Is it me, or does it seem like there is a giant ATM up in Redmond called Microsoft? Today Microsoft announced they have settled yet another patent dispute, this one around Digital Rights Management (DRM) technology with InterTrust. So why is Microsoft trying to clear up their legal battles so quickly... here is my take.
Microsoft is sitting on over $60 Billion dollars in total current assets and there has been increasing pressure to return some of this cash back to shareholders. The company has talked about waiting to return cash to shareholders until after some of their legal troubles are straightened out... well that day has come. My bet is that on April 22nd Microsoft will announce a special one time dividend as well as a huge increase in their quarterly dividend.
Finally, as a shareholder, I will be able to really tap into the Microsoft ATM!
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