The Skype purchase would be Microsoft’s largest in its 36-year history. Microsoft had $50.15 billion in cash and short-term investments at the end of March. Companies “don’t need this much cash anymore.” Interest rates for short-term savings pay less than 1 percent. Large companies also want to put their cash stockpiles to work because they’re getting minimal returns on them, said Oliver Pursche, president of Gary Goldberg Financial Services. That, in turn, has led to increased confidence among money managers and other investors that stocks are going to continue to rise.
Corporations built up a record amount of cash over the last several years, and they have started using it to purchase rivals, pay dividends and also expand their businesses. The biggest news, that Microsoft said it would buy Internet telephone service Skype for $8.5 billion in cash, is another sign that cash-rich companies are starting to spend. NEW YORK - Corporate deals and strong earnings have been credited with driving stocks higher this year - and Tuesday saw a bit of each.
0 kommentar(er)
