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

To: Kenya AA who wrote (37208)	11/23/1998 2:04:00 PM
From: csm	Read Replies (1) \| Respond to of 97611

How much longer till we eat up that supply at $35? Stuart.

To: Kenya AA who wrote (37208)	11/23/1998 2:52:00 PM
From: John Koligman	Respond to of 97611

As for you question on why Microsoft is up, it's probably due to some thinking the AOL deal is a positive for Microsoft in regard to the current legal action... November 23, 1998 Microsoft Says Talk of a Merger Shows Flaws in Government Case An INTERACTIVE JOURNAL News Roundup Microsoft Corp. wasted little time in portraying merger talks between America Online Inc. and Netscape Communications Corp. as evidence that the federal government's antitrust case against it is fundamentally flawed. William Neukom, Microsoft's general counsel, took to the steps of the federal district courthouse in Washington, D.C., Monday morning to lay out Microsoft's case. "From a legal standpoint, this proposed deal pulls the rug out from under the government," Mr. Neukom said. "In fact, the mere possibility of this kind of a combination completely undermines the government's case from start to finish." All three companies involved in the proposed deal -- marketing support from Sun Microsystems Inc. is expected to be a key piece of the merger -- compete ferociously against Microsoft in the software and Internet markets. Mr. Neukom said the combination would bring a dramatic change in the competitive landscape of the industries, adding that the proposed deal shows that there is "vigorous competition" in the marketplace and that Microsoft faces "resourceful and creative competitors." "The government should not be taking sides in such a dynamic and competitive industry," said Mr. Neukom. "As this deal shows, the marketplace is always five steps ahead of government intervention." A Justice Department official said an AOL-Netscape deal would have no impact on the antitrust case against Microsoft. It would do "nothing to remove the obstacles Microsoft has placed in the way" of competitors "seeking to challenge its desktop operating-system monopoly," he said. As outlined by the parties involved, what the deal would do is give both AOL and Sun additional resources for the pitched battles with Microsoft the two firms think are in their future. AOL already dominates consumer access to the Internet, and is girding itself for a duel with Microsoft over consumer Internet access via TV set-top boxes. By purchasing Netscape, AOL would be able to reach many more Internet users who go online at work, and extend AOL's Internet reach. These moves would therefore put AOL in even more direct competition with Web navigation companies like Yahoo! Inc., Excite Inc., Lycos Inc. and Infoseek Corp. -- which have all become major hubs, or portals, for Internet traffic. Netscape has been building up its portal site, called Netcenter, over the past year as it has rebuilt its business in the face of intense competition in the browser market from Microsoft. Netcenter is the default start page for Netscape's browsers, and since many Web users never change this setting, the site gets a great deal of traffic. "This puts to rest any doubts about AOL's ability to compete in the Internet space," said Hambrecht & Quist analyst Paul Noglows. Sun, meanwhile, sees Netscape's browser as a vital conduit to distribute its Java programming language, which many Microsoft competitors hope to use as an alternative to the Windows operating system. Microsoft also distributes Java in its own browser, but has been trying to promote a proprietary variant that triggered a bitter legal battle with Sun.