$141 Billion On Acquisitions - Is This Sustainable?

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  • Опубликовано: 26 июн 2024
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    Microsoft has gone ham on acquisitions over the past decade spending over $140 billion on buying companies like LinkedIn, GitHub, Mojang, Zenimax, Nuance, and most recently, Activision Blizzard. These acquisitions have made Microsoft look like a genius over the past decade as they have allowed Microsoft to finally grow past its dot-com high and push to the next level. However, while this strategy works great during bull markets, it often doesn’t work out as well during bear markets and times of uncertainty. You see, managing vastly different businesses with different cultures, goals, and users is not as easy as you might think. In fact, this was one of the main factors that eventually took down GE. They were simply involved in too many unrelated businesses which finally caught up to them. This video explains the pitfalls of GE and the unsettling similarities Microsoft has to GE.
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    Timestamps
    0:00 - Acquisitions Galore
    2:14 - A Cautionary Tale
    6:17 - Unsettling Similarities
    11:18 - Is This Time Different?
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Комментарии • 286

  • @shikharmaurya5244
    @shikharmaurya5244 5 месяцев назад +78

    You are the one who said that companies shouldn't put all their eggs in one basket and they should diversify their revenue sources. Microsoft is just doing that by entering in new sectors while also becoming strong in the sectors in which they are already present by making acquisitions.

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +16

      Multiple ways to view it :)

    • @stevene_
      @stevene_ 5 месяцев назад +7

      technically they haven't entered new markets, everything big they've purchased fit nicely under existing areas and enhance them.

    • @thripnixe
      @thripnixe 5 месяцев назад +10

      just take these videos by grain of salt, im sure he does not know what he is talking about

  • @garrettrinquest1605
    @garrettrinquest1605 5 месяцев назад +190

    I've decided that Microsoft has no idea how to compete, but is great at building monopolies. They do really well in areas where they have near monopolies like Windows, Office, GitHub, etc. But do badly in areas where they have solid competition such as gaming, smartphones, and search engines

    • @kingdeedee
      @kingdeedee 5 месяцев назад +24

      This is it and there's no better example than Xbox. The 360 outsold the PS3 most of that console generation and had tons of genuinely great exclusive games, but Microsoft threw that all out the window with the Xbox One launch and basically told everyone to buy a PS4 with all the awful stuff they announced back then

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +27

      Couldn’t that line of reasoning be applied to any company though?

    • @gabrielebianchi8976
      @gabrielebianchi8976 5 месяцев назад +2

      Quite frankly I think Microsoft is still bad also in the legacy software that keep f**** with any other item installed in a pc, and adding functions that no one literally asked for, unfortunately they are the standard and if you want to live in a society you have to pay the yearly extortion, commonly called yearly subscription plan.
      Regarding the investments in the gaming apart from X-Box they were the attempt of getting in the "metaverse" sector by acquiring companies that might have had the capabilities to develop it. Than fortunately the "metaverse" bubble deflated as quickly as it grew by leaving the shells of it still in the company structure.

    • @KingAgniKai
      @KingAgniKai 5 месяцев назад +3

      @@kingdeedee Yea. Sony was able to save PS3 by the end and start strong with PS4. PS3 even outsold 360 by the generations end. Nintendo was able to turn things around with Switch after the Wii U. Microsoft has failed at both of these. They couldn't save Xbox One and they weren't able to start strong with Xbox Series. Xbox hardware is gonna die you very soon, especially if the recent rumours turn out to be true.

    • @DannerBanks
      @DannerBanks 5 месяцев назад +5

      I think Xbox Series and Bing (in the United States) are pretty competitive. They aren't winning, but they aren't failures like Yahoo or the Wii U.

  • @dopemusic6414
    @dopemusic6414 5 месяцев назад +175

    The LinkedIn purchase is overrated, in my opinion. Probably one of the worst acquisitions has to be Salesforce's purchase of Slack. I can't believe intelligent people sat down and agreed to pay 28 times earnings for a company that is a messaging software.

    • @neiltropolis
      @neiltropolis 5 месяцев назад +33

      Microsoft paid 16 billion for LinkedIn so they can have first pick of the talent pool. I noitced that Microsoft is NOT paying their bug bounties on windows though. I wonder if their going to shit can the current OS?

    • @chadd980
      @chadd980 5 месяцев назад +48

      it makes 15 billion per yr and is a treasure trove of valuable data. I think its definitely a very good acquisition for them.

    • @revben
      @revben 5 месяцев назад +15

      LinkedIn makes 16 billion per year

    • @patrickhighspeed
      @patrickhighspeed 5 месяцев назад +10

      I agree with SalesForce and Slack

    • @shadowninja6689
      @shadowninja6689 5 месяцев назад +6

      I agree that Slack was a terrible acquisition. IMHO investors in Slack got really lucky, without Salesforce making the mistake of buying up Slack I'm sure the stock would have plummeted well over 50% like many other pandemic high flyers.

  • @revben
    @revben 5 месяцев назад +21

    MSFT is still Office, Azure/Servers and Windows/Dev Tools... So it is not so bad.

  • @marcus3of5
    @marcus3of5 5 месяцев назад +8

    you’re bashing GE but they’re ranked 52nd in the fortune 500 most successful company. And Microsoft is clearly position where they are. That doesn’t sound like failure to me that just sounds like repositioning after all they are business.

