Microsoft Corp's ability to increase sales by buying companies or entering new businesses got a boost by the approval of an antitrust settlement between the world's top software maker and the Bush administration, investors said.
"This ruling allows Microsoft to be a capitalist company and compete in new markets, where they have a right to be competitive," said Heather O'Loughlin, an analyst at State Street Global Advisors, which manages US$760 billion and is one of Microsoft's largest shareholders.
Microsoft shares rose as high as US$57.18 in extended trading after US District Judge Colleen Kollar-Kotelly approved most of a proposed settlement reached last year to an antitrust lawsuit the Justice Department brought in 1998. The stock dropped US$0.47 to US$53 at 4pm on the NASDAQ Stock Market. The judge denied requests by nine dissenting states to impose stiffer penalties.
The company is trying to counter slowing demand for personal computers by extending its reach into new areas such as software for cellular phones, server computers and entertainment devices.
The possibility that Kollar-Kotelly might order Microsoft to put some of its software code into the public domain or face other penalties slowed those expansion plans, investors said.
"This just takes off the shackles to let them use their cash horde more effectively to maybe buy back stock or buy other companies," said Don Gher, chief investment officer at Coldstream Capital Management.
RSS