, Siemens, Philips, Mitsubishi, and NEC. Microsoft develops most of its software products internally using proprietary development tools and methodology. The Company markets and distributes its products domestically and internationally through the original equipment manufacturer (“OEM”) channel and through the retail channel primarily by means of independent distributors and dealers and by direct marketing to corporate, governmental, and educational

Here's the whole thing (52 page PDF)

And from The Big Picture:

Click to enlarge:

Source: Bloomberg
Fascinating comparison between Google and Microsoft gains since their IPOs from Dave Wilson. Earlier this month, Google managed to slip past Mister Softee in terms of market cap  (MSFT is now $244.8B vs GOOG $243.56B).

Microsoft Corp.’s stock-market performance during its first eight years as a public company far surpassed Google. MSFT soared about 30-fold in the 8 year period after its March 1986 IPO, peaked at more than $600 billion in cap in December 1999....MORE