That leads to what might be the most radical proposal in the report -- the suggestion to "carve out" Microsoft's consumer businesses from the rest of the company. Another excerpt:More info at TechFlash.
A break-up of the consumer businesses could potentially unlock hidden value, or more discipline on cost could turn the businesses into contributors to profitability and shareholder value. For example, the Xbox products could be an appealing stand-alone entity, given the historical success of the Xbox and the products’ brand strength, and the business could show unlocked value with forced cost discipline compared to as a piece of Microsoft. To date the company’s comments suggest that management still sees significant value in combining the consumer and enterprise efforts, but we view a foot in both camps as preventing a successful focus on one strategy, a la Oracle in the enterprise or Apple for consumers.
Goldman Sachs: Microsoft should spin off Xbox division
Posted on Saturday, October 09 2010 @ 18:35 CEST by Thomas De Maesschalck