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Microsoft raises 3.75 Billion dollars, possible acquisition?

Brad Sams   on 12 May 2009 - 13:15 · 53 comments & 7229 views

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Microsoft has done something it has never done before, it sold bonds to raise capital; a lot of capital. While banking on its premium credit rating Microsoft was able to sell the bonds at only a slight premium to those sold by the government.

Microsoft pulled in $3.75 billion dollars but what it will be used for is anyone's guess. While Microsoft has not stated why it needed to raise capital a strong possibility would be for a cash acquisition.

Microsoft does not need the money for operating costs with approximately 25 billion in cash according to their last 10-Q filing; an acquisition seems quite probable. Could this be related to its potential bid for Yahoo? Only the folks in Redmond know the answer to that but they just received a boatload of cash and no one seems to know for what purpose.

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#1 skynetXrules on 12 May 2009 - 14:08
yahoo!

nah , MS walked away from them .
#2 +warwagon on 12 May 2009 - 14:09
Acer. Into the computer market they go.
(1 reply) #3 daz411 on 12 May 2009 - 14:15
A Long shot, but how cool would it be if they bought RIM
#3.1 GP007 on 12 May 2009 - 14:54
they had teh chance about 2 months ago when RIMs stock price dropped back to the mid $30s. But now it's quite high, too hard. Plus I doubt it.
(6 replies) #4 +techbeck on 12 May 2009 - 14:17
Maybe its a loan for Apple since their sales are dropping....
#4.1 C_Guy on 12 May 2009 - 14:32
They already wrote Apple a cheque once, hopefully they don't need to do it again.
#4.2 M_Lyons10 on 12 May 2009 - 15:39
Wrote Apple a check? What? When was this?
#4.3 medium_pimpin on 12 May 2009 - 15:44
M_Lyons10 said,
Wrote Apple a check? What? When was this?

Back when Steve Jobs first came back. MS bought $500mm of non-voting Apple shares.
#4.4 Axon on 12 May 2009 - 16:30
techbeck said,
Maybe its a loan for Apple since their sales are dropping....

Apple has something like $20 billion in the bank. They're probably better off than all other IT companies, save for MS right now.

medium_pimpin said,
Back when Steve Jobs first came back. MS bought $500mm of non-voting Apple shares.

If I remember correctly Apple paid it back in a couple of months too. Still ultimate humiliation.
#4.5 Xsabin on 12 May 2009 - 18:33
M_Lyons10 said,
Wrote Apple a check? What? When was this?

http://www.youtube.com/watch?v=WxOp5mBY9IY...player_embedded
#4.6 Recon415 on 12 May 2009 - 23:42
Least there was a time when Microsoft and Apple had relative peace
#5 +majortom1981 on 12 May 2009 - 14:26
Maybe its to pay off all those eu fines?
#6 Spartan_X on 12 May 2009 - 14:26
nahhh, we just need new curtains a coat of paint here and there... that's all.
(8 replies) #7 aduk85 on 12 May 2009 - 14:26
Perhaps microsoft is looking to purchase Electronic Arts and merge it under the Microsoft Games Studio brand.

Just a thought on the rumour recently that apple was going to buy them.

What better way for Microsoft to have a better advantage over gaming for the pc and xbox.
#7.1 C_Guy on 12 May 2009 - 14:35
That's odd.

Acquiring EA is like volunteering to receive a fatal cancer. Microsoft is already a leader in PC and XBOX games. EA doesn't really give them much to compete against.
#7.2 GP007 on 12 May 2009 - 14:55
They could pick up a few other studios or one of the other big ones. It doesn't have to be EA etc.
#7.3 nekrosoft13 on 12 May 2009 - 17:53
C_Guy said,
That's odd.

Acquiring EA is like volunteering to receive a fatal cancer. Microsoft is already a leader in PC and XBOX games. EA doesn't really give them much to compete against.


MS a leader in games? did you recently got hit in the head with a shovel?
#7.4 artzm on 12 May 2009 - 18:14
nekrosoft13 said,
MS a leader in games? did you recently got hit in the head with a shovel?


Did you GOT hit in the head with a shovel? O and E aren't even close on the keyboard.

Anyway, MS doesn't exactly have terrible franchise. In house studios hold, Halo, Fable, Conker, Banjo-Kazooie, Forza, Perfect Dark none of which are terrible franchises, yeah some of them have had terrible games but they are still great franchise.
#7.5 +majortom1981 on 12 May 2009 - 18:37
artzm said,
Did you GOT hit in the head with a shovel? O and E aren't even close on the keyboard.

Anyway, MS doesn't exactly have terrible franchise. In house studios hold, Halo, Fable, Conker, Banjo-Kazooie, Forza, Perfect Dark none of which are terrible franchises, yeah some of them have had terrible games but they are still great franchise.


Half of those nintendo helped with. YEs I know rare but they where with nintendo and we all know that nintendo usually has a helping hand.
#7.6 stezo2k on 12 May 2009 - 21:52
that would be interesting if ms bought ea, i think it would have quite an impact on games sales on other consoles considering they're one of the biggest game developers. i cant see it happening though as ms seems to prefer buying smaller games companies
#7.7 +Smigit on 12 May 2009 - 23:17
artzm said,
Anyway, MS doesn't exactly have terrible franchise. In house studios hold, Halo, Fable, Conker, Banjo-Kazooie, Forza, Perfect Dark none of which are terrible franchises, yeah some of them have had terrible games but they are still great franchise.

Half the RARE franchises don't mean a lot now days but. They still could be put to good use but so far they've fallen pretty flat and if it wasn't for memories of the 90's titles on the N64 I doubt anyone would have payed Perfect Dark or Banjo any attention.

