Co-founder, chairman and CEO, Microsoft Corp. (last year No. 1,
with Ballmer and Myhrvold) NET WORTH $51 billion AGE 42 ADDRESSwww.microsoft.com BIO Everyone knows the tale of Bill. Writing code
at 13 in suburban Seattle, dropping out of Harvard to start a
software company, richest man in the world, yadda, yadda,
yadda--the Gates saga has become our best-loved modern myth. He
resembles King Midas, another ruler whose touch turned everything
to gold. But are his fortunes finally changing? During the past
year, Greek tragedy comes to mind when one contemplates Gates and
his mighty empire. Will hubris be his undoing? Some of the best
minds of Silicon Valley are aligned behind a Department of
Justice antitrust suit against Microsoft. The attorneys general
of 20 states have also piled on. Gates is hanging fire; the
pugnaciousness of his company isn't winning any friends. 1998 POWER PLAY Legal woes notwithstanding, Microsoft still exerts
more power over the technology business than any other company.
To avoid rankling the DOJ, Microsoft has slowed down the buyout
and investment pace that saw it drop big chunks of change into
Comcast and Apple in 1997. Microsoft made a 10% investment in
Time Warner's Road Runner data-by-cable system over the summer
and acquired Valence Research, a maker of software for the
Windows NT operating system. Microsoft's newly released Windows
98 OS has also enjoyed brisk sales. But while the DOJ's antitrust
suit challenges the software maker, the technology market itself
also poses a threat to Microsoft's dominance. As computers evolve
into communication tools, functioning less as engines to drive
spread-sheet and word-processing software, Microsoft will see a
decline in its application business. This fact isn't lost on the
folks in Redmond. Their Windows CE OS is designed to maintain
their market in a world of smaller, more diverse machines. PLACE
YOUR BETS Its markets may be changing, but Microsoft has the
smarts, cash and tenacity to stay ahead of such shifts. Watch for
how the antitrust case plays out. If it pushes the stock down, it
may be a good time to get onboard.
Credit: Illustration for Time Digital by DANIEL ADELT
