Buyback time at MS

Posted by | August 20, 2006 | blog, Management | No Comments

Well Microsoft closed down its tender offer on Friday, after it had offered a buyback option to its shareholders, by pricing the share at $24.75. But the die hard Microsoft supporters refused to part with their shares, arguing that Microsoft would eventually do well and that the price then would be much higher than that offered by MS. True to their word, the share price of Microsoft was that of $ 25.79. Microsoft had opted for the buy back offer when its software business failed to provide the expected returns and after its heavy investments in online services. But shareholders are optimistic and vouch that MS would eventually reap what they had sowed in the form of online investments, well that is what is called as shareholders support. But with all these going on, Microsoft has started paying dividends to its shareholders (this is the first time they are doing so!). Well after Bill gates stepping down from the active day to day operation of MS, and heavy investments in advertisement and online services have led to a drop in the companies performance, but many are optimistic that MS would soon rise stronger than ever after their various investments pay off. Well I guess all the MS shareholders are keeping their fingers and toes crossed, and hope that the going goes good for MS. WE SURE HOPE SO TOO!

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