Article: Microsoft, now largest computing firm, moves to expand market share.

Dataquest Says Microsoft Owns 44% Of

Market, Analysts Expect Price War

For the first time in history, a software company has gained enough "critical mass" to become the largest firm in the computer industry. Last week, Microsoft Corp. edged ahead of IBM in terms of bottom-line market value. The break through came less than a dozen years after IBM gave Microsoft its first big break in the joint effort to develop MS-DOS.

Last week, Microsoft shares rose to $89.50, giving the Redmond, Wash., software giant a market value of $27.12 billion based on 303 million fully diluted shares outstanding. IBM's market value was $26.48 billion based on a ...

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