Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: John Rieman who wrote (32798)	4/29/1998 12:26:00 AM
From: Scotsman	Read Replies (2) \| Respond to of 50808

OT response to previous post Well, if history repeats itself, which it does in various forms, the DOJ will break up MSFT. As I have posted on several threads before, the similarities between Bill Gates and JD Rockefeller and their respective companies Microsoft and Standard Oil are amazing. Both people strived to dominate their industries for the good of their industries, both used various forms of extortion to do so, and both never really caused the consumer to suffer ( The theory that a monopoly will jack up prices has often times been irrelevent in anti trust cases. Most monopolies kept prices down to assist in eliminating any competition). But the same laws that caused Standard Oil to be broken up still exist, and I have to think there is ample cause to use them against MSFT if one looks at the business practices MSFT used to establish their current position. If this happens, yes, there will be a major sell off. MSFT is owned by a lot of people who have paid a huge multiple to buy its growth. It has never missed its quarter, so it has deserved this. But if this occurs uncertainty will enter, and probably a lot of people would prefer to lock in their probably huge profits. Since MSFT effects a lot of other companies such as Dell and CPQ, we could have Big trouble. But I think this would be a major buying opportunity for MSFT, effectively a no-lose situation. I don't think most people really need Windows 98, as far as I'm concerned I'm happy with Windows 95 and have no intention of upgrading. So Dell and such will just continue to sell Windows 95 while the DOJ and MSFT do battle. If MSFT wins, than Windows 98 comes out, Netscape goes down the tubes, and MSFT goes through the roof. If the DOJ breaks them up, than whoever holds MSFT stock gets shares in whatever they break up into. Since their operating system and applications dominate the market, they would continue to do so for the forceable future. In the case of Standard Oil, when it was broken up, the stock holders got shares in what is now EXXON and a host of others. Not bad stocks to hold. One report I read stated that the break up of Standard Oil amplified Rockefellers net worth by 7 times. I don't know if thats accurate, but it did at least triple it. I don't really see any compromises here. MSFT has been warned before, hence thier consent decree. But they have demonstrated their willingness to basically ignore it, deadly in a case like this. In addition, its an election year, and although people would scream bloody murder if the stock market took a dive, a lot of people don't really like the world being dominated by one company. And regardless of what is heard, history has proven the DOJ is fairly non-political in these affairs. ( Same impact in the 1920's with Standard Oil) Letting MSFT off the hook just for prosperities sake would effectively nullify the anti trust laws. While some may support this, the fact is that the law is on the books and will probably be enforced. And lets face it, Bill Gates minions said publicly " The heck with Janet Reno." Its not wise to insult City Hall. What are you going to do, jerk their license? So not a bad deal. Other winners of a break up would have to be Sun and Netscape. So if you are a betting man, which I am not, puts your monies down and takes your chances. Sorry for the tome. JMHO