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NY Times: For Now, Microsoft Can't Save Itself [Stock Price]

May 02, 2000, 15:03 (13 Talkback[s])
(Other stories by Gretchen Morgenson)

[ Thanks to George Mitchell for this link. ]

"In a television interview Tuesday, Bill Gates declined to say whether the company was buying shares at current bargain prices. The fact is, it cannot."

"Trying to mitigate the dilution to earnings that its enormous employee stock option program represents, it has bought back 764 million shares since 1990. In the six months ending last Dec. 31, Microsoft bought back $4.8 billion of its stock."

"Its shares skidding, Microsoft may soon be on the hook to investors on the other side of the bets. According to company filings, 163 million shares are covered by put warrants that begin to expire in June. The company would not say how many warrants expire then, but if any expire in the money, and if Microsoft pays in stock, earnings will be further diluted."

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