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Technology Stocks : Check Point Software (CHKP) -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (2484)	5/12/1998 3:05:00 AM
From: Dwight E. Karlsen	Read Replies (1) \| Respond to of 7150

yes, I had to go, and was content with the exciting turn-around in the stock, right on the button to when the press-release hit the wires. I like to see this sort of timely action, because it means that the news was not improperly leaked to analysts...gives me great confidence in the integrity of CHKPF execs...not that I had doubted them before. As for what CHKPF had to give up...I agree, MSFT was definitely putting the squeeze on CHKPF; why, who knows. Probably has to do with $$ or terms or something. Whenever you have a big player that needs something from a small player, the big player often wants concessions from the smaller player simply for the "privilige" of being granted "most favored" status, and the revenue streams that come with close association with the big player. In the case of MSFT, they used bluster and thinly veiled public threats by Ballmer "If CHKPF wants to compete with us, that's fine" -- to get CHKPF execs to the bargaining table under terms that MSFT felt were good for MSFT. What exactly the fine print is, who knows. Another possibility -- the comments by Ballmer in late April may have been the result of a clash of egos between execs of the two companies. That's purely a guess, but who knows. But like you say, the good news is that MSFT really does want CHKPF's expertise.