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Microsoft Buys Skype for $8.5 Billion

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1 Microsoft Buys Skype for $8.5 Billion on Fri May 13, 2011 9:36 pm

QueenBee

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Big news today in the tech sector.
Microsoft announced an $8.5 billion acquisition of the Internet
telephone service Skype Technologies SA from eBay and a group of private
equity investors including Silicon Valley heavyweights Silver Lake
Partners. The deal is Microsoft's largest cash purchase in its 36-year
long history.
"The combination will extend Skype's world-class brand and the reach
of its networked platform, while enhancing Microsoft's existing
portfolio of real-time communications products and services," according
to Microsoft's press release
on the deal. "With 170 million connected users and over 207 billion
minutes of voice and video conversations in 2010, Skype has been a
pioneer in creating rich, meaningful connections among friends, families
and business colleagues globally."
But, the big kicker as The Daily Ticker's Aaron Task and Daniel Gross
discuss in the accompanying video is the fact that Skype makes no
money. In 2010, Skype had revenues of $860 million and posted a net loss
of roughly $7 million.
Why would Microsoft dole out nearly $10 billion -- or ten times revenues -- for a company that makes zero profit?
Because the company has a terrible predicament not uncommon to very
mature tech companies, according to both Dan and Aaron. Microsoft simply
has so much cash it doesn't know what to do with and, for whatever
reasons, paying bigger dividends and buying back stock are just not
options.
Microsoft may also hope the deal will increase its competitiveness
against both Apple and Google in the mobile platform arena by allowing
it to upgrade its suite of products.

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http://finance.yahoo.com/blogs/daily-ticker/microsoft-buys-skype-8-5-billion-cash-deal-181237725.html


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2 Re: Microsoft Buys Skype for $8.5 Billion on Fri May 13, 2011 9:44 pm

spy_lass4

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wow..go for skype..

3 Re: Microsoft Buys Skype for $8.5 Billion on Sat May 14, 2011 9:58 pm

QueenBee

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basin mawa na nuon ang skype gurl...og naa pa man gani, dili na libre..hehehe..


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4 Re: Microsoft Buys Skype for $8.5 Billion on Sat May 14, 2011 10:03 pm

spy_lass4

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hehehehe....wrong number kOw...

5 Re: Microsoft Buys Skype for $8.5 Billion on Sat May 14, 2011 10:12 pm

QueenBee

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hahaha..the number you have dialed is not a number... Smile Smile


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6 Re: Microsoft Buys Skype for $8.5 Billion on Sat May 14, 2011 10:19 pm

spy_lass4

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Hahahahaha.....

7 Re: Microsoft Buys Skype for $8.5 Billion on Sat Oct 29, 2011 4:57 pm

Malakai

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A lot of people are looking at revenues / profits of Skype which may underestimate the deal.. However, given the fact that the world is moving towards cloud based communication platform, replacing the old PSTN, Skype is sure going to be a frontier and game changer in the industry.

Soon, internet, tv and voice will flow in a single pipe which could be either fiber or wireless such as 4g... When such network convergence occurs worldwide, IP voice will gain the greatest momentum..

Skype has a greatest advantage of having the highest number of paid VoIP users.. the number of free users are ever growing. Its is currently the fastest growing IM replacing msn/gtalk. . .

On a future perspective, this is the way to go for Microsoft....

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