Microsoft Embraces Post-Settlement EraMicrosoft Embraces Post-Settlement Era

Microsoft executives, still buoyant from Friday's historic antitrust ruling, took a victory lap on their home turf Tuesday, showcasing products from the Tablet PC to MSN 8 and accepting the robust praise from some of the most relieved shareholders in the country.

The company that once faced a court order breaking it in half now sees a future of unimpeded growth potential in multiple markets, thanks to a federal court judge's ruling widely seen as extremely favorable to Microsoft. That historic development clearly pleased upbeat shareholders gathering for Microsoft's previously scheduled annual shareholders meeting.

"You guys are doing a fabulous job. Hip, hip, hooray!" Dan Barr, a Seattle shareholder, said during the meeting's brief question-and-answer segment. His unsolicited accolades generated conservative but robust applause.

"Thanks for making this the best damn company in all the world," said another shareholder, sparking more applause.

Microsoft chairman Bill Gates has to be feeling optimistic these days. While he carefully avoided gloating in his first public appearance since the historic antitrust ruling, Gates said he's pleased with the ruling, saying it provides clarity and that the company is committed to being very smart and serious in complying with it.

"Our mood is one of optimism in terms of what we can do with our products," Gates told shareholders.

Even before the ruling, this would've been a decidedly upbeat shareholders meeting. The world's largest software maker recently said it has annual revenue of $28 billion and $40 billion cash in the bank.

Small wonder shareholder after shareholder rose to proclaim himself "Microsoft cheerleader," heaping praise on the management team.

"It would have been terrible to split the company," said Bothell, Wash., resident Billie Bauer, a self-described huge fan of the forthcoming Tablet PC. "The settlement is fair and reasonable."

"Now the company can get back on track," said shareholder Garth Houlihan of Bellevue. "The court fight had been a drag on morale [within the company]. The mood here is optimistic among shareholders."

There may be a love-hate relationship with the largest supplier of desktop operating systems in most of the crowd. But in the Northwest, it's clearly a full-blown lovefest. And why not? Microsoft acts as a job-generating machine that propels nearby property values and has produced a half-dozen billionaires and thousands of millionaires.

The region's economy is closely tied to the Redmond company, and it's Gates' somewhat insular home turf. Within 30 square miles are his boyhood home; his swanky prep school; his father's law firm; Microsoft's corporate headquarters; other companies he owns; and legions of reasonably happy employees, ex-employees, and shareholders. Many feel vindicated or at least able to "move on" after Friday's ruling.

Shareholders should be exuberant. Last Friday, U.S. District Judge Colleen Kollar-Kotelly approved a settlement agreed upon by Microsoft and the Justice Department and nine states. She sent a stinging rejection to nine other states that were seeking harsher penalties.

Despite the clear magnitude of the victory, Microsoft executives have framed it only as "fair" or "reasonable." Still, CEO Steve Ballmer, long known as the company's most outspoken evangelist and enthusiast, couldn't quite refrain from expressing some optimism.

"The management team is more upbeat and focused than ever before," Ballmer said.

In other words, the ruling appears to have lifted these guys out of their slump, so get used to it: The post-Kollar-Kotelly era is beginning--and Microsoft looks more powerful than ever.