Microsoft is up to $40.5 billion in cash... what do you think their plans are for that $$$ ?

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AU Tiger

Diamond Member
Dec 26, 1999
4,280
0
76
Originally posted by: Desslok
Intel has the same levels of cash reserves.

Intel isn't close. No company is as stockpiled as Microsoft. That is why its such a big deal to have that much cash.
 

FoBoT

No Lifer
Apr 30, 2001
63,089
12
76
fobot.com
no , they don't have plans

they are holding cash to prevent sticking their major stockholders (bill and his early MS buddies) with HUGE tax liabilities from LARGE stock dividends

if you get technical, companies are required to distribute excess cash as stock dividends to share holders, but if MS did push the billions in cash they have to the stockholders, they (the stockholders) would have to pay taxes on the dividends (at what ever rate thier income puts them , for the BIG stockholders, this would be the very HIGHEST tax bracket/largest percentage)

if MS keeps the cash, it helps the stock price appreciate/keeps it from falling as bad as other companies and the stockholders don't have to pay "regular" taxes on it (if it was distributed as dividends)

it is all about not increasing the dividends MS pays out, nothing else (my $0.02)
 

Goosemaster

Lifer
Apr 10, 2001
48,777
3
81
well they appearantly getting into the router/wireless business if you look at the shelves at your local BB\CC


 
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