Transcript: RealNetworks' Rob Glaser

This is a partial transcript from "Your World with Neil Cavuto," October 11, 2005, that was edited for clarity.

NEIL CAVUTO, HOST: Microsoft (MSFT) and RealNetworks (RNWK) are burying the hatchet.

RealNetworks settling an antitrust lawsuit against its longtime rival for more than $760 million now as part of the deal. The two companies will work together to promote digital music and video games. Here now the guy who extracted that deal, Rob Glaser, he's the RealNetworks chairman and CEO.

Rob, how did you get that kind of money out of Bill?

ROB GLASER, CHMN. & CEO, REALNETWORKS: Well, it was a negotiation.

CAVUTO: Oh, you're being nice. What did you do?

GLASER: Well, we created a win-win outcome, actually. It was clear that we wanted to close an adversarial chapter and move into a positive direction. And we found out after a lot of conversations with Microsoft that we and they had a common view of interoperability, openness in terms of licensing of technology, and came up with a way to do that; and then also at the same time to promote our Rhapsody music service and games offerings on Microsoft's MSN and Xbox. So, it's kind of what we.

CAVUTO: Yes, but you know what I don't understand? Microsoft settles with you. It settled with IBM (IBM) for $1.6 billion. It settled with Sun Microsystems (SUNW) $750 (ph) million, America online, a few hundred million there. I just think they looked at all of you guys as big nuisances.

GLASER: Well, you know, you would have to ask them how they thought about things. We certainly took this effort very seriously. And we also take this relationship very seriously. Right, you know.

CAVUTO: So wait a minute. You go from hating these guys to now you're in bed with them. I don't understand that.

GLASER: Well, you know, on a personal level I don't think I ever hated these guys. I worked for Bill for 10 years, as I think you know, and I've known him for 22 years.

CAVUTO: Yes, but let's face it, Rob, you've done OK on your own.

GLASER: I'm proud of how we've done as a company and I'm very proud of RealNetworks going forward. But at the same time, it's not like there was a history of negative energy. We had a specific set of issues to deal with. We dealt with them and now the relationship is going forward.

CAVUTO: Rob, Rob, Rob, this guy was trying to squish you like a bug, and now he has come back and given you all this money. So obviously bygones are bygones, but what are you going to do with the dough?

GLASER: I'm going to Disney Land. No, we clearly have a lot of things on our agenda. In fact, we have an investor call in about an hour- and-a-half's time where we're going to talk to our investor base and sort of begin sharing information about that. What we're focusing on.

CAVUTO: Is it a single investor you're talking to or all of your investors?

GLASER: No, it's just a regular investor call, you know, anybody can dial into it.

CAVUTO: OK, I got you, I got you.

GLASER: After your show, so you can catch it too if you want.

CAVUTO: Right, OK. The mood obviously among them, is this favorable, is it a lot more than they thought you would ever get out of this, do you think that you got Bill Gates at a time he was eager just to shut you up and move on?

GLASER: I think we created a win-win outcome, which was not obvious how to do, and I think by doing that we got something that was in both companies' interests. In addition to the legal issue, look, we have a great music service, Rhapsody. In fact, we demonstrated it integrated with MSN. And it's superior to anything that's out there in the marketplace. Likewise, Microsoft has a big agenda with Xbox. We're going to take our very popular casual games and put them on Xbox and help drive that forward. So when there's a win-win outcome that's always the best way to go.

CAVUTO: I know you don't like to talk about your competitors, but what do you think is going on with Microsoft, and more to the point, Bill Gates? Is that they obviously have been settling with a lot of folks lately. What do you think is happening there?

GLASER: Well, I think you should ask those guys what is motivating them, what their activities are. I know that when we sat down and worked with them, we found a very collaborative environment. Obviously we had to establish a trust relationship. But once we did that, we found people focusing on the future.

CAVUTO: Yes, Rob, real quickly, you know, it's no secret, you're very active in Democratic circles. I've talked to a lot of prominent Democratic businessmen like you who are sort of licking their chops at the prospect Republicans are going to lose majorities next year. Do you buy that?

GLASER: Well, I certainly think if you look at stuff that's going on internationally in Iraq, and you look at the slow reaction to the hurricane in the South, there are a lot of issues right now. I would say that the 2006 elections are over a year away, so a lot of things can happen between now and then.

CAVUTO: OK. So you didn't answer me. Are you licking your chops?

GLASER: Look, any patriotic American wants only good things to happen to the country, and so insofar as there are not good things going on, nobody can lick your chops. Clearly it's about how can we do better?

CAVUTO: You know, you've got to run for office, Rob, all right?

GLASER: You've said that before, Neil.

CAVUTO: Rob Glaser, who refuses to answer my questions, by the way, thank you very much, the man who runs RealNetworks.

GLASER: Good talking to you.

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