Microsoft Might Open Its Wallet

The European Union has pushed back the date for final hearings in its long-running antitrust challenge against Microsoft(MSFT), a legal cloud the software behemoth has used as an excuse for holding on to its enormous cash pile. But in a move long awaited by investors, Microsoft's CFO on Wednesday also committed to revealing plans for that cash stash by mid-July.

"I would commit we would have more to say by the analyst meeting on what we do with cash," said CFO John Connors, referring to Microsoft's annual analyst meeting in July. "It's really clear folks want us to move once we get past some of the significant litigation."

For years now, Microsoft investors have been calling on the world's largest software maker to share more of its cash with shareholders. Microsoft finally responded last year by declaring its first-ever dividend, but it was so small that it was widely viewed as just a token. Meanwhile, the company's cash has only continued to build, surpassing $52 billion in the last fiscal quarter.

Microsoft has cited its legal troubles as the reason preventing it from making a move on the cash. That includes suits from rivals Sun Microsystems(SUNW) and RealNetworks(RNWK), although the European Union antitrust case is the most important one, Connors said Wednesday.

The European Union has charged that Microsoft abused the dominant position of its operating system to corner the media-player market by embedding its Media Player in Windows. It also has charged that Microsoft failed to disclose information that competitors claim they need to interoperate with Windows servers. Microsoft could face fines of up to 10% of its annual revenue -- which would be almost $4 billion -- and requirements to disclose information and unbundle the Media Player or offer competing players in Windows.