Microsoft Adds More Debt...Why?

With Microsoft launching its latest gaming platform, Xbox One to solid revenues and planning a change to its executive ranks with the retirement of Steve Balmer, the latest news may make you wonder.  According to Bloomberg, "Microsoft Corp. (MSFT) sold $8 billion of bonds in dollars and euros, a record offering from the world’s largest software maker".  Perhaps one reason is to take advantage of lower interest rates as many speculate that they will be rising; Microsoft says that the funds will be used for "general corporate purposes". 

Certainly, Microsoft has watched as Google, Samsung,  and Apple have taken the lead in the hardware race.  Their tablet, the Surface 2 lacks the buzz that other tablets offer.  And both Google and Apple have invested in the infrastructure to provide content to their devices.  With PC sales waning, Microsoft's success with Office may diminish too.  Today their best new product is the Xbox. 

So perhaps, Microsoft may be wanting to enlarge its cash war chest for a possible purchase.  A cable operator like Time Warner Cable or content creator like AMC Networks,  or perhaps an OTT content distributor like Netflix.  Where does Microsoft want to be in 5 years and what do they want to be known as, a hardware company, software company or a content company.