EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

08.06.08

Microsoft Could Soon Enter Debt

Posted in Finance, Microsoft at 3:11 pm by Dr. Roy Schestowitz

An acquisition of Yahoo! would have required Microsoft to borrow over $20 billion from the bank, but as more buybacks loom, it seems possible that Microsoft will enter debt even without having to buy Yahoo. This was actually foreseen before and now it appears more likely that the hidden financial weakness will worsen every quarter. This leads to aggression.

Anyway, one report comes from Reuters, but its original source is Bloomberg, which recently reported on Microsoft's loss of over $90 billion in value this year.

Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) will buy back as much as $20 billion of its stock to boost its flagging share price, Bloomberg News quoted a top-rated software analyst as saying.

Here is the report in the Australia press (wide circulation).

She expects Microsoft to complete the repurchase – at least five times larger than its average per quarter in the past fiscal year – over the next three months.

“They won’t announce it until it’s done,” Ms Bellini said.

It’s curious that they may do so quietly, unlike Novell [1, 2].

It also appears in Bloomberg under the headline “Microsoft $20 Billion Buyback Signaled After Slump”. Microsoft last had about 26$ billion left in the bank, which is a lot less than there used to be. Massive buyouts and fines are partly to blame and future margins erosion is guaranteed to cause further trouble.

Just watch what else has just been reported: Microsoft’s business intelligence general manager quits the company.

Microsoft Corp. announced today that Bill Baker, a Microsoft distinguished engineer and general manager of business intelligence applications for the Microsoft Office Business Platform team, is leaving the company.

Not so long ago it was President Johnson, who left abruptly on the face of it, based on reports. It could incite panic and it does not bode well for the future. Another Microsoft executive appears to have just left quietly. He was hired by another company.

Lyn Reyes, formerly local business lead for Microsoft Dynamics, was appointed by Gurango Software Corp.’s (GSC) vice president for global sales.

Times are changing. These are truly interesting times for those who anticipate radical change in the software industry.

“Freedom is primarily achieved by providing the means for self-reliance. When individuals can provide for their own needs independently, without placing burdens on others, they are more free.”

Terry Hancock

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

4 Comments

  1. twitter said,

    November 12, 2008 at 3:40 pm

    Gravatar

    Here’s the WSJ Reporting on the $40 Billion buyback.

    Microsoft today said it would spend $40 billion on a larger-than-expected stock buyback program–one of the largest such efforts in history and more than double what one analyst predicted several months ago. … nearly as much as the software giant proposed to spend this year in acquiring Web advertising and search company Yahoo. … notable in the announcement was Microsoft’s plan to tap the debt markets for the first time.

  2. G. Michaels said,

    November 12, 2008 at 3:48 pm

    Gravatar

    I would be weary of comments by this ‘twitter’ person. See:

    http://slashdot.org/~SockDisclosure/journal/214377

    Note: writer of this comment adds absolutely nothing but stalking and personal attacks against readers, as documented here.

  3. twitter said,

    November 12, 2008 at 3:52 pm

    Gravatar

    Give it up, stalker.

  4. G. Michaels said,

    November 12, 2008 at 10:35 pm

    Gravatar

    You should get busy:

    http://slashdot.org/comments.pl?sid=1022765&cid=25690127

    Note: writer of this comment adds absolutely nothing but stalking and personal attacks against readers, as documented here.

What Else is New


  1. Links 29/7/2015: Akademy 2015 Ends, NetBSD 7.0 RC

    Links for the day



  2. MPEG-LA is Preparing New Patent Obstruction (Called DASH) Against Free Software, OIN Grows

    A new conspiracy against free multimedia software, set up by the MPEG cartel, is called DASH



  3. New Zealand's Media Gets History Wrong on Software Patents

    Setting the record straight on the fight against software patents in New Zealand



  4. Not Only Vista 10 Crashes a Lot, Any .NET Application Does Too

    Microsoft software is quickly becoming synonymous with crashes as any piece of software developed with Microsoft's tools, not just the underlying platform, crashes chronically



  5. The Government of Bulgaria Sells Out to Microsoft, Again

    Despite some promises and reassurances that Bulgaria will consider Free/libre software, the Bulgarian government hands out a lot more of taxpayers' money to the Mafia



  6. Corporate Media Finally Finds Out That Vista 10 Crashes a Lot

    Stability issues of Vista 10 are belatedly reported to be a major catastrophe, leaving it unusable for many early adopters



