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


To: Valley Girl who wrote (41228)4/5/2000 12:21:00 PM
From: KLP  Respond to of 74651
 
VG~ Here's the 3rd article from The-Times, London....

speaking of "legal circus"...and how others view the situation...(the "bold" is my doing....)
KLP

The Times- Opinion-via Netscape
the-times.co.uk

THE CHIPS ARE DOWN

Microsoft should survive but its rivals will still
prosper
Bill Gates, the founder and chairman of Microsoft, has
chosen the long haul. He will spend millions more dollars,
and use thousands more lawyer hours, to fight Judge
Thomas Penfield Jackson's ruling. The judgment that
Microsoft enjoyed an effective monopoly over the operating
systems for personal computers and improperly exploited
this advantage to prevent an emerging challenger, Netscape,
from soliciting for Internet customers is not surprising. The
surprise is in Microsoft's decision to fight on rather than find
an out-of-court way out of this legal swamp.

Mr Gates defiantly claims that his company will win on
appeal because "common sense stands on our side". As Mr
Gates must know, common sense is a scarce commodity
within the American legal system.
Microsoft's willingness to
go all the way to the Supreme Court if necessary is based
on somewhat more than a blind faith in ultimate logic. The
"death" of Microsoft is very much exaggerated. Mr Gates
could, however, have foreclosed any prospect of the forced
dismemberment of his empire had he offered concessions.
He did not, because he feels passionately that a company is
entitled to control the enhancement of its products and that
his rivals are manipulating outdated law to destroy him.

There are several reasons to suspect that the Federal
Courts of Appeal may be much less radical than Judge
Jackson.
The rules require the US Government and the 19
states that have sued Microsoft to agree on one single
proposed remedy that, along with Microsoft's alternative,
will be placed before a judge. That unanimity will be very
difficult to achieve; it will become still more complex if
Governor George W. Bush, who has taken a softer line on
antitrust matters, is elected President. Almost all the
credible options for breaking Microsoft into smaller parts
either risk creating fresh monopolies, or are intolerably
impractical, or would not function to the clear benefit of
consumers.

Microsoft may also calculate, correctly, that the longer this
case drags on, the harder it will be to persuade the courts
that Mr Gates is still a functioning monopolist. The pace of
change in this most dynamic of industries has always been
the best defence against undesirable dominance by one vast
corporation. The centre of this market has moved from the
personal computer, where Microsoft is the most powerful
actor, to the highly competitive Internet. Windows could be
obsolete by the time the Supreme Court shapes a judgment.
The purchase of Netscape, the original alleged "victim" in
this affair, by America Online in 1998 and its deal with Time
Warner this year will give Mr Gates competition aplenty.

Microsoft may thus emerge from the courts in one piece,
but having won only a pyrrhic victory. The company
appears to have lost some of the edge that allowed it to
capture the computer market in the early 1990s. Mr Gates
conceded this in part when he chose to step down as chief
executive officer earlier this year in order to devote more
time to software development. This mammoth legal battle,
which not only pits Microsoft against the US Government
and a multitude of states but involves more than 100 civil
lawsuits and, at some point, the European Union as well, is
a damaging distraction for the company. Microsoft can
probably survive but its rivals will prosper.



To: Valley Girl who wrote (41228)4/5/2000 12:43:00 PM
From: John Carson  Respond to of 74651
 
Breaking news, whole article not available yet.

Microsoft "fast-track" set 11:56 a ET
All the parties in the Microsoft Corp. antitrust trial have agreed to a fast-track approach to the final penalty stage of the landmark case, Reuters news agency reported Wednesday.



To: Valley Girl who wrote (41228)4/5/2000 12:45:00 PM
From: Harvey Allen  Read Replies (1) | Respond to of 74651
 
VG- re: new thoughts. I think large holders are now making buy/sell decisions based on their evaluation of the competence of management. First that management committed the acts in the findings of law and second that management continues to insist that they can do as they please.

Business is all about trust. If you can't trust your management it's time to move on.

Harvey

P.S. Or for management to go. Wouldn't that be nice for the stock price?