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They don't own the company. They own shares in a publicly traded company. Those shares go up and down in price. If they provide an outstanding service, the shar
by credit_guy 4y ago
They don't own the company. They own shares in a publicly traded company. Those shares go up and down in price. If they provide an outstanding service, the shares appreciate in price, and this shows as profit on Microsoft's balance sheet. And Microsoft, like all companies, are incentivized to show profits rather than losses.
- robertlagrant 4y agoI think this is probably going to be subject to the principal-agent problem. The bits of Microsoft that would make Azure better might be quite a long way from the bits that would like this intangible asset to appreciate. And they'll report them separately anyway, so as long as Azure is getting the revenue, low-performing assets won't drag down Azure's numbers.