John Battelle writes that Microsoft should be split:
MSFT has already taken the first step, which is to reorganize into three distinct businesses – Platform and Products (Windows and MSN), Business (Software), and Entertainment/Devices (Xbox etc.). But really, what it needs to do is spin out a Google/Yahoo killer. Take Search, Live, and a good chunk of MSR (research) and make it a separately traded division of MSFT. Take the damn thing public. Imagine that IPO!
Let’s call this new company LiveSoft. It spins out with exclusive licenses from MSFT for integration with Windows and Office. For infrastructure support and access to patents/IP/research/human capital. All the stuff it needs from Mommy Microsoft, it can have.