Letters to the Editor

Letters posted here are associated with the following article:
The Bear-Stearns Microsoft/Yahoo connection
Microsoft hired Bear-Stearns CEO Alan Schwartz as an adviser on its Yahoo bid. Are Schwartz's woes a hopeful sign for the Silicon Valley software giant?
Andrew Leonard [2008-03-18]
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  • Rank Speculation + useless snark

    Could this be the reason that Bill Gates is now only the third richest man in the world?

    footsore

    -- footsore
    [Read footsore's other letters]
    Tuesday, March 18, 2008 09:07 AM

  • @footsore

    "Could this be the reason that Bill Gates is now only the third richest man in the world?"

    Actually, I think so. Microsoft stock went down when the takeover attempt was announced, and much of Bill's net worth is Microsoft stock.

    -- Alkaline
    [Read Alkaline's other letters]
    Tuesday, March 18, 2008 09:20 AM

  • Tenuous logic

    From Yahoo's perspective, in a world where companies can be worth $30 billion on a Friday and $270 million on a Monday, an offer in which shareholders could receive $31 a share might suddenly look a lot better than it did prior to collapse of Bear-Stearns.

    The financial sector is getting hammered because of their exposure to exotic mortgage-backed securities. Unless Yahoo is somehow significantly exposed to the subprime mess, then I don't see why Yahoo would expect to see the same type of massive devaluation as Bear did.

    Yahoo should, and probably is, looking at the facts relevant to this deal.

    -- dawdler
    [Read dawdler's other letters]
    Tuesday, March 18, 2008 10:10 AM

  • @dawdler

    "...I don't see why Yahoo would expect to see the same type of massive devaluation as Bear did."

    Yabut who wants to believe reassurances like that from someone whose own company just bit the dust?

    -- Alkaline
    [Read Alkaline's other letters]
    Tuesday, March 18, 2008 10:42 AM

  • Forbes piece is irrelevant to MSFT

    MSFT knowns how to make money. They only have nearly 20 Billion in cash sitting around.

    http://finance.yahoo.com/q/ks?s=MSFT

    I'm sorry but that Forbes piece is pure garbage. There is only one nugget of worthwhile information I can see is hiding WAY at the bottom:

    "Other significant Bear Stearns investment banking clients in 2007 included General Motors and its GMAC financing group"

    GMAC is dragging GM to its grave with all the subprime losses its suffered and other bad financial decisions.

    If there is any story, it is there.

    -- Keppie
    [Read Keppie's other letters]
    Tuesday, March 18, 2008 12:50 PM

  • Schwartz and Microsoft

    It's worth noting a couple of things about Alan Schwartz and the Microsoft deal:

    1) He wasn't the guy who steered Bear Stearns into the iceberg. He's more the guy left to run the ship after it's halfway underwater. Chairman Jimmy Cayne and former co-president Warren Spector were the ones to push Bear Stearns into heavy trading of subprime mortgages.

    2) Schwartz was added to Microsoft's adviser roster after the company announced its Yahoo bid. He's not Microsoft's main banker; those are Goldman Sachs and Lehman Brothers.

    3) Microsoft has a hefty pile of cash on hand, so it's not like it can't repay the debt. Bear Stearns was much more dependent on short-term debt that lenders called in amid a market panic.

    So basically I don't buy the Forbes article at all.

    -- mjnnyc
    [Read mjnnyc's other letters]
    Tuesday, March 18, 2008 11:05 PM

  • correction

    Sorry, Microsoft's advisors are Morgan Stanley and Blackstone. Goldman and Lehman Brothers are helping Yahoo.

    -- mjnnyc
    [Read mjnnyc's other letters]
    Tuesday, March 18, 2008 11:08 PM

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