How Risky Is Microsoft's Big Buy?

Just as Steve Ballmer restructured Microsoft's (NASDAQ: MSFT  ) organizational hierarchy, the controversial CEO subsequently announced his retirement. Now the software giant making a huge acquisition of Nokia's handset business, which entails numerous risks for investors.

Of the $5 billion purchase price for the handset operations, investors will want to see how much of that gets allocated to goodwill and intangibles, which will quantify the potential impairment risk that Microsoft faces later on if things don't pan out well.

In the following video, Erin Kennedy discusses the deal with Evan Niu, CFA, and Eric Bleeker, CFA.

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  • Report this Comment On September 08, 2013, at 10:15 PM, techy46 wrote:

    I'd would worry that much about goodwill amd impairment charges right away. It's going to be fun to watch then get really agreeive with device pricing.

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