How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 486.83

-1.1%

3:59 PM EST

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To: John F. Dowd who wrote (18571)	3/22/1999 9:12:00 PM
From: t2	Read Replies (2) of 74651

John, I think Judge Jackson also knows that Microsoft did not appear to be well prepared for the case whereas the DOJ was. Many would fault him for this since he did not allow enough preparation time as some experts have commented. I don't think he wants that can of worms opened up by the appeals court and expose his "incompetence". If the DOJ and states push this case to a judgement, i believe MSFT will win thanks to Judge Jackson. He will want to "save" his respectability and would not care too much about the government's problems in any borderline decision which this will be. That is, the DOJ will be the party filing the appeal or maybe even negotiating after losing. Maybe even his limiting witnesses could become a problem in appeals. The appeals court judges could make him look incompetent. Microsoft could argue that it would have called consumer groups (pro-MSFT of course) showing how MSFT has benefitted them----then there are corporations which have benefitted. Bottom line is that the Judge's decision is more likely to stand up in appeals if he issues a pro-Microsoft judgement whereas an anti-MSFT judgement could lead to embarrassment for him. Furthermore, if he says IE and Windows is not an intregrated product---the appeals court judges will be "offended" since they would be perceived as being "overturned" by a lower court judge. IMO, MSFT should just give the sense that it bargained in good faith and not give up too much at this point. The government will come around just before a ruling is issued by Jackson--ie 11th hour serious bargaining. I think that is Microsoft's stategy anyways. I think if the government sees it this way, they will try for a serious settlement right now but to get all 19 states to agree is almost impossible. Some i feel are just in it for creating bad press for the company under intense lobbying by some competitors. They don't want it end that easily. We will see how it unfolds.

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