Ravi Jay: cookieMaster + blindteddybear + Dj aaRJay

Tuesday, May 10, 2011

Microsoft buys Skype for $8.5 Bn

Surprised? Well, I sure am.
$8.5Bn, Bing, free data link calls, Internet telephony, Lync, Microsoft buys Skype, Microsoft Online services, Microsoft Telecommunications, Skype, who owns Skype now
Courtesy: David Loh/Reuters
Skype has been recording losses of about $686 M in the last year and has not been profitable for a few years now. Skype is seen as a threat by all mobile operators as it is a way to call across countries through data link for free. Now, with the new development, I am not so sure the "Skype freedom" is going to continue.

Microsoft's online service has only loss making history with Lync and Bing being recorded as losses. Bing is in loss since 2005. I am not sure what Microsoft has been thinking ever since they offered to buy Yahoo for $48Bn in 2007. Some screws are coming off, but this move of acquiring Skype along with their losses beats me. Sure, Microsoft Telecommunications now have a new internet telephony tool to their armory -- but did they need it?

 Has Skype ever recorded a profitable year? Yes - before 2005. Is that enough reason to buy Skype? Only Microsoft knows. So, who owns Skype now? Microsoft Online Services.
Why Microsoft online services, why?


  1. Nice post RJ, but I guess the reason behind the deal is for capturing the Mobile market (remember Apple Face Time and Google video), since Nokia will have Windows OS this deal can get them an edge over others! Watsay?

  2. well, guess these kind of ('non cash generating') companies are atractive because of its future value, and of course because of the additional market share. Anyway, Im still trying to figure out how all that type of companies make "real" income. BTW, really good note!