  • @kevinbarry71
    @kevinbarry71 5 месяцев назад +21

    As someone old enough to remember general electric all through the Welch era, absolutely amazing what he got away with. What he actually called creative accounting. And people thought that was awesome. in 2008 the company nearly went bankrupt. they would have if not for some quick Capital infusion. The place was turned into a house of cards.

  • @egal1780
    @egal1780 5 месяцев назад +27

    I feel like I should consider reading the original book about GE - I feel like that could be a giant problem in literally every company...

    • @mattmccaughen7371
      @mattmccaughen7371 5 месяцев назад +3

      this guy mad at microsoft cuz ABK deal hes a playstation guy

    • @vedantmungre1702
      @vedantmungre1702 5 месяцев назад +4

      The man who broke capitalism?

  • @2drx4
    @2drx4 5 месяцев назад +55

    I love all the comments saying it's a great video, when it only dropped 2 minutes ago so they can't have actually watched it. (I am subbed and it probably is a great video)

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +7

      Really appreciate the support man!

    • @DanielGonzalez-br9tk
      @DanielGonzalez-br9tk 5 месяцев назад +6

      It’s probably fans and friends who understand that early comments help the video. Some of my family and friends are quick to jump on my business Facebook posts to support me, and it helps a lot

    • @2drx4
      @2drx4 5 месяцев назад +1

      @@LogicallyAnswered And it was a good video, as I expected!

    • @2drx4
      @2drx4 5 месяцев назад

      @@DanielGonzalez-br9tk and probably lots of people who want the "first comment" mojo, but yes it does support the creator, same as hitting the like button and watching the whole video.

    • @linkin543210
      @linkin543210 4 месяца назад

      I wait for the day Microsoft fails, it’s an evil company, super aggressive, spies on users and act very sneaky

  • @lammyjammer6670
    @lammyjammer6670 5 месяцев назад +48

    A lot of Microsoft's core business is kinda too big to fail? We can live without a company making turbines... We can't live without one powering a lot of the enterprise infrastructure in use at the moment. MS will never fade away. There's no one remotely close to providing a similar compelling product in that regard. No one.

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +18

      Over time though, someone else could rise

    • @lammyjammer6670
      @lammyjammer6670 5 месяцев назад +18

      @@LogicallyAnswered You underestimate the amount of effort and cost a company would have to incur to migrate to a different cloud backbone. Companies leverage different clouds for different workloads.
      Name another company able to deliver services at the OS level with direct control and seamless integration to a cloud managed system. That's Microsoft's holy grail right there. They're the only ones with that level of penetration in the market.

    • @LauraKnotek
      @LauraKnotek 5 месяцев назад

      Amazon with AWS. @@lammyjammer6670

    • @thripnixe
      @thripnixe 5 месяцев назад +15

      @@LogicallyAnswered fact is microsoft dont need to be better than the competition they just need to buy the competition

    • @khanch.6807
      @khanch.6807 5 месяцев назад +1

      ​@@lammyjammer6670 You underestimate that 100 years is a very short time for companies nowadays. Many companies lasted 200 years.
      New competition is inevitable.

  • @raylopez99
    @raylopez99 5 месяцев назад +6

    What? Sorry not buying it. You can also say since Walmart is a super-seller and so was Kmart, which went bankrupt, then Walmart will also go bankrupt. Anyway, what is not a soul-less corporation? Patagonia? Speaking as a MSFT shareholder (a ten-bagger so far, should double in the next ten years from this price).

  • @user-pn6qq1zr3x
    @user-pn6qq1zr3x 5 месяцев назад +9

    I don’t agree with the comparison you made between GE and microsoft through Bill Gates’ comments. for example you replaced moviemaking, insurance, plastic and nuclear plants as unrelated businesses with AI, cloud and social media, tech hardware and gaming. the first set are obviously unrelated to each other but the fields that you mentioned for microsoft all are more or less in the same category: tech industry. It’s not like microsoft is doing banking and selling washing machines at the same time!

    • @stevene_
      @stevene_ 5 месяцев назад

      exactly, the purchases they've made fit under existing areas and enhance them. plus great for AI.

    • @thripnixe
      @thripnixe 5 месяцев назад +1

      lmao microsoft washing machines

    • @user-pn6qq1zr3x
      @user-pn6qq1zr3x 5 месяцев назад

      @@thripnixe there are many companies like this though. samsung, LG, and other asian conglomerates, many europian companies like siemens in its heyday and so on. even apple is trying to enter unrelated markets like cars and movie industry. Microsoft is really sticking to software. in the first decade they were dependent on windows and office. then they shifted to azure and basically became a cloud company. And now they are trying to become an AI company. Their focus is clear as day for most parts.

    • @1434325jeff
      @1434325jeff 5 месяцев назад +1

      My thoughts exactly, i think his comparison just doesn’t make any sense at all.

  • @POKEMON_GD
    @POKEMON_GD 5 месяцев назад +10

    Thanks for making such good quality videos, I really enjoy the quality of this and learn more here then at school

  • @gjd424
    @gjd424 5 месяцев назад +7

    Microsoft’s biggest innovation in recent years was SAAS, which was a smart short term play.

