I thought it strange that Microsoft all but stopped repurchasing shares last quarter and surmised they might be saving up to buy Yahoo!. My idea was right but the target was wrong as they purchased Skype for over $8 billion.
This highlights the danger of owning companies that produce strong cash flows but don't commit to how they will spend the money. I doubt Microsoft's shareholder base is the type to like expensive acquisitions with little synergies. I also believe this to be a reason why mega caps have underperformed. Instead of buying back their own cheap stock they make expensive acquisitions.