How Risky Is Microsoft's Big Buy?

How Risky Is Microsoft's Big Buy?

Just as Steve Ballmer restructured Microsoft's 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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Neither Eric Bleeker, CFA, Erin Kennedy, nor Evan Niu, CFA has any position in any stocks mentioned. The Motley Fool recommends Google and owns shares of Google and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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