Sunday, January 07, 2007

Microsoft announces partnership with Ford

Bloomberg Uncut

Microsoft will join hands with Ford Motor Corp to provide drivers with voice activated software that helps them play mp3 songs and make mobile phone calls. Ford will offer the system in a dozen 2008 models.

OK. Two big names making such big deals is not unfamiliar to us. However, this is how the two companies have been performing lately.

Signs of desperation? I'm not sure yet how they are working out the deal. Does Microsoft get a cut on every Ford that is sold with the Sync (that's how they are calling it I guess) system? If so, that's not going to be any heavy cash in revenues for Microsoft as we see the declining sales of Ford (along with its buddy, GM) and struggling to compete with Toyota.

Investors see these too..Shares of Nasdaq:MSFT fell 17 cents to $29.64 and NYSE:F dropped 8 cents to $7.62, when the deal was announced.

Signing a partnership with a company that is just struggling to avoid bankruptcy? Is that optimism? God bless!



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