Microsoft Invests In Corel Corel to Develop for Microsoft.NET Byron Alley
Corel has announced an investment of $135 million by rival Microsoft as part of a partnership to be based on Microsoft's .NET network system.
Corel is one of the last significant competitors to Microsoft in both operating systems, with Corel's Linux product, and in office applications, with its WordPerfect Office Suite. Some critics are wondering whether this will destroy the remaining competition in these areas. Others say that this investment may be a move on Microsoft's part to ensure the appearance of competition in the operating system market.
However, investors are taking a more positive view of the move. Corel's stock rose 53% following the announcement. This investor response follows on the heels of a roller coaster recent stock history for Corel.
Corel representatives are downplaying the investment by Microsoft, claiming that the partnership is merely a natural step for the company's business direction. Corel is intending to emphasize connectivity and network applications through the Microsoft.NET system.
