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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.




by MacNN Staff

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Comments

  1. unity@mac.com

    Joined: Dec 1969

    0

    Its clear...

    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.

  1. cvbcvb

    Joined: Dec 1969

    0

    Harmony

    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

  1. gitcypher

    Joined: Dec 1969

    0

    I hope you all can see it

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

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

  1. jarod

    Joined: Dec 1969

    0

    Garbage Inc.

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

  1. MisterMe

    Joined: Dec 1969

    0

    bad idea

    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.

  1. magicbumone

    Joined: Dec 1969

    0

    M$ creates crapy products

    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!

  1. Sabon

    Joined: Dec 1969

    0

    please no

    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.

  1. testudo

    Joined: Dec 1969

    0

    Re: bad idea

    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.

  1. zaghahzag

    Joined: Dec 1969

    0

    M$ doesn't want to lose

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

  1. thesearcher

    Joined: Dec 1969

    0

    n

    n

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