    • @tbraghavendran
      @tbraghavendran 5 месяцев назад +2

      Software As A Service?

    • @gjd424
      @gjd424 5 месяцев назад

      @@tbraghavendranyes, charging a monthly licensing fee for Microsoft suite instead of a one time fee.

  • @juliothom2408
    @juliothom2408 5 месяцев назад +6

    Okay, why is this video a thing right now?
    MS just surpassed Apple as the top company on Earth, and you play this now?

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +1

      Hahaha, coincidence

    • @thripnixe
      @thripnixe 5 месяцев назад +1

      @@LogicallyAnswered bad timing i see

  • @toatoa10
    @toatoa10 5 месяцев назад +1

    damn I used to watch some of your videos back in thr day vut the quality has increased so much im legit excited every time you released a new one

  • @risingsun9064
    @risingsun9064 4 месяца назад +1

    Literally every big company is diversified into a bunch of unrelated products, that helps with reinvestments, valuation and growth. Nice video, I like the parallels you propose between tech and non-tech companies, would be interesting to see how far it holds.

  • @Play_Streams
    @Play_Streams 5 месяцев назад +1

    I love the way your pronunciation of Satya's name. Very authentic.

  • @apc9714
    @apc9714 5 месяцев назад +31

    Great video, now that Microsoft hype is at all time high, a reasonable different perspective was needed.
    Still a good company, but ignoring the problems is never good

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +8

      Thanks man, always gotta look at both sides of the picture :)

    • @Allen-L-Canada
      @Allen-L-Canada 5 месяцев назад

      @@LogicallyAnsweredgreat opposing views!

  • @prabhudevable
    @prabhudevable 5 месяцев назад +2

    Valid point. When you have $140+ billion cash and your market cap is close to $3T, you have to do something creative. Only time will tell if Satya is right or he is going the GE way.

  • @boobeshkumar406
    @boobeshkumar406 4 месяца назад +2

    Imagine Satya nadella watching this video and turned Microsofts direction 😅

  • @bulgingbattery2050
    @bulgingbattery2050 5 месяцев назад +1

    Blackrock has $11,000,0000,000,000,000 (eleven quadrillion) in holdings.

  • @sebastienberger2890
    @sebastienberger2890 5 месяцев назад +3

    lol, Microsoft is everywhere in the corporate sector and they even regained where Amazon and google shined. Most corporations pays around 250$ of Microsoft stuff per employee per year, it could be developers tool, productivity, cloud services, security, programming stuff, AI and so on.
    They are so big that they have to charge for product they would like to include in their stacks otherwise they would be charged for monopolies practices…

  • @DaMoodz
    @DaMoodz 5 месяцев назад +1

    I like the fact that we now have a face behind these videos, your videos are informative and fun to watch. :)

  • @thedeadbatterydepot
    @thedeadbatterydepot 5 месяцев назад +3

    Why can't you read the gates notes correctly?

  • @balpreetsingh6834
    @balpreetsingh6834 5 месяцев назад +2

    Great video as always.

  • @Aajkuchtoofanikartehai.
    @Aajkuchtoofanikartehai. 5 месяцев назад +1

    He got his motivation from "Ratan Tata".

  • @gabrielebianchi8976
    @gabrielebianchi8976 5 месяцев назад +4

    I think Microsoft, is like Google and Apple one of what I would define as FOMO companies, they are in an industry where their legacy product is a standard, following updates can just add marginal improvements or straight out making their product worse.
    Those companies became too big and don't want to face the reality that their industry reached the peek.
    Unfortunately those company have also too resources for their, and humanity, good and invest talent and copious financial resources in chasing the next shiny thing with a FOMO behaviour. The problem is that the companies that do purchase are not correlated to the mother-company corporate strategy and the management is not willing to follow through on the vision of the companies they acquire.

  • @wayando
    @wayando 5 месяцев назад +4

    Microsoft is too secure in its position to fail in the next 20yrs ... Just Windows alone, they can stop developing anything new, and a huge piece of the market would still be using it in 20yrs.

  • @shobhit0109
    @shobhit0109 6 дней назад

    Same thing happened with videocon in India. They try to be in everything even in telecommunication which ultimately results in their downfall.

  • @Medan1993
    @Medan1993 5 месяцев назад +1

    It just hit me, can you start adding actual references from where are you getting information? The only ones I see are YT clips from GE, but most parts of some articles. Nothing in description. Nothing during runtime, sometimes you see the header of some articles, but not always.

  • @Choa201
    @Choa201 5 месяцев назад +5

    wow.. okay, so saying the Open AI partnership was MS' highlight in the past few years, let alone decade(s) just made it very evident that the creator of the video knows nothing about enterprise business and based on some of the other statements made in the video (unfortunately) leads me to think he's one of those people* (*saying this with absolutely no disrespect) that thinks "IT" or success of a big tech company is when they release cool consumer grade products (*cough smartphone, *cough tablets ) that gets reviewed on youtube...
    I dont recall the exact words you used but when you made the very bold (and quite ignorant, if I may add) statement essentially saying MS hasn't had any success recently, are you possibly alluding to no cool phones or consumer gadgets from MS that competes with the Apples and Samsaungs of the word? (sorry i stopped watching your video after the first few minutes so you may have covered this in your video.) If so, then you could say you are right but if you know anything about MS they're first and foremost an enterprise first business so most people who doesn't work in the enterprise IT world wont know what they've been doing and how successfull they have been in this crucial sector. To prove my point, when was the last time you heard anything from ORACLE? Are they a failing company like MS?
    I want to make it clear that I am not trying to disrespect the creator with my comment. His views and beliefs are his and he has every right to make them known to world if he chooses to do so, but after seeing this video as someone who works in enterprise IT infra I just cannot watch your videos seriously anymore but this is just my personal feeling and not suggesting other to do/feel the same.

