Financial Analysis of Microsoft

William A. Sahlman

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Background Note | HBS Case Collection | August 2002 (Revised September 2002)

Financial Analysis of Microsoft

by William A. Sahlman

Abstract

Contains a detailed analysis of Microsoft's financial performance from 1985 to 2001. During this time, Microsoft improved its profitability and cash flow generation--changes that led to a dramatic rise in valuation. Also addresses the issue of determining how much excess profit the company might have earned as a result of its illegal activities, as alleged and proved by the U.S. government.

Keywords: Business Ventures; Analysis; Financial Condition;

Format: Print

20 pages

Educators Purchase

Citation:

Sahlman, William A. "Financial Analysis of Microsoft." Harvard Business School Background Note 803-019, August 2002. (Revised September 2002.)

About the Author

William A. Sahlman

Baker Foundation Professor, Dimitri V. D'Arbeloff - MBA Class of 1955 Professor of Business Administration, Emeritus

Entrepreneurial Management

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Exercise | August 2016 (Revised February 2018)

Entrepreneurial Finance Problem Set

Ramana Nanda, William A. Sahlman and Robert White

Citation:
Nanda, Ramana, William A. Sahlman, and Robert White. "Entrepreneurial Finance Problem Set." Harvard Business School Exercise 817-037, August 2016. (Revised February 2018.) View Details

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WebTracker

William A. Sahlman and Michael J. Roberts DBA

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Sahlman, William A., and Michael J. Roberts DBA. "WebTracker." Harvard Business School Brief Case 915-543, February 2015. (Revised January 2018.) View Details

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Case | HBS Case Collection | November 2012 (Revised December 2017)

TerraPower

William A. Sahlman, Ramana Nanda, Joseph B. Lassiter III and James McQuade

John Gilleland, CEO of TerraPower, returned to his office after a lengthy meeting with potential investors. It was October 2012, and TerraPower was in the process of raising a $200M Series C round to finance the ongoing development of its next-generation nuclear reactor. Though early in the fundraising process, Gilleland noted that this most recent conversation was similar to conversations with other interested cleantech growth equity investors. The conversations circled around a common theme: "This is the biggest idea that's ever been presented at our partners' meeting. We love what you're doing, but it's not right for us as an investment." Outside of raising money from typical growth equity and infrastructure funds, Gilleland could partner with a government and/or form a joint venture with an existing nuclear power player. Reliance Industries as an investor in TerraPower could provide an entry point into the fast growing Indian market. At the same time, Gilleland and Gates had talked with China National Nuclear Corp. about a possible cooperation with TerraPower. Whom should Gilleland call next?

Keywords: nuclear power; entrepreneurial finance; venture capital; Financing and Loans; Venture Capital; Energy Industry; United States; China; India;

Citation:
Sahlman, William A., Ramana Nanda, Joseph B. Lassiter III, and James McQuade. "TerraPower." Harvard Business School Case 813-108, November 2012. (Revised December 2017.) View Details

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Financial Analysis of Microsoft

Abstract

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