Microsoft is divesting from RealNetworks. One reason is that Real did not include the interoperability features Microsoft wanted. A more intersting reason was that Real and Microsoft did not see eye-to-eye on the future of streaming, and have been feuding over future standards. Chris le Tocq, an analyst at Dataquest in San Jose, Calif. said the rare move by Microsoft is Microsoft "saying that you are not one of us". Interestingly this move came after Microsoft offered to work with RealNetworks on an underwritten secondary offering of stock, but the two companies could not agree on terms... Although normally this would reduce investor confidence in RealNetworks, its stock bounced up while Microsoft's fell. In related news, Gartner reiterated its warning not to move to Windows 2000 until 2001 at the earliest.
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