With rumors swirling last night that Microsoft was going to purchase Skype for some $7 billion, many of us expected to wake up the news, and we did. Except, Microsoft spent a total of $8.5 billion. Excerpt from the press release: Microsoft Corp. (Nasdaq: “MSFT”) and Skype Global S.à r.l today announced that they have […]
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Microsoft Buys Skype, Price tag- $8.5 Billion

skype.jpgWith rumors swirling last night that Microsoft was going to purchase Skype for some $7 billion, many of us expected to wake up the news, and we did. Except, Microsoft spent a total of $8.5 billion.
Excerpt from the press release:

Microsoft Corp. (Nasdaq: “MSFT”) and Skype Global S.à r.l today announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. The agreement has been approved by the boards of directors of both Microsoft and Skype.

Microsoft claims that they hope to bring the service to device such as the Xbox and Kinect, and Windows Phone while connecting Skype users to Outlook, Xbox Live and other social networks. They also plan to continue to develop for non-Microsoft platforms.

This is weird. I don’t see the advantage for Microsoft. Skype had a tidy little business for themselves, but whatever they were making surely couldn’t be so large that Microsoft wants a chunk. Plus, and this sounds like the snobbery of the 1990s, I would expect that the quality of the software, the Mac software in particular, to go down after this acquisition. The reason this is Apple news, is because so many Apple customers, be it Mac or iOS owners, use Skype.

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