Bank of Microsoft?

I found this interpretation of Microsoft’s ($MSFT) signing of a NonDisclosure Agreement with Yahoo ($YHOO) interesting:

“Microsoft held talks with potential partners last month about a possible bid, people with knowledge of the matter have said. Under one such combination, Microsoft would contribute billions of dollars in financing as part of a consortium led by Silver Lake and the Canadian Pension Plan Investment Board. That group would borrow billions of dollars from banks as well.

In that situation, Microsoft would shoulder little operational responsibility for Yahoo, these people have said. These people, and the person with knowledge of the confidentiality agreement, requested anonymity because they were not authorized to discuss private negotiations.”

Microsoft, of course, tried to buy Yahoo in 2008 for a price over $30 per share, but was spurned by their target.   Now they’re in the financing biz?  I guess loaning money to P.E. groups to buy YHOO isn’t entirely different from MSFT buying some sort of bizarro YHOO debt hybrid.  With copious amounts of cash on hand, is it any wonder Mister Softee could be getting more creative?

-KD

disclosure: no positions in YHOO or MSFT

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