CNET News.com: Antitrust case beats down Microsoft shares

“The landmark antitrust case has taken its toll on Microsoft
investors, and it’s unclear whether the cloud hanging over the
software giant’s shares will lift anytime soon.”

“Today’s news is just the latest blow for the company, which has
watched its market capitalization cut practically in half since
December. With the threat of a breakup looming and little guidance
to how the new companies would be valued, investors have pushed
Microsoft shares down 42 percent in less than four months.”

“Analysts predicted that splitting the company will likely drive
up costs to run two operations and reduce Microsoft’s ability to
leverage its operating system to enter new markets. … Analysts
are mixed on whether Microsoft will remain a strong company if its
operations are split in two. … While Wall Street wrestles with
assigning a valuation for the two companies and the case drags on,
the stock may remain depressed due to uncertainty, analysts
said.”

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