Also EA would be a HUGE buy for any console manufacturer. If MS was to buy EA they could basically deny the Playstation access to any sports titles instantly not to mention all the other franchises they would pick up in the process. Honestly I think having EA could really put MS in a position to slaughter the playstation over the next few years given EA does have a pretty large foothold in gaming, especially sports titles.

They'd also get Peter Moore back
#7.8 toadeater on 12 May 2009 - 23:52
artzm said,
Anyway, MS doesn't exactly have terrible franchise. In house studios hold, Halo, Fable, Conker, Banjo-Kazooie, Forza, Perfect Dark none of which are terrible franchises, yeah some of them have had terrible games but they are still great franchise.


That is insignificant compared to EA's franchises.
#8 tja2000 on 12 May 2009 - 14:31
EMC's Documentum?
(1 reply) #9 C_Guy on 12 May 2009 - 14:37
Could this be related to its potential bid for Yahoo?

No, Microsoft already walked away from that.
#9.1 +Smigit on 12 May 2009 - 23:46
I wouldn't rule out the possibility of them still being interested but are just playing hard ball with them...but I think there's other companies they'd be better of buying.
#10 Raa on 12 May 2009 - 14:43
They're going to buy IBM, didn't you know?
#11 badblood on 12 May 2009 - 14:49
Have they not tried this already? Microsoft don't seem like the type of company to go back to someone who shunned them.
#12 Airlink on 12 May 2009 - 14:50
Probably going to try and buy Twitter.
(4 replies) #13 C++ on 12 May 2009 - 14:51
Okay. They are definitely NOT buying IBM for $3.75 Billion. Hell. If IBM was up for grabs for $3.75 Billion, I would find a way to raise that capital and buy it.
#13.1 Tonicgoofy on 12 May 2009 - 15:15
ahah that's probably true. IBM is valued at almost 25 billion or maybe even more.
#13.2 medium_pimpin on 12 May 2009 - 15:45
Tonicgoofy said,
ahah that's probably true. IBM is valued at almost 25 billion or maybe even more.


Closer to $200B
#13.3 +Smigit on 12 May 2009 - 23:48
Whoever they are buying (if anyone) will cost alot more than 3.75 billion. If all they needed was that they probably wouldn't have bothered raising the money to begin with. Odds are whatever they want costs a lot more and they are using this as a means to put towards that buy.
#13.4 Raa on 13 May 2009 - 00:23
It was a joke, duh.
#14 Sean Bradford on 12 May 2009 - 15:01
I don't believe Microsoft is at a point right now to be aquiring any large company. The Yahoo/Microsoft merger has been dead for quite some time now, but both companies are in talks for a search partnership.
(1 reply) #15 vsnap on 12 May 2009 - 15:08
What about SAP? Pretty cheap right now - Round about 30� or 41$ per Share. Total worth of 37.2 Mrd � (should be round about 50 Billion $ ) Still a big fish even vor Microsoft.
#15.1 vsnap on 12 May 2009 - 15:13
Just read the Article on wsj.com. They also talk about aquiring SAP. 50 Billion should fit the slot.
#16 a1ien on 12 May 2009 - 15:10
Well, good for them. With an absurd credit rating, it a good idea to to this. Its like borrowing cash for almost free.
#17 Beastage on 12 May 2009 - 15:23
I understand they raised capital to buy back some of their stock.
#18 Island Dog on 12 May 2009 - 15:36
It really could be anything, but it certainly doesn't have to be an actual company they are buying.
#19 Antiprophet on 12 May 2009 - 15:53
I hear they are buying Ireland...
#20 sorlag on 12 May 2009 - 16:06
Yahoo is worth more than you may know...
Just do a quick browse on the projects and products they have and the smart brains behind all the research projects.
Yahoo has a bigger value than the visible consumer plattform...
#21 Faisal Islam on 12 May 2009 - 17:01
they are going to buy Dell
#22 superhuman on 12 May 2009 - 17:49
It is Facebook. period
(4 replies) #23 artzm on 12 May 2009 - 18:16
You're all wrong, it's for the E3 press conference, they are going to live video feed to Ballmer in Vegas where he is going to put all of this money on one spin at the roulette table.
#23.1 KavazovAngel on 12 May 2009 - 18:37
artzm said,
You're all wrong, it's for the E3 press conference, they are going to live video feed to Ballmer in Vegas where he is going to put all of this money on one spin at the roulette table.


Very true.
#23.2 sorlag on 12 May 2009 - 20:50
This comment is a Win sir ^^
#23.3 artzm on 13 May 2009 - 03:32
Imagine if the did it and won? Probably buy Apple after that win. According to wikipedia, payout is 35:1 so that would be 131 Billion....yup Microsoft is going to buy Apple at E3.
#23.4 liamwolf on 15 May 2009 - 19:41
artzm said,
Imagine if the did it and won? Probably buy Apple after that win. According to wikipedia, payout is 35:1 so that would be 131 Billion....yup Microsoft is going to buy Apple at E3.


Can't buy Apple.
#24 WeezulDK on 12 May 2009 - 22:16
I heard Bill and Ballmer were going to take the whole WA Microsoft campus out for hookers and booze.
#25 antsy on 13 May 2009 - 00:17
Microsoft should not bee allowed to buy Yahoo.
#26 Kelxin on 13 May 2009 - 01:54
Nah, I think Bill just ran outa Enzyte and needs to restock.
(1 reply) #27 WAR-DOG on 13 May 2009 - 07:04
ohh gosh, yahoo is so over rated
#27.1 liamwolf on 15 May 2009 - 19:44
WAR-DOG said,
ohh gosh, yahoo is so over rated


I've always wondered about that; If something is disliked by a majority of people than how can it be overrated? Personally I use Google Services (Search, Gmail, Translator, ETC) and think it's overrated.

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