gnawkz on 24 September 2008
Nope the buyback is for several reason.
#1 Microsoft is one of the 6 companies in the world to be rate AAA debt by all 3 rating services.
#2 Debt can be used to lower their tax bill
#3 When you buy the stock cheap, you can use stock later on for buying up other companies instead of cash.
#4 of course as some of you mentioned to raise the P/E
#5 increase demand
#6 $40 Billion > US $23 Billion video game market, this is chump change to them.
