Sep 23 2008
Microsoft prepares for hostile takeover of Microsoft
(Redmond, WA) Unsatisfied from it’s unsuccessful bid to buy Yahoo Corporation, Microsoft Corporation completed a major purchase of Microsoft Corporation stock. Yesterday the company announced that they were buying $40 billion worth of Microsoft stock. The acquisition runs counter to a recent trend that has led many companies to conserve cash to cope with the slow economy and Wall Street’s meltdown.
Microsoft’s share purchase, to be spread over five years, is the single biggest repurchase disclosed this year, outstripping International Business Machines Corp.’s $15 billion plan announced in February. While the company continues to invest in online services despite the failed Yahoo bid, Microsoft CEO Steve Ballmer confirmed that “the stock repurchase signals the software maker isn’t planning any big acquisitions.”
The market reacted favorably to Microsoft’s purchase of Microsoft, as of 4 p.m. trading on the Nasdaq Stock Market, shares of Microsoft were up 24 cents at $25.40. Ballmer added,
“This is second massive purchase of Microsoft stock, as you’ll remember, we began buying $30 billion worth of Microsoft shares in 2004. Pretty soon we’ll have enough stock to complete our hostile takeover of Microsoft. As major shareholders of Microsoft we’re growing tired of their poor stock performance and their consistent production of inferior products. For the past six years the stock has traded below $30, and the Board of Directors of Microsoft believe it’s about time for a shake-up at Microsoft. We believe that with new leadership, the company can finally begin to address the stability issues of Microsoft Windows Vista. That should translate into a higher share price, which is what we’re most interested in at this time.”
