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

To: ed who wrote (20273)	4/11/1999 2:39:00 PM
From: t2	Read Replies (3) \| Respond to of 74651

Ed, I agree MSFT will split up eventually on its own. The judge or any agreement with the DOJ won't call for a breakup. However, I feel it is inevitable if they keep at their current pace. I don't see any sign of a slowdown in the next couple of years. Even if it doesn't gain, MSN is a good canditate along with Windows. If their internet biz starts gaining on the frontrunners, we could see some sort of breakup within 5 years. The first to go would be the "consumer" division. IMHO, one of the reasons for reorganization was that MSN was considered for spin-off. Now another biz (Windows98) which is a near monopoly in the consumer market, is in the same division. These are the two products that are the best candidates for spin-off. (Not yet though). The parts of their businesses which not not near monopolies--especially operating systems ---Windows NT and Windows CE are being sheltered for now. Until they become monopoly type of OS, they will not be ready for spin off. I see about 3 different companies coming out of Microsoft within the next 10 years. A possible solution could be a parent company holding 40% interest in the spinoffs. This way they are being to excercise a lot of influence.

To: ed who wrote (20273)	4/11/1999 2:43:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

Ed, Hewlett is not a very successfull company. Maybe that is a part of their reasons for splitting up. MSFT is in a different situation. They will grow intact until they see some sign of slowdown or more anti-trust action. They will start taking action on a lot of fronts prior to the DOJ going after them. They have learned a lot from this case.