Logitech boss dismisses Microsoft rumours
After shares in peripheral manufacturer Logitech rose in January on speculation of a possible USD 8 billion takeover by Microsoft, chairman Guerrino De Luca has once again moved to quash ongoing rumours.
After shares in peripheral manufacturer Logitech rose in January on speculation of a possible USD 8 billion takeover by Microsoft, chairman Guerrino De Luca has once again moved to quash ongoing rumours.
Talking to Corriere della Sera he poured scorn on the idea: "[Shares] only rose for a day. Anyhow it would be an operation without sense," he said, according to a Reuters translation.
"I reiterate, without competition Logitech would lose the great pressure to innovate. Moreover there would be problems from antitrust authorities seeing as the two companies together would have a virtual global monopoly in mice and keyboards."
Logitech is the dominant force in PC mice, including its premium G9 product, while Microsoft has a 30 per cent share of the market.
De Luca denied that Microsoft had purchased a stake in the company, although he did admit that the Melinda and Bill Gates Foundation had bought a small percentage of the company.
He also added that the company was investing USD 100 million per year in research and development, that he had no concerns over "Asia and other producers", and that sales in the last quarter rose 25 per cent.