Expedia shows Microsoft the way

EXPEDIA'S second-quarter profits soared 30 per cent on the back revenue growth from more hotel bookings and if, in an idle moment, Steve Ballmer notes the travel site's success, it might yet nudge Microsoft into spinning off more of its properties.

A $95.5m profit suggests that the oft-touted "threat" of a Microsoft break-up by regulators would have been the most risible penalty of them all. Total revenue was up eight percent to $598.5m.

Expedia now has a market capitalisation of $4.7bn and can reasonably reckoned to have been a huge success since Microsoft spun it out and sold it off. Microsoft sold its majority stake in Expedia in 2001.

Maybe Microsoft should have done something similar with the wobbly MSN franchise or other areas that perhaps suffer from being part of such a huge group. A degree of largesse and a few new hands on deck might help the Microsoft Business Solutions applications family or give the giant a much needed leg up on mobile wireless devices.

Some Microsofties are already saying similar things.

In an interview with Valleywag, departing blogger Niall Kennedy said he would only consider returning to Microsoft if it was reorganised.

Asked to explain, he said, “Splitting the company into desktop, server, online, and possibly gaming divisions. It's just too big.”

Renegade blogger Mini-Microsoft half-concurred.

"I certainly agree with the desire for Microsoft to be a way smaller company (though I think every time I say that, or ring a bell, 100 more people get hired). I'm not bought into the split-up, except for the sobering benefit of cutting off the cash-cow money flow that allows an abundance of waste and bad decisions elsewhere in the company."

With Microsoft making so many uncharacteristic missteps, a bit of self-evisceration might be the kindest cut Microsoft could make. µ

TRIVIA Just to show that nothing really changes… µ