Post Tagged with: "mergers"
Microsoft: $8.4 Billion Down the Drain
Though, in the eyes of Microsoft executives, virtually any outcome might seem better than letting the company fall into the hands of Google, which still has no strong foothold in social or communication software – one of the few online areas where Microsoft still maintains a market share advantage. Unfortunately for shareholders, anything less than a stellar success might just look like billions more flushed down the drain in Microsoft’s thus far failed bids at online dominance. Even if the company can quadruple the size of Skype’s business, they will still be losing money online if nothing else changes and they will have only added a few percentage points to top line growth – neither of which is likely to move to stock price in any major way
When will large cap tech stocks start paying dividends?
I would argue that this is evidence that these companies are wasting shareholder capital by plunking down for splashy acquisitions and large new capital investments that are not paying off. Cisco and Microsoft have huge cash balances waiting to be deployed. This money can go to buying back shares at inflated prices or making acquisitions of dubious value to shareholders. The right thing for these companies to do is not necessarily just restructure but change their mindset and accept that the glory days of top line growth are over. First and foremost this means increasing the dividend payout to match other sectors of the economy.
David Sokol’s abrupt resignation
David Sokol, widely considered the heir apparent to Warren Buffett, has abruptly resigned from Berkshire Hathaway’s subsidiaries after it was revealed that he profited from the purchase of a publicly-traded company made by Berkshire. The SEC is likely to investigate. This looks pretty ugly if you ask me. Sokol will talk to CNBC tomorrow at
What You Need To Know About AOL’s Huffington Post Acquisition
AOL is buying Internet News site Huffington Post for $315 million. Here’s what you need to know about the deal and what it says about the tech world, investing and the economy. Mergers are tough Most mergers fail because the ‘synergies’ which deal hounds expect never come to fruition or because the distraction of post-merger
A plug, and one illusion less on Wall Street and in Investment Banking
It is the first of January – hangover day, football day (for those of us who follow the PL) and a general day of relaxation, although this time around the first workday of the year is already desperately close. For some, it is also a day where many contemplate the stupidity of their actions the
China Buying Up The World
This video is based on the cover story from this week’s Economist. See the written version here
Spanish Cajas Merging, but Are They Serious Yet?
Spanish savings banks, called cajas, are finally moving. It took the central bank to take over CajaSur, which is controlled by the Catholic church in Cardoba, ten days ago to light a fire under the others. There were about 45 of these cajas and a number of mergers have been announced in recent days. Another
CajaSur nationalization makes fragility of Spain’s banks topical
Last spring and summer I wrote a series of articles on the bleak situation in Spain, centred on the Spanish Cajas (savings banks), the imploded housing market and the high level of unemployment. The gist of these posts was that Spain faced an uphill battle since the jobs market was in a world of hurt
Stan O’Neil almost sold Merrill to BofA for $100 billion in 2007
We are now hearing former Merrill Lynch CEO Stan O’Neal’s side of the story for the first time since he resigned in October 2007. In a story by William Cohan in Fortune Magazine, O’Neal paints a picture of Merrill’s fall from grace that at once reveals O’Neal’s own deficits and foresight but that also reveals
CNBC: One-On-One with Buffett
The video is pretty all-encompassing and runs just under 30 minutes. Buffett is down on Kraft-Cadbury, raising rates and the bank tax. He is up on Wells Fargo. That sums it up pretty well. Quotes On Wells: Well, my guess is that the revenue and all of that is more or less like
GM’s sale of Saab collapses
From Reuters: A deal by General Motors Co GM.UL to sell its Saab brand collapsed on Tuesday when the buyer pulled out in a move that threatens the Swedish luxury brand with closure. GM had been aiming to close a deal by the end of next month to sell Saab to a partnership led by
Will the U.S. allow China to buy more Gulf of Mexico oil assets?
This is a crucial question because Devon Energy, the Oklahoma-based independent oil and natural gas producer has just decided to put billion of dollars in Deep sea Gulf of Mexico assets on the market. Canada’s National Post reported: Devon Energy Corp. hopes to raise up to US$7.5-billion from the sale of its Gulf of Mexico