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Microsoft planning to buy Logitech?

updated 12:05 pm EST, Thu January 10, 2008

Microsoft buying Logitech?

Logitech, the maker of popular mice, speakers and other peripherals, may be on the verge of acquisition by Microsoft. Reuters reports that shares rose 12 percent early Thursday morning, fueled partly by trader speculation surrounding a possible takeover. In theory, Logitech -- which has a market capitalization of 7 billion Swiss francs ($6.3 billion US) -- would be bought for 48 francs per share, a premium of 38 percent on Wednesday's closing stock price of 34.80 francs. Logitech would thus become worth 9.16 billion francs.

Neither company has so far commented officially, but Daniel Borel, a board member at Logitech, says he has no intentions of selling his stake. "I am a co-founder of Logitech," he notes. "Would you be willing to sell your child?" Borel cautions, however, that even if he refuses to sell his six percent ownership, his control is still too small to prevent an acquisition. Borel also refuses to confirm or deny takeover moves.

Were Microsoft to absorb Logitech, it would instantly become the largest manufacturer of computer peripherals, as it already produces a number of mice, keyboards and other devices through companies it acquired earlier in its history. Reuters observes that while Microsoft has generally been apathetic about dominating hardware sectors, this would help with the company's Xbox 360 console, as Logitech already makes a number of third-party gaming controllers.

 
Previous Comments

Its clear...

01/10, 12:21pm reply

Its clear that some of the big players are diversifying to survive. Apple is doing it, MS is doing it. But I think MS needs it the most when it comes to long-term planning.

unity@mac.com

Fresh-Faced Recruit

Joined: Sep 2005

0

Harmony

01/10, 12:21pm reply

Logitech bought up Harmony Remotes a few years ago. I hope a Microsoft acquisition of Logitch doesn’t s**** up a great (platform agnostic) product like Harmony...

CVB

cvbcvb

Fresh-Faced Recruit

Joined: Nov 2003

0

I hope you all can see it

01/10, 12:25pm reply

MS + Harmony + Logitech + that MS desktop touch thingy + Xbox 360 + windows media center.

I'll be looking for some interesting integration in the future.

gitcypher

Fresh-Faced Recruit

Joined: Jul 2007

0

Garbage Inc.

01/10, 12:28pm reply

Thats what the result will be should such a tragic thing happen.

jarod

Fresh-Faced Recruit

Joined: Apr 2005

0

bad idea

01/10, 12:43pm reply

I own a Logitech sound system and a Logitech webcam. Both work extremely well. I also hate Microsoft.

That said, looked at in pure business terms, this is a very bad idea. Microsoft is a software company. Its products have high fixed costs, but virtually zero cost of production. This provides protection against other companies entering the market and allows Microsoft to undercut competitors' prices until they are driven from the market.

Logitech enjoys no such protection. Microsoft mice and keyboards give it extra shelf space in retail stores. Since the company already sells webcams, the only thing that Logitech adds is sound systems.

Bad move by a desparate company.

MisterMe

Fresh-Faced Recruit

Joined: May 2007

0

M$ creates crapy products

01/10, 01:04pm reply

So since M$ can't create good products it will just buy out a company that does. Logitech makes great speaker but if M$ takes over I guarantee Logitech speakers will start to suck. I hope some other company steps up and creates good affordable speakers. GOD I hate Microsoft so much. They can't do a single thing correctly. I sure hope more people get it through their heads that they don't have to suffer with Microsoft products. Their are other options people just break through the box Microsoft has wrapped you in!

magicbumone

Junior Member

Joined: May 2007

0

please no

01/10, 01:19pm reply

I agree.

I don't buy Microsoft products and this will be another company that I would no longer buy from. I've got about 30 different logitech mice and keyboards that I've bought since about the mid to late 80s up through ones I've purchase last year.

My wife calls my collection (of course I still use some of them) as my mouse museum. If they buy Logitech I will take them to the next computer recycling day and get rid of them.

Sabon

Fresh-Faced Recruit

Joined: Mar 2005

0

Re: bad idea

01/10, 01:25pm reply

That said, looked at in pure business terms, this is a very bad idea. Microsoft is a software company. Its products have high fixed costs, but virtually zero cost of production.

Maybe you all missed it, but MS has been producing hardware products for a long time now (mice, keyboards, etc). And they generally have Mac support/software as well.

testudo

Fresh-Faced Recruit

Joined: Aug 2001

0

M$ doesn't want to lose

01/10, 01:25pm reply

they are losing sales of mice and keyboards to logitech. This is classic M$ way of destroying competition. It's their MO.

zaghahzag

Dedicated MacNNer

Joined: Aug 2006

0

n

01/10, 01:43pm reply

n

thesearcher

Dedicated MacNNer

Joined: Mar 2002

0

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