Steve Rosenbush and Paid Content asks: should MSFT break up?
Maybe, but it won’t… much the same way that GE won’t. I think Mr. Rosenbush misses the point here: America rewards size, reach and scale. MSFT is not only the most profitable technology company out there, it is the biggest and strongest one, one that can launch $45B unsolicited offers without blinking. That would not be possible if you had 5 mini-MSFTs.
Moreover, MSFT’s desire to pursue Yahoo! has little to do with strategic beliefs that size is better per se, but rather, a GE-esque ideology to pursue the bigger markets and higher returns. GE is not in the business of lightbulbs alone, anymore, it has moved in and out of appliances, in health systems, jet engines in the pursuit of profits and market share growth.
Advertising is a $500B market, online ads are a $50B market. Those are staggering figures and MSFT is doing that all self-respecting capitalists would do.
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