| View previous topic :: View next topic |
| Author |
Message |
Swampfox10mm
Joined: 24 Mar 2011
|
|
| Back to top |
|
 |
chungbukdo
Joined: 22 Aug 2010
|
 Posted: Tue May 10, 2011 8:26 am Post subject: |
 |
|
| You sure they're using cash instead of a cheque? |
|
| Back to top |
|
|
Drew345
Joined: 24 May 2005
|
| Posted: Tue May 10, 2011 2:46 pm Post subject: |
|
|
I guess they knew everyone was deleting their "lifechat" or "realchat" (or whatever that microsoft caller is) as soon as they get their PC.
So long to Android support on Skype. So long to Skype too? |
|
| Back to top |
|
|
Taiwantroll
Joined: 10 Sep 2006
|
| Posted: Tue May 10, 2011 3:58 pm Post subject: |
|
|
| How many suitcases does that take? |
|
| Back to top |
|
|
Underwaterbob
Joined: 08 Jan 2005
Location: In Cognito
|
| Posted: Tue May 10, 2011 8:46 pm Post subject: |
|
|
| If what AOL did to ICQ is any indication, Skype will soon be dead. Though I suppose Microsoft did okay with Hotmail, though I do miss the pre-Microsoft days. |
|
| Back to top |
|
|
akcrono
Joined: 11 Mar 2010
|
| Posted: Tue May 10, 2011 9:54 pm Post subject: |
|
|
| It would be a horrible business idea to cripple skype in any way. Any MBA will tell you losing customers on a service with pay features is a very bad thing. Microsoft might not make the best products, but they have historically been run by shrewd businessmen. |
|
| Back to top |
|
|
nstick13
Joined: 02 Aug 2009
|
| Posted: Tue May 10, 2011 10:10 pm Post subject: |
|
|
| If I owned Micro$oft stock I'd be furious. There's no way for them to squeeze any more money out of this. If they start charging, people will turn to other free services. The best they can hope for is ad revenue, and they're not going to make enough off of that to justify having spent $8 billion--in cash, nonetheless--on something new Macs do with the software that's included. |
|
| Back to top |
|
|
kprrok
Joined: 06 Apr 2004
Location: KC
|
| Posted: Tue May 10, 2011 10:26 pm Post subject: |
|
|
I heard in a radio show that the cash they're using is all cash that is made overseas and has to be kept there so they avoid paying US taxes on it. It was just sitting there and this was the best way to use it as MS saw it.
IF that's true, then this makes perfect sense. If I had a crap-ton of cash that I couldn't bring to my home market to pay out to people, I'd try to buy something that would bring in more cash in the home market that I could use in the home market.
Can you imagine what the taxes on 8billlion would be? |
|
| Back to top |
|
|
walter235
Joined: 07 Apr 2011
Location: korea
|
| Posted: Wed May 11, 2011 6:25 pm Post subject: |
|
|
| There's a reason MS is one of the most despised companies in the world. They don't lead anymore, they follow the tech innovators, buy things up and ruin them. Skype wasn't great, but it was tolerable. Maybe I'll have to go back to Yahoo Messenger again! MS sucks! |
|
| Back to top |
|
|
Carbon
Joined: 28 Jan 2011
|
| Posted: Thu May 12, 2011 12:55 am Post subject: |
|
|
You guys are hilarious.
Though I am sure your level of insight is unsurpassed - perhaps only by the depth embedded in your well-formed, balanced opinions - I am sure that Microsoft know what they are doing.
| Quote: |
| There's a reason MS is one of the most despised companies in the world. They don't lead anymore, they follow the tech innovators, buy things up and ruin them. Skype wasn't great, but it was tolerable. Maybe I'll have to go back to Yahoo Messenger again! MS sucks! |
Comedy gold. |
|
| Back to top |
|
|
methdxman
Joined: 14 Sep 2010
|
| Posted: Mon May 16, 2011 10:58 pm Post subject: Re: Microsoft buying Skype for 8 billion in cash |
|
|
Guys, when they say cash they don't literally mean cash.
Cash in M&A terms refers to buying stock outright as opposed to paying for the stock by swapping your own shares. |
|
| Back to top |
|
|
methdxman
Joined: 14 Sep 2010
|
| Posted: Mon May 16, 2011 11:02 pm Post subject: |
|
|
| kprrok wrote: |
I heard in a radio show that the cash they're using is all cash that is made overseas and has to be kept there so they avoid paying US taxes on it. It was just sitting there and this was the best way to use it as MS saw it.
IF that's true, then this makes perfect sense. If I had a crap-ton of cash that I couldn't bring to my home market to pay out to people, I'd try to buy something that would bring in more cash in the home market that I could use in the home market.
Can you imagine what the taxes on 8billlion would be? |
You don't pay taxes on "cash" you pay taxes on income... |
|
| Back to top |
|
|
kprrok
Joined: 06 Apr 2004
Location: KC
|
| Posted: Tue May 17, 2011 1:20 am Post subject: |
|
|
| methdxman wrote: |
| You don't pay taxes on "cash" you pay taxes on income... |
Are you joking/hating on MS or do you REALLY not understand this? |
|
| Back to top |
|
|
methdxman
Joined: 14 Sep 2010
|
| Posted: Tue May 17, 2011 5:10 pm Post subject: |
|
|
| kprrok wrote: |
| methdxman wrote: |
| You don't pay taxes on "cash" you pay taxes on income... |
Are you joking/hating on MS or do you REALLY not understand this? |
First of all, many of the biggest corporations have tons of cash sitting around everywhere and it's not only because they are afraid of repatriating the funds. Many don't have any reason to repatriate the funds, because some don't even pay any dividends.
Main reasons to have cash sitting around:
1) Can quickly react to the market to make big purchases and invest heavily in R&D and other assets when needed.
2) Not that many investment opportunities.
3) Need to issue bonds to reach a certain debt/equity ratio, so you have cash sitting around from those bonds.
4) You don't usually issue dividends.
5) Signal to investors that you're not wild with the company's assets.
Yes Microsoft would have to pay U.S. taxes on any cash repatriated to the U.S. But this isn't the reason why they dropped 8.5 billion in cash for Skype.
Buying Skype for them was a strategic move (whether you think it's a good one or a bad one). |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
