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Microsoft Bails Out Of Corel

Motor writes: "Microsoft is selling its shares in Corel." Interesting -- it was inevitable that this would happen, I suppose.

17 of 166 comments (clear)

  1. Re:Notice my Shock by ksheff · · Score: 3

    The question then becomes what technology did MS obtain as a part of the initial investment? They could have also used it as an opportunity to try to steer it down a dead end path ala OS/2.

    IMHO, the real reason they probably invested in Corel is to give the appearance that they still have competitors (they did the same thing with Apple) in the shrink wrapped office productivitiy market. But now that this move has raised the attention of the DOJ, they're dumping the stock. This will certainly cause Corel's stock to dive even further. It would be really funny, if that would cause the SEC to look into the situation and have multiple agencies trying to take them to court. Wishful thinking, I know, but it would be fun to watch.

    --
    the good ground has been paved over by suicidal maniacs
  2. Re:Sabotage and Dump by Black+Parrot · · Score: 3

    > Now they can dump it on the market and watch Corel's stock price tank.

    Might prove to be a major faux pas, if IBM decides to do what so many people have been suggesting.

    --

    --
    Sheesh, evil *and* a jerk. -- Jade
  3. Not at all surprising.. by supabeast! · · Score: 3

    Selling all of those Corel shares at a loss is probably hundreds of millions (If not billions.) of dollars cheaper than dealing with another antitrust suit. At least M$ is finally learning how to deal with DOJ investigations- Not insulting the prosecuters, government, american people, ignoring DOJ orders, etc.

  4. ALL YOUR SLASHDOT ARE BELONG TO US!! by FunkyChild · · Score: 3

    Yes, it's my own work :) (well except for the Zero Wing art :P)

    http://members.optushome.com.au/geoffebb/misc/ayb/ slashdot_aybabtu.gif

  5. Notice my Shock by Mike+the+Mac+Geek · · Score: 3

    And when they drain Bungie Studios of all it's worth, it too, will be discarded.

    Why does Microsoft sound a lot like a vampire? It drinks till it's full, then tosses the withered husk by the wayside.

    (shudder)

    --
    -------------------------------------------------- ---- The man, the myth, the something or other.
  6. This is clear evidence of MSLinux by Chuck+Flynn · · Score: 3

    It all makes perfect sense. Why own shares in a competitor to your imminent product? They'd have to divest, and that's what they've done.

    Antitrust law discourages companies in the same market from owning stakes in each other, but Microsoft and Corel could previously claim they're not actually in the same market, since their underlying software was different and they were aimed at ostensibly different audiences.

    The only explanation for why Microsoft would dump its Corel shares (which have been doing well, lately) is to clear the field for them to bring MSLinux out. It makes perfect sense.

    The big question now is whether anyone will buy a Linux distribution from Microsoft.

  7. Microsoft Executive Says Linux Threatens Their Ind by Don+Giovanni · · Score: 3

    Microsoft Executive Says Linux Threatens Their Industry Stranglehold, Competes With Windows

    2/14/01 4:57 PM
    Source:Bloomberg News

    Redmond, Washington, Feb. 14 (Bloomberg) -- Microsoft Corp.'s Windows
    bloatware chief, Jim Allchin, says that freely distributed
    software code such as rival Linux could stifle Microsoft's innovative
    ways of stealing, extorting, and gouging money from it's customers
    and that legislators need to understand the threat.

    The result will be the demise of both Bill Gates income and
    the incentive to support the Dark-side of the force, he said yesterday,
    after the company previewed its latest version of eX-Windows. Microsoft
    has told U.S. lawmakers of its concern while discussing protection of
    intellectual property rights.

    Quote Snapshot
    IBM 114.88 -1.90
    HWP 33.06 -3.29
    MSFT 56.69 -2.13
    LNUX 7.53 -0.59
    RHAT 6.84 -0.22

    Linux is developed in a so-called open-source environment in which the
    software code generally isn't owned by any one company. That, as well
    as programs such as music-sharing software from Napster Inc., means
    the world's largest software maker has to do a better job of bribing
    policymakers, he said.

    ''Open source is an stranglehold destroyer,'' Allchin said.
    ''I can't imagine something that could be worse than this for our
    wallets.''

    Microsoft distributes some of its programs without charge to
    customers, although it never releases its programming code, except
    for experimental research releases of its Research division's IPv6
    implementation for NT Foow and Two-Kay, and it retains the ownership
    rights to that code. Linux is the most widely known open-source product,
    though other programs including the popular Apache system for Web server
    computers also are developed the same way.

    Corel Inquiry

    Allchin made his comments several hours before Microsoft confirmed
    that its $135 million investment in software maker Corel Corp. last
    October is being reviewed by the U.S. Justice Department. MS/Corel said
    last month it willl drop efforts to develop the Linux operating
    system, though it will continue to make Linux applications. Corel _said_
    it hadn't consulted with Microsoft before making that decision.

    Brian Behlendorf, founder of open-source company CollabNet Inc., said
    most companies that use the open-source development model do retain
    the rights to some of their intellectual property.

    ''I think Microsoft is trying to paint the open-source community as
    being fascist; that all software have has to be free, or none of it
    can be,'' said Behlendorf, whose company helps businesses run their
    own open-source projects.

    Allchin said he's concerned that the open-source business model could
    stifle blind ambition and greed in the computer industry.

    ''I'm an American, I believe in the American Way of beating down and
    destroying your competitors at all costs,'' he said. ''I worry
    if the government encourages open source, and I don't think we've done
    enough education of policy makers to understand the threat.''

    Linux Adoption

    Some leading computer companies including International Business
    Machines Corp. and Hewlett-Packard Co. are selling Linux- based
    products and working on open-source projects, noted Jeremy Allison, a
    VA Linux Systems Inc. software developer. He's also a leader in a
    project develop an open-source file and printer server program.

    Microsoft only began significant bribery efforts in the last few
    years. The Redmond, Washington-based company also talks to lawmakers
    about issues including the need for more visas for people with
    computer skills and computer privacy and security, because people
    in other countries who develop for Windows refuse to figure out how to
    use CVS.

    Linux is the fastest-growing operating system program for running
    server computers, according to research firm IDC. It accounted for 27
    percent of unit shipments of server operating systems in 2000.
    Microsoft's Windows was the most popular on that basis, with 41
    percent. But who's counting?

    Despite Linux's success in some markets, Allchin says he isn't
    concerned about sales competition from the product. Microsoft provides
    support to change and develop products based on its operating system
    software that Linux companies don't, he said. Companies that use Linux
    in their products then must pay someone else for support, he said.

    ''We can build a better product than Linux,'' he said. ''There is
    always something enamoring about thinking you can get something for
    free.''

    That last statement made this CNET editor wonder if he is a hypocrite or
    just another foot-pedestal to the leader of the evil-empire, Gates.
    I mean, if he thinks open-source is stifling their innovation and incentive,
    then why did he say "We can build a better product than Linux"?
    And why have they not yet done so? deerg!

    --
    P2P Anonymous Distributed Web Search: http://www.yacy.net/
  8. Re:HELLO GENTLEMAN by Black+Parrot · · Score: 4

    See The Register about it.

    --

    --
    Sheesh, evil *and* a jerk. -- Jade
  9. Re:HELLO GENTLEMAN by dreami · · Score: 4

    It's originaly from the *bad* translated japanese videogame "Zero Wing" to sega genesis. Look here for a nice flash sequence from the game.

    --
    "The best way to impress people is to be very efficient and organised. That shocks people everytime." - h4rm0ny
  10. Interesting juxtaposition of article titles... by outrage98 · · Score: 4
    "Microsoft Bails Out Of Corel"

    "A Million Bucks, Mach 7.6, Straight Down"

    Heh, heh...

  11. Related Story by Alien54 · · Score: 4
    In a related story summed up at the bottom of the original blurb (original link here):
    "Alarm bells first rang when it emerged last October that Corel's mystery investor was none other than Microsoft. They should have rung louder... Now it appears the United States Department of Justice is taking a closer look at the antitrust implications of that transaction."

    "To be brutally honest, I'm not going to shed any tears over the death of Corel's Linux distribution... On the other hand the passing of WordPerfect for Linux and WordPerfect Office for Linux would be more of a worry. Officially these products have not yet been dumped - but don't hold your breath."

    "But there's another reason to worry about the demise of Corel's Linux offering, the company has played a major role in the development of Wine. In January Corel outlined its business plan in a press release. Wine isn't specifically mentioned, but the company says it will continue to develop Linux applications and presumably this means the Wine contribution will continue. This means that a Microsoft controlled company is going to play a major role in the development of Wine. Is anyone looking at the antitrust implications of that?"

    While the original article is far more in depth, and goes on to mention that this is more likely a remnant of the previous administration, I can not but help start to feel like the republicans do about Clinton. It is hard. I try to control my dark side.

    But MS ..., each day one of its' minions goes and does something that just irritates the hell out of me.

    I'm going to have to start painting MS in the pictures of royalist France or something. Or maybe Napoleon. They are really starting to irritate me.

    --
    "It is a greater offense to steal men's labor, than their clothes"
  12. wow by JohnnyKnoxville · · Score: 4

    Microsoft knows how to sell companies? I had no idea.

  13. Sabotage and Dump by Anonymous Coward · · Score: 5

    Well, they got what they wanted. Corel is "out" of Linux distribution and no longer in competition with Microsoft. No need to hold onto the stock anymore. Now they can dump it on the market and watch Corel's stock price tank.

    Sabotage and Dump.

  14. HELLO GENTLEMAN by Anonymous Coward · · Score: 5

    Microsoft: ALL YOUR COREL SHARE ARE BELONG TO US !!
    Corel: WHAT YOU SAY !!
    Microsoft: Ooh, whoops, I mean you can have them all. My bad.
    Corel: YOU HAVE NO CHANCE TO SURVIVE MAKE YOUR TIME.
    Microsoft: HA HA HA HA HA HA...

  15. So... by Greyfox · · Score: 5
    They bought it, killed it, then sold it.

    Sweet.

    --

    I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  16. Re:So... by Winged+Cat · · Score: 5

    You can't buy market dominance like that.

    Oh, wait...

  17. Uhh, guys? by update() · · Score: 5
    With 20 posts already, no one has mentioned the fact that the Corel acquisition was getting them into deeper trouble with the antitrust people at the DOJ. I don't know why they'd be bothered about that now and not before, but maybe they didn't think it would raise eyebrows. Anyway, that seems to be the most likely explanation for why they're bailing now.

    For the people claiming "Microsoft invested in Corel, destroyed and is leaving the body for the vultures." -could you please elaborate on what they did to accomplish that? Persuade them that there was a meaningful Linux desktop market to target?