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

To: Big Kahuna who wrote (22445)	5/10/1999 12:49:00 PM
From: Teflon	Read Replies (1) \| Respond to of 74651

Hello BK, where have you been for the last three weeks? The Nextel investment is extremely important for MSFT for many reasons. Though it is only for a 4.25% stake in the company, MSFT is making a clear statement that it will not be left behind in this race for broadband access. Forget about the more than likely investment income to be derived from this $600MM. If this 4.25% stake in NXTL has any of the effect that MSFT's investment in Comcast had on the recent negotiations with AT&T, this deal makes sense. Keep in mind, these strategic investments give MSFT the following: 1)A chance to review the books and records of the target company. 2)A platform to establish a relationship with the senior management of the target company. 3)More than likely an opportunity to increase MSFT's investment stake at an opportune time. 4)Shareholder rights that more than likely give MSFT the inside track on negative control provisions. 5)First seat at the center of the table for future material deal negotiations that the target may embark upon. 6)An outlet that expands the reach of MSN as the ICP of choice for a large untapped market of customers. And there are plenty more little subtleties that MSFT probably works into its deal structuring that the press doesn't uncover. Remember folks, most kids under the age of 20 live in a wireless world. It's a given that wireless access will become more of a focal point as we head into the next century. To be able to access email via your cell phone is an instant win for any 16 year old you talk to. The paragraph I liked the most in the press release was: "Separately, Microsoft said it plans to offer a wireless Internet service designed to work with handheld devices such as PalmPilots, cellular phones and interactive pagers." This is just the beginning... Teflon