By Paula Rooney
Redmond, Wash.
Microsoft Corp. is busy reorganizing itself in a major way without the government's intervention.
Thursday, the Redmond-based company said it was spinning off the successful Expedia online travel service of MSN into a separate company. Microsoft filed for an initial public offering (IPO) of shares of common stock with Goldman Sachs & Co. and Morgan Stanley Dean Witter.
Expedia will become a separate company, but will maintain a contractual relationship with,and be majority owned,by Microsoft. Expedia will continue to be offered on MSN, Microsoft executives said.
The step may be an indication that the government is seriously mulling a breakup of the company's Internet and Windows properties if it prevails in its massive antitrust lawsuit against the software giant, said at least one source. The trial resumed earlier this week after a long recess. A decision is expected in early 2000.
But others familiar with the company's strategy said the intent is to separate MSN content and services from Microsoft's stated goal to make MSN the portal of choice for consumers and businesses. It is a unique way for Expedia to receive capital infusion from the open market, these sources said. There currently are no plans to spin off CarPoint, another successful MSN service, sources added.
