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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: RTev who wrote (25875)	7/12/1999 6:31:00 PM
From: Sir Francis Drake	Read Replies (1) \| Respond to of 74651

<<Microsoft may be closing its Sidewalk offices.>> Wouldn't that be pretty bearish from the point of view of MSFT shifting their business paradigm toward a more internet oriented business? This is very significant, in my view. For it means one of several things: a) MSFT is incapable of competing with "true" internet enterprises (such as AOL etc.), and so is abandoning the field. I reject this interpretation. MSFT is nothing if not a persistent and resourceful competitor. b) MSFT has done an in-depth study and concluded that no current model of internet enterprises can make them consistent money at the kind of profit margins that would justify the outlay of capital and administrative talent. Therefore, they are getting ready to jettison the whole ad-based revenue model for a good price, before the rest of the market realizes that the internet emperor has no clothes. I reject this, because MSFT is not anxious to exit a business that has future potential, and is still evolving. I think MSFT prefers to give it the benefit of doubt in this fast evolving field, rather than be accused of "missing the boat". On the other hand, wasn't it not too long ago when MSFT was negotiating w/ T to sell their stake in MSN? Was this bogus info? Or was this an early attempt to get into the set-top and cable area by doing a swap of MSN for such access - and instead, after T rejected this, they went ahead and plunked down $5 billion? c) MSFT has a completely different idea of how to make the internet business work for them - and so they think the whole Sidewalk model is not good enough, and in fact they have a brand new model they'll introduce in due time? d) The whole "closing Sidewalk" story is based on inaccurate info - MSFT has no such plans? Personally I hope it's either c), or d). In any case, I think this is a very important issue. After all, we are dealing with the whole future business model of MSFT. I think if MSFT bails on MSN and/or Sidewalk - the consequences of this move will reverberate very powerfully with investors and business analysts. Anyone have any more extensive thoughts on what is going on? Didn't Bill G. stress that the internet is the future of MSFT? He can't be possibly back-tracking on this? Morgan