Microsoft (MSFT) to Make Another Surprise Announcement, But What's Left?


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July 16, 2012 10:04 AM EDT Send to a Friend
Microsoft (Nasdaq: MSFT) CEO Steve Ballmer is slated to make an announcement later on Monday, at about 3 pm EDT (12pm PDT). No one is sure what the announcement will be about, meaning Microsoft has somehow successfully duped the broader media for a second time within a month or so.

Very Apple (Nasdaq: AAPL) of you, Microsoft.

Brief list of fun ideas:
  • Items investors might be expecting in the announcement could be the acquisition of Nokia (NYSE: NOK) or Research In Motion (Nasdaq: RIMM). Of the two, RIM looks like a better target at this point, given that Nokia is on the same side of the line and RIM admitted to tapping an advisor for evaluation of its corporate strategy. Microsoft taking over RIM would give it patents and a sweet email network that business people and corporations love.

    However, RIM shares are lower today while Nokia is trading higher. Does the Street know something?

  • Or, Microsoft might debut its own smartphone.

  • Our personal hope is the surprise unveiling of its next gaming console to best the Xbox 360. With the current model approaching it ninth year in production, many are expecting a revamp sometime in 2013. For now, recent data suggests Microsoft is still content with current sales numbers.

  • Maybe Microsoft will aim to expand its cloud capacity with the acquisition of a company like Fusion-IO (NYSE: FIO) or OCZ Technology (Nasdaq: OCZ). At $1.7 billion and 292 million, respectively, either would be a relatively manageable acquisition (but, not necessarily press conference-worthy). Plus, its relatively new as a public company, meaning a lot of near-term expectations may have bee priced in already. This would help with further Office 365 expansion via increased, speed, capacity, and reliability.

  • A separation of units to enhance shareholder value?

  • Finally, a long-shot would be Ballmer announcing his own resignation. Though some may argue that Microsoft is in a transitional period and Ballmer is leading the charge, the same could be said about Microsoft in the late 90s and mid-2000s. Note how Microsoft's stock is just about flat since then, only recently approaching record highs. Additionally, Ballmer is not likely to leave any time soon, at least not until Windows 8 and the surrounding ecosystem take hold.


Timing by Microsoft is a little strange, with fiscal fourth-quarter 2012 results expected out on Thursday, after the market closes. In addition, Microsoft recently disclosed it would be taking a $6.2 billion accounting charge from the acquisition of aQuantive.

What do you have up your sleeve, Microsoft?

To view the webcast at 3pm EDT, click here. To get a history of Microsoft earnings and results, click here.

Shares of Microsoft are 1 percent lower Monday morning.

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Comments

how did you miss??
ccneat on Jul 16, 2012 08:41 PM
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When everyone in the world seemed to know Office 15 was the likely topic

rumors is the next version of Office
fufu on Jul 16, 2012 01:02 PM
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rumors is the next version of Office

Ballmer
Leon David Peris MD. on Jul 16, 2012 10:19 AM
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Great potential

Ballmer
jeff marmon (mr. kotter on Jul 16, 2012 10:18 AM
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A great company.


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