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MSFT Up As Market Rockets
Stocks are on a tear on good news from Europe as Germany approves a massive bailout, upward revision of GDP numbers and fewer unemployment claim benefits. Shares of MSFT are up with the tides. Upcoming catalysts include Windows 8 and entrance into the tablet market; Windows Phone 7 / Mango rollout and adoption with hardware partner Nokia; strides against current market leaders in cloud computing; making money in the online business, including integration of Skype and improving the search / display business; and continued evolution of Kinect and next generation Xbox console. The stock currently trades at 7.3x Enterprise Value / TTM Free Cash Flow.How Will Microsoft’s Windows 8 Tablets Fare Against The Kindle Fire? (ZDNet)
Almost every analysis pits Amazon’s Kindle Fire against the iPad and various Android tablets. Even though Windows 8 tablets are still possibly a year away from shipping, Microsoft needs to be factored in here too. Microsoft’s Windows team isn’t going to allow itself to be rushed to market with Windows 8, no matter which other vendors enter and at what price. Microsoft’s lateness is an impossible-to-overcome hurdle. And the $200 price tag of the Kindle Fire isn’t a deal breaker, as Microsoft can subsidise with the best of them.
Microsoft Going After Every Android Device (All Things D)
Although Microsoft says it evaluates each phone and tablet individually, General Counsel Brad Smith that he believes every hardware maker that ships an Android device has a patent issue that needs to be addressed. “So far we have not seen a single Android device that does not infringe on our patents,” Smith said. The company is seeking a per-unit royalty for each Android product that ships. You’re next Amazon! Microsoft reportedly receives about $444 million annually from Android licenses.
Microsoft And Samsung Enter Into “Partnership,” Meaning Samsung Pays Microsoft For Android (TechCrunch)
In a big win, Microsoft has signed a patent licence agreement with Samsung, the latest deal in a series of agreements with Android device makers. Samsung will pay Microsoft royalties for all phones and tablets running the Android platform. Remember that funny little maths equation that leaves Redmond with more cash from Android than its own Windows Phone platform? Yeah, that’s in play here. Additionally, “the companies agreed to cooperate in the development and marketing of Windows Phone.”
Partnering To Make Xbox Pay TV Hub (Bloomberg)
Microsoft plans to offer online pay television service from Comcast and Verizon through Xbox Live, in an bid to channel more entertainment to its video-game console. The company is in talks with almost two dozen providers of music, sports, movies and TV shows in the U.S. and Europe, and may announce an expanded Xbox Live streaming service as soon as next week. Here’s my question. Users can already watch TV through Xbox, why would they want to pay for it?
Internet Advertising Starting To Finally Catch Up (IAB)
The Internet Advertising Bureau (IAB) released its numbers of the first half of 2011, and it looks like internet ad revenue reached record highs during the time period:
- Internet ad revenues rose 23.2% to a record $14.9 billion in the first half of 2011. The rate of growth more than doubled year-over-year, as last year’s first-half ad revenues were $12.1 billion.
- Display ads totaled more than $5.5 billion in the first six months of 2011 and increased 27.1 per cent over the same period in 2010.
- Internet ad revenues for the second quarter alone also reached new heights, increasing 24.1% to $7.7 billion.
Finally money is going to where the eyeballs are.
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