    • @user-pp5cm1sc7x
      @user-pp5cm1sc7x 5 месяцев назад

      finally some common sense. msft isn't a consumer business its an enterprise business and they don't have to compete with Samsung they just have to find a way to get a cut from Samsung's success. which is why it doesn't make sense for someone to say people don't get excited for a msft product because who gets excited for new servers .

  • @joshts00
    @joshts00 5 месяцев назад

    From the perspective of coming in from an acquisition (not linkedin, github, or one of those gigantic ones), I would like to say im not disappointed and I'm pretty happy with the outcome as a low-level random worker bee lol.

  • @gjd424
    @gjd424 5 месяцев назад +1

    We a tech company can’t innovate from within it uses “mergers and acquisitions” and that’s what separates Microsoft from Apple.

  • @stevene_
    @stevene_ 5 месяцев назад +13

    you can't compare Microsoft with GE. most of what Microsoft have purchased can be strategically placed under core Microsoft areas.
    also the data they have access to is extremely valuable for AI related stuff.

  • @billygrant9147
    @billygrant9147 Месяц назад

    I think you would have a hard time painting Phil Spencer as someone who doesn't understand gaming. He was a game developer for years before he moved into management. And frankly he is the only there is an xbox under MS to complain about. Every knock you brought up about about xbox were issues that oddly enough were cause by Steve on his way out. Dudes been in charge for 7 years in an industry that takes 5 years to deliver a product.

  • @nightking8490
    @nightking8490 5 месяцев назад +17

    If these same acquisitions were made by Meta or google, everyone would have lost their minds. Funny how Microsoft get away doing these things without much scrutiny.

    • @-haclong2366
      @-haclong2366 5 месяцев назад

      Only a few years ago the opposite was true, not too long ago literally every media company just HATED Microsoft and would only ever report good things about Google and Apple.

  • @zakem
    @zakem 5 месяцев назад

    I got a recording of him saying "yeet", this is the best day ever ❤

  • @alg003
    @alg003 5 месяцев назад

    There needs to be a limit to how big a mega corporation can become. When a single corporation makes morw money than the entire GDP of a smaller country, and continues growing, we the consumor have to say enough is enough. You have your billions in profits and unlimited power for your corner of the world.

  • @Amiittk
    @Amiittk 5 месяцев назад

    Was just seeing a report that states Microsoft doesn't have a single product that accounts for more than 40% of its revenues.
    Meaning they are not over reliant on a single product and acquisitions go a long way in doing just that

  • @angryowlet153
    @angryowlet153 5 месяцев назад

    Behind The Bastards did a great two-parter on Jack Welch.

  • @icetrip2417
    @icetrip2417 5 месяцев назад

    Lets see how it goes ,its really scary

  • @user-nw8pp1cy8q
    @user-nw8pp1cy8q 5 месяцев назад +1

    I personally feel that Microsoft try to control software workforce. Both Github and LinkedIn acquisitions looks like attempt to know more about developers, and OpenAI and Copilot use access from that to train a their machine learning models on things that shared by developers on that platforms.

  • @yanfranca8382
    @yanfranca8382 5 месяцев назад +1

    I was always excited with MSFT launches.

  • @anushagr14
    @anushagr14 5 месяцев назад +2

    Hari how is your startup doing and is it going to impact channel
    As for microsoft failing, I think amazon would be first as every problem turned to extreme there

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +1

      Doing pretty good, just letting people off the waitlist rn. It shouldn’t affect the channel anytime soon :)

  • @CoderDBF
    @CoderDBF 5 месяцев назад +2

    If I understand correctly, Apple buys companies for their technology, where as Microsoft buys them for their users.
    To me this would indicate that they struggle with innovation, as in they don’t know what to do with all their money. And they lack the ideas or balls to create something big and disruptive on their own.
    For example, suppose they invested 140Billion in Asteroid mining instead?
    I think Microsoft will go the way of IBM, more B2B focused and SaaS orientated, a behemoth that lurks in the twilight zone away from the public eyes.

    • @sumomaster5585
      @sumomaster5585 5 месяцев назад +1

      MS innovated with Windows Phone, and it was great OS, they brought the 2 in 1 ideas to make tablets great laptops, but devs never supported it like so were many of their products. A great product doesn't equate success. lots of stars have to align for that to work out. Apple itself doesn't really have anything spectaular. They just hit a home run with the iphone and built around that. Now they are struggling to find new products.

  • @abdulahadameen1966
    @abdulahadameen1966 5 месяцев назад +1

    Please can you make videos on HCA Healthcare. They are largest hospital chain in the USA. Despite having so much expensive healthcare in the USA their profits are just 6-12 percent. Is it true that they are operating on such thin margins.

