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


To: vmax who wrote (9753)7/28/1998 1:05:00 PM
From: ToySoldier  Read Replies (1) | Respond to of 74651
 
Vmax,

If these scenarios do happen, we are all sure that MSFT could survive them. The questions are, What would happen to the stock price based on MSFT losing the DOJ case, and, how will the penalty or results effect MSFT's ability to continue meeting its goals?

The answers to both of these questions would very likely be perceived by Wall Street as negative or very negative. This will drive the stock down and then the question is, when will Wall Street feel it was time for MSFT's stock to recover.

So, you are not thinking this situation in the right context. YES, MSFT can and will have no choice but to deal with it, but, we all know what Wall Street thinks about instability or troubled waters that face any company - even MSFT!

Toy



To: vmax who wrote (9753)7/28/1998 1:06:00 PM
From: Bearded One  Read Replies (2) | Respond to of 74651
 
Here's a few things they could do to Microsoft:
1) Require Microsoft to get "prior approval" from the DOJ before they release any new products.
2) Force them to reveal their OS source code to other companies several months before a new OS is released.
3) Make Microsoft liable for damages if their new OS breaks any old products.
4) Pay a couple of billion dollars in fines.
5) Make Microsoft bundle competitors software with their OS
6) Force Microsoft to adopt a single-pricing strategy for all vendors (denying them the ability to punish vendors for not playing ball)
7) Force a few top Microsoft people to resign.
8) Alter Microsoft pricing strategies in general to prevent tying or bundling.
9) Allow vendors to alter or hide the Windows screen in any manner they see fit without retribution.

I took about 3 minutes to think these up. My guess is that the DOJ has spent far more time on this than I have.