Microsoft Bulks Up on Business Development Talent

Microsoft (NASDAQ:MSFT) issued a very late in the day press release announcing that Katherine Styponias will join the Media & Entertainment Group as general manager, where she will lead the business development team working with major content suppliers. Styponias joins Microsoft from Prudential Equity Group LLC, where she served as senior vice president and the senior cable, entertainment and satellite equity analyst.

Styponias is widely recognized as an expert in analyzing media industry trends and companies. She was named in The Wall Street Journal's "Best on the Street" poll for earnings-estimate accuracy and stock picking in the entertainment category. She was also recognized in Institutional Investor magazine's All-America Research Team poll and was named the No. 1 earnings estimator for the media sector in the Forbes.com/StarMine Analysts Awards for 2004.

Microsoft has been criticized for missing some big deals and not paying mega bucks for hot properties. In a few years the do not overpay approach may prove to be beneficial to the shareholder.

Individuals at this level are hired for their Rolodex and the business development responsibility makes a great deal of sense. The question becomes should this function have been staffed several years ago.

The signal from Styponias is to short the sell side where she excelled and go long with the cash rich buy side. Now if we can only find a few good revolutionary acquisitions for about $100 million before they get too hot.