The recent spate of acquisitions and investments by Microsoft Corp in the area of video streaming and its $150m stake in Apple Computer Inc has caught the eye of the Department of Justice, which has launched a review of Redmond’s activities to see if they violate anti-trust laws. Along with the Apple move two weeks ago when it bought 150,000 shares and signed a set of cross- licensing and technology-sharing deals (CI No 3,220), Microsoft bought VXtreme for $75m earlier this month (CI No 3,219), right after taking a 10% stake in rival video streaming company Progressive Networks Inc. Last year Microsoft took a 5% stake in VDONet, purveyors of video telephone technology (CI No 3,044). Microsoft has countered by sidestepping discussion of its Apple investment and concentrating solely on the issues surrounding the video streaming business, saying that the market is very much in its nascent phase and there are lots of players jostling for position. But it wouldn’t comment on the specifics of Justice’s inquiry. All of Microsoft’s minority stakes involve non-voting shares, including the Apple investment.
