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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Josh Carroll who wrote (30222)9/27/1999 7:17:00 PM
From: Stockman_77079  Read Replies (1) | Respond to of 74651
 
Josh, don't forget the proceeds from the stocks of Expedia will be added to MS cash position, and the remaining shares that it owns will be an equity investment in Expedia. They all contribute to the bottom line financial statement.



To: Josh Carroll who wrote (30222)9/27/1999 8:05:00 PM
From: codawg  Respond to of 74651
 
As a stock holder in MSFT, you may not get shares in the spin-off, but you do get two other things:

1) The money Microsoft gets from selling the shares through an IPO becomes cash for the company.

2) MSFT will retain a significant number of shares in the new public company. If the stock soars, then so will their investment.

Both of these create wealth for the MSFT shareholder. If Expedia goes up then your shares in MSFT will increase in value (at least all other things being equal).