"We can't afford to pay a dividend."

That's the gist of MS's statement to shareholders today.

The reason? According to [link|http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_box.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&box=ad_box_all&tag=financial&middle=ad_frame2_topfin&s=APcggzxUeTWljcm9z|Bloomberg] (the URL will change), there's too much litigation risk:

Bellevue, Washington, Nov. 5 (Bloomberg) -- Microsoft Corp., whose antitrust settlement with the U.S. government was approved Friday, is unable to pay dividends because the world's biggest software maker faces other lawsuits, Chief Financial Officer John Connors told shareholders.

``While the ruling Friday was a positive, we still face some significant legal issues,'' Connors said at Microsoft's annual shareholder meeting in Bellevue, Washington. ``The board has determined it would not be appropriate to commit to a long-term program like a dividend.''

Microsoft, which had $40.5 billion in cash and securities as of Sept. 30, is under increasing pressure to pay a dividend to shareholders. They've watched their holdings lose 16 percent of their value this year and 53 percent from an all-time high in December 1999.

...

$40B in hand isn't enough to pay a dividend. Garbage.

This reasoning is another reflection that it's all about power with MS's management. Not serving the company's owners.

Cheers,
Scott.

Post #61,198 by Another Scott 11/5/02 4:09:24 PM Reply	"We can't afford to pay a dividend." That's the gist of MS's statement to shareholders today. The reason? According to [link\|http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_box.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&box=ad_box_all&tag=financial&middle=ad_frame2_topfin&s=APcggzxUeTWljcm9z\|Bloomberg] (the URL will change), there's too much litigation risk: Bellevue, Washington, Nov. 5 (Bloomberg) -- Microsoft Corp., whose antitrust settlement with the U.S. government was approved Friday, is unable to pay dividends because the world's biggest software maker faces other lawsuits, Chief Financial Officer John Connors told shareholders. ``While the ruling Friday was a positive, we still face some significant legal issues,'' Connors said at Microsoft's annual shareholder meeting in Bellevue, Washington. ``The board has determined it would not be appropriate to commit to a long-term program like a dividend.'' Microsoft, which had $40.5 billion in cash and securities as of Sept. 30, is under increasing pressure to pay a dividend to shareholders. They've watched their holdings lose 16 percent of their value this year and 53 percent from an all-time high in December 1999. ... $40B in hand isn't enough to pay a dividend. Garbage. This reasoning is another reflection that it's all about power with MS's management. Not serving the company's owners. Cheers, Scott.
Post #61,209 by bepatient 11/5/02 4:28:47 PM Reply	They never have. And doing so would take them one step closer to becoming >old< school. I agree though...that after this wimpy settlement....the civil litigation may just get really ugly...since, you know, MS has made so many friends in its climb to glory ;-) You were born...and so you're free...so Happy Birthday! _{Laurie Anderson} [link\|mailto:bepatient@aol.com\|BePatient]
Post #61,245 by JayMehaffey 11/5/02 7:17:01 PM Reply	For once For once I hope they are right. I hope they need do need $40 billion or so to pay of the various suits against them. Jay
Post #61,246 by inthane-chan 11/5/02 7:19:39 PM Reply	For once... ...I hope that the victors of said suits don't fritter and waste the money in an offhand way, and instead spend that money to beat M$ into the ground. Doubt that, though. End of world rescheduled for day after tomorrow. Something should probably be done. Please advise.

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