  7. Links 28/7/2015: Linux 4.2 RC4, New Logos and Bug 'Branding' for FUD

    Links for the day



  8. Patents Roundup: Technicolor, Alice, Voip-Pal, Fitbit, Marijuana Patents, and JDate

    A look at some of last week's patent news, with imperative responses that criticise corporate exploitation of patents for protectionism (excluding and/or driving away the competition using legal threats)



  9. Corporate Lobbyists Including Koch-Connected Front Groups Attack Real and Perceived Patent Reform in the United States

    Looking at some of the latest propaganda for and against a bill which is already too watered-down to actually fix the US patent system



  10. Patents in the Android World Further Complicate Freedom in This Linux-Powered Platform

    A survey of last week's news with special focus on Google and Android, which are trying to coexist and thrive in a world full of patent maximalists



  11. The 'Unitary' Patent Trojan Horse Rammed Down the Throat of Europe

    Under the guise of 'unification' or 'unity', existing patent systems are being abandoned and more power gets passed to corrupt EPO officials



  12. HEVC Cartel is Not News, Only the Names of Backers and the Costs Are New

    A few remarks on and a roundup of recent articles about HEVC, which we first wrote about in spring



  13. IRC Proceedings: July 12th, 2015 – July 25th, 2015

    Many IRC logs



  14. Links 26/7/2015: Purism Librem and Freedom, Akademy Updates

    Links for the day



  15. Vista 10 (Windows 10) Has NSA Back Doors and Front Doors

    Vista 10 to bring new ways for spies (and other crackers) to remotely access people's computers and remotely modify the binary files on them (via Windows Update, which for most people cannot be disabled)



  16. Vista 10 Not Ready, But Released Anyway

    Despite severe technical issues in the rushed-out-the-door Vista 10, Microsoft decides to stick with the deadline, only days after reporting billions of dollars in losses



  17. Links 25/7/2015: Plasma Mobile, Linux Mint 17.2 OEM

    Links for the day



  18. Links 24/7/2015: openSUSE Leap 42.1, Intel With Rackspace for OpenStack

    Links for the day



  19. Links 24/7/2015: GNOME 3.17.4, Mozilla Developer Network Turns 10

    Links for the day



  20. Microsoft Has Run Out of Attempts and Vista 10 Will Definitely Fail

    As Microsoft admits billions of dollars in losses just days before Vista 10 is pushed as a 'free' upgrade, there is no concrete sign that financial recovery is imminent, for the bigger cash cow (Office) suffers a similar fate



  21. GNU/Linux Circles Ought to Stop Promoting Visual Studio, Which is Neither Cross-Platform Nor Free Software

    Media carries on openwashing Visual Studio and perpetuating the illusion that it is not tied to Microsoft Windows



  22. Spinning Proprietary Software Dangers as Dangers of Free/Libre Software

    News sites mislead their readers, teaching them that the biggest dangers associated with proprietary software are in fact problems exclusive to Free/libre Open Source software



  23. Links 23/7/2015: New RHEL Release, Capital One Releases Code

    Links for the day



  24. Terminology of Patent Lawyers and Pro-Patents Media Serves to Mislead the Public

    An outline of stories where the language used to describe patents is grossly distorted so as to bias the reality and mislead the audience/readers



  25. Amid Billions in Losses, Microsoft Tries to Conquer the Competition (Which Already Wins)

    The 'Embrace, Extend, Extinguish' strategy goes a few steps further as Microsoft looks to dominate developers, devices and servers that are running Free/libre software



  26. Microsoft Losing Billions of Dollars is Not News

    Few remarks on Microsoft's latest admission that it is losing a lot of money



  27. Links 22/7/2015: Kodi 15.0, MKVToolnix 8.2.0

    Links for the day



  28. The Technology Sector in the US Has Gotten Fed Up With Apple's Patent Aggression Against Android/Linux

    Apple is desperately trying to stop Android from increasing its levels of dominance (in phones, tablets, watches, and so on), so Silicon Valley is lining up against Apple, antagonising its misuse/abuse of patents for anticompetitive purposes



  29. Patents Regime in Europe: Mixture of Greed, Competition Abuses, and Propaganda

    A roundup of the latest patent news from Europe, focusing on Italy, the UK, Germany, and Hungary



  30. Patent 'Reform' in US Congress Still Under Attack by Patent Lawyers and Corporate Lobbyists

    The latest instances of assault on changes to the US patent system, demonstrated through an elaborative survey of the media (two days' worth)


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts