Microsoft buys skype for $8.5 billion

[Deuce Bigalow]

Wow, I'm interested to see how this turns out for all parties... Ebay sold off skype 18 months prior for about 2.5billion I believe.
http://techcrunch.com/2011/05/10/microsoft-acquires-skype/

[mykalberta]

It depends on the deal.

If I remember the Ebay deal was completed in part because the Skype founders still owned the patents for Skype or something of that effect.

Perhaps this is the cost to out and out buy the company. Hard to see how you make real money on Skype to justify this valuation, I guess the 600m+ install base is 1 good reason but it cant be the only reason. I really thought Apple might buy them and replace Facetime with Skype.

[BlackEleven]

Facebook was another rumoured interested party.

I wonder what this means for Linux and OS X support going forward...

[MarchHare]

Interesting...since you can call a real phone via Skype, maybe MS plans to make the software exclusive to Windows Phone 7, effectively giving anyone who uses a WP7 device unlimited* free local and long-distance calling? That would certainly be a competitive advantage to set WP7 apart from iPhone and Android.

*until you reach the cap of your monthly data plan

[Ozy_Flame]

Interesting...since you can call a real phone via Skype, maybe MS plans to make the software exclusive to Windows Phone 7, effectively giving anyone who uses a WP7 device unlimited* free local and long-distance calling? That would certainly be a competitive advantage to set WP7 apart from iPhone and Android.

*until you reach the cap of your monthly data plan

Canadians would be screwed over.

[Deuce Bigalow]

Facebook was another rumoured interested party.

I wonder what this means for Linux and OS X support going forward...

so was google I think. I read that since microsoft is a FB investor, that FB should be able to get access to most of skypes tech to integrate with their products... guess we'll have to wait and see.

[Traditional_Ale]

Canadians would be screwed over.

He could just buy Rogers and solve that problem.

[Azure]

Canada Pension Plan was one of the owners of Skype. I wonder how much they cleared. Hell of an investment.

[Azure]

CPPIB's contribution to the deal is about $300 million, or 15 per cent, said Joel Kranc, a spokesman for the investment board.

http://www.thestar.com/business/article/689644

[GreenTeaFrapp]

Canadians would be screwed over.

Why? Does Skype use THAT much data?

[Azure]

Boom.

They have been. With Microsoft acquiring Skype for $8.5-billion, it appears CPPIB is going to make about three times its original investment on behalf of Canadian pensioners.

CPPIB originally took a 15-per-cent stake with its $300-million contribution. That stake has been diluted somewhat since the transaction was announced, but judging by the numbers in last year's filing for a Skype initial public offering, still remains about 13 per cent. (The offering, obviously, never happened). That puts the value of CPPIB's take in a sale at about $1.1-billion. There is some debt that will have to be repaid, so we'll have to wait for the official announcement to see what return CPPIB is officially getting, but it's going to be juicy.

http://www.ctv.ca/generic/generated/static/business/article2016350.html

[psicodude]

This acquisition makes a lot of sense actually. Microsoft has been pushing hard into the IP phone market with Linq server and the whole Kinect teleconferencing thing. If MS can manage to combine all of these they are poised to dominate this market.

[3 Justin 3]

8.5 billion $ for a company which offers a free service? Nice job Skype. (to my knowledge anyway)

It boggles my mind how companies like Facebook and Google are so wealthy and worth so much when they really don't offer all that much and their service is free.

As an entrepreneur that is some exciting stuff.

[MelBridgeman]

8.5 billion $ for a company which offers a free service? Nice job Skype. (to my knowledge anyway)

It boggles my mind how companies like Facebook and Google are so wealthy and worth so much when they really don't offer all that much and their service is free.

As an entrepreneur that is some exciting stuff.

It's only free when you call other skype users. To make a call to another phone number requires purchase of credits, to have a phone number attached your skype also costs money. So it isn't exactly free.

Google makes tons of money off internet advertising amongst other services. There revenue is like 30 billion last year.

Facebook also makes money from advertising there revenue is around 2 billion last year.

[FanIn80]

I'm still trying to figure out who the heck keeps clicking on all the ads required for Facebook and Google to make their money.

[MelBridgeman]

I'm still trying to figure out who the heck keeps clicking on all the ads required for Facebook and Google to make their money.

Not an expert and maybe someone can clear this up, but its clicks and impressions. I think.

[Bill Bumface]

If I need to contact a company I hate, I google their name, wait for the google add to come up, click that link instead of the search result and stick them with the tab.

Take THAT!

[Mad Mel]

I suspect that Google will keep moving forward with Google Voice, which kicks Skype's ass all over the playground with its free calls to telephones and centralisation of all your telephone numbers. Well, as long as you live in the US. If they expand it worldwide, this is gonna be the worst $8.5B that Microsoft ever spent.

[Azure]

I actually think it will be the best $8.5 billion Microsoft will ever spend.

They'll be able to integrate this with their already dominant office platform. I for one am looking forward to the integration with Outlook.

[MarchHare]

I actually think it will be the best $8.5 billion Microsoft will ever spend.

They'll be able to integrate this with their already dominant office platform. I for one am looking forward to the integration with Outlook.

Microsoft already has business-grade video conferencing features integrated with Outlook using Lync. Are you looking for something more?

[Azure]

Microsoft already has business-grade video conferencing features integrated with Outlook using Lync. Are you looking for something more?

More familiar with Skype, which is the only reason I look forward too it.

[MacGruber]

Ill give you my honest reaction to this, said out loud.
:censored:!!

I cant say I like this.

[Mad Mel]

Yup. I currently use OCS (precursor to Lync), it's kickass and is fully integrated with MS Office. You can instant message, do video conferencing, and call telephones. Hey... sounds familiar...

[Bend it like Bourgeois]

Not an expert and maybe someone can clear this up, but its clicks and impressions. I think.

Both or Either.

On Skype, they already drive billions of calls from Skype users to businesses (hundreds of millions in Canada) and are beginning to monetize that.

As advertising keeps pushing to pay for action (pay for call) over clicks and impressions the installed base and volumes are a big strategic asset.

Which MS will probably f up.

[Azure]

As excited as I am about the purchase, I was hoping Facebook would buy it.

[LIP MAN]

More familiar with Skype, which is the only reason I look forward too it.

Familiarity from the general public and brand recognition. Essentially they are paying for the industry standard. Hell, my Mom asked me about Skype. They obviously have big plans in terms of integration with their products.

[Sr. Mints]

If I could unfold myself onto my couch and use Microsoft's Kinect to Skype on my 360, I would totally buy one.

[corporatejay]

If I could unfold myself onto my couch and use Microsoft's Kinect to Skype on my 360, I would totally buy one.

nm