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

To: Maverick who wrote (21900)	4/30/1999 9:50:00 PM
From: Sir Francis Drake	Read Replies (2) \| Respond to of 74651

I wonder if this MediaOne deal is not contributing short term to MSFT's recent weakness. Maybe people figure AOL has more to gain from this than MSFT (or at least it's more vital to AOL's interests). And now MSFT will be forced to shell out huge amounts of money and stock in a bidding war against AT&T, (AT&T is fighting for its life - they must control most cable if they want to have a shot at competing against the baby bells). So, AT&T would be willing to fight to the death to grab this deal - it would take a huge chunk of cash and shares (very dilutive) for MSFT to prevail. And for what? So that AOL can survive? Sure, MSFT's interests are there as well, but is it worth such a huge hit? I don't know, perhaps this is all wet, but it wouldn't surprise me if MSFT is in a no-win situation. If they lose the deal, it will be seen as a blow to MSFT's longer term interests. If they win at a huge cost, the perception may be - the price is too high. So, down the price goes. Just a theory.