Feeds

MS makes monster payout

$32bn special dividend to shareholders

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Microsoft is paying a special dividend - giving investors a one-off payment of $3 per share, a total of $32bn. The company delayed getting rid of its cash pile because it was worried about potential costs connected to its anti-trust actions which have now been mainly settled.

Microsoft will also spend $30bn on buying back its own shares and is doubling the regular dividend - at a cost of $14bn.

Steve Ballmer, chief executive, said: "We are confident in our long-term ability to grow revenue, profits and shareholder value through our innovation and execution. We have been successful in addressing a significant portion of our ongoing legal exposure, and all seven of our businesses are growing."

One of the biggest winners from the decision is Bill Gates - he owns about 11 per cent of the company, so will receive about $3bn from the special dividend. He is giving the money to the Bill and Melinda Gates Foundation which works to improve "global health, education, public libraries and supporting at-risk families in Washington state and Oregon".

Gates said: "The pledge today is recognition that our world, the nation and our region — now more than ever — can and should dramatically improve equity in health, education, and access to information and human services for vulnerable families."

Microsoft employees will also see changes to their shareholdings. These will be increased to make up for the payout - which in theory will reduce the value of the stock.

Microsoft shares rose five per cent in after-hours trading on the news. More details on the Microsoft site here. ®

Related stories

Microsoft settles L-----s dispute
Microsoft squares Minnesota class action
Microsoft makes peace with Massachusetts

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.