  • @cicaizrogace8054
    @cicaizrogace8054 5 месяцев назад

    Dobra analiza! Svaka čast. 😊 🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉

  • @Bghjssjald233
    @Bghjssjald233 5 месяцев назад

    Jack Welch being considered bad for capitalism is hilarious, the guy took a horrific over blown company and raised the stock price over 4,000% and invested in things like GE Capital that created an incredible ROI.

  • @scitechplusexplorer2484
    @scitechplusexplorer2484 4 месяца назад

    Satya Nadella is one of best CEO who is leading Microsoft with practical and pragamtic approach. $140 billion acquisitions are too small, as Satya has transformed the dull and stagnant giant to a fast moving performance-oriented innovation-driven tech giant!
    As long as Satya Nadella is CEO of Microsoft, its less of concern, because he is making decisions very wisely and running Microsoft in much better way.

  • @MacSmithVideo
    @MacSmithVideo 3 месяца назад

    Microsoft hasn't stopped "rank and yank". I just witnessed it from the inside.

  • @SB-KNIGHT
    @SB-KNIGHT 5 месяцев назад +7

    I do think all of this is absolutly sustainable. Microsoft has proven time and time again they know how to do aquisitions. They also have the most liquid money of any company by far, even more than Apple. So they can afford to make a few several billion dollar mistakes and not loose sleep over it. Pretty sure at this rate Microsoft might have already built themselves an actual AGI and it might be helping them run the company for all we know. One of the reasons why I think they are so all in on OpenAI. By the way, I dont think we are going into a "down period" in tech, quite the oppsite. We are now entering phase 3. Phase 2 was 2010-Now, Phase 3 is going to be unrecognizable super advanced and messy, also, beyond your WILDEST dreams!

    • @raylopez99
      @raylopez99 5 месяцев назад +2

      Go MSFT! Should double in ten years.

    • @thripnixe
      @thripnixe 5 месяцев назад +3

      100% true, as of today they are the most valuble company surpassing apple

    • @SB-KNIGHT
      @SB-KNIGHT 5 месяцев назад

      @@thripnixe If I was a betting man and I am, I'd bet that will absolutely be the case. Microsoft will always be relavent with everything they now own.

  • @henryfleischer404
    @henryfleischer404 5 месяцев назад

    This makes me think of a term I made up, that I call The Acquisition Death Spiral. Companies like Penn Central and Nortel acquired a lot of new companies, telling people everything is fine, and then went bankrupt. Anyway, I'm very far from an expert, so don't take this as financial advice- I have literally no experience investing.

  • @user-jt9hi9zd8n
    @user-jt9hi9zd8n 5 месяцев назад

    It’s not about the dollar amount its about the sustainability and potential of the companies acquired that determines if the acquisition are sustainable. Without seeing the financials of each acquisition and using just general knowledge of the companies listed the acquisitions should of been sustainable in the past as the market changes sustainability risk my change but should remain pretty sustainable if there are no really major financial or structural hiccups

  • @JackSepticTank-uw5vg
    @JackSepticTank-uw5vg 5 месяцев назад

    The Ferengi would be proud

  • @2beJT
    @2beJT 5 месяцев назад

    MS sees how important it is to be able to pull everything together. They want your attention, they want to be ready for metaverse, they want to be ready for AI. They are getting investment BECAUSE they are doing this.

  • @felman87
    @felman87 5 месяцев назад

    $140 Billion and nearly half of that was Activision Blizzard. It's an insane buying price.
    Oh and Jack Welch's Rank-and-Yank is so unbelievably stupid. I mean, it would be fine to do that once or twice but every year? Ok, so I used to be 300 lbs. I was super obese. I challenged myself to work on it, insisting on losing weight every month. That's a great goal but you can only do it so much before it becomes harmful. I got down to 140 and my doctor told me to stop. Any further and I might start to be classified as underweight and that's when health problems start popping up. Just like overweight, being under is risky as well. It's great to lose weight but not every single month for years and years on end. Jack Welch would've left GE in a better position today if he had taken the same approach.

  • @max-weber
    @max-weber 5 месяцев назад +1

    Great video. Thanks. Some of the editing, however, was off (particularly the Gates Notes + your narration seemed to be mismatched)

  • @hakaishin101
    @hakaishin101 5 месяцев назад

    They are now at number 1

  • @bigbanknewyork3655
    @bigbanknewyork3655 4 месяца назад

    Acquire then figure out logistics later.

  • @manikkalore1630
    @manikkalore1630 5 месяцев назад

    When Fed is printing money like crazy , what do you expect?? Olygopoly is what you get.

  • @fanban2926
    @fanban2926 5 месяцев назад

    Do a video about constellation software

  • @DannerBanks
    @DannerBanks 5 месяцев назад +2

    To Jack Welch's credit, he did discredit "rank and yank" later in life. Too bad corporations still use it

  • @disculpa
    @disculpa 5 месяцев назад

    To be honest, rank and yank sounds great. Working with the bottom 10% who make no effort sucks.

    • @fanban2926
      @fanban2926 5 месяцев назад +2

      It's horrible, it doesn't lead to long term thinking. If this actually worked the CEO would be the first to try it out, but they aren't, the rats are!

