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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: Greg Jung who wrote (36518)1/14/2000 3:17:00 PM
From: Alan Buckley  Read Replies (3) of 74651
 
Like the rest of the DOJs ridiculous case, the breakup scheme totally ignores consumers. The market reality is that OS consumers care *far* more about compatibility than they do about choice or even, within reason, price. From the point of view of actually using computers this is perfectly rational, not coerced.

Fortunately, such a break up will mend itself in relatively short order. MSFTs assets are intellectual, not physical. Everybody at MSFT knows who the strongest people are and will migrate to whichever Windows company is initially stronger. As soon as it becomes clear which of the two is attracting the A people (and it will take only a matter of weeks), consumers will buy WindowsA instead of WindowsB. WindowsB will quickly be as attractive as Windows95 is compared to Windows98.

It will be fascinating to see how the DOJ tries to prevent MSFTies from moving between the two companies or to a third company. Whatever it is, it's not going to sit well with the average American who believes it's everyone's right to work where you please. As soon as the proposed "remedies" are formally filed, I think you'll see public opinion swing even more strongly to MSFTs side.
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