Rumor: "Microsoft will buy Epic Games for $1 billion this summer!"

[NJ5]

Just_Ben said:

NJ5 said:

PS3WiiXbox360 said:
Not if they are going to buy google for 40 billion

You mean Yahoo.

Don't worry about that, Microsoft has enough cash flow to be able to buy a $1 B company without any problem, even if they spend $40 B on Yahoo. The proposed $40 B deal is not even all in cash, half of it is in stocks, so Microsoft will just have to contract a small amount of debt (which it can pay back in less than a year if they want to).

If Microsoft wants to buy Epic, money will not be the problem.

 

No they don't. MS said, buying Yahoo means to lend money, the first time in company history. 40 billion is money they just don't have. Thats why they only paying cash to some extend, and do a stock exchange for other part on the Yahoo buy out.

I said cash flow, notice that I also mentioned the debt in my post. The point is that they will contract debt, but should make enough profit to pay back the debt in a few quarters. One more billion would not be a problem.