Bonum Certa Men Certa

Off Topic: Getting Worse For Microsoft... Before It Gets Any Better

Another harsh week so far

T

his was going to be mentioned very briefly in this evening's digest of links, but the response to a previous short analysis was very positive. It's worth expanding on it now that Microsoft's 'shocker week' is through.

Things haven't gotten much better. To give just a quick overview, an analyst quoted in Reuters suggests that Microsoft should go into debt with another round of buybacks.

Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) should take on debt to repurchase stock as a way to revive its flagging share price, a financial analyst said in a new report issued on Tuesday.

Friedman, Billings, Ramsey & Co analyst David Hilal called on the company to take advantage of its predictable cash flow and rock solid balance sheet to execute a leveraged buyback.


As a reminder, Microsoft is estimated to have just $26 billion in the bank. It is far less than it has had for decades. If Microsoft had bought Yahoo!, it would would have borrowed over $20 billion from the bank. Their CFO even headed over to check these option, as reported by Reuters back in March.

This is bad for Microsoft. It had already completed buybacks valued at around $45 billion over the past 3 fiscal years. Will it be more? The frantic investors dropped their shares regardless and the stock nosedived in the past year.

It gets worse. Would you believe that Microsoft has lost $90,000,000,000 in value so far this year? So says Bloomberg.

Microsoft Holders Say Web Spending Masks Idea Drought (Update1)



Microsoft Corp. Chief Executive Officer Steve Ballmer says he plans to spend hundreds of millions of dollars to fix the company's unprofitable Internet business. His investors say they want proof he knows what to do with the money.

After walking away from six months of on-again, off-again talks about buying all or part of Yahoo! Inc., owner of the No. 2 Web search engine, Ballmer has left shareholders wondering if he has a plan B.

Microsoft, the biggest software maker, has lost about $90 billion in market value this year as Ballmer vacillated on Yahoo and failed to show how he would crack Google Inc.'s dominance of Internet advertising.


Looking elsewhere in the news, there are too few encouraging signs. Microsoft has apparently just elevated its marketing budget for Windows Vista from $300,000,000 to $500,000,000. That's a lot of brainwash.

Microsoft is really taking the gloves off this time. ZDNet is reporting that it will spend $500 million to make a powerful statement to its hundreds of millions of customers. I imagine the statement would have to go something like this:

Windows Vista isn’t really as bad as they say. Honest. Please don’t be mad at us. We promise our next operating system will be better. Pinky swear.



After the rejection of Windows Vista by so many large companies, including Intel, for whom a heavy Vista was possibly created, there is not much hope for change in the enterprise. Even Microsoft Watch seems to have given up. Here is a new catch of an opinion on Vista:

"Personally, I can't stand it," said Aaron Nettles, president and CEO of Vorsite, a Microsoft Gold Certified Partner in Seattle. "It just seems more unstable to me, and I can't stand not being productive."


Mind this person's role and location.

Another important point to make is that other Windows-based products like Server 2008 and Home Server are based on the same code and they are equally problematic on the face is it. We looked at Home Server before. It took about a year to fix a serious data corruption bug (resolved this week). What does that say about trust in the product? It's all an illusion, a fairy tale wrapped in brand name.

The other day we also mentioned the financial fraud. Here are some more details to ensure this information is never lost (long-term).



There's a lot more in the distant past and Wired reminisces.

When John Heilemann began working on a book about Silicon Valley in 1998, he discovered that he was hitting up many of the same sources as a group of lawyers from the Department of Justice. The DOJ, of course, was building its antitrust case against Microsoft, and Heilemann wanted in: "I started calling around and got the assistant attorney general to let me inside a lot of the case — as long as I didn't write anything until the trial was over."


Those who believe that Microsoft is still in a strong position and gaining further power are easily carried away by corporation-generated hype and glorification attempts that serve as self-fulfilling prophecies. "If Microsoft does great, so are its products," right? They just need you to believe. It boils down to perception.

