As of Sept. 30, Microsoft had gone over the $40 billion mark in cash and short-term investments (effectively the same). Think about that -- $40 billion.
What is Microsoft going to do with this money? They can't spend it fast enough internally, and the top shareholders, who control the company, refuse to issue dividends (this saves Bill Gates et al billions in taxes). Prediction: Once Microsoft is out from under what's left of the antitrust case, it'll go on a strategic investment and acquisition spree the likes of which you cannot even imagine.
The monopoly continues, unabated, and could even grow stronger. Innovation is almost dead in desktop software, where Microsoft has sucked the financial oxygen out of the system. The company's behavior doesn't improve. It's no coincidence. Too bad we no longer have a government that's willing to enforce the antitrust laws, and technology buyers who feel so trapped they won't even consider alternatives. Life, circa 2002.

Dan Gillmor, 10/17/2002