In December 1994, Microsoft and UUNET made a deal: UUNET would get the backbone contract for the Microsoft Network; Microsoft would get 13 percent of UUNET.
The arrangement worked out well enough for UUNET - over the next two years, the Microsoft Network delivered more than 40 percent of UUNET revenue. It also delivered wealthy suitors: first MFS, then WorldCom. So what did Microsoft get, beyond a backbone? A pretty good return on its investment, it seems - if it held on to all those UUNET shares (MS execs aren't telling):
25 May 1995: UUNET goes public
Microsoft's shares: 4.2 million*
Worth: US$58 million
19 Aug 1996: UUNET merges with MFS. Each UUNET stock converts to 1.78 shares of MFS stock.
Microsoft's shares: 7.5 million
Worth: $263 million
31 Dec 96: MFS merges with WorldCom. Each MFS stock converts to 2.1 shares of WorldCom stock.
Microsoft's shares: 15.75 million
Worth: $599 million
Date TBD: WorldCom buys MCI
Microsoft's shares: Unknown
Worth: Unknown
*all numbers approximate
Sources: SEC, WorldCom, MFS, UUNET
