06-13-2016, 09:55 PM
Microsoft announced the purchase of LinkedIn today for $26 billion. They intend to finance it with debt although some sources say in the end it may not be all debt. Assuming it is, MSFT has $105b in cash and debt around $47b. Assuming all debt is used, Debt to Equity will end up at 69% (0.69). MSFT said they expect the acquisition will be accretive around 2018-19 which, to me, makes sense since it will take some time to integrate with other products as I'm guessing is their intention.
I'm not much of a social media maniac even though my kids keep pulling this old Luddite deeper and deeper into the morass, but I could see the potential of integrating Azure, Skype, Office 365 and LinkedIn into an integrated business environment as we progress (regress?) into the cloud.
If Ballmer were still in charge, I'd be very scared of him pissing away more shareholder resources. However, we now have Nadella who came from the coding branch of the company and seems to have more vision than Ballmer with his finance background.
I'm willing to sit back and watch how this works out.
Thoughts?
I'm not much of a social media maniac even though my kids keep pulling this old Luddite deeper and deeper into the morass, but I could see the potential of integrating Azure, Skype, Office 365 and LinkedIn into an integrated business environment as we progress (regress?) into the cloud.
If Ballmer were still in charge, I'd be very scared of him pissing away more shareholder resources. However, we now have Nadella who came from the coding branch of the company and seems to have more vision than Ballmer with his finance background.
I'm willing to sit back and watch how this works out.
Thoughts?
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan