Microsoft buys Skype

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Yeah, 18 months ago it was worth 2.7 billion ... so that seems steep to be sure. But I'm guessing the handheld, tablet and TV integration markets are considered to be big game-changers here, and I don't think that is fully without merit. If Skype video chat becomes a default thing on modern TVs, that could change the way we communicate pretty considerably.

Their biggest risk without a doubt would be a small upstart or competitor quickly growing in popularity, and it will be interesting to see if they'll be very defensive in that regard, or whether they consider their position unassailable for now, owning the only large-scale alternative Live Messenger themselves.

I could, incidentally, see a trust problem - wouldn't this kill competition for a while in the chat-software department? What other players of any significance are there? Facebook chat perhaps? Maybe the 8 billion was the result of a bidding war between Facebook and Microsoft? (Making some wild guesses here)
 
IMO they paid way too much.

They are paying about $50 per person whereas Skype generates about $97 per person. I thought it was too much as well originally until bloomberg dropped that tidbit. Now what I need/want is for MSFT and GOOG to take on Big Cell and get some ubiquitous wifi going.
 
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Facebook chat perhaps? Maybe the 8 billion was the result of a bidding war between Facebook and Microsoft? (Making some wild guesses here)
The suggestions are that MS, Facebook and Google were interested parties. Part of the price, I think, is likely to ensure that Google doesn't take control of it. It has been suggested that Facebook may still be able to access what they would want from it as MS is a heavy shareholder in Facebook - they certainly have take FB integration into WP7 to a heavy degree so having Skype of FB is something they may want as that is likely to be fully integrated into WP7 (or WPx.x) in future.
 
The suggestions are that MS, Facebook and Google were interested parties. Part of the price, I think, is likely to ensure that Google doesn't take control of it. It has been suggested that Facebook may still be able to access what they would want from it as MS is a heavy shareholder in Facebook - they certainly have take FB integration into WP7 to a heavy degree so having Skype of FB is something they may want as that is likely to be fully integrated into WP7 (or WPx.x) in future.

Hopefully someone will work on Facebook not being complete ***t on WP7 first :mad:
 
its interesting because apparently windows messenger has double the users for video chat.


But anyway this could be good , hopefully they add skype into xbox 360 and i can video chat on my tv with kinect. I also know it will be alot easier to get my parents to learn how to skype on kinect than through the pc and my mother will like seeing my niece and nephew on a 60 inch tv screen rather than her 14 inch laptop screen
 
Yeah, 18 months ago it was worth 2.7 billion ... so that seems steep to be sure. But I'm guessing the handheld, tablet and TV integration markets are considered to be big game-changers here, and I don't think that is fully without merit. If Skype video chat becomes a default thing on modern TVs, that could change the way we communicate pretty considerably.

Yeah, after my initial short-sighted post, I discussed this with a few coworkers and some advantage came to mind. Skype has good brand awareness, IMO much better than Windows Messenger, and MS can capitalize on this in the future.

They are paying about $50 per person whereas Skype generates about $97 per person. I thought it was too much as well originally until bloomberg dropped that tidbit. Now what I need/want is for MSFT and GOOG to take on Big Cell and get some ubiquitous wifi going.

Interesting, do you have a link? I looked but no luck :cry:

I was only going by the reports that they lost $7 million last year and were estimated to be worth much less than what MS purchased them for.

The suggestions are that MS, Facebook and Google were interested parties. Part of the price, I think, is likely to ensure that Google doesn't take control of it.

I was thinking the same thing as well, but it was reported that Google and Facebook were offering $3-$4 billion, so I wonder why they decided to pay more than twice the amount just to outbid them.
 
I see some over zealous moderator deleted my last post (how is this not censorship)
where I said buying skype was a pretty good idea

though I just read the last owners of skype brought it in 2009 for $1.9 billion
18months later MS buys it for $8.5billion, wow MS must have a good price negotiator (*), not

(*)prolly John key (NZ PM)
 
its interesting because apparently windows messenger has double the users for video chat.


But anyway this could be good , hopefully they add skype into xbox 360 and i can video chat on my tv with kinect. I also know it will be alot easier to get my parents to learn how to skype on kinect than through the pc and my mother will like seeing my niece and nephew on a 60 inch tv screen rather than her 14 inch laptop screen

They confirmed in their press release that it is coming to Kinect and XBL amongst others.

http://www.microsoft.com/Presspass/press/2011/may11/05-10CorpNewsPR.mspx
 
Yeah, after my initial short-sighted post, I discussed this with a few coworkers and some advantage came to mind. Skype has good brand awareness, IMO much better than Windows Messenger, and MS can capitalize on this in the future.



Interesting, do you have a link? I looked but no luck :cry:

I was only going by the reports that they lost $7 million last year and were estimated to be worth much less than what MS purchased them for.



I was thinking the same thing as well, but it was reported that Google and Facebook were offering $3-$4 billion, so I wonder why they decided to pay more than twice the amount just to outbid them.

It was on Tom Keenes radio show this morning let me see if I can find the analyst. Never mind here is an article from March.
 
I see some over zealous moderator deleted my last post (how is this not censorship)
where I said buying skype was a pretty good idea

though I just read the last owners of skype brought it in 2009 for $1.9 billion
18months later MS buys it for $8.5billion, wow MS must have a good price negotiator (*), not

(*)prolly John key (NZ PM)

Read whatever it was that you read...again...because clearly you are only referring to one set of "owners" and not the other company that retained a 35% stake. :rolleyes: The 2009 sale valued Skype at 2.75B at least use that number for your remarks.
 
They are paying about $50 per person whereas Skype generates about $97 per person. I thought it was too much as well originally until bloomberg dropped that tidbit. Now what I need/want is for MSFT and GOOG to take on Big Cell and get some ubiquitous wifi going.

No, it generates $97 per paying customer. If you only count those Microsoft is paying $1000 per person.

Skype makes most of its money through SkypeOut/SkupeIn. Microsoft can probably attract more businesses to these services. Outlook integration would be nice.
 
No, it generates $97 per paying customer. If you only count those Microsoft is paying $1000 per person.

Skype makes most of its money through SkypeOut/SkupeIn. Microsoft can probably attract more businesses to these services. Outlook integration would be nice.

This purchase is definitely part of a larger strategic vision. Whether that vision is something they can execute on is still an open question. Having deep pockets will certainly help.
 
It seems they overpaid for sure. 8 billion is much much more than the much ballyhooed lifetime Xbox losses over the last decade (which I'd estimate at maybe 4 billion, mostly from Xbox one). Which kind of makes the point Xbox is probably a pretty good investment.

That said, MS has a 50 billion warchest, so I dont think it hurts anything too much. If it's a strikeout, it's still OK.

But now that MS owns skype I imagine it's going to have a hard time staying popular as so many people hate MS, and once word spreads that MS owns it will shun the service simply because of MS ownership.

Should have spent that money on the next Xbox :p
 
Xbox has had video chat long before Kinect. Skype will allow video chat with non Xbox devices.

yea but for my mother she can use my xbox and kinect and contact my sister and her kids when they are on vacation who are on laptop which is most importnat .

Right now everything is splintered. We use qik on our phones, skype on our laptops /computers and i use kinect with my friends. It be great to just have one program
 
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