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Technology Stocks : How high will Microsoft fly?
MSFT 478.29-1.8%Nov 20 3:59 PM EST

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To: John F. Dowd who wrote (36404)1/13/2000 12:55:00 PM
From: Charles T. Russell  Read Replies (1) of 74651
 
>>CT: And who insure(s)<sic> that the OS company does not collaborate with the Applications Co.? Yes the government.<<

I think you're going a bit over the top here. MS would be carved into several parts where each would seek to maximize its own profits. In order to do this, wouldn't the OS division seek to broadcast an equal amount of information to everyone? That would ensure that more product developers would enter the market, guaranteeing the dominant position of the OS (apps drive the os selection, no?).

Common sense and economics 101 would prevail. In the event that it doesn't the government maintains the perogative to step in and enforce prevailing US corporate law or to enforce the terms of this hypothetical breakup

<<And any time MSFT Apps. Co. got ahead competitors would complain and the government would suspect MS OS of cheating and would halt production with an investigation.>>

The apps division would be starting out way ahead to begin with. It would not be in either companies (OS or products) best interest to collude with one another per my argument above. I suspect that a level playing field would result, it would be relatively easy to prove that it exists and prevent rather than provoke competitors from crying foul.

Left to focus on products not litigation, this entity would benefit as well. And, BTW, why not focus on Linux based tools in the process? MS Office for Linux would be killer eh? SQL Server on Linux to combat Oracle.... I would buy a ton of the products division stock.

The real difficulty in the breakup would be dicerning an OS product from an app product. For example where does exchange server fit? How about SQL Server?
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