It's Official: Ibm And Apple Tie The Knot

IBM and Apple Computer finally signed on the dotted line on Oct. 2. As expected, the personal computer industry's No. 1 and No. 2 players agreed to develop software and multimedia and networking technology, while IBM and Motorola will work together on microprocessors. The three companies emphasized that the results of their work will be available to the rest of the industry. "This is not an exclusive exchange," Apple Chairman John Sculley said.

The most ambitious aspect of the Apple-IBM deal: two jointly-owned startups. The first, called Taligent (a fusion of talent and intelligence), will write a new operating system. Kaleida (for kaleidoscope) will develop formulas for integrating video and sound with the PC. IBM and Apple wouldn't discuss financial terms.