Whether or not they're good at cash hording, investors don't appreciate it.
I think they can execute on this... They actually do well with acquisitions when they bother to do them. *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 10:57 AM, Jonathan Link <[email protected]>wrote: > 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
