Nonsense, I too read that Microsoft for some inexplicable reason got help financing the matter, but they do have over $90 billion CASH ON HAND.
Not sure where you are getting your information but you are plainly incorrect. Microsoft's cash and short term investments totaled $21,076M as of 12/31/07. Their total currant assets were only $37,775M.
You can review their balance sheet at http://finance.google.com/finance?fs...&q=NASDAQ:MSFT. At ~$7500M, their actual cash on hand is not even close to your $90 billion delusion. Additionally, their total cash and short-term equivalents are, at best, only equal to the cash portion of the offer. No way Microsoft uses all their cash to make a purchase.
As reported here, among dozens of other places, Microsoft CFO Chris Liddell states plainly that Microsoft intends to borrow money to help raise the cash necessary to complete the deal.
Thanks for that. I interpret the article (as well as the CFO) saying saying a "little bit of debt" overall. My guess is that they'll probably want to keep a few billion as cash, so perhaps take on a little bit of debt to cover the difference, and pay that off very quickly (before the year's end, I'll bet) as they bring in tons of new cash in '08 from Windows and Office sales.
In other words, it will still be predominantly cash + stock.
Comments
Nonsense, I too read that Microsoft for some inexplicable reason got help financing the matter, but they do have over $90 billion CASH ON HAND.
Not sure where you are getting your information but you are plainly incorrect. Microsoft's cash and short term investments totaled $21,076M as of 12/31/07. Their total currant assets were only $37,775M.
You can review their balance sheet at http://finance.google.com/finance?fs...&q=NASDAQ:MSFT. At ~$7500M, their actual cash on hand is not even close to your $90 billion delusion. Additionally, their total cash and short-term equivalents are, at best, only equal to the cash portion of the offer. No way Microsoft uses all their cash to make a purchase.
As reported here, among dozens of other places, Microsoft CFO Chris Liddell states plainly that Microsoft intends to borrow money to help raise the cash necessary to complete the deal.
Thanks for that. I interpret the article (as well as the CFO) saying saying a "little bit of debt" overall. My guess is that they'll probably want to keep a few billion as cash, so perhaps take on a little bit of debt to cover the difference, and pay that off very quickly (before the year's end, I'll bet) as they bring in tons of new cash in '08 from Windows and Office sales.
In other words, it will still be predominantly cash + stock.