Recent Techrights' Posts

IRC Proceedings: Saturday, August 30, 2025
IRC logs for Saturday, August 30, 2025
Representing and Speaking for Animals
If I ever choose to take this matter to tribunal with animals-centric NGOs on my side, it'll get some press coverage for sure
The UEFI 9/11 - Part II - Campaign of Censorship and Defamation Against Critics
In dictatorships, humour serves an important role. It's tragic.
How Not to Build Software
code forges that need a Web browser perhaps fill some 'niche' demand
GAFAM and "MATA"
The use of dark humour there hopefully helps illuminate what a lot of "modern" technology became like and how it interacts with human civilisation (to what ends and whose gain)
Flying in 2025
worse than ever before
 
Links 31/08/2025: Google Gmail Data Breach and LF Puff Pieces for Pay
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
This is What Google News Has Become
Moments ago
The Slopfarm WebProNews Has Turned Google News Into a Laughing Stock Full of Plagiarism by Slop
If Google News dies of neglect, that's one thing. It's starting to seem like active neglect by Google is a form of participation.
Do What is Moral, as What's Legal Isn't Always Moral
Do what's objectively moral, no matter the costs and the risks
Slopwatch: Google News Assisting Plagiarism and Anti-Linux FUD, Serial Slopper Rips Off Linux-Centric Journalists
This makes the Web a much worse place and lessens the incentive to do journalism
Links 30/08/2025: NVIDIA Fakes Results to Hide a Bubble Already in Implosion Phase, Data Breaches Galore, Important Win for Workers' Union in Canada
Links for the day
In Kazakhstan, Yandex Estimated to be 20 Times Bigger Than Microsoft
Bing is measured as down this month
Shutterstock Not Enough? The Register MS Uses Slop Images in Articles (Seemingly More and More Over Time)
Cost-saving trajectory amid office shutdown?
Gemini Links 30/08/2025: Games, PostmarketOS, and Slop
Links for the day
Links 30/08/2025: Imgur Uproar and Many Ukraine Updates (Mediazona Reports Over 200,000 Russians Died for Putin)
Links for the day
Birds Are Not "Pests and Vermin", Privacy is Not a Crime, and GNU/Linux is Not 'Hacking Platform'
I could not help but think of Free software analogies
The Sites Should Be Very Fast Again
That issue is now resolved
Activists, Including Technical Activists, Need Not Pursue Affirmation
Techrights doesn't play or participate in a "popularity contest"
The UEFI 9/11 - Part III - Chaos is Scheduled to Happen Second Thursday of September (No Matter What the Microsofters Tell You)
The clock is ticking
Downplaying the Impact of "UEFI 9/11" is a Losing Strategy
we won't publish much whilst on holiday
Government Sites Should Run Free Software
Not proprietary bloatware with buzzwords
LLM Slopfarms Take No Breaks
When people run sites by bots they don't need to worry about "breaks"
GNOME Having a Meltdown Again
Thanks and farewell to Steven Deobald
Gemini Links 30/08/2025: Low Tech and Hunchbin 1.0.6
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, August 29, 2025
IRC logs for Friday, August 29, 2025
Financiers and Sponsors of the Slop Hype (Pyramid Scheme Waiting to End, Bubble That Will Inevitably Implode)
It's also burning the planet
Slopwatch: Fake Articles About "Linux", Google Helps Ponzi Schemes and Slopfarms in Google News
Slopfarms are a real pain
Gemini Links 29/08/2025: Retiring at 62 and URL Filtering HTTP(S) Proxy on Qubes OS
Links for the day
Links 29/08/2025: Lisa Cook Sues Convicted Felon and Backdoor Mandate in UK Resisted
Links for the day
Links 29/08/2025: Arti 1.5.0, War on Public Health (CDC), and Slop 'Bros' Made to Pay for Their Mass Plagiarism
Links for the day
No, 4Chan is Not Fighting for You by Lawyering Up Against Ofcom (UK)
Don't mistake proto-fascists for people who "fight for you". They don't.
In Many Places in the World Vista 11 "Market Share" is Going Down, Not Up
In some countries Windows is already down to third place or lower
More Microsoft-Connected Layoffs, at Least Third Time This Month! (Also Another Death on Campus)
Microsoft as a "gaming" company is where studios, projects, games, and even developers come to die
Slopwatch: Fake Articles About "Linux", Slop Images in VentureBeat, Linux Foundation Spam Made With LLM Slop and Slop Images
The only relief or upside - if any exists - is that the pace of slop was down a bit this week
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, August 28, 2025
IRC logs for Thursday, August 28, 2025
Gemini Links 29/08/2025: Poems, Games, and Java 25 Performance
Links for the day