EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

04.25.10

Microsoft Cumulative Debt Almost Doubles to About $80 Billion in Just a Few Years (Updated)

Posted in Finance, Microsoft, Novell at 7:15 am by Dr. Roy Schestowitz

[Update: A reader points out that “the graph is of cumulative debt. Which equates with MSFT having around $6Bn debt from being debt free in Q2 2008.”]

Bernard Madoff
Microsoft’s debt exceeds even Madoff’s

Summary: Microsoft’s debt — like Novell’s debt — is a scarcely-explored subject in the media, but we’ve finally found the latest figures

OUR WIKI now contains this page about Microsoft’s financial situation. It is not what many people imagine it to be and last year we pointed out that Microsoft has debt. Yes, it’s true. We just couldn’t quite tell at the time how big the debt was, but now we have a clue. Here is some background reading:

Business Insider shows data from a reliable source, indicating that Microsoft’s debt is going through the roof (increasing faster than Microsoft can keep up with). Read the numbers. While Google and Apple have no debt, Microsoft has a huge debt approaching a tenth of a trillion dollars. Microsoft relies on shareholders to put their money in this pit.

Tech companies, which generally throw off tons of cash, added a healthy sum of debt to their balance sheets last year, the Wall Street Journal notes.

We are increasingly welcoming a world where companies with a sort of overdraft claim to be “cash rich”. It’s the same world where a country with 14+ trillion dollars in debt pretends the problem will just go away and asks Microsoft to create computer games to mitigate perception issues [1, 2].

“While Google and Apple have no debt, Microsoft has a huge debt approaching a tenth of a trillion dollars.”Microsoft’s debt is not so unusual, but it is far greater than the rest. Novell’s own debt is an issue we explored last year.

Many of Microsoft’s business units make no money. They just lose a lot of money, but people continue to think about Windows and Office, which are the exception, not the norm. These are cash cows whose revenue is actually declining (Office revenue is still going down). We mentioned this some days ago when we cited Joseph Tartakoff, but as Tartakoff later points out (regarding the same article of his that he tweeted about 4 times): “Microsoft’s online losses up to a staggering $713 million, from $411 million a year ago” (this is not surprising at all).

That’s the loss in just one quarter and one business unit! It used to be over $2 billion in losses per year, now it’s around $3 billion in losses per year, assuming this new pace of losses carries on.

More information about Microsoft’s real financial performance is coming soon. We are going through reports and interpreting them. It doesn’t look too good.

Microsoft keeps taking on debt, whereas some of its biggest competitors remain debt free. Terry Porter writes: “It’s interesting that Google and Apple both deploy Unix and are debt free, so perhaps using Unix must be good for business?”

“Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers.”

The Economist, 1999

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

3 Comments

  1. uberVU - social comments said,

    April 25, 2010 at 7:33 am

    Social comments and analytics for this post…

    This post was mentioned on Identica by schestowitz: #Microsoft Debt Almost Doubles to About $80 Billion in Just a Few Years http://ur1.ca/wzal #fraud #deficit #sec…

  2. Tom Womack said,

    April 25, 2010 at 7:47 am

    Gravatar

    I think you’re misreading the graph at Business Week; Microsoft’s chunk is the red bit between about 71 and about 75 billion, they have $3.75 billion of bonds outstanding, as part of $22 billion in debt (http://www.microsoft.com/msft/reports/ar09/10k_fr_not_03.html)

    Which isn’t unreasonable since they have $36 billion in investments, including $13 billion in Treasury bonds.

    your_friend Reply:

    Turning a $60 billion cash pile into questionable “investments” said to be worth $36 billion while taking on a real $22 billion in debt is reasonable? To who? The deeper into debt Microsoft falls, the harder it will be for them to conceal their failure.

    Non free softare has never been a sustainable business model. This is why Microsoft has invaded media and the web. It’s not working out for them for the same reasons their software business is not. Everything Microsoft buys, it wrecks trying to feed Windows. Customers don’t like it and Windows itself is a basket case. The apparent success of Windows and Microsoft in the 90s is really the story of many other non free software company failures.

What Else is New


  1. Make Nothing, Sue Everybody: The Reality of Patent Trolls Increasingly Understood by the 'Mainstream'

    New patent stories and even extensive coverage at PBS, which dedicated a whole program to these matters but failed to address the core issue, which is software patenting



  2. [ES] Advertencia: La Vigilancia de la EPO Surveillance Puede Haberse Convertido en Más Intrusiva

    BlueCoat, que la EPO usa para oprimir a sus empleados en sus premisas Europeas, acaba de ajustar más y hacerse más intrusiva y los empleados pueden estar en riesgo



  3. [ES] Tarjeta de Victima Termina en Otra Torpeza para Battistelli Seis de su Guardia Pretoriana

    Battistelli esta destruyéndo lo que queda de la reputación de la EPO (después de las décadas que le costó a ella construírla) mientras los medios continúan escrutinando su desastroso régimen



  4. [ES] La EPO esta Excelente, Dice Sitio de ‘Noticias’ Conectado a Ella

    Los caraduras de la ‘revista’ IAM, viejo aliado de la EPO, da la impresión a la gente de que en la EPO todo esta bien y dandy aunque claramente ese no es el caso



  5. New EPO Caricature: Nouveaux Garde-Vélo (New Bicycle Guards)

    A new cartoon poking fun at Battistelli's bicycles and the perceived threat these are under



  6. Battistelli's 'Special Relationship' With Portugal and the 'Inventor of the Year' Charade

    What makes Portugal rather unique when it comes to Mr. Battistelli, who is allegedly desperate for support from smaller countries whose vote is easier to 'win'



  7. Patent Lawyers' Marketing Dominates and Marginalises Meaningful Analyses of Software Patenting in the US

    In an effort to create demand for software patents again, patent lawyers produce a huge heap of so-called 'analyses' which piggyback just one single decision (the exception, not the norm)



  8. A Mix of Patent Aggression and Sanctions/Raids (Using Controversial Patents) Against East Asian Companies

    New stories that demonstrate patent protectionism and show how Western industry, which barely makes anything anymore, relies on patents (software and design patents included) and this self-serving patent regime perpetuates itself even in Asia, where almost everything is actually being manufactured (and often/increasingly designed/developed too)



  9. Rumour: Battistelli Wants to Extend the Term of Topić's EPO Appointment in Spite of Criminal Charges Against Him

    The EPO's 'ringleader', Mr. Battistelli, is trying to keep his confidants (like Mr. Minnoye and Željko Topić) together for several more years to come, even defying rules regarding retirement age



  10. Links 29/5/2016: NetBSD 7.0.1, Genode OS 16.05

    Links for the day



  11. [ES] La Gerencia de la EPO Bajo Creciénte Estres por las Autoridades Legales Croatas, Políticas Alemanas, y los Medios Italianos

    Las cosas no son color rosa como la calma relativa sugiere, y esperamos en las próximas semanas mayores eventos otros que la protesta en todas las sedes de la EPO a través de Europa



  12. [ES] Los Medios de Comunicación Comienzan a Informar al Público Europeo Acercas de las Desventájas de la UPC Mientras que la EPO Acelera su Cabildeo por Ratificación

    La vergonzósa promoción de la UPC por parte de la EPO da otro paso adelánte mientras que venues de la prensa Europea (incluso canales de televisión) comienzan a explorar el arreglo secreto que es negociado por los abogados de patentes (con clientes corpórativos) y las oficinas de patentes, no el público o cualquier grupo que represente los intereses del público en general



  13. [ES] Algunos Detalles Acerca de ¿Cómo el Presidente de la EPO Es Rumoreado Estar Comprando Votos, y el Porqué es Suficientemente Base Para un Despido Inmediato?

