Roy Schestowitz <newsgroups@xxxxxxxxxxxxxxx> espoused:
> __/ [ John Bailo ] on Friday 04 May 2007 09:32 \__
>
>> Roy Schestowitz wrote:
>>
>>> ,----[ Quote ]
>>> | But Microsoft has taken a series of steps to reduce its cash
>>> | balance. Specifically, by Microsoft's count, the company has
>>> | paid out nearly $100 billion through dividends and repurchasing
>>> | its own stock in the past five years.
>>> `----
>>
>> Sort of like burning the mansion's furniture for firewood.
>
> We've always argued that one day Microsoft would live off its pockets rather
> than feed its pockets. These days are not now... they began some time ago,
> under everybody's noses. Huge losses in many departments (enough to starve
> them if they were independent) and the cash cows have no future hopes, not
> even in the short(ish) term.
>
> Propaganda is expensive. Microsoft can carry on burning money on FUD,
> 'influencing' journalists, and messing about with politics. Money is being
> burned, not earned.
>
Presumably, Microsoft will have to continue to shrink themselves until
they get to a point where they have a sustainable business. They have
made far too many mistakes over the last decade, in fact, since they
gained their monopoly, they've failed to make any real progress in
becoming more than a one-trick pony.
The company really does need a new board, as the current one is burning
reserves as fast as a formula-1 car or space-bound rocket, but I don't
know very much about the governance structure of Microsoft, in
particular, how difficult it will be to replace the current board with
some people experienced in recovering from the kind of position
Microsoft find themselves in now.
--
| Mark Kent -- mark at ellandroad dot demon dot co dot uk |
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