A Microsoft Break-Up Could Unlock Its True Value - Barron's [View article]
XBox and online services don't contribute into MSFT stock value because they are money losing operations, simple as that. How would you spin-off these? Selling them? Who would buy them? Separating them as independent companies and giving the stock to MSFT stock owners? In order for them to survive one day as independent companies, they'd need cash injection from MSFT -> +- 0 gain for MSFT stock owners.
I agree, MSFT would do best by shutting down them, but that seems unlikely under the current management, as they have too much pride invested in these operations.
Not to mention that spinning them off would signal complete failure on MSFT part to find any real growth opportunities outside it's old core businesses. Would that really be signal encouraging to buy this stock?
-
XBox and online services don't contribute into MSFT stock value because they are money losing operations, simple as that. How would you spin-off these? Selling them? Who would buy them? Separating them as independent companies and giving the stock to MSFT stock owners? In order for them to survive one day as independent companies, they'd need cash injection from MSFT -> +- 0 gain for MSFT stock owners.
Aug 11 04:48 am
|Rating:
0
0
All Comments by samij »A Microsoft Break-Up Could Unlock Its True Value - Barron's [View article]
I agree, MSFT would do best by shutting down them, but that seems unlikely under the current management, as they have too much pride invested in these operations.
Not to mention that spinning them off would signal complete failure on MSFT part to find any real growth opportunities outside it's old core businesses. Would that really be signal encouraging to buy this stock?