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Microsoft to Face Breakup, Stock Plummets

CNN.com reports that Microsoft Corp. may be split in half as a result of Judge Thomas Penfield Jackson's ruling that the company has monopolized the Web browser market. As a result of the news, Microsoft's stock price plunged 12.3125 points from Thursday's close to $66.625.

In addition to the drop in Microsoft's (www.microsoft.com) stock price, several securities analysts removed Microsoft from their lists of "recommended" stocks. The Microsoft sell-off brought the Nasdaq (www.nasdaq.com) market down 161.4 points to 3482.48 at the end of trading today.

The proposal set forth by the Department of Justice and 19 states calls for a split of Microsoft into two separate companies, one for its Windows operating system and another for its software titles. The Washington Post reported that federal prosecutors have recommended a breakup of Microsoft into three separate companies.

Microsoft executives say that it is still early in the proceedings and that there is no reason to be worried yet. - Isaac Slepner

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

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