I am sure that MSFT will not agree to split up the company into 2 or 3 identical companies. IF this were to happen, they would only compete against each other---cutting prices. This kind of split is nonsense.
However a break up of its parts, one operating system, applications software, MSN etc----will be worth a fortune.(this is what Bill Gates and company would do if the courts ordered them) Of course there will no regulation like the telephone companies. The "baby microsofts" would "hunt", like a predator, to corner as many areas of the market as possible. If you thought the competition is worried now, they will be terrified if this happens. That is why people like Ellison are suggesting 3 identical companies to weaken its powers a little. Separation by division, however, will make the baby microsofts very hard to compete with. Others will not be able to go "crying" to the DOJ again.
You have to remember that this thing is going to drag out in the courts for a lot time. At this time a break up is not even suggested. Therefore, DOJ would have to start all over again. This is why I say 5 to 10 years is the earliest. If they were to actually split in 5 to 10yrs, I bet you it would be under management's terms--which means no identical companies but a split by divisions. Otherwise, the process would drag on and on.
Personally, I don't see a break up unless MSFT gets too dominant. If they get much more stonger, the shares should be worth about $800---I am just using a big number for illustration.
JMHO. |