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Breakingviews: Nadella takes a page from Ballmer's playbook

Wednesday, September 10, 2014 - 02:48

The ghost of the former CEO seems to be thriving inside Microsoft. If reports prove correct the software giant will splash out $2 bln on Minecraft, Rob Cyran argues.

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Microsoft said to be in talks with the maker of a scheme called mind craft. For anyone who's got young kids on the all about this game but -- knows anything about Microsoft this sounds oddly reminiscent of something out of the playbook. A Sox in the Dallas the CEOs. Predecessor. Steve Ballmer looks like another splash at cast doesn't have much -- for shareholders gather here about seven times revenue that's a lot of money that's a lot of for all the hot game for our hot -- and again it and the problem is that merging that's the Swedish -- it. We -- again. No Zhang Yang and and some traders we that a creator has admitted he said look I got lucky you know it's -- Had to take game questions why would Microsoft want that a case of so much thank you if you wanna by the game mean you can't buy it. You Microsoft's story have to go to managing to get directly from windows say OK I'm an authority on that without the strategic argument but of course you could handle that with some sort of -- -- the -- Will you could you know I think is that you can't get it from their phones for Microsoft phones. So the ideas that Microsoft -- phones that yes they do they had an -- vision out of question should should they actually happened and now the question. To the point is you know if they get on their phones than -- is currently happening in line craft you know I can watch there's. The question really is though as I mean there's the factor one -- -- one hit wonder kind of thing and -- they're there company that's supposed to be doing things like I angered Kurds. Zynga farm bill we've seen my neck and neck and an understanding of what baffles us an -- -- -- track record Microsoft of course under Ballmer whose DNA. As units -- -- firmly implanted in the company even though he has left the board is no longer CEO you know with the -- them with straight and with these you know. Highly priced deals that didn't deliver any obvious value. You know we were talking earlier about the idea what. Why did they need to own this company why could they have not done deal with with -- to get. You know to get this -- craft game which is really hot more ingrained in that's vox pop it into the phone. It's just back to old Microsoft you know they -- making tremendous amount of cash from their business went you know an office. And it just frittered away a lot of large chunk of it away on doing these acquisitions and never seem -- -- out. Mean the question is you know they've -- -- makes these devices and we've argued there's good reason for them to get to not tempted to get rid of these businesses they they use a lot of cash. They don't really doing and I and this in particular -- as you point out or which we discussed you've got -- one hit wonders if you're buying things that it's that it's a giant squandering. But shareholders' capital okay thanks rob. Will be that more breaking news tomorrow.

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Breakingviews: Nadella takes a page from Ballmer's playbook

Wednesday, September 10, 2014 - 02:48