Microsoft reported solid earnings earlier today, sending shares more than 7% higher in early trading. Although sales were down more than 14% compared to last year and net profits fell more than 18%, investors were encouraged by strong early results for Windows 7 (which created $1.5 billion in deferred revenue from customers who bought a Windows Upgrade Option and to retailers who bought the new product). Microsoft also announced that the company will restart its share repurchase program, buying back over $1.4 billion this quarter after not buying any back the past two quarters. This comes as good news to Microsoft investors as the computer giant increased its cash reserves to a staggering $36.7 billion. [click to continue…]
The sale of Skype that was rumored last week appears to be close to reality, as San Jose-based company eBay is poised to sell the company to a group of investors headed by private equity firm Silver Lake Partners. Under the terms of the deal, eBay will receive about $1.9 billion in cash and a note for another $125 million for a 65% interest in the company. The deal values Skype at about $2.75 billion. EBay’s total purchase price for the unit topped $3 billion in September 2005, and the company eventually wrote off most of the acquisition on its books after encountering difficulties integrating Skype. [click to continue…]
News broke earlier today that Microsoft and Yahoo! have reached a major search engine deal that will allow Microsoft to become the search engine behind Yahoo!, which will become the worldwide exclusive relationship sales force for both companies’ premium search advertiser. The deal is obviously a blockbuster, one that both companies believe will change the [...]
