This is a partial transcript from Your World with Neil Cavuto, November 2, 2001.

NEIL CAVUTO, HOST: Real quick read now. On the phone, from Sun Microsystems, Scott McNealy on the Microsoft settlement. He joins me now from Santa Clara, California.

Scott, good to have you.


CAVUTO: What do you think?

MCNEALY: I think it's a joke.


MCNEALY: It isn't even close. Doesn't come close. I guarantee you that this isn't a remedy. It's a reward.

It went from breakup to suck-up. It's unbelievable what has happened here.

This will do nothing. You will not see more companies getting in the business, and trying to build desktop operating systems, desktop productivity suites, media players, browsers. You will not see more startups trying to go after the online marketplace to compete against MSN and the Passport. You will not see consumers get choice and opportunity around where their information is kept and how secure it is and this Passport architecture. And you will not see Microsoft operate in a more leaderful way.

CAVUTO: Well, Scott, you know, you sound like a sore loser. You lost, right?

MCNEALY: No, I didn't lose.

CAVUTO: Well, you wanted this guy, you know, nailed...

MCNEALY: Consumers lose.

CAVUTO: ... to the cross. It didn't happen.

So are you worried that Sun suffers as a result?

MCNEALY: The consumers lose. That's who's getting clobbered on this thing, as well as all the enterprises who are going to basically get "Pacmanned" away as Microsoft goes after their businesses. And that'll include cell-phone manufacturers, service providers, online providers, financial institutions, retailers — you name it — as they go after their businesses and take a little chunk of their pie as they move forward. Not to mention the fact that this will keep all of the PC companies at very low margins. It will give them basically no opportunity to have any kind of leverage on the market.

The consumer is the huge loser here.

CAVUTO: OK, Scott. Thanks for taking time. I know you had a busy day. Appreciate it.

MCNEALY: No problem. Thank you.

CAVUTO: Scott McNealy, Sun Microsystems.

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