Huh? I understand that Microsoft is sitting on billions in cash, but couldn't they just pay a dividend?
Microsoft is like the electric utility of the technology business -- they should embrace that or wake up and break up the company into manageable parts.
Buying Skype? That's not creating shareholder value.
There aren't many very large brand name "statement" acquisitions there. Most are small companies you've probably never heard of. I think this Skype acquisition is a clear message that Microsoft is playing hardball now.
1: http://www.microsoft.com/investor/InvestorServices/FAQ/defau...
That's a big if for them right now. When you're trading at a P/E in the single digits ex cash, the market is telling you they have no faith in your ability to re-invest your earnings(especially when interest rates are so low).