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Technology Stocks : How high will Microsoft fly?
MSFT 477.74-2.5%Dec 3 3:59 PM EST

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To: t2 who wrote (17584)3/10/1999 11:42:00 AM
From: ToySoldier  Read Replies (4) of 74651
 
Tech,

There is one big issue about settling that you are not reading in the articles that are being written. The DOJ and MSFT are WIDE APART on the idea of what would be considered an acceptable settlement.

MSFT is likely more than willing to pay a couple Billion $ to call off the DOJ wolves. The DOJ knows that this will not resolve the root problems that MSFT is causing in the industry. The DOJ would likely be willing to settle if remedial action is agreed to that will stop MSFT from ever attempting to carry out these anti-trust violations. This means that MSFT would have to break apart its company, or release its source code, or something to that manner that makes it VERY difficult for MSFT to violate the law again.

MSFT does not want this kind of remediation and very likely not settle on such an offering.

The DOJ knows that any financial penalty on MSFT is just a drop in the bucket which could be re-couped quickly. Therefor there is no preventative aspect to a financial penalty on MSFT, so the DOJ would not accept any financial settlement that MSFT is willing to settle on.

Therefor, this court battle will not end in a settlement. Specially when the DOJ knows they have the upper hand on MSFT's terrible defense showing in the trial. Most Analysts believe that MSFT has already lost this case. So this thing is likely to go into appeal. There will be no settlement between DOJ and MSFT for a long time - years.

This is following a similar path to the DOJ/IBM court history. The only difference IMO is that the DOJ has a much stronger case against MSFT than they did with IBM.

There you go. My thoughts.

Toy

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