Falling Microsoft Income Endangers Yahoo Bid

Dionysius, God of Wine and Leaf, points out a new wrinkle to Microsoft's pursuit of Yahoo. The most recent quarterly results, which saw Microsoft's earnings drop by 6% from the previous year (revenue from Windows alone was down 24%), have caused the stock to dip. This has reduced the value of the cash-and-stock offer from its original $44B to something nearer $40B. Yahoo, of course, has maintained all along that the original offer was lowball. A business professor is quoted: "Whatever leverage [Microsoft] built up in the last few days could be slipping away."

HaHa

[Anonymous Coward]

Nuff Said

Clearly caused by H-1b limits

[Baldrson]

It's clear that if Bill Gates could just get the H-1b caps lifted, the best and brightest [cis.org] from around the world could come to the US and be paid $100k straight out of college [programmersguild.org] to save Microsoft.

Anyone who was around during the dot-com era remembers how it was H-1b limits that caused the crash of that wonderful era. Those who do not learn from history are doomed to repeat it.

Its a beautiful day after all!

[Dana W]

Lets all say that together, shall we? "Falling Microsoft Income" Beautiful........... Do I get two more wishes?

Re:Downward spiral?

[Anonymous Coward]

There is one fallibility in your logic. You're assuming that Microsoft is something of an Enron - that all of their value comes from their stock. This is simply false.
Microsoft's value comes from their assets, their market power, their product reach, and their ability to throw money at problems until they get something people will buy. Might I remind you that Microsoft keeps something like $30 billion in cash - instant liquidity - at all times. Microsoft can take a stock hit and keep on chugging. Don't make the mistake of underestimating Microsoft's business prowess - again, they are no Enron.
You're scenario is simply a fantasy adopted and spread by people that hate Microsoft because of their success and supposed lack of innovation. Might I remind you that a lot of the reason computers have been able to advance as quickly as they have is because we have a single majority platform. Software and hardware can compete on that universal platform instead of between multiple incompatible platforms. There is a reason we like standards. Don't forget that.

Re:Downward spiral?

[Jesrad]

It is the falling revenue that hubris is set in motion. It is by the gook of management that self-destruction acquires speed, the product line acquires bloatware, the bloatware becomes a warning. IT is by falling revenue alone that hubris is set in motion.

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[account_deleted]

Comment removed based on user account deletion

Re:dumb, ill-informed sarcasm

[Simon Brooke]

Why do you have to drag this bullshit sarcasm into this discussion? [scythe] So, stop that stupid sarcasm and get some of the facts, OK?

Because, outside the US of A, there are still some people who understand humour. Inside the US of A, of course, you can't even spell it.