That is exactly my point: they've been cash hoarding for decades. Investors by and large want to see the hoard returned to them, especially at this point in the lifecycle of the company. Spending $8.5 Billion for something that will be difficult to execute will not make the market all that happy. They know how to generate cash, and yes, they have risks ahead, but a big risk is having $40+ Billion on hand, which seems to be the number they've been at for at least 15+ years.
On Tue, May 10, 2011 at 11:00 AM, Andrew S. Baker <[email protected]> wrote: > 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 > ~ 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
