Ask HN: Should Microsoft be broken up? | Hacker News Reader

Ask HN: Should Microsoft be broken up?

2 pointsnumair6 comments

We used to ask this question 10 years ago with the government in mind; today, looking at articles such as the one in the NY Times today (http://www.nytimes.com/2009/10/18/business/18msft.html) it seems like a question worth asking from the standpoint of shareholders, Windows/Office users, etc. Would love to hear the HN community's perspectives on pros and cons, and what a division would look like.

View on HN

Here is how I would break up Microsoft:

  - Office: all productivity software, including Exchange and SQL Server
  - Microsoft: operating systems and platforms - server, client, mobile,
   Xbox, developer programs
  - MSN: all internet properties + Internet Explorer, along with all
   home/etc apps

... Can't think of what else there is in the Microsoft portfolio; I am sure I have left out a ton of their product offerings, but there's a few companies in the split-up I'd like to see happen. I think there'd be a ton of innovation that such a move could unlock.

You wouldn't have the XBox and gaming-related properties in a separate business?

Maybe there's scope for 'Entertainment', that includes MSN and the gaming properties.

I think XBox and gaming-related properties derive a significant amount of value from the underlying operating system and development toolkit; thus, it would make sense to leave them as part of Microsoft. I don't think MSN and XBox are particularly similar, but maybe I'm wrong...

MSN as a separate entity probably couldn't survive. I cant see that it has the solid revenue stream / secure market that the other 2 portions have.

Arguably even the Office segment would struggle too (possibly depends how well online office does).

MSN needs a fundamental rethink of its business. No better way to encourage that than to force it to take care of its own P&L. It's really no different than Scripps' spinoff of its newspaper business.

Internet Explorer is surely a platform? And a web browser is surely an essential part of a modern client operating system?

Reply on news.ycombinator.com