Re: [Fwd: Corel Intel Deal in the making]Microsoft becomes its own competition?

From: Arla Johnson (
Date: Fri Mar 10 2000 - 08:53:51 MST

"Michael S. Lorrey" wrote:

> Hey guys, look at this...
> ------------------------------------------------------------------------
> Subject: Corel Intel Deal in the making
> Date: Thu, 09 Mar 2000 12:33:09 +0100
> From: Godehard Bruntrup <>
> Organization: Munich School of Philosophy
> Newsgroups: corel_chat
> Corel and Intel discuss alliance
> In talks with computer maker to launch cheap line of
> PCs that would challenge Microsoft's dominance
> Technology Reporter
> Thursday, March 9, 2000
> Ottawa -- Corel Corp. is in talks with Intel Corp. and at least one
> major computer maker to launch a line of cheap personal computers that
> takes direct aim at Microsoft Corp.'s near-monopoly in desktop PC
> operating systems.
> "There are lots of discussions under way," Corel head Michael Cowpland
> told The Globe and Mail yesterday, just before the start of the Ottawa
> software maker's annual general meeting. "We've been talking for
> months."
> Mr. Cowpland said the talks are "multifaceted" and involve other
> computer industry players. Although he wouldn't reveal further details,
> Corel and Santa Clara, Calif.-based Intel would likely also want to
> include a computer maker, a browser company and an Internet service
> provider. "There's a huge amount of action."
> Under the deal being discussed, Corel will supply its Linux operating
> system, a cheap and reliable alternative to Microsoft's dominant Windows
> software. There are no details on what the hardware component of the
> computer would be, but Intel markets a line of low-cost microprocessors
> called Celeron.
> Doug Cooper, a spokesman for Santa Clara, Calif.-based Intel, said the
> two companies have been working together for "quite some time," but that
> the key relationship in the arrangement would involve Corel and a
> computer maker. "We want to ensure that the mainstream software works
> best with Intel chips."
> A definitive deal would be a technology industry landmark because it
> would mark a new path for Intel, which has made its name -- and its vast
> fortune -- largely on the back of its lucrative relationship with
> Microsoft. The two giants have dominated their respective areas of the
> PC industry through a partnership commonly known as "Wintel."
> But Mr. Cooper said Intel believes in choice. "It's certainly good news
> for consumers," he said of the talks.
> There is no indication that Intel plans to sever or scale back its
> relationship with Microsoft of Redmond, Wash.
> For Corel, a deal would mark its latest -- and easily most important --
> step in the company's strategy of increasing its user base by bundling
> low-cost versions of its software with the major players in other
> corners of the PC industry.
> But a deal would also mark a return to a head-on confrontation with
> Microsoft, a strategy that sent Corel into a tailspin in the mid-1990s
> as it attacked the software giant's entrenched position in the office
> software market.
> ------------------------------------------------------------------------
> Michael S. Lorrey <>
> Documentation Manager
> Datamann, Inc.
> Documentation
> Michael S. Lorrey
> Documentation Manager <>
> Datamann, Inc.
> Documentation
> PO Box 501 224 Hartford Ave. Fax: (802)296-3623
> Wilder Work: (802)295-6600 ext. 46
> VT
> 05088
> Additional Information:
> Last Name Lorrey
> First Name Michael
> Version 2.1

Microsoft might be planning to show the Anti-trust boys that by owning part of
a company (corel) which plans direct competion to Microsoft products that it
should not be forced to break up its holdings. It is developing a stategy of
divestiture in which it creates a long term profit stream as a minor
shareholder in the companies it will divest into.

How can you top that?


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