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TechDiva...you're clueless
No, the stock buy back does not put it into Gates' hands. All it means is that there will be fewer shares outstanding. I don't know the numbers but here's a simple example:

Today there are 5 billion shares of MSFT stock outstanding. Most owned by mutual funds and individuals. Less than 10% are owned by Bill Gates. Those shares are worth about $29/share today. That means the paper value of the company is $145 billion.

If they buy back 1 billion shares there will be 4 billion shares outstanding. The shares bought back will disappear. The reamaining shares will, theoretically, be worth $36 each. The paper value of the company will still be $145 billion.

This is an accounting move to increase the share price by reducing the number of shares. They're doing it because their shareholders think that spending the money they have in the bank on a stock buy-back is a better use than having it sit in the bank (or investments as the case may be).

This move in no way gives bill gates more power. He's not getting his "hands" on anything.
Posted by: marksashton   Posted on: 07/20/04 You are currently: a Guest | Members login | Terms of Use
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Buying back stock  AbsolutelyNot | 07/20/04
Buy back?  rapson | 07/20/04
Yep!  AbsolutelyNot | 07/20/04
TechDiva...you're clueless  marksashton | 07/20/04
Thank you for straightening that out for her.  No_Ax_to_Grind | 07/21/04
Almost  Patrick Jones | 07/21/04
Microsoft  Enterprise. Analyst | 07/20/04
Pzzzzzt!  AbsolutelyNot | 07/20/04
Company is still growing at amazing rates..  Mike Cox | 07/20/04
Now I know you are missing a few cards from the deck - only a 4 this time  AbsolutelyNot | 07/20/04
If Mike was for real...  bchesmer | 07/21/04
Mikey my ex-wife still wants to have your baby  Squawkbox | 07/20/04
Only a 4 on this one Mike  bchesmer | 07/21/04
Ahh..you went overboard on this one.  DigitalKid | 07/21/04
Expedia?  tic swayback | 07/21/04
Put it into rewriting hteir O.S.  JimmyJames | 07/20/04
Microsoft to pay out billions to shareholders  B.O.F.H. | 07/20/04
First split then buy back stock?  Anton Philidor | 07/20/04
The big picture & long hall...  bchesmer | 07/21/04
10 years from now in the computer industry?  Anton Philidor | 07/21/04
A big challenge  tic swayback | 07/21/04
No interface; think interaction  Anton Philidor | 07/21/04
Make you post about Apple and I'd believe it...  middle of nowhere | 07/21/04
Apple might get there first, yes.  Anton Philidor | 07/21/04
Other ways to simplification  tic swayback | 07/21/04
All things to all people  Anton Philidor | 07/21/04
stock movements  eLurker | 07/21/04
So they wanted to be a $30 stock...  Anton Philidor | 07/21/04
You are missing the part  amicus_curious | 07/21/04
Clarification, please.  Anton Philidor | 07/21/04
Since you don't know  lengua99 | 07/22/04
To cover their tracks  lengua99 | 07/22/04
Oh yeah, life is GOOD....  No_Ax_to_Grind | 07/21/04
Al Capone would be proud!  Xunil_Sierutuf | 07/21/04
Dumb.  JustMe99_z | 07/21/04
Actually, Bill G. is the largest philanthropist in history.  No_Ax_to_Grind | 07/21/04
Not sure on this  tic swayback | 07/21/04
Plus...  rapson | 07/21/04
TalkBack: Reply to message Thank you for participating in the ZDN  meetoo | 07/21/04
Giving away ill-gotten gain nothing to crow about...  MacCanuck | 07/21/04
NEWS FLASH: MS users support third...  JimmyJames | 07/21/04
Assumptions...  JustMe99_z | 07/21/04
If I had his money, I'd be the largest  middle of nowhere | 07/21/04
Philanthropist  meetoo | 07/21/04
hey bit  meetoo | 07/21/04
NWOR  meetoo | 07/21/04
and note  meetoo | 07/21/04
I'd be more convinced  johnnyu | 07/22/04
nemissis  meetoo | 07/21/04
If you can't get loyalty with good products--  Userama | 07/22/04
while cutting pay, benefits...  Professor8 | 07/22/04
?SHARE WEALTH ? NO WAY !!!!!HERE'S WHY !!!!  lawrephord902 | 07/30/04

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