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What does Microsoft need $4 Billion for ?

  • joebert
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Post May 13th, 2009, 11:41 am

Apparently Microsoft just got done selling bonds at a slightly higher interest rate than the national treasury.

What does Microsoft need nearly $4 billion for ? They've got $25 billion in the bank.

Some seem to think they're planning something really big.
It could be Bill testing the bond market waters with Microsofts money before using it in the Bill and Linda Gates Foundation.

Maybe they're looking to pay Intels fine in a "you scratch my back I'll scratch yours" deal from that "goofup" in the XP compatibility mode thing.
Strong with this one, the sudo is.
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Post May 13th, 2009, 11:41 am

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Post May 13th, 2009, 12:07 pm

Interesting find. I wonder if they're planning on cobbling up some companies of their own. I know they'd love to land VMWare, and what better way than through bonds? The interest rate is practically non-existent.
I'd love to change the world, but they won't give me the source code.
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Post May 13th, 2009, 12:15 pm

Per Bloomberg...

Quote:
May 11 (Bloomberg) -- Microsoft Corp., the world’s largest software maker, sold $3.75 billion of debt in its first bond offering, taking advantage of its top credit ratings to help fund a share buyback and technology investments.

The sale was split among $2 billion of 2.95 percent, 5-year notes, $1 billion of 4.2 percent, 10-year debt, and $750 million of 5.2 percent, 30-year bonds, said a person familiar with the offering who declined to be identified.

Microsoft, whose shares have declined 34 percent in the past year, is seizing on a credit-market rally to help fund a $40 billion stock repurchase program.
I'd love to change the world, but they won't give me the source code.
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Post May 19th, 2009, 11:25 pm

Just applause
I think they follow this rule - start with more and more earning

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