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Microsoft eyes e-listing
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May 4, 1999: 3:31 a.m. ET
Report: software giant may issue Internet tracking stock to leverage value, aid bids
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LONDON (CNNfn) - Microsoft may launch an Internet tracking stock to secure the higher valuations enjoyed by Net stocks and boost its prospects in the tussle for control of MediaOne, according to a report published Tuesday.
The Seattle giant controls a range of market-leading Net operations including the Expedia travel site, the Hotmail e-mail service and the MSNBC news service.
While these businesses have yet to turn a profit, they have immense profit potential and are hugely undervalued in the stock market compared with similar Internet-only companies, according to The Wall Street Journal.
A number of companies have already sought to leverage their position in the Internet business with the launch of tracking stocks, including Liberty Media and publishing giant Ziff-Davis' ZDNet operation.
Liberty Media (LMG.A) last month transferred its Internet business into its Liberty Digital subsidiary which trades separately under the TCI Music (TUNE) ticker.
The Journal said that by splitting its software and Internet businesses into separate listings, Microsoft (MSFT) could avoid damaging its core share price in any bidding battle for MediaOne (UMG), which accepted AT&T's (T) $58 billion buyout bid Monday.
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