How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 478.53

-1.0%

Dec 12 9:30 AM EST

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To: nommedeguerre who wrote (34718)	11/23/1999 8:04:00 PM
From: John F. Dowd	Read Replies (2) of 74651

NT: If you didn't get that analogy let me put it this way.The point that is being made is that IBM, a then much larger company, was a direct software competitor of MSFT and certainly had their own built in alternative and was a direct competitor of MSFT in the O/S software market. MSFT was under no obligation to sell their software contractually or otherwise to a dead beat competitor who 1. Owed them 10's of millions of dollars and were therefore a bad credit risk and 2. Was a competitor. and 3. Was reluctant to entertain certain restrictions in their contract with MSFT. which would make MSFT feel more comfortable in selling their product to this computer Goliath. No manufacturer except for specific joint ventures sells their branded product to a competitor. It just does not make sense without protection to the original manufacturer. MSFT it is reasonable to assume charged IBM more to offset 1. the fact that IBM was a competitor in the software field and2. IBM was a bad credit risk based on past experience. JFD

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