Memory Tweak

[Leon Goldstein]

Lonni J Friedman wrote:

>On Feb 6, 2008 9:22 AM, Jerry McBride <mcbrides9 at comcast.net> wrote:
>  
>
>>On Tuesday 05 February 2008 08:30:59 pm Leon Goldstein wrote:
>>    
>>
>>>The big news of M$'s buyout of Yahoo is getting a lot of attention in
>>>the media, but nobody has mentioned the ads M$ ran on TV 1-2 years ago
>>>proclaiming its development of a search engine technology that would
>>>leave everything else in its dust.
>>>
>>>Does the Yahoo buyout effort signify a major expensive failure which M$
>>>may be trying to cover up?
>>>      
>>>
>>Well something IS going on for sure... MSFT offered $44.6 billion for Yahoo
>>while microsofts cash reserve is "only" $17 billion. MSFT stated that they
>>would have to take a loan to fully implement the buyout. Where did the money
>>go? Last I heard, back in the good old days, they had like a $60 billion cash
>>reserve...
>>

That is what makes me suspicious.  How much does it cost to develop 
search engine technology that can outdo Google?
Then there are the legal costs, fines and bribes to deal with the EEC 
problem, and the "contributions" to various governments for protecting 
M$'s monopolies.

>>
>>How do you burn through so much capital without investors screaming bloody
>>hell? Amazing how times have changed for one of the most unfriendly of
>>businesses.
>>

I suspect the Yahoo bid is designed specifically to reassure the 
investors.  In government talk it is know as "plausible deniability" or 
what the KGB used to call a "legenda" (cover story.)

>>
>>And worse yet, how do you make an offer like they have for Yahoo and not have
>>the cash onhand to do the deal? And buying another failing tech company, in
>>this economic climate is... crazy.
>>

Steve Balmer's explanation of the state of M$ finances at the next 
general shareholders' meeting should be entertaining, if not informative. 

>>    
>>
>
>What economic climate?  The tech sector, especially in Silicon Valley
>is *very* strong.  Companies are hiring like crazy out here right now
>(hell, my own group has about half a dozen open reqs right now).
>
>  
>
Re "tech sector": in general, or in specific areas?

-- 
Leon A. Goldstein

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