How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 486.98

-1.4%

Nov 19 3:59 PM EST

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To: taxman who wrote (26789)	7/19/1999 9:26:00 PM
From: codawg	Read Replies (2) of 74651

A tracking stock does not create a subsidiary, but it is tracked financially as if it were a separate subsidiary. Some piece of the tracked business will be sold to the public via the tracking stock IPO. Usually this is on the order of 15%-25%. The rest (75%-85%) will remain in MSFTs possession and MSFT shareholders will realize the value indirectly. They will not initially get stock in the new issue, but as the value of the publicly traded portion goes up, so will the value of the portion that MSFT owns and so MSFT stock will benefit. Should MSFT eventually decide to fully spin off the business, then some or all of MSFTs equity in this business would be given to MSFT shareholders.

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