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Microsoft Buys Skype for $8.5 Billion

Discussion in 'Affiliate Programs' started by 507money, May 11, 2011.

  1. 507money

    507money Newbie

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    Just days after reports that Google and Facebook were interested in partnering with, and possibly buying VoIP company Skype, Microsoft announced that it was buying the company for $8.56 billion in cash.

    Last year, Skype had revenue of $860 million on which it posted an operating profit of $264 million. However, overall it made a small loss of $7 million, and had long-term debt of $686 million. This is the second time Skype has been bought out; after being started in 2003, it was purchased by eBay in 2005 for $3.1 billion. EBay then sold the majority of its stake in 2009 to a private investment group for $1.2 billion less than it paid.

    The purchase was Microsoft?s biggest ever, surpassing even the $6 billion acquisition of advertising firm aQuantive in 2007. That alone makes it surprising; the company?s track record with large purchases is decidedly mixed. Danger, the exciting mobile technology company that produced the Hiptop, better known as the T-Mobile Sidekick line, was purchased for an estimated $500 million in 2008; the result of that purchase was the disastrous KIN phone and a complete failure to integrate the bought-in talent. The aQuantive purchase too had mixed outcomes, with Redmond unable to find a role for the Razorfish division before eventually selling it off in 2009; Microsoft continues to be unable to make a profit from online advertising. :eek:
     
  2. akhan02

    akhan02 Newbie

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    Interesting.. I wonder what that means for us users who use Skype on a daily basis.. Maybe some new features? Who knows... I wonder what MS has in mind when Skype's track record has been so pathetic.
     
  3. lightning.god.zeus

    lightning.god.zeus Junior Member

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    I wonder what this is going to mean for Microsoft stock.
     
  4. clfox

    clfox Regular Member Premium Member

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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 gonna 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....
     
  5. ronywilliam

    ronywilliam Senior Member

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    Now when Microsoft owns skpye, not to forget the portion of there ownership they have in FB, so you never know that they might come with something major on FB paltform..
     
  6. Virus1

    Virus1 Supreme Member

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    Microsoft purchased skype....

    does that mean skype will soon start crashing....:(

    lol
     
  7. christoss1959

    christoss1959 Senior Member

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    Actually Skype has had lots of problems with the last 3 versions of their software and lots of complaints. So they were basically going down hill and said what the hell lets just jump of the hill :p

    Personally I uninstalled Skype as soon as I heard. I am only using my gtalk account from now on..
     
  8. fakedream

    fakedream Registered Member

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    Microsoft is bigger company in the world so it is not impassible for them to buy Skype.
    This will another dimension for Microsoft it they can purchase Skype.