    • @KeithBoehler
      @KeithBoehler 5 месяцев назад +3

      You are assuming the bottom 10% are bad for the company (and some it might be so). Consider this, is the bottom 10% of the Olympics bad at sports or have poor fitness? If you rank people someone has to be at the bottom. They still work and contribute to a company's profit and success. If you just cut them for being at the bottom, then the top has to take on that extra work (the top who we are assuming is also the most productive and innovative). There are only 24hr in a day for the top 10% to bring their efforts is now diluted with work their peers would have absorbed (even if they are doing the minimum).

  • @thripnixe
    @thripnixe 5 месяцев назад +1

    As the worlds most valuable company right now im sure they now what they are doing than a random guy on youtube!

  • @jqydon
    @jqydon 5 месяцев назад +2

    You seem really intrigued by the Microsoft ActivisionBlizzard purchase without doing the research to actually understand it. Love your videos but it’s a little painful hearing you talk about the economics of the video game industry

    • @jqydon
      @jqydon 5 месяцев назад

      It’s also the fact that you continue to ignore feedback you’ve received from people that actually follow the games industry and understand that console sales are not the business model of MS Gaming, instead having subscription and other software revenue prop up the business. Console hardware has been a loss leader for the entire time it’s existed, sure Sony makes a small profit after a couple years where Xbox doesn’t, but margins are extremely low in this area which is why Microsoft is de-emphasising the importance of a console in their gaming strategy, it’s simply an option for entering the Xbox ecosystem. Microsoft is projected to overtake Sony as the 2nd highest grossing company in gaming, only behind Tencent with their recent purchase of ActivisionBlizzard (some reports suggest it’s already happened) and has a business model much less susceptible to the ever increasing budgets of video games than Sony. Documents from the recent Insomniac Games leak (one of Sony’s studios) revealed that margins are razor thin on PS5 games, with budgets ranging from $200-350 million and in the case of Spider-Man licensing fees costing them $250 million just to use the character. If you paid attention to the gaming industry or listened to those who do you would realise that Sony is scrambling to copy Microsoft’s strategy and their gaming business is far from a failure.

  • @Krishnakumar-wl7ih
    @Krishnakumar-wl7ih 5 месяцев назад

    The one reason why we cannot compare Microsoft and GE is because Microsoft is ahead of the curve while GE was not.
    Same with Amazon. Amazon can have the worst employee satisfaction but, they are ahead of curve and are making money. The customers love Amazon. And, that makes them invincible.

  • @plamen-vt
    @plamen-vt 5 месяцев назад +3

    I like your channel and I watch every video you make, but this is really a low-effort take. Just few examples: you are oversimplifying or rather dramatizing Microsoft's strategies and comparing apples to oranges (Microsofts to GE or comparing the popularity of consumer products (iPhones), while Microsoft is mainly a business facing corporation). Their acquisitions has been pretty successful so far, it's factual. Their hands-off approach is a deliberate strategy, of course there are risks that come along with it but so far it's been very successful. Also you don't mention the elephant in the room: Azure. It has a stronghold on the corporate world and generate enormous amount of money and with the AI growth that's only going to get even more profitable. You also make a point that Microsoft's gaming losing the race, which is a very superficial point to make. Any console hardware always has been sold at a loss, that's not an issue, they earn money by selling software and subscriptions. And while Xbox cannot compete with Nintendo and Sony's console sales, you miss the main point that they still have a very profitable gaming division (check the numbers). There are other factual errors in the video, but I just wanted to give you some proper feedback without being mean, so you can improve. You had a lot of good videos on this channel, and you need to focus on the quality, not rushing to release them. You could make another video in which you could analyze the potential issues Microsoft can run into in the future, that's an interesting topic to explore further. But first you need to understand their business well and do your research properly.

  • @4evertrue830
    @4evertrue830 5 месяцев назад

    "Behind every great fortune is great theft" - Balzac.

  • @TheFourthWinchester
    @TheFourthWinchester 5 месяцев назад

    Idk why you keep saying Ari when your name is Hari. I love that name since it's one of my favourite God's name.

  • @rajkumarherma4102
    @rajkumarherma4102 5 месяцев назад +9

    GE was big manufacturing company. Manufacturing is complex but tech is rather simple business 🤔

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +2

      Lots of sectors in tech nowadays though

    • @sasankv9919
      @sasankv9919 5 месяцев назад

      Tech is far from simple. In fact it’s the other way around. Manufacturing is complex, yes. But you can perfect it by iterating. Tech on the other hand is constant innovation.

    • @khanch.6807
      @khanch.6807 5 месяцев назад

      ​​@@sasankv9919 Eh? Seem like you haven't done iterative design with tech. Every single piece of tech goes though prototype stage… then alpha, then beta, then post beta and whatever after which they finally releases.
      Manufacturing design needs manufacturing raw resources to do the rapid iteration. Logistics is involved. Very complex supply chain. Software tech doesn't need material resources. It's much more simple.

  • @POKEMON_GD
    @POKEMON_GD 5 месяцев назад +1

    Microsoft is Hugesoft if it's about aquisitions

  • @IshanSamarasinghe
    @IshanSamarasinghe 3 месяца назад

    I just realised I missed a bunch of your videos because I was unsubscribed. I even had notifications turned on.

