It Ain't Over Yet (11/6/97)
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Apple's buyout of Power Computing is on hold due to a federal antitrust review, according to the Austin American-Statesman. But instead of being a surprising federal attack on Apple for anticompetitive practices, Power's corporate counsel John Teets says "[the review] appears to pertain to [the Department of Justice's] ongoing investigation of Microsoft."
U.S. attorneys have asked for thousands of "voluminous and detailed" documents from Power, but many of them have little or nothing to do with Apple's proposed purchase of Power's Mac OS business. So what could they be fishing for? Well, recall that the DoJ's current snit with Microsoft involves their alleged violation of a 1995 court order by using their near-monopoly on the desktop OS market as leverage to force Internet Explorer onto their users. Now recall the agreement between Apple and Microsoft in early August; one term was that Apple would make MSIE the default web browser for the Mac OS. Presumably the DoJ is trying to prove that Microsoft intends to monopolize the web browser market, and they think that documents from Apple's Power buyout may support that.
Meanwhile, this development has heaped yet more woe upon Power, whose uphill battle into the Wintel world hasn't even really started yet. Until the review is over and the deal is closed, Power lacks the resources to tackle the Wintel notebook market head-on. Due to sparse advertising and low inventory, they had sold only 150 of its PowerTrips as of their layoffs a couple of weeks ago. Can they survive? And if they can, will they thrive?
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SceneLink (154)
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And Now For A Word From Our Sponsors |
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| | The above scene was taken from the 11/6/97 episode: November 6, 1997: (Sorry—this was before we started writing intro text for each episode!)
Other scenes from that episode: 155: New Front-Runner (11/6/97) Stop them presses... Webintosh is reporting that the new front-runner in the Apple CEO race is Ed McCracken, the former CEO of SGI. Ed announced his resignation from SGI about a week ago, following "disastrous" financial results due to SGI's difficulty in penetrating the UNIX server market, according to a Techweb story... 156: MessagePad Still Kicking (11/6/97) A few sites, including Mac OS Rumors, are reporting that the MessagePad 2100 will not be the last in the MessagePad line, as has been widely rumored, following several layoffs in the Newton department...
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