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Forums - Microsoft Discussion - Salesforce wanted Microsoft to buy them for 70 billion dollars!

 

Is 70 billion too high?

Yes! Way too high! 85 66.93%
 
Nope, just right. 3 2.36%
 
Way to low. 17 13.39%
 
They already have cloud p... 21 16.54%
 
Total:126
kumagawa on 22 May 2015
super6646 said:
JRPGfan said:


That makes it 50 billion $ overpriced.

If the damn thing has never made 1 cent of profits, how the hell is it valued at 50 billion $?

 

I think alot of this cloud crap is highly overrated.

I think MS is better off not tossing all that cash out the window.

Its a cloud company, but yeah its overhyped. Amazon doesn't make money either, yet its worth 200 billion. I don't know why investors put their money into these companies, especially since they don't make money; and it can get quite risky.


Amazon does make money but it reinvests it contantly so it stays at the top it is a retailer with low margins after all.



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Zappykins on 22 May 2015
NobleTeam360 said:
Zappykins said:
That seems way to high, but they have bough about 50 other companies. But to have never shown a profit, seems like they could be the next Zinga.

Yeah the stuff MS spends money on a lot of the time is so questionable. I'm not saying they should buy 50 billion in gaming studios or anything but damn, could it hurt to spend some of that money on Xbox? Even if they don't believe Xbox will be aorund for much longer, their games will be. Thus buying some studios and bolstering their IP's only makes sense. However I digress. 

I know, they could have made the Xbox much more powerful if they wanted to, but they wanted to (or needed to for political corporation reason) needed to make a profit at launch.  I'm still a bit confused by this.  Tim Sweeny wanted a 2.5 TB graphics card, and Tim should get what he wants! (Although, to be honest, it would only be slightly different to human eyes from what they have now)  Plus we still have yet to see what DirectX 12 does - but a recent statement from ProjectRed says it will be dramatic.

I think anyone who thinks Xbox is not going to be around is just silly.  The Xbox One is still outselling the Xbox 360 and the little EDD part of Microsoft made more money last quarter than one of their major competitors have in years.



 

Really not sure I see any point of Consol over PC's since Kinect, Wii and other alternative ways to play have been abandoned. 

Top 50 'most fun' game list coming soon!

 

Tell me a funny joke!
sabvre42 on 22 May 2015
NobleTeam360 said:
Zappykins said:
That seems way to high, but they have bough about 50 other companies. But to have never shown a profit, seems like they could be the next Zinga.

Yeah the stuff MS spends money on a lot of the time is so questionable. I'm not saying they should buy 50 billion in gaming studios or anything but damn, could it hurt to spend some of that money on Xbox? Even if they don't believe Xbox will be aorund for much longer, their games will be. Thus buying some studios and bolstering their IP's only makes sense. However I digress. 


I get that you are an Xbox fan, but be realistic. Gaming is such a small part of their portfolio. Microsoft makes the majority of its money by servicing companies. SQL server, MS office, Windows licenses, and Microsoft Dynamics.

 

Salesforce would actually complement Microsoft dynamics.. And it's huge. Everyone uses it (like every company I've worked at). Theirs an entire reseller industry surrounding it man. These resellers are so separate for salesforce developers -they'll hire you at 60k with no direct experience and train you.

 

PS: I worked at MS Dynamics for a while.



NobleTeam360 on 22 May 2015
sabvre42 said:
NobleTeam360 said:

Yeah the stuff MS spends money on a lot of the time is so questionable. I'm not saying they should buy 50 billion in gaming studios or anything but damn, could it hurt to spend some of that money on Xbox? Even if they don't believe Xbox will be aorund for much longer, their games will be. Thus buying some studios and bolstering their IP's only makes sense. However I digress. 


I get that you are an Xbox fan, but be realistic. Gaming is such a small part of their portfolio. Microsoft makes the majority of its money by servicing companies. SQL server, MS office, Windows licenses, and Microsoft Dynamics.

 

Salesforce would actually complement Microsoft dynamics.. And it's huge. Everyone uses it (like every company I've worked at). Theirs an entire reseller industry surrounding it man. These resellers are so separate for salesforce developers -they'll hire you at 60k with no direct experience and train you.

 

PS: I worked at MS Dynamics for a while.

Hmm, if practically every company uses it then that changes things. Prics is a little steep though still. 



