Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 88.13

+1.0%

Nov 21 9:30 AM EST

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To: Dave B who wrote (20193)	5/13/1999 12:57:00 AM
From: MileHigh	Read Replies (2) of 93625

11:05 ET****** MICROSOFT CORP. (MSFT) 80 9/16 +11/16. Bill Gates' interest in cable companies continues to grow as Microsoft is reported to be interested in making an investment in Britain's Cable & Wireless's cable TV unit. Given how the Internet space is being redefined by the entry of AT&T (T 59 1/8 +13/16) into the cable arena and the significance this has for how homes will receive connectivity to the Web, it is not a big mystery why the company is being so active in this area. Microsoft does not want to be shut out from this evolving market as it almost was from the browser market back in 1995 when someone fell asleep in Seattle (actually Redmond, WA). Just last week, MSFT made a $5 billion investment in AT&T to make sure that AT&T would use its Windows CE software and, earlier this week, the company plopped down $600 million in order to secure favorable terms with Nextel Communications NXTL 38 1/8 +1) so that the wireless operator would use the Microsoft Network. Through the various cable specific investments that Microsoft has made in the past 12 months, it is betting that at least one of these bets will pay off. Given the cash trove that the company has at its disposal, there are not too many other companies that could make similar wagers without taking a big hit on their earnings. However, given how much cash its operating system still generates and with little interest of plowing these profits back into their core business, Microsoft is looking for opportunities elsewhere, where the returns will exceed their initial investments. While this strategy does not speak well for the confidence the company may have on its ongoing business, Mr. Gates is being realistic and prudent in guarding his franchise value by leveraging what he already has with what the world is likely to look like in the future. While no one will ever call MSFT a "has been" company, recent investment patterns suggest that MSFT is looking for greener pastures as users move away from the once dominant operating system that MSFT created. Chart

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