Microsoft Opts For Nuance
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 12 April 2021
⏱️ 17 minutes
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Summary
In its 2nd-biggest acquisition ever, Microsoft buys Nuance Communications in a deal worth $16 billion. March ends up being a record month for Uber. Jason Moser analyzes those stories, plus we discuss reasons not to buy stocks.
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Transcript
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| 0:00.0 | It's Monday, April 12th. Welcome to Marketflowery. I'm Chris Hill, with me today, Jason Moser. |
| 0:07.4 | Thanks for being here. Well, always a pleasure to be here, man. |
| 0:10.4 | We've got news from Uber. We're going to explore the little things that guide our investment |
| 0:16.1 | decisions, but we're going to start with the deal of the day. Microsoft is buying nuanced communications, |
| 0:22.0 | a speech recognition company, and a deal worth $16 billion. This makes it the second largest |
| 0:29.3 | acquisition Microsoft has ever made. CEO Seth Nadella said that they're going to use |
| 0:36.8 | nuance as technology in Microsoft's healthcare cloud products. |
| 0:43.7 | We'll get to the business of nuance in a moment, but this just seems like one of those deals where |
| 0:51.2 | they wanted the tech. They have the money and they went out and got it. I think you pretty much |
| 0:56.6 | wrapped it up there. Next story, Chris. I'm just kidding. Of course, we're going to dig into it a little |
| 1:03.0 | bit, but I do feel like that really is kind of in a nutshell. To me, nuance has been a very |
| 1:11.3 | interesting company to follow over the last decade or so, because when you think of the technology, |
| 1:17.7 | the voice recognition technology, it seemed like it was really a bit ahead of its time for a while. |
| 1:24.4 | Perhaps that's why shares really didn't do much. Over the course of the last decade, |
| 1:29.4 | shares haven't done much at all until fairly recently. I think in looking at the bigger picture here, |
| 1:36.5 | to me, it always felt like nuance was going to be a prime acquisition target. Then when we saw |
| 1:45.5 | the serance spin-off back in October of 2019, remember, serance was the part of the business, |
| 1:51.9 | the automotive part of the business. Once they spun that off in 2019, to me, that was kind |
| 1:59.9 | of the writing on the wall there. It felt like they were getting this business in shape to try to |
| 2:04.1 | figure out if it could be something, a part of something a little bit bigger. In Microsoft, |
| 2:09.5 | it has a lot of different ways they can plug this technology into their model. They can distribute |
| 2:14.2 | it far and wide. I absolutely understand the healthcare interest there. That really is the gist |
... |
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