Teeqoz on 22 May 2015
super6646 said:

Now we've recently heard about talks that salesforce was going to be bought, and believe it or not the bidder was Microsoft. However Microsoft was only offering a "meager" 55 billion. Salesforce wanted 70 billion. Now the stock is has a market cap of 50 billion, and 55 billion is only a 10% premium. But consider for a moment, the stock is overvalued by a lot, and salesforce really looks at its peak. Demanding 70 billion for that is way to much. Microsoft does have that kind of money, but what happens if it goes bad? Take a 70 billion write off charge? Fact is, salesforce missed a huge opportunity to cash in before it was too late, and they where cocky and demanded too much. Their stock will go down in the next several years as revenue's begin to decline. Fact is, 35 billion in my opinion is much more conservative for this company, but 55 billion is still ok. But 70 billion, damn.

Source: http://www.cnbc.com/id/102702029


Why would revenues begin to decline?



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super6646 on 22 May 2015
Teeqoz said:
super6646 said:

Now we've recently heard about talks that salesforce was going to be bought, and believe it or not the bidder was Microsoft. However Microsoft was only offering a "meager" 55 billion. Salesforce wanted 70 billion. Now the stock is has a market cap of 50 billion, and 55 billion is only a 10% premium. But consider for a moment, the stock is overvalued by a lot, and salesforce really looks at its peak. Demanding 70 billion for that is way to much. Microsoft does have that kind of money, but what happens if it goes bad? Take a 70 billion write off charge? Fact is, salesforce missed a huge opportunity to cash in before it was too late, and they where cocky and demanded too much. Their stock will go down in the next several years as revenue's begin to decline. Fact is, 35 billion in my opinion is much more conservative for this company, but 55 billion is still ok. But 70 billion, damn.

Source: http://www.cnbc.com/id/102702029


Why would revenues begin to decline?


Cause the company has peaked, and everyone is starting to move away to other services. Also Microsoft already has CRM and cloud products, so I don't know why they bothered.



JazzB1987 on 22 May 2015
super6646 said:
JRPGfan said:


That makes it 50 billion $ overpriced.

If the damn thing has never made 1 cent of profits, how the hell is it valued at 50 billion $?

 

I think alot of this cloud crap is highly overrated.

I think MS is better off not tossing all that cash out the window.

Its a cloud company, but yeah its overhyped. Amazon doesn't make money either, yet its worth 200 billion. I don't know why investors put their money into these companies, especially since they don't make money; and it can get quite risky.

Amazon does not make money?


Well maybe thats kinda providing money for amazon so it can kill all the competition (other companies need profit) and then if all competition is gone price  everything $99999999



Namiirei on 22 May 2015

That's a lot of money.



sabvre42 on 22 May 2015
JazzB1987 said:
super6646 said:
JRPGfan said:


That makes it 50 billion $ overpriced.

If the damn thing has never made 1 cent of profits, how the hell is it valued at 50 billion $?

 

I think alot of this cloud crap is highly overrated.

I think MS is better off not tossing all that cash out the window.

Its a cloud company, but yeah its overhyped. Amazon doesn't make money either, yet its worth 200 billion. I don't know why investors put their money into these companies, especially since they don't make money; and it can get quite risky.

Amazon does not make money?


Well maybe thats kinda providing money for amazon so it can kill all the competition (other companies need profit) and then if all competition is gone price  everything $99999999

Are you really calling Amazon a monopolistic predator because it doesn't run on 30% margins like Apple?

 

Amazon is a boon for the consumer, and the company is innovative too.



JazzB1987 on 22 May 2015
sabvre42 said:
JazzB1987 said:
super6646 said:
JRPGfan said:


That makes it 50 billion $ overpriced.

If the damn thing has never made 1 cent of profits, how the hell is it valued at 50 billion $?

 

I think alot of this cloud crap is highly overrated.

I think MS is better off not tossing all that cash out the window.

Its a cloud company, but yeah its overhyped. Amazon doesn't make money either, yet its worth 200 billion. I don't know why investors put their money into these companies, especially since they don't make money; and it can get quite risky.

Amazon does not make money?


Well maybe thats kinda providing money for amazon so it can kill all the competition (other companies need profit) and then if all competition is gone price  everything $99999999

Are you really calling Amazon a monopolistic predator because it doesn't run on 30% margins like Apple?

 

Amazon is a boon for the consumer, and the company is innovative too.


Well no but that does not mean Amazon cant change.

Also thousands of book authors/writers and publishers see Amazon as the bad guys. Just because they are not the bad guys for the consumer right now does not make them saints.