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

To: t2 who wrote (14082)	1/10/1999 12:03:00 PM
From: William Hunt	Read Replies (1) \| Respond to of 74651

Thread---The best explanation on MSFT intent with MSN ---makes a lot of sense ---Return to Company Headlines (UPDATE) AT&T Reportedly Inquired About Buying Microsoft's Online Service Dow Jones Online News, Friday, January 08, 1999 at 16:04 NEW YORK -(Dow Jones)- AT&T Corp. reportedly discussed acquiring Microsoft Corp.'s Microsoft Network online service and some of the software giant's other online-media operations. USA Today Friday reported AT&T (T) has tabled the talks but that Microsoft (MSFT) considers the talks to remain alive. The paper said the two companies discussed AT&T buying MSN and combining it with AT&T's WorldNet Internet-access business. AT&T also discussed taking a stake in Microsoft's online-media sites, such as MSN's "portal" site. Portals refer to sites that act as major hubs or gateways for visitors to online content, commerce and services. In exchange, Microsoft sought a promise that the telecommunications giant would adopt and promote Microsoft's Windows NT operating system software. But the paper said that AT&T wasn't comfortable about cutting such a deal. Among Internet-service providers, America Online Inc. leads by far with 15 million subscribers, followed by Microsoft's MSN with 2 million, AT&T's WorldNet service with 1.4 million and EarthLink Network Inc. and MindSpring Enterprises Inc., both with about 1 million. The talks are noteworthy because Microsoft has been tweaking its online strategies, Internet-access providers have been gobbling each other up and the two giants have a waged a legal fight over Windows NT. AT&T in 1997 filed a lawsuit against Microsoft charging that Microsoft violated a 1991 contract by not providing AT&T with the Windows NT source code it needs to keep one of its products up to date. Windows NT is Microsoft's operating system for corporate server computers. Microsoft has charted plans to become an Internet middleman, taking a cut from every transaction over the Internet that uses Microsoft technology. In recent months, it has been grouping together and showcasing its online properties - from car-buying and travel-agency services to news content, free e-mail and search engines. Were Microsoft to sell its online-media offerings, it would signal a new player in the portal battle now being waged between Microsoft, America Online Inc., Yahoo! Inc. and a few others. The portal operators are racing to gain a stronger foothold on the rapidly growing market for Internet commerce and advertsiing. A flood of marketing deals have been formed in recent months in an attemot to promote sites and build loyalty among World Wide Web surfers. The deals are seen as the beginning of a race as the Web starts to consolidate into the hands of a few giant powerhouses. In particular, there is a belief, reinforced by AOL's proposed purchase of Netscape Communications Corp., that there will be a Microsoft Web and a non-Microsoft Web dominated by AOL. The other Internet-destination sites, such as Yahoo and Excite Inc., are hunting for their place in the new online ecosystem. There has been talk of a three-way alliance of Yahoo, Excite and Internet retailer Amazon.com Inc. to create a foe to AOL and Microsoft. Industry executives argue that the narrowing of a media category into a few major brands can be good for a market, just as the big three broadcast networks helped build the audience for television. Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved. BEST WISHES BILL

To: t2 who wrote (14082)	1/10/1999 12:12:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

MICROSOFT STATEGY PART 2 They don't have to settle -- just wait out the trial. Hope for a good decision. I think at this point, the DOJ may want more in a settlement than what the judge would give them (even if they win). This is why I think the lobbying efforts by the competitors have worked with the DOJ. The competitors just want it to drag on forever. David Boies probably has a loyalty to IBM and may have a lot of friends there also. I bet he is one of those that wants to make a name for himself and is urging others not to settle with the company. MSFT will be prepared for any outcome, bad or good. Remember when they got the injunction against them in the SUNW Java case. The company spokesman said they were a resourceful company which would have been prepared for any outcome. I think if they lose this case and are forced to include Netscape browser with Windows ---- they will dump the Internet Access business. This is why I think, the stock will be going up for a long time even if they lose the case. BTW -- I think AOL blew it by buying Netscape Instead they should have bought another portal. They have killed the browser. In my opinion---they will be in trouble down the road. I think AT&T will be the next big player in internet access and portal business. I wish I had bought the stock. Just my opinion.