IBM passes Microsoft market cap after 15 years

SEATTLE - International Business Machines edged past old rival Microsoft Corp., in the market value for the first time since April 1996 marking the latest twist in the fluctuating fortunes of two of more technology in the world.

The move marks another unfortunate step for Microsoft, which has failed to convince investors that it can dominate the future of the technology as he did in the past and saw its price stagnate over the past decade.

An investor with $100,000 in the two stocks 10 years ago would now have approximately $143,000 in IBM stock and approximately $69,000 in Microsoft stock.

Microsoft is now the third company tech us by market value, after a resurgence of Inc. Apple roared passed a year ago of take the first place.

IBM held industry for decades, until he hired the tiny Microsoft, unbeknownst to provide an operating system for its new line of personal computers in the 1980s.

Bill Gates project this dominance of the industry breakthrough - prove his theory that software would be more valuable than material - so that at the end of 1999, market value of Microsoft was three times that of IBM and more than any other United States of society.

During the rise of Microsoft based in Seattle, IBM has been pilloried as a Goliath yesterday, still could not follow with the computer revolution. The Armonk, company based in New York, nicknamed "big blue" has lost billions of dollars per year in the 1990s and was close to a break-up before a turnaround designed by CEO Louis Gerstner.

Given that the Internet technology bubble burst in 2000, the tables were reversed. More than doubled sales and profits over the past ten years, despite Microsoft stock is deadlocked, leading to criticism of 11 years at the head of CEO Steve Ballmer.

As always, it dominates the OS market, Microsoft lost in the new market of Internet advertising to Google Inc., let the Apple to show the way in the smartphones and tablet computer and struggling to make a mark on popular web of Facebook or Twitter.

In the meantime, IBM has remodeled itself as a specialist in software enterprise, servers and consulting, drop of its PC on the road, under the direction of Sam Palmisano since 2002.

According to Reuters data, Apple market value amounted to 309.2 billion Monday, IBM to 203.8 billion and Microsoft at 203.7 billion.

IBM is now ranked fourth in terms of market value of the United States, behind oil giant Exxon Mobil Corp. to 397.4 billion, Apple and industrial and financial conglomerate General Electric Co to 205.6 billion.

IBM shares ending down 1.1% at $168.26, while Microsoft fell 1.3% to $24.17.

US stocks higher as Microsoft buys Skype

NEW YORK - US stocks opened Tuesday higher, extending gains from Monday after jumps on European and Asian markets encouraged by Microsoft 8.5 billion deal to buy Skype.

At 1400 GMT the Dow Jones Industrial Average was 47.38 points (0.37%) at 12,732.06.

Index S & P 500 broad acquired 6.10 points (0.45%) to 1,352.39, then as the tech-heavy Nasdaq Composite rose of 15.41 points (0.54%) to 2,858.66.

Gold and silver also increased, help the industry recover after the rout of last week, while oil edged lower after rising Monday.

Microsoft announced he purchased telephone pioneer Internet Skype to investor group Silver Lake for 8.5 billion cash, the creator of most important Windows ever acquisition.

"Together, we will be able to accelerate Skype plans to expand our global community and to introduce new ways for everyone communicate and collaborate," said CEO of Skype Tony Bates.

Shares of Microsoft fell 0.15% in early trade, but eBay, which still holds 30 percent of Skype sold majority control of Silver Lake in 2009, saw its shares jump 2.6%.

"Indeed it will be sold Skype twice if you think about it," said Jon Ogg from 24/7WallSt.

Ogg called Google and Facebook losers - in the contract the two have been reported in talks with Skype these days. Google shares were 0.42% higher.

Meanwhile, shares in the Chinese social network Chief Renren lose 8.9% to $14.60, just above their price of IPO earlier week of $14.

Bond prices fell. The yield on the 10-year Treasury Note to 3.16% of 3.14% late Monday, while that on the 30-year bond increased from 4.32% from 16: 30 per cent.

Summary box: Stocks of elevators of deal of Skype from Microsoft

BIG DEAL: Said Microsoft who will buy Skype Internet phone service for $ 8.5 billion in cash, the largest deal in the history of 36 years of the company.

ALL have shaken: CKx Inc., which owns the rights to the names and images of Muhammad Ali and Elvis Presley, jumped 23 percent after he agreed to be purchased by private investors. Redemption group will pay approximately 511 million for the company.

Indexes: the Dow Jones index gained 76 points to close at 12,760. The S & P 500 index reached 11 1 357. The Nasdaq reached 29 2,872.