Will Microsoft go on a buying binge?
C|Net | at | by Mike
As Microsoft's antitrust imbroglio drags on, the company is sitting on a cash reserve of $38 billion, something that makes large acquisitions almost inevitable, Stamford, Conn.-based Gartner said in a report released Wednesday.
"Now that it appears Microsoft will come through the case somewhat unscathed, it will find a way to invest this cash through key acquisitions," said Gartner research director Tom Bittman. "In the next quarter, I wouldn't be surprised to see (Microsoft's war chest) climb to $40 billion," Bittman said. "They need a way to invest that, either by hiring people or (making) acquisitions. We've also speculated they might pay a dividend on the stock."
Microsoft has bought more than 60 companies in the past 10 years, but its acquisitions have tapered off during the antitrust proceedings, a sensible move considering the company could have been split in two. Now that most legal threats are gone, Gartner said, Microsoft will likely snap up companies in the professional services, workload management and media industries.