It's a cash cow. The bulk of its income comes from Windows and Office, with most of the rest coming from servers and enterprise services. The issue is that i

It's a cash cow. The bulk of its income comes from Windows and Office, with most of the rest coming from servers and enterprise services. The issue is that it is being managed like it is a change-driving company investing huge sums in new markets that generate slender revenues where they don't generate losses. Paying $8.5 billion, around 4% of its market capitalisation, for Skype is not likely to change the revenue it gets from its core businesses. If it wasn't so big, I would expect it to be a private equity target. But the pargest PE deals have been around $40 billion, about 20% of Microsoft's cap.