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Microsoft and Justice Department Face Off in Court Over $2.1 Billion Intuit Acquisition

Strategic Insights

— 1 min read

The highly anticipated trial between Microsoft Corp. and the US Justice Department over the $2.1 billion acquisition of Intuit Inc. is set to begin on June 26 in a San Francisco court. US District Judge William Orrick Jr. has limited each side to 45 hours of courtroom testimony, aiming for a speedy resolution to the government's challenge of the merger. This trial is critical for Microsoft, as it coincides with the company's final preparations for the launch of its new Windows 95 operating software and Microsoft Network online service.

Key Takeaways:

  • The trial will focus on Microsoft's plans to acquire Intuit, the maker of the popular Quicken personal finance program, for $2.1 billion.
  • The Justice Department has filed a suit to oppose the merger, citing concerns that it will allow Microsoft to muscle into the profitable banking software niche.
  • Criticisms of the deal include the potential for Microsoft to tie banks into home PC personal finance software, enabling consumers to link to financial institutions by telephone wire.
  • The trial will have significant implications for Microsoft's upcoming releases, including Windows 95 and Microsoft Network.
  • The acquisition is seen as an interim step by competitors in the banking software industry, who are scrambling to establish ties with banks.

Statistics:

  • The proposed acquisition price is $2.1 billion.
  • The trial is set to begin on June 26.
  • The Justice Department has limited each side to 45 hours of courtroom testimony.
  • Microsoft is set to launch Windows 95 and its Microsoft Network online service in August.
  • The banking software niche is expected to become increasingly profitable as online banking gains popularity.

Sources:

  • "Microsoft and Justice Department Face Off in Court Over Intuit Acquisition" by Reuters
  • "Judge Sets Rules for Microsoft Trial Over Intuit Acquisition" by Bloomberg,Law
  • "Justice Department Challenges Microsoft's Proposed Acquisition of Intuit" by The New York Times

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