From the Dark Side--Microsoft and RealNetworks Settle, Join Forces Against...Apple!

That's right. M$ settled its legal battle with RealNetworks for $761 million so that the two giants can join forces against Apple:

"The deal also aims to help the two companies better compete against Apple Computer Inc. in the increasingly important business of online audio and video."

It's just the latest payment of ill gotten gains from a convicted monopolist to buy off former competitors.

"In July, Microsoft reached an $850 million deal with International Business Machines Corp. That followed a $1.6 billion settlement with Sun Microsystems Inc. in 2004 and a $750 million truce with America Online, part of Time Warner Inc., in 2003."

Well, as we know, RealNetworks Chief Executive Officer Rob Glaser is a spurned suitor of Apple's iTunes DRM software. Glaser was a bit heavy-handed."

"In a private e-mail to Apple's top executive, Glaser reportedly warned that if Jobs declined, RealNetworks could be pushed to join forces with Microsoft."

What we find really interesting here is that with all its vast resources as befits a convicted monopolist, M$ still cannot compete with Apple and can be seriously described as "threatened."

"It is now Apple Computer, and its seemingly unending stream of digital music successes, that threatens the future for both Microsoft and RealNetworks."

So, once again M$ follows a familiar path. It seeks to compete not by its claimed "innovation" but by acquisition.

Finally, the ultimate in chutzpah, Bill Gates speaks as an advocate of competition.

"Yesterday, Mr. Gates and Mr. Glaser cast themselves as champions of choice...."

Pardon us while we barf. Quotes from more..., more... and more... [Dana Baggett]