Message Font: Serif | Sans-Serif
No. of Recommendations: 8
All of these companies (except RIMM) generate substantial free cash flow. I look at what they are doing with these cash flows recently.

MSFT: bought Skype for 8B. Any synergies so far? Hard to see.
They are also throwing bunch of money at

INTC: bought McAfee for 8B. A chip maker buying security software. Makes no sense whatsoever.

HP: bought Autonomy for 10B to compete with SAP. This move was considered so bad that CEO was fired.

Compare these with Dell. Yes, 2009 acquisition of perot was hard to understand. However, recent acquisitions of SonicWall, Quest software make lot of sense. All are relatively smallish tuck-ins which directly support their move to become enterprise hardware vendor.

Plus, the founder / owner Michael Dell is very much in charge.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.