So what do you think will Microsoft buy Walt Disney ? Apparently they have several billion dollars that they have to dump very quickly (50 billion or so in cash) so they are probably looking for a company to acquire. My guess is that they will buy Walt Disney, a prime target since the Pixar deal crashed and burned, and all of the content that that includes for MSNBC and MSN. It is a marriage made in heaven, Microsoft acquires some of the best known trademarks in the world and Disney finally gets decent management.
Posted on 2004-02-28 21:42:53 by donkey

Apparently they have several billion dollars that they have to dump very quickly

Hm, why do they have to 'dump' the cash?
Posted on 2004-02-28 22:21:24 by f0dder
Well, there are a few reasons why a company cannot keep that much cash on hand. First is taxes, cash on hand is not really cash on hand but can be considered rotating funds and therefore taxable. Second the 50 billion was originally supposed to pay off the stupid lawsuits against Microsoft and in the end it is not really necessary. Third the money just isn't yeilding enough profit by sitting around, a company must meet certain profit margins for every dollar in order to remain solvent, cash sitting in the bank might yeild 1 or 2 %, that is not enough for even a small company. The problem is that the money does not belong to Microsoft, it belongs to it's shareholders and it has to be spent in order to meet thier obligations as a publicly held company. Now, they have a few choices, in order to meet the obligation of enhancing shareholder value they can invest the cash in new technology and R&D, they can acquire another company or they can distribute the cash through yeilds on the shares. Yeilds on the shares would be the worst idea, it would artificially bloat the share price and the subsequent correction could reduce the actual value of the shares. R&D is the best choice but it is *alot* of money and frankly they would be hard pressed to find that many things to invest in. The only viable outlet for the money is the acquisition of another company, they have already been slapped on the wrist for buying their competition in IT so they must branch out to an unrelated field, my geuss is Walt Disney.

The money will have to be spent or allocated before the end of their fiscal year and shareholders meeting in July.
Posted on 2004-02-28 22:32:42 by donkey
thay could also buy back stock ( another good deal for the stock holders If thay retier the stock thay buy back)
and thay can hold there own stock thay don't need to retire it
Disney finally gets decent management.
I don't know about this Donkey
kinda hard not to make money when your the olny game in town

NBC would be a good buy for them Hell thay could even buy GE along with it
Posted on 2004-03-24 17:40:47 by rob.rice
But good ridence Micheal Isener :tongue: I'm sure Microsoft won't produce movies in the porn industry. Aternative sources:
Posted on 2004-03-25 18:56:03 by mrgone