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Old 04-20-08, 09:48 PM
Novice Investing Novice Investing is offline
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Join Date: Jan 2008
Posts: 84
I agree with Fredledingue. Microsoft is slightly undervalued but not that undervalued. You can find some other companies with better risk/reward ratio. At the current moment, Yahoo!'s acquisition is distracting everyone at Microsoft. I think once they succeeded in acquiring Yahoo!, integration will be a headache. Two different cultures. You would expect many Yahooligans will leave the company if they are not doing so already. The one remains are those that can't get a decent job by the time the integration is coming.

Thus, if MSFT does not acquire YHOO, they are not growing. If MSFT does acquire YHOO, integration will be a pain and it will give competitors a window to capture market share. Expensive acquisition will never be beneficial for shareholders.

That is just my humble opinion.
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