Pender's Blog

Blog archive

Microsoft Money: Where's It Going?

Microsoft still has more than $40 billion burning a hole in its pocket for the proposed Yahoo acquisition -- although Ray Ozzie told the Financial Times (why doesn't anybody every come to RCPU with news like this? Never mind -- we know why) that even if Microsoft does swallow Yahoo, Redmond will take its time in digesting its prey.

But even with Yahoo still in play, and with Rupert Murdoch and News Corp. saying that they won't fight Redmond for control of the Web pioneer, Microsoft is on the lookout for other smaller fish to swallow.

One relative guppy that doesn't seem likely to find itself in Microsoft's belly anytime soon is Logitech, which, a couple of months back, was rumored to be a takeover target for Redmond. Logitech's chairman -- sort of randomly, as far as we can tell -- told an Italian newspaper recently that a Microsoft buyout of his company would be "without sense," meaning that he's either hoping his company will stay independent or throwing out some tasty, reverse-psychology bait in an attempt to make Steve Ballmer look his way again.

Digg, the news aggregation side, is much more likely prey for Microsoft, but Redmond might find itself in a dogfight with, you guessed it, Google over this tasty morsel. (Yes, we're sticking with our loose zoological theme in this entry. Just try to enjoy it.)

In any case, what we're seeing now is a Microsoft that's hungrier than ever and more than willing to splash out some cash for a fine dinner. The downside from Redmond's perspective is that Microsoft could still come home from the hunt hungry. Then what?

What's your take on Microsoft's acquisition strategy? Sound off at [email protected].

Posted by Lee Pender on March 11, 2008


Featured