By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Microsoft - Microsoft to raise $3.75 BILLION for "acquisitions"

cgkc17 on 12 May 2009
MrBubbles said:
Shadowblind said:

I'm lazy. Can someone summarize this?

 

microsoft has 25billion dollars in cash.

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

if they have 25B in cash, why take on 3.75B in debt?

 



Around the Network
antfromtashkent on 12 May 2009

r they gonna have a car wash?



NJ5 on 12 May 2009
cgkc17 said:
MrBubbles said:
Shadowblind said:

I'm lazy. Can someone summarize this?

 

microsoft has 25billion dollars in cash.

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

if they have 25B in cash, why take on 3.75B in debt?

 

I'm guessing the answer has something to do with some obscure accounting details... Maybe they'll pay less taxes by getting a loan, or maybe they can get really cheap interest rates, or something like that. Otherwise I don't see why they would do it...

 



My Mario Kart Wii friend code: 2707-1866-0957

cgkc17 on 12 May 2009
NJ5 said:
cgkc17 said:
MrBubbles said:
Shadowblind said:

I'm lazy. Can someone summarize this?

 

microsoft has 25billion dollars in cash.

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

if they have 25B in cash, why take on 3.75B in debt?

 

I'm guessing the answer has something to do with some obscure accounting details... Maybe they'll pay less taxes by getting a loan, or maybe they can get really cheap interest rates, or something like that. Otherwise I don't see why they would do it...

 

thank you...

 



richardhutnik on 12 May 2009

M$ BUY$ $QUARE-ENIX! MUHAHAHAHA!

Let's see them continue to talk about how awesome VS 13 will be when it an 360 EXCLUSIVE! MUAHAHAHAHA!

Anyhow, who knows what Microsoft is up to.



Around the Network
DirtyP2002 on 12 May 2009
cgkc17 said:
MrBubbles said:
Shadowblind said:

I'm lazy. Can someone summarize this?

 

microsoft has 25billion dollars in cash.

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

if they have 25B in cash, why take on 3.75B in debt?

 

 

 It is cheaper and Retrun on equity will improve. So called Leverege Effect.

http://en.wikipedia.org/wiki/Leverage_(finance)

 



Imagine not having GamePass on your console...

antfromtashkent on 12 May 2009

Why are some people assuming that any of this will go into their game divition?

I think their battle with mac is more important rite now :P



Seece on 12 May 2009
MontanaHatchet said:
Why does everyone think this is gaming related? Just because we're on Vgchartz doesn't mean that everything has to do with videogames (especially when the article was linked from Yahoo). It wasn't even linked from the gaming section of Yahoo, so most of these posts seem like knee-jerk reactions to me.

Most likely they'll buy a software company, but one that doesn't have to do with making games. Microsoft has been swallowing up other companies and crushing the competition for a long time now, this just seems like business as usual (especially with so many companies struggling).

 

Considering the purchase of Rare (the biggest gaming company aquired to date in terms of money) cost around $300 million ... thats only a small slice of $3.75 billion ... Its not all for the gaming division obviously. But some of it could be.



 

BenVTrigger on 12 May 2009

@antfromtashkent

I don't think everyone thinks its going to the gaming division but its quite possible some of it will. 3.75 billion is alot of cash and I wouldn't be surprised if they spen a couple million of it to buy a new game studio. Since this is a video game website were just discussing what are possibilities of them buying certain game related companies.

If Sony or Nintendo did this all their fans would be discussing the same thing.



NJ5 on 12 May 2009
Neoraf said:

Excellent news!

Microsoft shopping = Success!

Let's hope and dream together:

- They buy Yahoo (getting stronger search engine marketshare)
and/or
- They buy Nintendo (getting all the IP and the studios)
and/or
- They buy SCE (only the Playstation division (with debts), the one that Sony probably don't want anymore)
and/or
- They buy SquareSoft (bringing all games exclusively to Xbox360, canceling FF13 and Vs on the PS3, creating a Megaton in Japan)

Gates + Ballmer = Power to do everything.

Nintendo is worth $38 billion, so it would cost at least $40 billion + for Microsoft to buy it. Money they don't have.

 



My Mario Kart Wii friend code: 2707-1866-0957