walkman - 4:48 pm on Feb 5, 2008 (gmt 0)

mikedee,
I hope you are joking. You mean Y! would sell $17 Billion and MSFT would still buy them for the same price? They aren't that stupid you know. As far as borrowing in in the company's name see [slate.com...] . The current shareholders get their money via the debt so they don't care.

Also, about selling assets: When Blackstone bought Equity Office Properties Trust they started selling assets even before actually buying them. IIRC, Equity Office Properties Trust sold them at Blackstone's urging to avoid taxes and the money of course stayed with the company /Blackstone.

Obviously, if MSFT had zero profits it would not be good, but I was merely pointing out that is not a backbreaking load. Given their cash flow and credit rating, the loan would probably be the cheapest one ever and MSFT makes more by investing what it has. (borrow at 6% and make 8% by investing the pile they have for example.)

Also the street can recongize that they made $XX milion but paid the debt. It is not the same as no profit.

$20 billion is the aprox cash portion (50%)

[edited by: walkman at 4:53 pm (utc) on Feb. 5, 2008]