Microsoft Has Cash Reserve Of $38 Billion
Yahoo | at | by Mike
Gartner Inc. analysts believe that large acquisitions by Microsoft Corp. are "almost inevitable" as a result of the computer giant's $38 billion cash reserve. In a press release Wednesday, Gartner said it expects Microsoft to make major purchases in professional services, workload management and media after antitrust proceedings slowed Microsoft 's purchase activity in recent years. Microsoft 's last major purchase was in December 2000 , when the company agreed to buy Great Plains Software Inc. for about $1.1 billion.
"Holding off on acquisitions was cautious and sensible, and maintaining significant cash on hand was a wise insurance policy in the unlikely event Microsoft had been forced to split into two or more companies," said Tom Bittman, vice president and research director for Gartner, in Wednesday's release. "Now that it appears Microsoft will come through the case somewhat unscathed, it will find a way to invest this cash through key acquisitions."