On Jul 23, 12:41 pm, Roy Schestowitz <newsgro...@xxxxxxxxxxxxxxx>
wrote:
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> What Is the Next Step in the Microsoft-Yahoo ‘Monkey Dance’?
>
> ,----[ Quote ]
> | Perhaps its most surprising decision was to openly ally itself with Carl
> | Icahn. Some M&A lawyers believe that by joining forces with the graying
> | raider, Microsoft may have exposed itself to SEC proxy solicitation rules
> | that require participants in a proxy fight to disclose their involvement.
> |
> | While a potential violation on Microsoft’s part may be academic now that the
> | proxy fight is over, the episode underscores the uncomfortable position
> | Microsoft put itself in through its Icahn affiliation.
> |
> | [...]
> |
> | Such statements could be construed as tacit endorsements of Icahn’s cause or
> | even solicitation material and may have violated the SEC’s rules, legal
> | experts say. The remedy for such violations is greater disclosure, in which a
> | party must typically file lots of paperwork with the SEC. “It’s a clear
> | violation,” says Antony Page, a law professor at Indiana University who
> | specializes in M&A. “The courts interpret solicitation broadly.” The SEC
> | declined to comment on whether it is looking into the matter.
> `----
>
> http://blogs.wsj.com/deals/2008/07/22/whats-the-next-step-in-the-micr...
>
> ...Like bullies such as Microsoft and Icahn actually care. They break the law
> all the time, which is why prison is a more suitable place to be.
The problem is that they are the "Heroes" of the Bush Administration
and right wing Republicans who want to be able to do these "strong arm
deals" just like Microsoft does.
The irony is that Microsoft has heavily lobbied (bribed) Congress, the
White House, and key Republican leaders to do everything they can to
delay a deal in which Yahoo would get a huge infusion of revenue from
Google in a non-exclusive deal in which Yahoo continues to be able to
do business with all other partners as well as getting revenue from
Google for key content provided by Yahoo.
The goal is to make Yahoo's revenue stream look smaller than it really
is so that Micrososft can gain control of the company in a hostile
takeover that would result in becoming a key element of Microsoft's
monopolistic empire. Microsoft would bleed Yahoo for revenue, cut
staff and funding for the Open Source technology used by Yahoo, and
force Yahoo to revise their content to enhance the monopoly. This
might even include such tactics as forcing them to publish all of
their content in OOXML, saturating all pages with ActiveX controls,
and locking out visitors using FireFox or Linux browsers.
Remember that Yahoo also provides (for a substantial fee) one of the
few reliable user environment surveys in the industry, including
detailed breakdowns of registered users using MyYahoo. Since Yahoo is
platform neutral, the statistics are much more favorable to Linux than
an oft-quoted survey that requires a very specially configured Linux
client (WINE with ActiveX controls enabled and the ActiveX control
plug-in installed and enabled in FireFox).
Imagine the horror at Microsoft if both Google and Yahoo openly
published survey results showing Linux client growth at rates
equivalent to that of the number one OEM? Let's say that Yahoo and
Google both could document an increase of 40 million Linux clients per
year, that would mean that Linux was being installed on over 20% of
the PCs sold this year. If the number was 40 million per QUARTER,
that could mean that Linux being installed on MORE than 100% of the
computers sold in that quarter. In effect, Linux would be growing at
a higher per unit rate than Windows/Vista.
Imagine what would happen if, after Microsoft's claims that they have
"sold" 180 million licenses for Vista, Yahoo and Google publicly
announced that they only saw 50 million on the web, AND that they had
seen over 200 million new Linux device/user combinations on the web
this year.
Even worse, if Yahoo and Google both made it public that the increase
in Linux USERS actually outpaced the increase in Vista USERS, that
would be very bad news for Microsoft (and it's investors) indeed.
Microsoft feels that it's share of the advertising revenue is 100%,
and they don't like to share. As we have learned the hard way, Bill
Gates and Steve Ballmer became among the richest men in the world by
making sure that the money always flowed ONE WAY, from everybody else
to Microsoft. Microsoft might shell out a few bucks to "Prime the
pump", but they would ultimately do whatever it took to kill off all
other competitors.
Yes, we see Microsoft again up to it's usual tricks, but this time
Microsoft may have overplayed their hand. A full-fledged SEC
investigation could result in requiring the full disclosure of all
holdings of all Microsoft top investors and stock holders, which could
create verifiable trails to Venture capital funds and private equity
funds such as the ones Microsoft used to trigger the SCO takeover and
fund the SCO court case. That could leave Microsoft fully exposed to
numerous parties involved in Microsoft funded litigation.
One of my predictions is that Steve Ballmer, with out the Gates Family
guidance, will be caught in a major criminal act, and expose the
entire Microsoft Empire to severe penalties and compliance
monitoring. I would even predict that this will result in major
losses within the next 4 years. I'm not quite ready to predict that
Ballmer will be spending time in Federal prison, because billionaires
tend to be able to buy their way out of jail. Bill Gates has done it
numerous times.
The other likely event over the next 2-3 years will be a power
struggle within Microsoft as various players vie for the void left by
the departure of Bill and the aging of Steve. Steve does not look
like he's in the best of health. Could it be that all of that
smoking, drinking, long days and short nights are catching up with
him? If Steve suddenly had to reduce his activities at Microsoft and
relinquish control, who would replace him? Would rivals within the
company be as willing to engage in the outrageous acts committed by
Gates and Ballmer? Would they be as willing to bail out those who
did?
At this point, Ballmer has command as "supreme dictator", but the
remaining leaders are in more of a "mexican stand-off" in which the
first one to pull the triggers is guaranteed to die.
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