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Microsoft Trolling for New Acquisitions
NewShinyCD writes "Sources tell Valleywag that startup Ustream.tv is in advanced discussions with Microsoft to acquire the lifecasting service for more than $50 million, but there are other companies in the bidding as well. Ustream is currently raising a very large initial round of VC financing, and Microsoft is attempting to grab them prefunding for a cheap price. Our tipster also mentions that Microsoft would use Ustream as a way to promote its Adobe Flash competitor, Silverlight." Relatedly, Microsoft has also announced their intent to buy Sidekick maker Danger. Financial details of the Danger buyout were not disclosed.
Maybe that's a fair point (I'm not saying the title created was unbiased, at all), but I think that this is put into a different perspective in the wake of Microsoft attempting to buy Yahoo, as well.
There's a chance that this sudden surge of purchasing, if it's anything out of the ordinary (maybe it isn't, I don't personally keep close enough tabs on Microsoft acquisitions), is a sign of some sort of desperation on Microsoft's end. Rather than attempting to come up with any further new ideas (something I'm not certain Microsoft has really been interested in for a while now), they just seem to want to buy enough bits and pieces of the industry to increase their foothold.
But then, Im just speculating. Appearances may be deceiving, but this appears to be an indicator that something's up over at M$. I just wonder the impact it will have if they were to go through with all of these acquisitions--including Yahoo--and none of it did them any good. Seems like that'd put a big dent even into Microsoft's daunting coffers.
Some investment book I was reading (Peter Lynch, maybe) referred to companies investing in areas outside their traditional areas as diworsification because when companies did it, it usually hurt the business. And in either Built to Last or Good to Great, Jim Collins says that great businesses stick to their main thing they do well (their "hedgehog concept"). I wonder if Microsoft has lost its vision. Seems like they would do better if they focussed on making a great OS (their main strength) for mobile phones rather than making phones (not their strength).