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Microsoft To Acquire Skype For $8.5 Billion
engine




msg:4310249
 8:01 am on May 10, 2011 (gmt 0)

Report: Microsoft Close to Acquiring Skype [online.wsj.com]

Microsoft Corp. is close to a deal to buy Internet phone company Skype Technologies SA for between $7 billion and $8 billion—the most aggressive move yet by Microsoft to play in the increasingly-converged worlds of communication, information and entertainment.


Earlier story

Report: Facebook and Google Consider Skype Deal [webmasterworld.com]

 

Shaddows




msg:4310300
 12:35 pm on May 10, 2011 (gmt 0)

I can't decide whether this is massively overpriced, or brilliant value.

Imagine marrying Skype with Xbox. The penetration would be immense.

Then there's both companies' disregard for industrial standards, the potential legal hurdles of embedding a voice/video client into Windows (is that the EU I hear lining up a law suit?), and the potential to make Skype respectable enough for Business use.

So many issues, so many possibilities.

On balance though, this sounds like "MS acquires useful company, breaks it and loses investment".

Tor




msg:4310303
 12:44 pm on May 10, 2011 (gmt 0)

It is now official:

[online.wsj.com ]

Shaddows




msg:4310305
 12:49 pm on May 10, 2011 (gmt 0)

BBC's summary of key points:
It's a done deal: Microsoft has bought Skype for a whopping $8.5bn.

That's a lot of cash for an eight-year-old company that's not making a lot of money.

So what's in it for Microsoft?

For starters, the firm gets well over 600 million users who make Skype the world's largest phone company for international voice calls.

More importantly, Microsoft buys into a lot of potential.

Marry Skype's software with the Xbox Kinect and an HD television set, and Microsoft can make a powerful argument for getting into millions of living rooms.

Think beyond teleconferencing for the whole family: there's one-on-one training, home schooling, even patient care delivered remotely and in vision.

Smarten it up for the corporate world, and Microsoft can challenge the telepresence business of firms like Cisco and Polycom.

And Skype is multi-platform, reaching into the worlds of Apple and Linux.

Finally, Skype is mobile, and can be paired with Windows Phone 7.

The hitch: Microsoft boss Steve Ballmer will have to work hard to integrate Skype, to ensure the voice/video-over-the-internet company is not strangled by his firm's notorious bureaucracy.

[bbc.co.uk...]

walkman




msg:4310308
 12:59 pm on May 10, 2011 (gmt 0)

Microsoft said it will marry Skype's functions to its Xbox and Kinect game consoles, Outlook email program and Windows smartphones. The company said it will continue to support Skype on other software platforms.
[online.wsj.com...]


This makes a lot of sense, at least in paper. Also depends how they paid the $8 billion, it may not even close to to being a real $8 billion when taxes and other stuff is considered.

ByronM




msg:4310330
 1:50 pm on May 10, 2011 (gmt 0)

Great news if they can pull this off quickly. Skype from Xbox 360 to Windows Desktop to Windows Phone and eventually windows tablets would be an amazing product. Integrate it with MSN & Lync, keep it international and commit to maintaining OSX/Linux/iOS/BB/Android versions and it may pay off - especially as LTE/4g networks expand.. sooner or later with IP services you won't need phone AND internet, just internet.

Shaddows




msg:4310334
 2:02 pm on May 10, 2011 (gmt 0)

sooner or later with IP services you won't need phone AND internet, just internet

Yeah, but this is the major issue I have with both MS and Skype- they are not standards-orientated.

If Skype went SIP-based, it would be revolutionary. However, it would also remove the lock-in they currently have, so will never happen. MS have the same proprietary attitude, so this will cement the situation.

Rlilly




msg:4310337
 2:05 pm on May 10, 2011 (gmt 0)

They can promote BING to about 40 million daily users..

weeks




msg:4310340
 2:10 pm on May 10, 2011 (gmt 0)

On balance though, this sounds like "MS acquires useful company, breaks it and loses investment".
Yup. But you forgot to include "user public screwed."
J_RaD




msg:4310342
 2:15 pm on May 10, 2011 (gmt 0)

good buy for MS, lets see them tie it all together and make it work.

musicales




msg:4310361
 2:53 pm on May 10, 2011 (gmt 0)

I feel sick. Skype will turn into hotmail spam and flashing banner ads. Disaster!

walkman




msg:4310369
 3:15 pm on May 10, 2011 (gmt 0)

I though of one other thing: MS can offer some sort of Skype integration to Twitter or FB in exchange for using /helping Bing or to freeze Google out out of their platforms.

When it's all said and done $8 billion is nothing for Microsoft and it has so much upside.

zdgn




msg:4310386
 4:18 pm on May 10, 2011 (gmt 0)

Microsoft chief executive Steve Ballmer said: "Skype is a phenomenal service that is loved by millions of people around the world.


I hope someone tells him that's a good thing before it's too late... :-\

Seb7




msg:4310397
 4:48 pm on May 10, 2011 (gmt 0)

I feel sick. Skype will turn into hotmail spam and flashing banner ads. Disaster!
It concerns me too, I like skype; he's going to ruin it.

Interesting, Googling 'ruin' brings up news articles about this.

