3 ms·

For Microsoft stock? I think it doesn't matter that much. Microsoft stock is notoriously stable for tech stocks, so the difference between an all cash deal and

by jychang 12y ago

For Microsoft stock? I think it doesn't matter that much. Microsoft stock is notoriously stable for tech stocks, so the difference between an all cash deal and an all stock deal wouldn't be too big after, say, a year or something. Notch also probably wasn't too pressured to make the sale, so the terms would be understandably in his favor.

jacquesm 12y ago
I think it would matter a great deal. If an opportunity to re-invest came along in that window then you'd miss out, microsoft stock is relatively stable but has seen both 'up', 'down' and 'neutral' years where up and down were on the order of 20 to 30%. On top of that, cash is king, simply put: there is absolutely no uncertainty at all. Given the option between x in cash and x in stock or a mix or stock and cash you should always go for the cash. And something a bit less than x is probably still preferable in cash.
- seanmcdirmid 12y ago
  You should always go for cash, unless you are worried about an allay once tax hit.
- dannypgh 12y ago
  Yes, heaven forbid the 2.5B drops down to 1.75B. They'll have to move to the poor house, for sure.
  - jacquesm 12y ago
    Let me give you a hint: if you ever are in the position to do a major exit get yourself a tax lawyer. Or you indeed might find yourself in the poorhouse after all.
  - isaacremuant 12y ago
    so you consider a 30 % difference negligible because you can avoid living in a poor house? I want to do business against you. :P
- Mikeb85 12y ago
  > On top of that, cash is king, simply put: there is absolutely no uncertainty at all. Because currency values don't fluctuate at all... https://ca.finance.yahoo.com/q?s=EURUSD=X https://ca.finance.yahoo.com/q?s=EURUSD=X
  - jacquesm 12y ago
    I'm pretty sure that if it is a cash deal that he will convert to Euros to get rid of the $ exchange rate risk. If the deal contains a stock component that's a double risk.
- logn 12y ago
  > cash is king [...] there is absolutely no uncertainty at all 2009 was only 5 years ago. Money markets nearly crashed, banks went bankrupt, the Fed printed enormous amounts of money, and BTC was invented. With $2.5 billion on the table, I'd first hire a team of lawyers and accountants, and maybe some lobbyists too... then I'd let MS know how I want to receive the rest of the money.

by jychang 12y ago

jacquesm 12y ago

I think it would matter a great deal. If an opportunity to re-invest came along in that window then you'd miss out, microsoft stock is relatively stable but has seen both 'up', 'down' and 'neutral' years where up and down were on the order of 20 to 30%. On top of that, cash is king, simply put: there is absolutely no uncertainty at all. Given the option between x in cash and x in stock or a mix or stock and cash you should always go for the cash. And something a bit less than x is probably still preferable in cash.

seanmcdirmid 12y ago
You should always go for cash, unless you are worried about an allay once tax hit.
dannypgh 12y ago
Yes, heaven forbid the 2.5B drops down to 1.75B. They'll have to move to the poor house, for sure.
- jacquesm 12y ago
  Let me give you a hint: if you ever are in the position to do a major exit get yourself a tax lawyer. Or you indeed might find yourself in the poorhouse after all.
- isaacremuant 12y ago
  so you consider a 30 % difference negligible because you can avoid living in a poor house? I want to do business against you. :P
Mikeb85 12y ago
> On top of that, cash is king, simply put: there is absolutely no uncertainty at all. Because currency values don't fluctuate at all... https://ca.finance.yahoo.com/q?s=EURUSD=X https://ca.finance.yahoo.com/q?s=EURUSD=X
- jacquesm 12y ago
  I'm pretty sure that if it is a cash deal that he will convert to Euros to get rid of the $ exchange rate risk. If the deal contains a stock component that's a double risk.
logn 12y ago
> cash is king [...] there is absolutely no uncertainty at all 2009 was only 5 years ago. Money markets nearly crashed, banks went bankrupt, the Fed printed enormous amounts of money, and BTC was invented. With $2.5 billion on the table, I'd first hire a team of lawyers and accountants, and maybe some lobbyists too... then I'd let MS know how I want to receive the rest of the money.