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

To: Insitu who wrote (43762)	4/28/2000 12:28:00 PM
From: Josh Carroll	Respond to of 74651

In response to your comment that, after being broken up, the little Microsofts will drop the cost of their software -I would bet the opposite happens. Microsoft takes great advantage of its size by leveraging development, research, testing, and planning costs internally. The company will be stripped of this ability if broken up, and each spinoff company will then have to duplicate management, testing, shipping, etc. It is a good possibility that they would have to raise prices for this reason. They have large margins now, but their increased overhead will immediately impact the margin calculation.

To: Insitu who wrote (43762)	4/28/2000 12:52:00 PM
From: David Howe	Respond to of 74651

<< but the prices of software (and therefore the huge profits) will drop without the monopoly influence >> Wrong, the prices of software will not drop. The breakup will be bad for consumers and good for MSFT's competition. Why do you think the competitors are pushing for a breakup? Do you actually think that they WANT more competition in their industry? No, and the breakup won't create more competition, it will only limit MSFT's ability to produce software and it will increase prices and reduce innovation. The consumer loses, the competitors of MSFT win. Dave