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View Full Version : Short Xbox Live article - Level 3 deal


Tim
07-22-2002, 09:40 AM
http://biz.yahoo.com/ri/020722/tech_microsoft_level3_2.html

It says the service will be $49 for the first year.
Supertanker
07-22-2002, 06:33 PM
Speaking of losing faith in the stock market, that press release (sorry, "article") says: "Buffett, part of a group which invested $500 million in Broomfield, Colorado-based Level 3 two weeks ago, is an old friend of Microsoft Chairman Bill Gates."

Hmm, an old friend of the Chief Software Architect makes his first telecom investment just two weeks before that company announces a major contract with MS. Is that good market research or insider information? If it is research, where can I get some of that info?
Jason McCullough
07-22-2002, 06:34 PM
Well, to be fair, Buffet's talked about investing in L3 for a good while now.
Enkidu
07-23-2002, 05:22 AM
It's possible that L3 was waiting to see if they had Buffet's investment before engaging in the deal with Microsoft.
Anonymous
07-23-2002, 02:20 PM
Yeah, Buffet making that move isn't so much to do with the Xbox deal than with the upcoming consolidation in the Telecom industry.

The latest issue of The Economist deals with the Telecom crash, what caused it, and what's next. With WorldCom going into bankruptcy, the next phase is that we'll see more bankcruptcy's occur (the reason why has to do with the fact that WorldCom will have bankrupty protection under Chapter 11, while its other heavily-debt-ridden compettiors don't, which will pull them under as WorldCom cuts prices and restructures).

They even cite that Buffet giving $500 million to Level 3 is for strategic acquistions in the phase after the bankcrupty's, when consolidation will kick in. The folks in the best position are the Baby Bells and those who own the "last mile" that actually connects houses and businesses.

Buffet and Gates may be friends, but Buffet is legendary as an cautious investor (it's why he's #2 richest guy int he world), and he won't put his or his stockholder's money into something just out of friendship with some guy. Buffet's got too much integrity for that.
Anonymous
07-23-2002, 04:48 PM
Yeah, Buffet making that move isn't so much to do with the Xbox deal than with the upcoming consolidation in the Telecom industry.

The latest issue of The Economist deals with the Telecom crash, what caused it, and what's next. With WorldCom going into bankruptcy, the next phase is that we'll see more bankcruptcy's occur (the reason why has to do with the fact that WorldCom will have bankrupty protection under Chapter 11, while its other heavily-debt-ridden compettiors don't, which will pull them under as WorldCom cuts prices and restructures).

They even cite that Buffet giving $500 million to Level 3 is for strategic acquistions in the phase after the bankcrupty's, when consolidation will kick in. The folks in the best position are the Baby Bells and those who own the "last mile" that actually connects houses and businesses.

Buffet and Gates may be friends, but Buffet is legendary as an cautious investor (it's why he's #2 richest guy int he world), and he won't put his or his stockholder's money into something just out of friendship with some guy. Buffet's got too much integrity for that.

On Level 3 I agree, but his integrity hasn't stopped him from yammering about an "inevitable terrorist nuclear attack" on the United States. He's trying to convince the government to take on the liability, instead of his reinsurers.
Jason McCullough
07-23-2002, 06:27 PM
And that was me, forgetting to log in.
Enkidu
07-24-2002, 05:47 AM
Fortunately, in the world of computer games, no one cares about retrocession.
Derek Smart [3000AD]
07-26-2002, 01:55 PM
Read this (http://story.news.yahoo.com/news?tmpl=story&cid=711&ncid=711&e=1&u=/usatoday/20020710/tc_usatoday/4259868)

Scared yet? No? You should be. Trust me on this
Jason McCullough
07-26-2002, 04:30 PM
'Gates could approach Buffett to buy it all. Gates would own the Internet. Gates could unilaterally rename the telecom soap opera All My Fibers.'

Right, because Microsoft has A Lot Of Experience, and desire, to run a gigantic telecom operation. They've done so well with the half-assed ISP that is MSN.....and what are they going to do? Drop packets that don't from MS hardware?

Silly, silly.