Globe and Mail: Pact with Microsoft a huge Corel win, but no slam dunk for its future

"And what does Microsoft get for all its cash? That's where the musings have become a full-lunged debate. Because it's far from obvious exactly why Microsoft was desperate to invest in old Corel software such as CorelDraw and WordPerfect, both of which are past their primes, or in Corel's nascent Linux development program, which hasn't previously been a priority for Microsoft...."

"A compelling argument is that Microsoft is looking at rival Sun Microsystems and its new StarOffice project and is wondering how to answer the competitive call. In less than a week, Sun will begin giving away the word processing software for free as part of its move into the market for Internet delivered software...."

"So the obvious solution is to give away someone else's word processing software -- Corel's WordPerfect. It's a marginal competitor anyway, and won't likely cannibalize Microsoft's core business. For Microsoft, $135-million is not much to pay to protect Word but still compete head-to-head with Sun."

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