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What Microsoft gets for $2 billion

scottberkun.com

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Re: What Microsoft gets for $2 billion

#2
Disclaimer: I do not speak for Microsoft, I am simply an employee - these opinions are mine and mine alone.

As someone working in the online services division I have to say that this analysis is extremely simplistic. Would they be saying the same thing about Facebook? It was in the red for many years before it became profitable. That was the plan.

Re: What Microsoft gets for $2 billion

#3
Isn't it simple? Microsoft is sinking a huge pile of money into improve Bing, getting market share and making acquisitions (altough I guess these wouldn't be expensed directly against income).

Whether or not that's a wise strategy is another matter but there really is no mystery here.

Re: What Microsoft gets for $2 billion

#4

Disclaimer: I do not speak for Microsoft, I am simply an employee - these opinions are mine and mine alone. As someone working in the online services division I have to say that this analysis is extremely simplistic. Would they be saying the same thing about Facebook? It was in the red for many years before it became profitable. That was the plan.

yes, but it was NOT in the red at the tune of 2 billion USD a year...

Re: What Microsoft gets for $2 billion

#5

Disclaimer: I do not speak for Microsoft, I am simply an employee - these opinions are mine and mine alone. As someone working in the online services division I have to say that this analysis is extremely simplistic. Would they be saying the same thing about Facebook? It was in the red for many years before it became profitable. That was the plan.

But facebook is an independent entity - it's not quite the same comparison. Regardless, Microsoft's online strategy from day one hasn't been on par with the rest of the 600 pound gorillas.

If anything, I wish they had the same force behind online services as they have with the Xbox division. They really got Xbox Live right!

Re: What Microsoft gets for $2 billion

#6

Disclaimer: I do not speak for Microsoft, I am simply an employee - these opinions are mine and mine alone. As someone working in the online services division I have to say that this analysis is extremely simplistic. Would they be saying the same thing about Facebook? It was in the red for many years before it became profitable. That was the plan.

The comparison to Facebook is not fair. Facebook is now profitable and Microsoft online services are not. Facebook was never in the red to the tune of 2B a year. Microsoft online services had a multiple year head start on Facebook.

Re: What Microsoft gets for $2 billion

#7
post #4

Disclaimer: I do not speak for Microsoft, I am simply an employee - these opinions are mine and mine alone. As someone working in the online services division I have to say that this analysis is extremely simplistic. Would they be saying the same thing about Facebook? It was in the red for many years before it became profitable. That was the plan.

yes, but it was NOT in the red at the tune of 2 billion USD a year...

[deleted]

Re: What Microsoft gets for $2 billion

#8
post #5

Disclaimer: I do not speak for Microsoft, I am simply an employee - these opinions are mine and mine alone. As someone working in the online services division I have to say that this analysis is extremely simplistic. Would they be saying the same thing about Facebook? It was in the red for many years before it became profitable. That was the plan.

But facebook is an independent entity - it's not quite the same comparison. Regardless, Microsoft's online strategy from day one hasn't been on par with the rest of the 600 pound gorillas. If anything, I wish they had the same force behind online services as they have with the Xbox division. They really got Xbox Live right!

It also took them 10 years of hemorrhaging money to get Xbox/XBL right. Many people also thought they were stupid for doing so, but now it seems prescient.

Re: What Microsoft gets for $2 billion

#9
Steve Ballmer says he is willing to invest 5%-10% of Microsoft's operating income over the next five years on search. Read more: http://www.businessinsider.com/henry-blodget-steve-ballmer-h... Specifically, assuming Microsoft's operating income stays constant (it will likely grow), it's $5.5-$11 billion.

endquote.

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