June 13, 1989: Canon Inc. invests $100 million in NeXT Inc., the computer company founded by Steve Jobs after he left Apple.
The massive cash infusion gives Canon a 16.67% stake in NeXT. It also helps the money-losing company find a direction that ultimately leads Jobs back to Cupertino.
Canon invests $100 million in Next Inc.
For many Apple fans who remember Steve Jobs only as the austere, turtleneck-wearing digital emperor he was during his CEO stint at Apple, his years at NeXT Inc. — the company he founded after parting ways with Apple in 1985 — remain something of a mystery.
In many Jobs biographies, NeXT Inc. is often largely skipped over. In fact, the company had its own fascinating trajectory — and one of its big turning points was a June 13, 1989, investment by Canon, which (briefly) left Jobs’ would-be Apple beater flush with cash.
After leaving Apple, Jobs put a lot of his own money into NeXT Inc., which quickly began hemorrhaging cash. Japanese company Canon produced the optical disk drive for the NeXT Computer, which launched in 1988, as well as a key component for its printer.
In June 1989, Jobs flew to Tokyo along with two other key NeXT executives to seek additional funds. Canon was impressed — and offered $100 million in exchange for a 16.67% stake in the company.
A turning point for a troubled company
Jobs accepted, and the extra cash raised NeXT Inc.’s valuation to $600 million — an impressive amount, considering the fact that the company had only 200 employees at the time. Jobs celebrated by moving NeXT to a new HQ in Redwood City, California, which he ordered to be lavishly redecorated.
While not strictly a moment in Apple history so much as Steve Jobs’ history, the Canon investment proved significant. It helped transform NeXT Inc. from Jobs’ original niche idea of building a super-powered computer for higher education to creating a machine aimed at selling to companies. When NeXT’s software later helped form the basis of OS X, and Jobs rejoined Apple, the focus on selling computers to businesses continued.
Besides all that, isn’t it crazy to think there was a time when $100 million would buy a 16.67% share of a company founded by Steve Jobs? (Even if that company didn’t turn out to be Apple!)
Luke Dormehl is a UK-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Formula: How Algorithms Solve All Our Problems, And Create More and The Apple Revolution, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme, and other publications. He’d like you a lot if you followed him on Twitter.
