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osOpinion: To Conspire, Or Not To Conspire

Oct 05, 2000, 07:10 (0 Talkback[s])
(Other stories by Kenneth Standard)

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"With the announcement this week of Corel and Microsoft completing a $135 million dollar deal, it brings into question the seriousness of the commitment Corel has to Linux. The Microsoft deal is for implementation of Corel products with Visual Studio 7 (or as MS wants to call it Visual Studio.net). This is in clear conflict with the initiative started last year to market WordPerfect Office on Linux and issue a Linux Debian package under the Corel logo. This monster deal entitles Microsoft to a very large stake in Corel, 24 million non-voting shares (a whopping 24 percent of the shares), which to some may border on conspiratorial."

"This action should come as no surprise to readers of osOpinion. The movement of Microsoft away from client/server-centric products, to Web-centric products, with a major thrust on XML, has been well documented by this author and others. The deep-pocketed influence of this mega-giant software maker is obvious each time a competitor like Corel is either bought outright or a significant stake in that company is purchased."

"The Corel deal is not without influence on itself. The company has invested heavily in the Linux products with poor return on investment. The sagging stock price has not supplied needed capital for development costs much less new growth. This new infusion of capital in one big chunk will no doubt boost the finances of the Canadian software maker. It has already influenced Wall Street. The price made a significant bump in price following the news announcement by Corel this week."

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