You make a persuasive argument. But they've been sitting on that $40B cash hoarde for decades, and they're pretty good at managing it for decent return, given that it is cash. I think longtime investors want to see more of that cash returned as dividends. As far as the Skype deal, their recent product maneuverings smack of execution problems. I'm not convinced that they can execute on this deal. Essentially they're just used to throwing cash at their problems.
On Tue, May 10, 2011 at 10:52 AM, Andrew S. Baker <[email protected]> wrote: > *>>All cash. Sends a huge message to investors that they stock isn't a > worthy currency to purchase companies. * > > No, not really. It indicates that they don't *need* to use stock as > currency for purchasing organizations. > > $40+ billion cash on hand means it makes much more sense to use that > instead. Makes for a clearer purchase and a more straightforward valuation. > Investors don't like to see excess cash sitting around doing nothing. Now, > some of it isn't. > > While the deal with Nokia might very well be a bit of a flounder (depending > on if they were planning to do this move), this is a totally different > situation. It fits their product portfolio, and prevents a main competitor > from dominating that part of the market. > > This deal makes infinitely more sense than a FB/Skype marriage, and helps > Microsoft keep Google at bay, somewhat. > > > > *ASB *(Professional Bio <http://about.me/Andrew.S.Baker/bio>) > *Harnessing the Advantages of Technology for the SMB market... > > * > > > > On Tue, May 10, 2011 at 10:31 AM, Jonathan Link > <[email protected]>wrote: > >> Well, they do need to do something with WP7. They delivered a >> comparably less developed product to market, to get it to market. They make >> a deal with Nokia. They buy Skype. It all hints at underexecution or not >> quite knowing what to do. Their method of purchase is interesting, too. >> All cash. Sends a huge message to investors that they stock isn't a worthy >> currency to purchase companies. >> Where's the innovation? >> >> On Tue, May 10, 2011 at 10:27 AM, Rod Trent <[email protected]>wrote: >> >>> Yeah…I think this one has real potential – and may be what Microsoft >>> actually needed to make WP7 a contender. >>> >>> >>> >>> *From:* Andrew S. Baker [mailto:[email protected]] >>> *Sent:* Tuesday, May 10, 2011 10:10 AM >>> >>> *To:* NT System Admin Issues >>> *Subject:* Re: Microsoft Buys Skype for 8.5 Billion in cash deal >>> >>> >>> >>> I'm not big on mergers and acquisitions, but I like this one... >>> >>> >>> >>> >>> *ASB *(Professional Bio <http://about.me/Andrew.S.Baker/bio>) >>> *Harnessing the Advantages of Technology for the SMB market...** >>> * >>> * * >>> >>> >>> >>> On Tue, May 10, 2011 at 7:51 AM, Ziots, Edward <[email protected]> >>> wrote: >>> >>> http://gigaom.com/2011/05/09/why-microsoft-is-buying-skype-for-8-billion/ >>> >>> >>> >>> Interesting… >>> >>> Z >>> >>> >>> >>> Edward E. Ziots >>> >>> CISSP, Network +, Security + >>> >>> Security Engineer >>> >>> Lifespan Organization >>> >>> Email:[email protected] >>> >>> Cell:401-639-3505 >>> >>> >>> >>> >>> >>> ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ >>> >>> ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~ >>> >>> --- >>> To manage subscriptions click here: >>> http://lyris.sunbelt-software.com/read/my_forums/ >>> or send an email to [email protected] >>> with the body: unsubscribe ntsysadmin >>> >>> ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ >>> ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~ >>> >>> --- >>> To manage subscriptions click here: >>> http://lyris.sunbelt-software.com/read/my_forums/ >>> or send an email to [email protected] >>> with the body: unsubscribe ntsysadmin >>> >> >> ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ >> ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~ >> >> --- >> To manage subscriptions click here: >> http://lyris.sunbelt-software.com/read/my_forums/ >> or send an email to [email protected] >> with the body: unsubscribe ntsysadmin >> > > ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ > ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~ > > --- > To manage subscriptions click here: > http://lyris.sunbelt-software.com/read/my_forums/ > or send an email to [email protected] > with the body: unsubscribe ntsysadmin > ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~ --- To manage subscriptions click here: http://lyris.sunbelt-software.com/read/my_forums/ or send an email to [email protected] with the body: unsubscribe ntsysadmin
