Microsoft on the ropes

This article Microsoft unveils $40bn buy-back it becomes evident how poorly Microsoft is doing in the market place as the process of a Buy Back which I quote:


Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake.

I believe that this attempt to get the stock price up points not to one of the above reasons, but to both the reasons. Microsoft stock is low, and falling, and many mainline fortune 500 companies like Insurance companys, mutual funds and retirement systems have large investments in Microsoft. There may be an uprising, or worse a sellout by these companies if the stock price does not rise. Microsoft is on the ropes, mostly Steve Ballmer is on the ropes. If he can’t get the stock to rise, he will be gone before the year is out.

4 comments on “Microsoft on the ropes

  1. Interesting article. I remember IBM’s position in the early to mid 80’s. Microsoft are in the same position now and their launch of Vista has similarities to the launch of OS/2 (remember that one). A lot of business resent the fact that they will have to spend a lot of money upgrading their hardware to run a new operating system that has nothing in it that can’t be done faster and easier in XP. They have also failed to get to grips with the threat of the Open Source model.

  2. Interesting article. I remember IBM’s position in the early to mid 80’s. Microsoft are in the same position now and their launch of Vista has similarities to the launch of OS/2 (remember that one). A lot of business resent the fact that they will have to spend a lot of money upgrading their hardware to run a new operating system that has nothing in it that can’t be done faster and easier in XP. They have also failed to get to grips with the threat of the Open Source model.

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