If Microsoft in March, the company recorded in the first quarter broke a huge pile of money outside the U.S. at the end of the quarter, the company has a total of $50 billion in cash, and not all open our eyes $42 billion abroad. Because of strong support from the corporate side has been trying to raise money for the United States saw their few options: foreign acquisitions to develop its activities in the area knocked absorb the force, or the hope of changing the political climate and the Congress decides to finance the repatriation tax-free. What I lack the money for dividends or share buybacks.
Keep in mind when you think about the wisdom of the company has announced that Internet telephony service Skype for 8.5 billion U.S. dollars in cash. On the one hand, as mentioned above, Skype is based in Luxembourg - so that they can use the small bar $ 42000000000 abroad. (One has to wonder, in fact, when companies such as the system tried a similar assessment purposes, for example, of Mountain View.)
Respond quickly to the number of important elements in a hurry.
* The prices indicated on the surface, looking at nearly 10 times sales last year.
* Meeting of growth, but it is important to Yahoo as an independent company, is even greater if it matches the various versions of Microsoft Internet Information Services.
* The use of foreign currency rating softens the blow high.
* Street believes Microsoft will be key to new ways of Skype, a large base of users who pay nothing to use for the service address.
* It seems that a better idea of trying to buy Yahoo dissatisfied, he still refuses, Jerry Yang, to sell someone an honest business, once made for Microsoft CEO Steve Ballmer believes that summer.
Here is a brief overview of how to Street analysts this morning said that the new Microsoft agreed to buy Skype in $ 8500000000 cash.
* Kirk Materne, Evercore Partners: He maintains that many children with the purchase of 9.9x 2010 sales, but added that the strategic fit with existing Microsoft products and the rapid growth of Skype adds, helps the price of the order; . the game to make money from advertising and Skype is the foundation of success, to deal with. He also noted that the company's cash, with U.S. $ 42000000000 plates are used for off-shore size compared to similar workers, residents of the same size. (A total turnover of cash at the end of the March quarter was 50 billion dollars). Together, we believe that the player in a logical and strategic Microsoft makes the loudest voice on the Internet, mobile and video. But if Microsoft continues to show me a story. ;
* Caris Sandeep Aggarwal, Co.. He also asked to share the rich, but added that Skype can use Microsoft in many ways, the first post of Microsoft / Lync Server 2010 for its clients in order to improve the business class, he writes. Second, Microsoft will boost its Live Meeting with Skype and Skype for greater integration in the office. Third, where consumers, Microsoft will integrate the products and create many cross-selling and up-selling opportunities for users of Windows Live Messenger, Skype. Finally, Microsoft can use Skype for Windows Mobile 7 pillars of the service. ;
* Jim Yin, Standard Poor's, believes that MSFT will leverage Skype Technologies for multiple platforms, including Xbox and kinetics, Windows Mobile and other mobile devices that have Windows operating systems, he writes. ; We believe that the proposed acquisition of additional revenue from online advertising will be generated. However, it is treated as a negative, because of their size and potential risks of integration. ;
* Yun Kim, Gleacher What: even if the technology of Skype, the current communication software portfolio with the addition of MSFT, we believe that the true value of the 145 million Skype users, including 8.8 million paying customers he wrote. ; We believe that Skype customers have a lot of MSFT are introduced and possibilities for improvement of many companies MSFT. We can see immediately on the occasion of its platform the Google search engine to get MSFT to Skype. We can also encourage greater integration of Skype and its platform for smartphones, Windows Mobile 7, the adoption of the mobile platform, young people see. . In addition, the technology of Skype, an added value to existing businesses and franchises MSFT Xbox add, Kim says, the current assessment, we see little risk of the collapse of acquisition;.
* Kevin Buttigieg, Collins Stewart, the acquisition of Skype MSFT is not the kind of transformation that investors such treatment is that, $ 8500000000 MSFT and MSFT does not require solid performance shows great potential for use, he writes, however, that the international balance of payments that can not be applied without substantial tax hit MSFT to use and seems to be a neutral, non-GAAP diluted and only a bit 'in GAAP earnings per share, excluding synergies.
* Ed Maguire, of CLSA Asia Pacific, with 663 million registered users by the end of 2010, the Skype user base and large, the net effect may be more able to go to Microsoft's collaboration portfolio of thought and of flow values of communication, such as SharePoint, Lync Office365 and seconded. ; Concerns about the assessment should take into account other uses of cash, in this case, we believe that competitive advantage, Microsoft has announced the adjusted price. We believe that there is still a million more aggressive course of Microsoft, has said in an interview with a visibility of construction and inventory. ;
* Neil Herman, Soleil Securities:; $ 8500000000 number one with Microsoft, which have a significant impact on their top line of the long-term needs of the various possibilities of billions of dollars of revenue to go to Internet telephony is clearly written, he said. Microsoft is also number two in the number of shops in the benefits of network effects. Yahoo, Microsoft clearly benefit from the many in this segment of the network and measure the space. From a certain point, Skype has become an alternative to traditional telephony, the marketing potential of several billion euro. Please note that Microsoft has about $ 50000000000 in cash and generates about $ 2000000000 cash flows from operating activities for the month. ;
MSFT is down 36 cents, or 1.4%, to $25.47.
Microsoft Corp. reported total sales of smart phones (smartphones) with Windows 7 Phone software that has been through the numbers more than 2 million units. This sale was a success because the new Windows 7 Phone launched in October 2010.
