Making sense of Redmond's $6 billion buy

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Zune and Iphone

Apple is about to release Iphone in the USA. I think June is the target date. You can be certain it will not be supporting Microsoft proprietary video. If you think it through, Microsoft has to have a response to Iphone if it is going to play in media.

I suspect this buy is about protecting sunk costs involving Microsoft media technology. Every business decision maker knows that sunk costs have nothing to do with good decision making. But the legal minded are fixated on these costs and Microsoft is first and foremost a law firm.

With the purchase, Microsoft managers are reasonably assured that the media technology already developed will get used at least some place. This creates plausible denial should shareholders claim that Microsoft management was really involved in looting the concern rather than keeping it on-going.

Posted by: mighetto   Posted on: 05/18/07 You are currently: a Guest | Members login | Terms of Use

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