03:28 AM

Software 2007: Would You Invest In A Microsoft Spinoff?

I got a chance to meet the very dapper and tanned Dan'l Lewin, VP and senior Microsoft strategist. He said that Microsoft had spun out four startup companies recently. Tongue-in-cheek I asked was it a way to reduce headcount, was it a sell-off or a spin-off?

Mr Lewin said that the spin-off companies have innovative technologies and should do well. But why would investors want a piece of a startup that Microsoft doesn't want? VCs want startups that they can sell to MSFT or others.

The MSFT startups are in ancillary businesses that are not part of Microsoft's businesses, I was told. Isn't Microsoft in everyone's business these days? Or, at least trying to get into everyone's business...

Dan'l Lewin Corporate Vice President, Strategic and Emerging Business Development