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Microsoft decision today
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June 7, 2000: 3:53 p.m. ET
U.S. District Judge Jackson ready to announce remedy ruling in antitrust case
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NEW YORK (CNNfn) - A federal judge plans to issue his final ruling in the Microsoft antitrust case later Wednesday, in a decision widely expected to call for a breakup of the software maker.
The U.S. District Court in Washington said the judge's decision will be made public at about 4:30 p.m. ET. The ruling earlier was expected to be released at 3 p.m.
The decision in the "penalty phase" of the long-running Microsoft case follows an April 3 ruling by Judge Thomas Penfield Jackson that the company broke U.S. antitrust law by abusing its monopoly in personal computer operating systems. Observers believe the judge will endorse a government plan to split Microsoft in two, and impose a series of restrictions on its business practices to prevent future antitrust violations.
One alternative could be to split the company into three parts, which was advocated by some software industry watchdogs in a friend of the court brief cited favorably by Jackson at a hearing last month.
The expected ruling would come just hours after  Microsoft (MSFT: Research, Estimates) responded Tuesday to the government's revised breakup proposal.
Antitrust experts said the judge's decision to issue a quick ruling signals he's likely to accept the government plan with few changes.
"It shows Microsoft has lost all credibility with the judge," said Bob Lande, a professor at the University of Baltimore Law School. "He looked at Microsoft's latest comments and shrugged them off."
"It shows the ruling is basically going to be the government's proposed order, consisting of a two-way split and interim remedies," said William Kovacic, a professor at George Washington University Law School.
Since the Justice Department and a group of 17 state attorneys general first proposed the breakup on April 28, Microsoft has called the plan extreme and unwarranted. The company has vowed to appeal whatever decision the judge makes.
Speaking in Oslo, Norway, Microsoft Chief Executive Steve Ballmer said Wednesday that a breakup of the company would dampen innovation in the software industry, but that the company would survive such a split.
"A breakup of Microsoft, I think, would be an awful thing for consumers and for the industry. The real issue in a possible breakup would be the harm it does to innovation," Ballmer said, according a Reuters news service report.
"But we'll be fine either way. We'll move on," he said.
Microsoft co-founder and Chairman Bill Gates canceled a planned appearance Wednesday at an industry gathering in Washington to fly back to the company's headquarters in Redmond, Wash., late Tuesday when it became clear that the judge's decision could be imminent.
An executive with the Software Publisher's Association told CNNfn that Gates told him he had to return to the company to "be with his employees."
Meanwhile, Microsoft got some support from another corporate powerhouse Wednesday - the Walt Disney Co. Speaking to CNNfn after an appearance before Congress, Disney CEO Michael Eisner said Microsoft has done "an incredible service to the entire Information age" and doesn't deserve a punishment that would bring it "down on its knees."
"I would hope that whatever they end up doing with Microsoft doesn't leave them in a way that they can't continue being that way," Eisner said. "Have they done some things wrong? Has their behavior been a little aggressive? I guess it has and I guess there should be some retribution for that, but I wouldn't want to bring the whole company down on its knees."
Stock under pressure
Microsoft shares gained 5/16 to 69-15/16 at about 3:30 p.m. ET Wednesday, reversing earlier declines. The stock, a component of the Dow Jones industrial average and the Nasdaq composite index, has been battered amid months of antitrust litigation.
The stock has dropped from its 52-week high of 119-15/16, but is up from a yearlong low of 60-3/8.
Microsoft shares are likely to continue trading within their current range after the decision is released, Deutsche Banc Alex. Brown technology analyst Chris Mortenson told CNNfn. (308K WAV) (308K AIFF)
"You could get a little bit of a trade-off when the actual ruling comes out, because while I believe it's widely anticipated, it can always be a little shocking when you see the actual results," Mortenson said. "But my guess is if you get any kind of downward pressure today (Wednesday), you're going to get a rally back up tomorrow."
Mortenson rates Microsoft stock a "buy," saying that the company is "still a great company" that's expected to post stronger second-half operating results. "We think all of the bad news is out," he said. 
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Microsoft
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