[endorphone]

That seems like spurious logic, especially given that Microsoft has spent many, many billions of their cash hoard on a stock buyback program (as does Apple, etc). By the broken logic of that Slate article, they're throwing money down a well foolishly because shares outstanding are "free".

Further, noting the current day price change is always the basis for countless nonsense articles. The shares haven't been diluted yet -- not until the deal closes later in the year -- and a temporary blip one way or another is close to meaningless.

[scarface74]

Remember that AOL was able to buy Time Warner with inflated stock. If you have inflated currency (I.e. stock), why not use it to buy some real assets?

[endorphone]

Whether a share price is inflated or not is always a point of contention -- if it's so obvious we can all buy our put options and retire on our riches. However Microsoft could literally have sold $7.5B worth of new shares and given that money to charity (which, in turn, would have been a nice tax benefit).

That money is very real, and there is nothing free about it.

[scarface74]

Whether a share price is inflated or not is always a point of contention -- if it's so obvious we can all buy our put options and retire on our riches.

"The market can stay irrational longer than you can stay solvent".