Microsoft Split

[Tony]

I'm just wondering will MS have to change their address from "1 Microsoft Way" to "Half Microsoft Way"!?

Seriously though, anyone any thoughts on how the split will affect their share price, both short and long term?

[Anders]

Way back when the tech sector was hot and before the justice department verdict was passed there was general analyst consensus that splitting MSFT would create parts where the sum was probably greater than the current MSFT. This was based on the situation with Bell Labs or AT&T or whatever.

Given that analysts are fairly useless when it comes to predicting much anything and typically just go with the flow, I presume they are now saying that a split would be really bad for MSFT. I suppose some of this comes from MSFT management that is trying to make the case that splitting the company will be a disaster.

Some analysts have said that the verdict is old news and that MSFT has lost some of its dominant position already. Probably due to competition from Linux and the Internet (read Sun Microsystems).

Personally I don't really have a clue. I don't really like MSFT much so I don't really follow them that closely. I believe MSFT are predicting a slowdown in business generally so the PC business may not be the place to be.

[Anders]

Given the huge response this topic is getting, I will add another thing. There are a few class-action suits in the offing which could hit Microsoft badly. If Microsoft is found having overcharged for Windows due to a monopoly situation they could be forced to pay back money to every Windows licensee in the world.

[John M]

Where did you read/hear about this Anders? Can't see it happening myself.

J.

[Anders]

I don't know where I heard it, I watch and read so many things. It was probably on TV and probably either CNN or Bloomberg. Not a poxy message board on the Internet or whatever, I never pay any attention to those.

I think you're underestimating the ability of American lawyers to come up with reasons to sue someone.