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

To: RTev who wrote (18816)	3/25/1999 12:24:00 PM
From: Teflon	Read Replies (1) \| Respond to of 74651

RTev, I agree with a lot of what you are saying, I just see different outcomes. 1) ATHM and RR will not have antitrust issues since they do not compete with each other (they are in separate markets) and the FCC needs some counter balance to the reunification of the RBOCs, which has been picking up steam and will continue. There is very little sentiment in Washington that would argue in favor of blocking an ATHM/RR deal, except for those Congressmen sponsored by the RBOCs and AOL. This deal would pass. 2) RR's management, or lack thereof, is a MAJOR concern. ATHM's management is not only competent, but excellent. MSFT would be willing to let ATHM merge with RR and have a smaller piece of the pie, because the new pie would be significantly larger and much more valuable. This merger, at some point will happen. My belief is that MSFT will want some "promises/assurances" (not in writing, of course!) from AT&T and the rest of the group regarding their use of MSFT's applications prior to any deal going through, but eventually I think all sides understand what this combined entity could bring to market. 3) Regarding control, I think that a relationship between MSFT and the hardware and service providers would be remarkably similar to the relationships MSFT now has with the PC vendors and Intel. Sometimes hot, sometimes cold. But MSFT is not interested in running a Service or Hardware business. Gates has said this repeatedly. There is plenty of room here for MSFT, AT&T and the others to work together. There is just too much $$$ at stake. 4) Who needs whom? Well, I think MSFT and AT&T will work with (or need) any partners that will help bring to fruition this Broadband market. The new markets that would be opened up would be enormous. Intel would finally have a market for their Pentium III, IV, etc., on a broad scale, for one. And I really don't think AT&T is too concerned with "Standards" as they are with providing "Bundled Services" to their customers. Teflon