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| UPDATED: 2006-06-01 |
 Ballmer Says No To $100B Buyback 
By: David Utter 2006-06-01 Microsoft has plans for its cash pile, namely research & development and the occasional acquisition, but any additional stock repurchasing it performs will be far less than what some institutional investors have demanded.  Microsoft (MSFT) CEO Steve Ballmer addressed the Sanford C. Bernstein Strategic Decisions Conference in New York before chatting privately with influential analysts about the company's plans for the future.
He emphasized that when it comes to Microsoft and its work, a long term view is required. "We announced Windows in 1983, and it didn't make any real money until about 1993-1994. I don't think any investor should complain about the payback on that," Ballmer said. Investors have complained about the stock price, and Ballmer empathized with their complaints. He defended Microsoft's efforts at returning cash to shareholders by noting Microsoft has put $87 billion back in their hands since fiscal year 2001. It's not enough, to his critics. A Bloomberg report on the talk cited comments from Joseph Rosenberg, chief investment strategist at New York-based Loews Corp. When Ballmer said Microsoft's falling stock price, nearing a 52-week low by closing at 22.65, hadn't changed employee attitudes, Rosenberg said, "Does Ballmer think that anybody in Seattle that works for Microsoft believes that?" Like some other big investors, Rosenberg has advocated a big stock repurchase, and has stated publicly it should be in the range of $60 billion. That would increase the undervalued stock's price and could help increase morale at Microsoft, where the falling stock price has been a focus of complaints as observed on the Mini-Microsoft blog. --- Tag: Microsoft Add to  Del.icio.us |  Digg |  Yahoo! My Web |  Furl
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View All Articles by David Utter About the Author: David Utter is a staff writer for InternetFinancialNews and WebProNews covering technology and business. |
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