Microsoft Corp. priced a $3.75 billion debt offering on Monday, a first for the world's largest software maker.

Microsoft said in a Securities and Exchange Commission filing that it is offering five, 10 and 30-year senior unsecured notes. In a press release, the company said it will sell $2 billion of 2.95 percent notes due June 1, 2014; $1 billion of 4.20 percent notes due June 1, 2019 and $750 million of 5.20 percent notes due June 1, 2039.

The software maker said it will use proceeds from the sale for general corporate purposes, including possible acquisitions and stock buybacks.

Last September, Microsoft's board authorized it to take on up to $6 billion in debt. Standard & Poor's Rating Services gave Microsoft an "AAA" corporate credit rating.

The authorization came just before interest rates soared. Microsoft, which is sitting on more than $25 billion in cash, could afford to wait until rates came down to make a move.

Corporate debt offerings dropped off last fall but picked up again in January. Microsoft's issue comes on the heels of offerings by Whirlpool Corp., Nokia Inc. and Starwood Hotels & Resorts Worldwide Inc.

J.P. Morgan Securities Inc. is the lead underwriter on the sale. The offering is expected to close May 18.

Shares of Microsoft slipped 10 cents to close earlier at $19.32.

http://tech.yahoo.com/news/ap/20090511/ap_on_hi_te/us_microsoft_debt_offering

take-two and 3d realms

now that would be a megaton at e3

I'm lazy. Can someone summarize this?

they got 3.75 billion dollars

microsoft has 25billion dollars in cash.

they are taking on 3.75b in credit to go on a shopping spree.

o_O

3D Realms buyout looking more and more plausible! DNF may live! If it does, they better make it as good as it should be...and MS better put out the marketing.

If they bought out Take-2 though...not possible. THAT would be a MASSIVE megaton. But Take-2 probably isn't for sale. They make huge profit games.

I will say this though--Microsoft is really smart to be doing this now. They have the money, others don't, and they know it. Companies in debt will be looking for a way out, and the big M has the money(and with these rumored acquisitions of new studios) the desire.

but take-two stocks are at their lowest ever(or so i heard) and they have the publishing rights to duke nukem.

MS doesnt really need 3D realms. Just buy the Duke license from them and get Epic to make it...

Otherwise this may be 1/10th gaming related.

Yeeeaaahhh...maybe buying DNF wouldn't be a good idea, seeing as the entire plot of the game was just leaked onto the internet? So much for that idea.

So why do people think it has anything to do with gaming? I don't really see any tempting targets for them. Take 2 for example is worthless without Rockstar and IIRC Rockstar has the option to get up and walk if they so choose. The only company I can really see them purchasing is Ubisoft because a lot of their franchises do extremely well and they have a successful casual game library as well.