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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May 9th, 2008 at 2:32 pm
MSFT should buy hardware maker like HP or Dell so to get better feelings of user experiences. MSFt cant make better Windows OS without having any hardware making experiences. Apple must be doing the right thing keeping making hardware as well as OS. So that users have best usage experience. I ask you what the hell USB is doing in the back of my desktop case??? why are they selling USB four port that is stillhooked to the back of my desktop case? I see nothing on the front of my desktop case except only two USB or firewire ports. that is it. what is 7 drive bays doing insdie my desktop case. I put ony one drive there. Why do I have to buy backup enclosures with heavy transformers dangling around while my desktop case has own power supply that can power my hard drive enclosure with a special power outlet on the side or front of my case. You see, people are fleeing to Apple because they are prettier ….
May 9th, 2008 at 2:34 pm
msft is interested in 90% profit margin operations. this is not sustainable.. buyers will thumb noses at microsoft … and buy macs…
May 9th, 2008 at 2:41 pm
your ad banners are too horny and it give me eyesores… tell your IT guys to stop flashing or changeovers non stop stupid horny IT guys!
May 9th, 2008 at 2:42 pm
i mean that imedix ad banner. why constant flashing back and forth hwo do you think i can read your aritcle with that horny ad?
May 9th, 2008 at 2:43 pm
corny horny ad banners that is…
May 9th, 2008 at 3:28 pm
All right Gumy, please respect the 4 responses in a row rule
August 2nd, 2008 at 8:55 am
[…] it morph into something else as the business opportunities dictate. I covered this, too, in MSFT’s GE envy, but more in depth in this piece where I counter Henry Blodget’s belief that MSFT should […]