  • @PO-nb8qc
    @PO-nb8qc 5 месяцев назад

    Every empire or country is going to up and down in the history. I don’t think there is an exception.
    But for now, I am very happy of the investment in MSFT.
    Just hope it will not fall in my lifetime!

  • @lhxperimental
    @lhxperimental 5 месяцев назад

    Only similarity i agree with is GE was doing great and Microsoft is currently doing great. Rest of the video is just speculation based on this one similarity.

  • @IvailoNachev-xc3zu
    @IvailoNachev-xc3zu 5 месяцев назад

    I personally think that Microsoft is doing well short term well but not so much long term since everything they own is tied to their Windows operating system and they have been somewhat stagnant in user base. I remember when there the time when they had 95% of desktop online users and today they have around 70% while followed by Apple and there is other operating systems. Furthermore we have people who do not use a PC or a laptop and just rely on their phone and or a tablet which is where Google and Apple are big players.
    What most people do not realize is these purchases are meant to extend their control over their own userbase and compete in various areas with other companies like Google, Apple, Valve, Sony, Nintendo and so many more. I feel that they are in a slow decline since they are spread over so many places and they are trying to retain their user's attention however most of their soft power comes from Windows OS which has around 1.5 billion active online users.
    This is why they can't afford to loose it as a bargaining chip and I feel that they may extend Windows 10 support like they did XP back in the day considering how poorly is Windows 11 doing although it probably could be slightly better if the world's economy wasn't doing so poorly. Furthermore such acquisitions usually takes years to repay and start making revenue. For example if someone bought all of Apple's stocks right now it would take decades for the investment to return based on their profit and THEN start to make money.
    No company is too big to fail and definitely they are no exception especially when they are so spread out. Furthermore such large organization is even harder to save when s**t hits the fan due to having too many interests within it. However I don't see Microsoft suddenly dying maybe falling to certain amount of market share and keep it that way.
    Personally I use both Windows and Linux, I avoid LinkedIn and prefer to use my own network of people, just using Git although GitHub is not bad, currently uninterested in most of their gaming endeavors and so on. It is your own decision to use their products or not.

    • @ataulhaqakbar7365
      @ataulhaqakbar7365 5 месяцев назад

      Microsoft Azure is primarily Linux based not Windows based

    • @IvailoNachev-xc3zu
      @IvailoNachev-xc3zu 5 месяцев назад

      @@ataulhaqakbar7365 I am not a fan of cloud since it is a technology that existed before they renamed it as well people can build their own cloud or any other servers. HOWEVER I am pleased that Microsoft is embracing Linux more on their end.
      Windows 11 while far from one my favorite Windows OS can run both Android and Linux software.
      Today's Microsoft is more company oriented than customer one considering most of their revenue comes from that.

  • @jjcoolaus
    @jjcoolaus 5 месяцев назад +6

    Excited is the wrong word, but Microsoft provides some of the best products that just work. Office is the best office suite, Teams is the best chat and video conferencing system, and I think Xbox is a better gaming platform. Next they should buy Valve and Steam

    • @mistermood4164
      @mistermood4164 5 месяцев назад +2

      They tried to buy valve countless of times Gabe aint selling

    • @henryfleischer404
      @henryfleischer404 5 месяцев назад

      I would hate to see that happen. They are already monopolistic, owning Valve would be far too much.

    • @kidd32888
      @kidd32888 5 месяцев назад

      I love the MS power platforms.

    • @sumomaster5585
      @sumomaster5585 5 месяцев назад

      @@henryfleischer404 What does Valve do and why do we need it? Steam is just a store, they took advantage of the open PC platform and they make a ton of money basically doing nothing, it's all on MS and others to bring new graphic APIs and stuff, whilst steam rakes in all the $$. that makes no sense honestly but it's the smartest business i've seen

    • @henryfleischer404
      @henryfleischer404 5 месяцев назад

      @@sumomaster5585 Valve runs Steam, while not being beholden to investors. They also are not tied to a specific operating system. If microsoft owned valve, it would be in their best interest to make gaming on Linux and OSX impossible.

  • @walrusdestruction6845
    @walrusdestruction6845 5 месяцев назад +1

    Why would someone name their kid Hairy?

    • @vedantmungre1702
      @vedantmungre1702 5 месяцев назад +1

      It's Hari.

    • @walrusdestruction6845
      @walrusdestruction6845 5 месяцев назад

      @@vedantmungre1702 that does not sound like what he said.

    • @vedantmungre1702
      @vedantmungre1702 5 месяцев назад +2

      @@walrusdestruction6845 actually he's a Non Resident *Indian*. Because he's brought up in America ig or some Western country, his accent makes it sound like harry/hairy.

    • @walrusdestruction6845
      @walrusdestruction6845 5 месяцев назад

      @@vedantmungre1702 oh ok

  • @moafwaz5563
    @moafwaz5563 5 месяцев назад +2

    how do you buy the piece of shit linkedin for 26 billion but get a steal of github for 7.5 billion.

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад

      Hahaha

    • @gfuah1499
      @gfuah1499 5 месяцев назад

      LinkedIn makes 16 billion a year, plus a ton of data from a huge talent pool around the globe makes it a steal.

  • @_Dnoire_
    @_Dnoire_ 5 месяцев назад

    Great video man!

