Microsoft Buys Internet API-1-April-99 In an after market-close maneuver that surprised some Wall Street analysts, Microsoft chairman William Gates announced that the computer giant is buying the companies which implement and operate the Internet, namely MCI, AT&T, and GTE with a $875 Billion offer of stock and cash. The combined venture will be operated as a separate division of Microsoft until December when it will be divested into a subsidiary company majority owned by Microsoft and issue an IPO for its own stock. The IPO is expected to be one of the hottest stock releases ever on the NASDAC exchange and analysts are projecting a delayed opening and big bounce for MSFT in Thursday trading, although they would not say whether it would be up or down. When asked for comment, Mr. Gates would only say that "Its time that Microsoft took control of what has up to now been a chaotic collection of communication companies charging almost nothing for this valuable collaboration tool. We plan to upgrade basic backbone service and to integrate Internet service more directly into the Windows 2000 operating system, currently projected for release in June of 2002. End users will see a much improved network response with only a minor charge imposed for each packet transferred, probably just pennies, on their monthly ISP bills. It will be a Good Thing for America and Microsoft." Some industry insiders were quick to protest or get on the bandwagon with the wily Microsoft chairman. Enrico Pesatori, VP of marketing and sales at COMPAC said "Now you know why we have been selling cable modems on all our mid-level computers. Itza Good Thing". On the other side of the fence, Apple acting chairman Steve Jobs said "Gates is turning the information highway into a toll road at the expense of consumers. It is doomed to fail, but we will be supporting the higher access speeds with MAC OS 10.0 when it is released." Apple stock rose 4 3/4 in aftermarket trading based on the suggestion that there would be a continuation of the MAC OS to a new release. Justice Department spokesmen were asked for comment but would only say "We are investigating whether any of these companies actually own these Internet rights. There are credible counterclaims that the Internet is actually owned by Vice President Albert Gore who created it. We will release a preliminary press release on this issue in September." Until recently there had been whispers on Wall Street that something was cooking in Redmond, but most of the attention had centered on building manufacturers Anderson, Pella, and Marvin in response to some high tech analyst comments that Microsoft would diversifying in that direction, but that was quashed last week when the rumored "Windows for Houses" business unit was put to rest by Microsoft PR coordinators. "It was a non-starter apparently caused when Chairman Gates purchased a significant percentage of their annual production for installation in his new lakeside cottage. We will support device drivers for elecrically controlled windows but it will NOT be an OS extension and we have no business interests in that direction." At that time Microsoft stock rose 14 points on the denial.