Microsoft to Face Breakup, Stock Plummets 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 ( stock price, several securities analysts removed Microsoft from their lists of "recommended" stocks. The Microsoft sell-off brought the Nasdaq ( 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.