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Would Microsoft be able to afford SAP? According to Google Finance, they have a market cap of $77.04bn and Microsoft would have to pay a hefty premium over this

Would Microsoft be able to afford SAP? According to Google Finance, they have a market cap of $77.04bn and Microsoft would have to pay a hefty premium over this. http://www.google.com/finance?q=NYSE:SAP http://www.google.com/finance?q=NYSE:SAP Also, what would the European Commission say about this? I don't think they would look favourably on this. They're not exactly fond of Microsoft. http://en.wikipedia.org/wiki/European_Union_Microsoft_competition_case http://en.wikipedia.org/wiki/European_Union_Microsoft_compet...

netcan 15y ago
Good point. SAP is an order of magnitude bigger than Skype but the point about getting into this space if they're serious about getting into a different space is a good one. Netsuite, intuit & salesforce are trading @ $2.3b, $16.75b & $17.9b. They could conceivably buy all three with just this 'overseas cash' they supposedly need to spend and still have change. Thinking about MS's available cash in terms of companies they could buy really puts some perceptive on it - huge.
- patrickk 15y ago
  According to this article, Microsoft are sitting on a $50bn (!) pile of cash, $42bn of which is located ouside the US: http://blogs.forbes.com/ericsavitz/2011/05/10/microsoft-with-skype-a-good-use-for-the-giant-overseas-cash-pile/ http://blogs.forbes.com/ericsavitz/2011/05/10/microsoft-with... They could do nearly six Skype-sized deals, just using cash (without issuing bonds or using stock!) Incredible. They could probably buy SAP, but their cash pile would be gone, plus they would have to give up a significant amount of stock as well. Doubt Ballmer would be willing to risk this. I've heard elsewhere that Apple is sitting on a ~$35bn cash pile. One wonders when the US Government will declare some sort of 'tax holiday' or window during which these companies can repatriate all this cash.
  - rkudeshi 15y ago
    Apple has $43bn right now. http://www.investorplace.com/33461/apple-inc-nasdaq-aapl-cash-on-hand-43-billion/ http://www.investorplace.com/33461/apple-inc-nasdaq-aapl-cas...

netcan 15y ago

Good point. SAP is an order of magnitude bigger than Skype but the point about getting into this space if they're serious about getting into a different space is a good one. Netsuite, intuit & salesforce are trading @ $2.3b, $16.75b & $17.9b. They could conceivably buy all three with just this 'overseas cash' they supposedly need to spend and still have change. Thinking about MS's available cash in terms of companies they could buy really puts some perceptive on it - huge.

patrickk 15y ago
According to this article, Microsoft are sitting on a $50bn (!) pile of cash, $42bn of which is located ouside the US: http://blogs.forbes.com/ericsavitz/2011/05/10/microsoft-with-skype-a-good-use-for-the-giant-overseas-cash-pile/ http://blogs.forbes.com/ericsavitz/2011/05/10/microsoft-with... They could do nearly six Skype-sized deals, just using cash (without issuing bonds or using stock!) Incredible. They could probably buy SAP, but their cash pile would be gone, plus they would have to give up a significant amount of stock as well. Doubt Ballmer would be willing to risk this. I've heard elsewhere that Apple is sitting on a ~$35bn cash pile. One wonders when the US Government will declare some sort of 'tax holiday' or window during which these companies can repatriate all this cash.
- rkudeshi 15y ago
  Apple has $43bn right now. http://www.investorplace.com/33461/apple-inc-nasdaq-aapl-cash-on-hand-43-billion/ http://www.investorplace.com/33461/apple-inc-nasdaq-aapl-cas...