Microsoft forced to borrow to pay for Yahoo
By Matthew Sparkes
Posted on 5 Feb 2008 at 13:23
Microsoft may slip into debt for the first time if the proposed Yahoo takeover goes to plan, as even its significant cash reserves cannot fund the largest ever technology takeover.
The company has suggested that half of the $44.6 billion purchase price will be paid in stock, while the remaining half will be covered with cash. A full cash purchase would be too large a financial risk, says chief executive, Steve Ballmer.
Although the company has huge liquid reserves, estimated at over $20 billion at the end of 2007, it will still need to take on debt to complete the deal. Several years ago Microsoft's cash reserves topped $60 billion, but has since been heavily dented by stock buy-backs.
The cash half of the deal will be covered by "a mixture of the cash we have on hand plus debt," according to chief financial officer, Christopher Liddell.
- How to check your identity hasn’t been sold to the hackers
- Tim Cook: this is how much TV has changed since the 70s
- Westminster wins the .London battle
- 20 years of PC Pro: from deep pan pizza to virtualisation
- Five reasons why the Apple Watch leaves me cold
- Apple Watch, iPhone 6 and 6 Plus: Tim Cook's Apple back with a bang?
- BT Home Hub 5: how to get maximum speed
- 20 years of PC Pro: one-star reviews (including "the worst tablet we've ever seen")
- 20 years of PC Pro: our best covers
- Why we've closed the PC Pro forums
- How to sell more ebooks on Amazon
- 10 ways to make your business more secure
- Top five VoIP mistakes
- How to add in-app purchasing to an iPhone, Android or Windows app
- Remote-control ransomware: TeamViewer and software hardball
- Why laptops with serial ports matter to the Internet of Things
- Make your mobile battery last longer
- Small steps into handling Big Data
- Nexus 5: does it really run stock Android?
- How to get broadband to a garden office