  • @markchongjass
    @markchongjass 5 месяцев назад

    yes

  • @papiducky99
    @papiducky99 5 месяцев назад

    Wait we see his face now

  • @bevvy.bee9
    @bevvy.bee9 5 месяцев назад +1

    Apple acquired intel?

    • @LogicallyAnswered
      @LogicallyAnswered  5 месяцев назад +2

      They acquired their modem business

    • @bevvy.bee9
      @bevvy.bee9 5 месяцев назад

      @@LogicallyAnswered thank you 🙏

  • @vandalorian8777
    @vandalorian8777 5 дней назад

    Microsoft is the only one of the tech to 10 who has not issued a successful new product in 20 years.

  • @chabissit
    @chabissit 3 месяца назад

    Who is excited about a Microsoft product, me. Onedrive, your desktop everywhere. No more laptops, secondary disk drives, pendrives.

  • @gfuah1499
    @gfuah1499 5 месяцев назад

    If Microsoft was a person, they would be like old money. Staying away from the spotlight but still rich AF!

  • @recurse
    @recurse 5 месяцев назад

    Savage. I love it.

  • @thedeadbatterydepot
    @thedeadbatterydepot 5 месяцев назад +1

    No GE and Microsoft are not similar, learn to read the gates notes.

  • @jaytang4954
    @jaytang4954 2 месяца назад

    microsoft has defense contracts
    meaning they are part of the military industrial complex
    so i think their gonna fine no matter what
    oh wait damn so was ge

  • @DK-ox7ze
    @DK-ox7ze 2 месяца назад

    Just got a job offer from Microsoft. I hope the stock keeps rising 😅

  •  5 месяцев назад

    Microsoft is still strong in the business side, and on my opinion they innovate a lot in the sector. Xbox for me is working well, with time game pass will take of, all the acquisitions will start to integrate better, in fact I believe is PlayStation the one more at risk in the long term. They missed the mobile era, which was a big screw up. Windows is also the dominant platform in PC worldwide, Apple is very niche in terms of laptops and desktops, because they occupy mainly the high end segments, also many professional work software is not available on Mac or it’s a hassle. The could have done a lot better in some areas, for one I didn’t like the exit of Panos Panay and what that means for their hardware division. For me is not as much as a GE, just a company that has learned the value of going under the radar in the political and public side. All the other companies are really under the regulators radar, Microsoft is less so even with it being the behemoth that it is.

  • @AI-PhotographyGeek
    @AI-PhotographyGeek 5 месяцев назад

    I'm not sure, how well you know about Microsoft, You can easily compare GE with Apple, Microsoft, and Google. Every company has rise and fall.

  • @mr.stratholm4999
    @mr.stratholm4999 5 месяцев назад

    "Microsoft" and "Hands off management style"? Clearly you've never worked for them as an FTE! They're the example of the term "If the square peg won't fit into the round hole then buy a lathe, tool bits and spend hours shaving that square peg into a round one of the exact measurement to fit into that round hole. They're not interested in innovation, they're interested in saving their own individual asses.

  • @kevinbarry71
    @kevinbarry71 5 месяцев назад

    Microsoft is in a few businesses that generate cash; that's the only thing good about that company. Everything else they screw up.

  • @wigglz
    @wigglz 5 месяцев назад +2

    Ummmm most fortune 500 companies fire the bottom 5/10% every year. This is good practice it keep the lazy and unqualified people out. I highly agree with this practice from someone who works for a company that does this every year.

  • @danielcasey7385
    @danielcasey7385 5 месяцев назад +3

    Microsoft is an enterprise focused company. They haven't been as relevant to the consumer market since like the mid 2000s.

    • @username-mb2qh
      @username-mb2qh 5 месяцев назад +2

      Not relevant is a stretch when Windows still absolutely dominates the PC market.

    • @-haclong2366
      @-haclong2366 5 месяцев назад +1

      Xbox...

    • @LauraKnotek
      @LauraKnotek 5 месяцев назад

      @@username-mb2qh Other than gaming, which is a niche hobby, what else does one need a PC for at home nowadays?

    • @username-mb2qh
      @username-mb2qh 5 месяцев назад

      @@LauraKnotek PCs at home and laptops are still a big market for a variety of reasons. Though smartphones and tablets can do a lot PCs can, PCs are still a sizable market.
      Gaming itself is also actually quite big by itself. I mean look at Microsoft itself, it’s literally one of their biggest investments and the biggest acquisition.

    • @user-pp5cm1sc7x
      @user-pp5cm1sc7x 5 месяцев назад +1

      bruh pretty much everyone has a laptop in this century and if you dont have some sort of pc...well you are living under a rock@@LauraKnotek

  • @nerd26373
    @nerd26373 5 месяцев назад +3

    We will always support this channel. They're great at giving insights.

  • @germanolaya4723
    @germanolaya4723 5 месяцев назад

    Hey !

  • @agoodmansaid
    @agoodmansaid 5 месяцев назад +1

    Lip balm mate. Otherwise great video

  • @seyiagboola
    @seyiagboola 5 месяцев назад

    Where's the"truth" in this video script? It's well put together but I haven't learned anything, just a different perspective like a rant of paranoia.

  • @sandy666ification
    @sandy666ification 5 месяцев назад +1

    RUclips views, having a soul, exciting 😆. Bro you really need to know what a tech company is.