NJ5 on 01 February 2008
| Lingyis said: cash is not a problem for microsoft, debt or no debt. $3 billion is less than one quarter's earnings for MSFT. the question is whether they're paying too much for yahoo. |
It's certainly not a problem, but it does put this deal into perspective. Microsoft has had piles of cash for a long time, if they change to a situation where they're in debt, that's a quite dramatic change in the short/medium term!
They used to have $60 billion in cash, but then paid out most of it to shareholders. Then they had about $20 billion. After this deal (if it happens), they may have a $3 billion debt. That's quite a shift I'd say.
My Mario Kart Wii friend code: 2707-1866-0957
