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Technology Stocks : How high will Microsoft fly?
MSFT 485.49+1.8%Nov 26 3:59 PM EST

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To: Duane L. Olson who wrote (33572)11/10/1999 9:14:00 AM
From: Charles T. Russell  Read Replies (1) of 74651
 
The need for remedy may be obviated by the length of the appeal process or a newly elected government in 2001. But if the break-up happened today I would expect to be along the IBU lines of OS, Application Products, Internet Products and Services etc.,

The real question is defining the gray areas of an OS component and an application component. This argument is similar to the IE debate that occurred during the trial.

I would, as a shareholder and MS/OS user, be very comfortable with the OS unit being split away from the parent company.

But what has justice achieved here? All that they have done is excise the monopoly from the parent corporation. In affect, they would have just created a smaller (Gross Revenue wise) monopoly.

So I would expect that this new unit would be forced to do business in a completely different way. This is an extremely complex issue.

In the history of the United States, I can't recall the government ever breaking up a firm whose major products were intangible assets. Most trust busting was done along the lines of physical plants or broken up based upon regions.

The only way to truly break up a knowledge based / knowledge driven company is to divide the true factors of production: the employees who perform the R&D and create the innovations.

You need King Solomon for this, not Joel Klein.
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