There are a couple things that are typical with buyout rumors: a) they are fun to talk about, b) the companies involved have lagging stock prices and c) usually the deal doesn't happen.
A recent piece in the New York Post speculates that Microsoft and eBay are in talks for a mega combination. Sources? Of course, they are unnamed (probably because of the federal securities laws, huh?) On the face of it, a deal with eBay would bring much to Microsoft: leadership in auctions, which is a cash cow business; a rapidly growing VOIP business through Skype; and a lucrative online payments business, aka, PayPal.
But, somehow, such a deal would probably fall apart -- say on valuation or antitrust grounds.
So, in the spirit of rumors, how about something more interesting: eBay goes private.
For the past few years, the stock has gotten little respect on the Street -- despite having an assortment of solid, fast-growing businesses. Oh, and it also has an incredible global brand.
Far-fetched? Maybe not. Actually, I recently did a piece for the Motley Fool on how private equity firms are eyeing tech for mega deals.
Let's face it, there is a ton of private equity money sloshing around looking for quality deals. With eBay's cash flow, some smart private equity firms can put a deal together, slap together some junk bonds and return eBay to the coziness of being private.
Related link: Motley Fool - No Way, BallmerBay
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Reader Comments (Page 1 of 1)
5-31-2006 @ 2:49PM
Jolie J. Pond said...
Spare us the expense and the intention:
Subject: Amazing
Isn't this amazing?
TAXES
Accounts Receivable Tax
Building Permit Tax
Capital Gains Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Court Fines (indirect taxes)
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel permit tax
Gasoline Tax (42 cents per gallon)
Hunting License Tax
Inheritance Tax Interest expense (tax on the money)
Inventory tax IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Local Income Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Septic Permit Tax
Service Charge Taxes
Social Security Tax
Road Usage Taxes (Truckers)
Sales Taxes
Recreational Vehicle Tax
Road Toll Booth Taxes
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone federal excise tax
Telephone federal universal service fee tax
Telephone federal, state and
local surcharge taxes
Telephone minimum usage surcharge tax
Telephone recurring and non-recurring charges tax
Telephone state and local tax
Telephone usage charge tax
Toll Bridge Taxes
Toll Tunnel Taxes
Traffic Fines (indirect taxation)
Trailer Registration Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
COMMENTS:
Not one of these taxes existed 100 years ago and our nation was the most prosperous in the world, had absolutely no national debt, had the largest middle class in the world and only one parent had to work to support the family.
What Happened?
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