Much prefer intergrating messenger in to skype then skype in to messenger; the latter is pretty scary.

Demaestro




msg:4310440
 5:48 pm on May 10, 2011 (gmt 0)

Score a win for the Canadian pension plan who had invested in Skype.

Profit of over $500 million

IMO..... It would be awesome to chat with someone from my PC while they are in game on XBL and sharing their screen with me.

If they do that, I will be a fanboy

limoshawn




msg:4310448
 6:05 pm on May 10, 2011 (gmt 0)

this just shows me that i'm going about things all wrong, skype had 840 million in revenue last year for a net LOSS of over 7 million and they are worth 8.5 BBBBillion....

mlemos




msg:4310484
 7:19 pm on May 10, 2011 (gmt 0)

This means the eventual end of development of Skype for Mac OS, iOS, Android, Linux, BSD, etc..

It is time to seek another VOIP program. It seems Gtalk will be a good candidate if they continue evolving it.

Demaestro




msg:4310489
 7:31 pm on May 10, 2011 (gmt 0)

This means the eventual end of development of Skype for Mac OS, iOS, Android, Linux, BSD,


I don't think so but you might be right. I am not sure why they would reduce their user base like that. They already have penetrated those markets, undoing that would be silly... although MS does silly stuff so who knows. I hope not though.

nomis5




msg:4310492
 7:38 pm on May 10, 2011 (gmt 0)

Microsoft is buying the world now. It's totally frightening. Stop trying to work out if it's a good deal for Microsoft or not, start being afraid that everywhere you look in the computer world a giant monster is slowly taking over. Twitter will be next, Google not far down the line.

weeks




msg:4310494
 7:52 pm on May 10, 2011 (gmt 0)

this just shows me that i'm going about things all wrong, skype had 840 million in revenue last year for a net LOSS of over 7 million and they are worth 8.5 BBBBillion....
Oh, don't you know that MS is expert at bringing in expertise into new technical services and markets. For example, look at their huge success in video, books, music and web search. Plus, I need not mention their unquestionable leadership in social media. Look forward to MS bringing all of these talents to Skype.
pp46




msg:4310537
 9:31 pm on May 10, 2011 (gmt 0)

Hum..
Not bad for an original open source VOIP project
But I wonder if Skype will still work on Linux now...
thats all I really care about.

maybe some body one day will buy the world or has it allready been done!

pp46




msg:4310538
 9:33 pm on May 10, 2011 (gmt 0)

oups sorry missed this
although MS does silly stuff so who knows

says it all...

drall




msg:4310637
 4:11 am on May 11, 2011 (gmt 0)

Smart move by MS, tons of ways to tie this in.

BillyS




msg:4310709
 10:54 am on May 11, 2011 (gmt 0)

The price paid is just plain stupid. They must be using the same team of people that negotiated all those great deals 15 years ago.

engine




msg:4310726
 11:52 am on May 11, 2011 (gmt 0)

There's terrific potential for Microsoft, no wonder they were keen.

Steve Ballmer made an interesting comment. [zdnet.com]
And we’ll continue to invest in and support Skype clients on non-Microsoft platforms.



Think about it for a moment, Skype is on other platforms, such as Android. That's a good way to drive traffic to Bing!

weeks




msg:4310751
 1:08 pm on May 11, 2011 (gmt 0)

Microsoft remains hugely profitable today, but increasingly irrelevant. Their purchase of Skype is an attempt to grab some relevance. They are the rich, uncool fat kid at school, trying desperately to buy their way into some popularity. On a spectrum of relevance, where would you place MSFT: Are they closer to Google or Apple or Facebook or Twitter, or are they more comparable to the Maytag repairman of the tech world?...
...Microsoft has missed just about every major trend in computing over the past decade. ...
And now comes their ill advised, wildly over-priced, $8.6 billion purchase of Skype. It is their attempt to buy their way into the Smart Phones, yet another innovation they missed. It is their attempt once again to purchase relevancy....
The rich fat kid just wants to be cool.
[ritholtz.com...]

I would only edit this to say "the rich, lazy, fat kid who wants to be cool."

pp46




msg:4310763
 1:47 pm on May 11, 2011 (gmt 0)


IMO its going to be a big waste of money for them
They could have used it for better things...
I have some ideas but I will keep them to myself...
:-)

J_RaD




msg:4310767
 1:56 pm on May 11, 2011 (gmt 0)


They are the rich, uncool fat kid at school, trying desperately to buy their way into some popularity. On a spectrum of relevance, where would you place MSFT


the reporter typed this on his windows 7 computer in office 2010 on his companies windows server 2008 domain. The webpage is probably being served from IIS.

gosh those folk and MS really don't have anything right!

flashdash




msg:4311250
 11:25 am on May 12, 2011 (gmt 0)

Skype last year profit = $860m
Total users = 675m
Profit per user = $1.27/year

M$ buys Skype for $8.5b

How the f*+$ does that work?

PS: MS sucks at integration, so where will value come from?

pp46




msg:4311254
 11:43 am on May 12, 2011 (gmt 0)

No plan/value, just buy everything before somebody else does, just like an other big actor we all know...

This 32 message thread spans 2 pages: 32 ( [1] 2 > >
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