1. embrace
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2. Extend can be good if done openly and collaboratively, as opposed to closed and hidden.
3. Extinguish - Here be dragons.
I'm hopeful the New Kinder Gentler Microsoft stays on steps 1. and 2. (done collaboratively).
The company would be worse off if they do not stick to this direction and start backstabbing. It is bad enough that companies are legal persons, let's not anthropomorphize them even more into irrational evil villains that hold grudges.