    Algo de información tras las cortinas y una detallada explicación de la dependencia finánciera sistemática, creada por Battistelli a un costode €13 millónes o más, la cuál evita una efectiva supervisión de Battistelli



  14. Mishi Choudhary and Mike Masnick Explain Why India Should Reject Software Patents

    Both an Indian activist-lawyer and a widely-recognised author from the US explain to Indians why over-reliance on patents -- and acceptance of patents on software in particular -- is a very bad idea



  15. Microsoft Boosters Pretend Microsoft Fights for Privacy While the Company Uses Malware Tactics to Put Keyloggers on Everyone's Computers

    In spite of malware-inspired tactics that should land Microsoft in courts of law all around the world (as a defendant), Microsoft-friendly circles pretend that the company fights for people's rights like privacy -- all this when Microsoft installs keyloggers on people's PCs without their consent and obviously against their will



  16. Battistelli's Assault on EPO Staff's Right to Strike in Relation to French Politics and That 'Bicycle' Pretext for Crackdowns

    The latest bicycle 'gossip' and how it's being used, based on expectations from EPO staff, to introduce further crackdowns on human/labour rights



  17. Vice-President of the EPO Under Investigation: Treason, Abuse, Violations, Giving and Receiving Bribes

    An English translation of documents involving the Organised Crime Section of the Criminal Police Department in Zagreb, where the Vice-President of the EPO faces criminal charges



  18. EPO Management Warns People About Scams When the EPO's Management is Itself Falling for Scams

    Jesper Kongstad, the Chairman of the Administrative Council of the European Patent Organisation, helps demonstrate that not even the EPO is intelligent enough to spot an obvious scam



  19. Links 28/5/2016: Wine 1.9.11, New Gentoo

    Links for the day



  20. Links 27/5/2016: Android for Raspberry Pi, Google Beats Oracle in Court

    Links for the day



  21. Warning: EPO Surveillance May Have Just Gotten Even More Intrusive

    BlueCoat, which the EPO uses to enable oppression inside its European premises, has just gotten even nastier and staff may be at risk



  22. Victim Card Ends up in Another Blunder for Battistelli and His Six Bodyguards

    Battistelli is wrecking what's left of the EPO's reputation (after decades it took the Office to earn it) as the media continues to scrutinise his appalling regime



  23. Italian Report About EPO Now Available in English

    An English translation of a TV program which earlier this month documented some of the glaring problems at the EPO



  24. The EPO is Doing Great, Says EPO-Connected 'News' Site

    IAM 'magazine', a longtime ally of the EPO, gives people the impression that all is fine and dandy at the EPO even though that's clearly not the case



  25. Microsoft Has Killed Nokia (and Its Own Mobile Ambitions), But Watch What it Does With Patents

    Microsoft announces many more layoffs, having already caused tremendous damage to the Finnish economy, and patents are left astray for Microsoft's favourite patent trolls to pick



  26. EPO Management Under Growing Stress From Croatian Law Enforcement Authorities, German Politicians, Italian Media

    Things are not as rosy as the relative calm may suggest, and in the coming weeks we expect some major events other than the protest at all EPO sites across Europe



  27. Microsoft, a Dead Company Walking, Resorts to Malware Tactics, Now Truly Indistinguishable From Crackers

    Microsoft is essentially taking over people's PCs and installing on them a large piece of malware, complete with keyloggers, against the will of these PCs' owners



  28. Links 26/5/2016: CentOS Linux 6.8, Ansible 2.1

    Links for the day



  29. The Latest EPO Victim Card (Played by Željko Topić) Should be Treated as Seriously as Those Bogus Claims of Violence by a Judge (Updatedx3)

    In its desperate pursuit of a narrative wherein the staff of the EPO is violent and aggressive the management of the EPO, renowned for institutional aggression, finds (or claims to have found) a little tampering with a bicycle



  30. Links 25/5/2016: Nginx 1.11, F1 2015 Coming to GNU/Linux Tomorrow

    Links for the day


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts