Should Microsoft Be Broken Up?

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Aug. 26 (Bloomberg) -- In today's Triple Threat, Bloomberg's Jon Erlichman, UBS's Brent Thill and KeeneOnTheMarket.com's Jim Ramelli discuss the outlook for Microsoft with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Do microsoft get too big for its own good?

Is the company better off split up?

Over the last decade, microsoft has felt more like a big industrial company.

What would a leaner microsoft really look like?

It is so hard to say.

The lessons we have learnt over the last decade are that had microsoft o.p.s. on staying relevant and would have avoided being in this situation.

This is the big growth of search.

There was the growth of the cloud.

And even social media.

Microsoft has enough intelligence than all those areas they could have been the first mover.

I think that is likely what they're looking for.

How do we beat the first mover ? the challenge of being the smaller companies as they will not have the most resources that allow them to have that first mover advantage.

Let's go back a few years.

You think back to the government trying to break them up around the year 2000/2001. is there an issue here with them having to spend so big having a monopoly on the market, getting complacent and not recognizing the opportunity?

But.

I think you're absolutely right.

When any company gets day, especially when they have a mountain of profitability coming from something like windows, it is hard to shift.

When your junk with some other stuff that is giving ugly headlines.

We're going to focus on what is going to cause the least amount of damage for now.

There's no reason why this is a company that cannot take what it has in its current size and say let's try to lead the next chapter.

More so on the business side.

They have a of trust the companies who would arguably like to stay with them.

One of the ideas has been to break them up.

This is a terrific chart.

Let's go through it.

You are looking at 13% of the revenue.

Might you have an opportunity?

We think it is more.

We do not believe there is a breakup comping.

We think it is going to be tough to separate search the os from the enterprise business.

We think it was pretty clear what steve ballmer was trying to do, come by the companies together.

Why not just divide it up?

How do you take your enterprise mailbox and let those?

They have shared resources and technology.

It'll be difficult to make that happen.

They have a great enterprise strength.

Clearly the consumer has been lagging.

Vestry -- investors are making sure he understand the consumer business.

What are you looking at?

I think microsoft sets up really well or a lot of positions in the short term.

They have a lot of things that are going good.

We talked about the entertainment division.

Look at their market share.

It is fractional.

There is this call spread.

In making $65 the trade is about 36. this sets up well.

How long do think it will take for us to hear who who the new ceo is?

Give him 12 months.

Why not take as much time as you need to make?

I think the biggest question right now is was sam grobart wearing yellow or green can't? that is a good question.

This text has been automatically generated. It may not be 100% accurate.

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