Microsoft has sold its 7.26 % of its Comcast stake. Comcast is the largest U.S. cable operator and Microsoft no longer has any traces of being involved with them. Microsoft invested $1 billion in Comcast to make the "deployment of high-speed data and video services via cable delivery network." Microsoft was able to sell its stocks over a 12 month period. It was said that they owned 150.9 million shares of Comcast stock. An important factor may have caused Microsoft to lose interest in Comcast. "Microsoft's initial investment in Comcast required the company to buy 500,000 set-tops with Microsoft software and, while Comcast purchased them by 2004, it eventually replaced them with its own alternatives." The question arises, where are those boxes? Some may have been used and sold, but others may remain in a warehouse rotting away. Microsoft was extremely interested in getting into the TV scene. This was one initial reason they joined forces with Comcast. However, Comcast was more interested in using their own designs and programs. It's an important decision for Microsoft to pull their shares out of the Comcast Corporation. If a shareholder is not living up to their end of the bargain it makes for bad business to remain with them. When a company fails to represent their investors they do not belong having a stake in their company. Comcast could have made not only themselves profitable, but Comcast as well by joining forces. I think that Comcast will regret the decision to not live up to the deal with Microsoft because it is such an important and strong company to have on your side. Comcast could have placed a TV on the desktop of many computers with the powerful name of Microsoft behind them. I think that Microsoft did what they had to do to make sure their investments are a profitable one.
http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSBNG40896020090121
http://arstechnica.com/microsoft/news/2009/01/during-2008-microsoft-sold-150-million-shares-in-comcast.ars
http://blogs.barrons.com/techtraderdaily/2009/01/20/microsoft-sells-entire-comcast-stake/
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I think this is an interesting controversy. I also agree that it was a smart decision for Microsoft to pull out of Comcast. I also read an article that gave a couple of other potential reasons for Microsoft pulling out. One was that Comcast was recently being criticized by the FCC for blocking peer to peer services (they have since stopped this). The second was the Microsoft could be trying to raise money in order to buy another company, which does make sense. Either way, there were multiple reasons for Microsoft pulling out of Comcast and I think that it is something that could have increased Comcast's business greatly.
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