Wednesday, June 21, 2006
It was in Bill Gates' self interest to leave
Look at the intra-day time-series of the Microsoft share price superposed with the S&P 500: So it looks like the market feels it was worth giving a golden handshake to Bill Gates worth around 4% of his ownership for relinquishing control of the embattled giant. (How much is that?) I was fascinated by how slow the information processing was. I seem to remember that the announcement came out after hours on Friday? I would have thought that by monday morning, everyone would have made up their mind on how this changes things. But actually, the trading on monday seems to have gone on till evening discovering the new price. The monday evening gap, of around 4%, between MSFT and the S&P 500 was then stable on Tuesday. In the period after Tuesday, the gap rose a bit.