4 ms·

> MSFT currently have $100b cash on hand. Fwiw, unless cash on hand already accounts for it (I don't think it does), then $70B of that is tied up in the Activi

> MSFT currently have $100b cash on hand. Fwiw, unless cash on hand already accounts for it (I don't think it does), then $70B of that is tied up in the Activision acquisition. Thus we really only have $30B cash on hand, which in a higher than previous interest rate environment is probably not great (though afaict Apple has $48B). Likewise, our cash on hand has been drastically dwindling the last few years, making the $30B total seem a bit more precarious. I have suspicions that the Activision acquisition is a huge part of the hiring freeze at Microsoft and the source of a lot of budget concerns and constraints. It's pretty frustrating watching all the freezes seemingly because of this one acquisition (as an employee without any inside knowledge about this).

mgkimsal 4y ago
I had seen someplace else that there's... $107b as of last quarter, but it was down 17% from year before same quarter, so yeah, it's draining some. But are they really putting $70b down in cash for Activision?
- Kranar 4y ago
  > But are they really putting $70b down in cash for Activision? Yes it's all cash. https://news.microsoft.com/2022/01/18/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device/ https://news.microsoft.com/2022/01/18/microsoft-to-acquire-a...
KptMarchewa 4y ago
I really, really doubt that acquisition is 100% cash.
- CamelCaseName 4y ago
  It is all cash. > As announced on January 18, 2022, Microsoft plans to acquire Activision Blizzard for $95.00 per share in an all-cash transaction. https://www.businesswire.com/news/home/20230111005882/en/Activision-Blizzard-to-Release-Fourth-Quarter-2022-Financial-Results-on-February-6-2023 https://www.businesswire.com/news/home/20230111005882/en/Act...
  - Kon-Peki 4y ago
    In this context, "all-cash transaction" means that the Activision shareholders get cash for their shares and not some combination of cash and MSFT shares. Where and how MS got that cash is not being addressed.
  - KptMarchewa 4y ago
    Interesting. Still, large parts of that cash could be financed. I doubt Microsoft would just spend 70% of their war chest on a single transaction like this.
HillRat 4y ago
They haven't said so yet -- perhaps they'll clarify on the call tomorrow -- but they'll probably take down new debt to make this happen; it's a good time to go to the markets, and a lot of their cash is parked overseas. Fitch recently announced they're withdrawing their ratings for MSFT debt, so that's probably an indication they expect a significant amount of the purchase price to come from new issuances.
- za3faran 4y ago
  > they'll probably take down new debt to make this happen; it's a good time to go to the markets How so with interest rates that keep going up?

mgkimsal 4y ago

I had seen someplace else that there's... $107b as of last quarter, but it was down 17% from year before same quarter, so yeah, it's draining some. But are they really putting $70b down in cash for Activision?

Kranar 4y ago
> But are they really putting $70b down in cash for Activision? Yes it's all cash. https://news.microsoft.com/2022/01/18/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device/ https://news.microsoft.com/2022/01/18/microsoft-to-acquire-a...

KptMarchewa 4y ago

I really, really doubt that acquisition is 100% cash.

CamelCaseName 4y ago
It is all cash. > As announced on January 18, 2022, Microsoft plans to acquire Activision Blizzard for $95.00 per share in an all-cash transaction. https://www.businesswire.com/news/home/20230111005882/en/Activision-Blizzard-to-Release-Fourth-Quarter-2022-Financial-Results-on-February-6-2023 https://www.businesswire.com/news/home/20230111005882/en/Act...
- Kon-Peki 4y ago
  In this context, "all-cash transaction" means that the Activision shareholders get cash for their shares and not some combination of cash and MSFT shares. Where and how MS got that cash is not being addressed.
- KptMarchewa 4y ago
  Interesting. Still, large parts of that cash could be financed. I doubt Microsoft would just spend 70% of their war chest on a single transaction like this.

HillRat 4y ago

They haven't said so yet -- perhaps they'll clarify on the call tomorrow -- but they'll probably take down new debt to make this happen; it's a good time to go to the markets, and a lot of their cash is parked overseas. Fitch recently announced they're withdrawing their ratings for MSFT debt, so that's probably an indication they expect a significant amount of the purchase price to come from new issuances.

za3faran 4y ago
> they'll probably take down new debt to make this happen; it's a good time to go to the markets How so with interest rates that keep going up?