If you think that MSFT is purchasing Skype on a whim; then you are an idiot!
This purchase has gone through a slough of marketing, accounting, production and legal analysts---- and they all said it's a go!
This is a high growth business that will cycle up under MSFT's guidance.
Have to disagree. Skype is still a middleman in the telecom business. This will never displace cell phones and there are tons of VOIP solutions out there already. The only reason people use Skype is because its free.
There might be a market if they make a magic-jack type device using a simple lan connector but try as you might magic-jack will never have a huge market share.
There might be a market in the home video conference arena if they tie it into the kinect or something similar, but again we already have these applications on the PC and almost no one uses it because our primary communication device is the cell phone and those can already do video conferencing. Once it become mainstream on the phone you can kiss any chance of it gaining steam on the xbox or pc.
Last, you will never dominate the cell market using skype. It is not convenient nor intuitive and there are already other options like google voice and equivalents.
In my opinion this is a losing deal. They should have focused on the Kinect and making it mainstream in the PC market as a input device alternative to the keyboard & mouse. It has a lot of practical applications and there are no competitors at this time. They also need to focus on getting market share in the hand held market which will inevitably replace the desktop in due time. What will happen when everyone can use their phone as a PC by plugging in a single cable and it performs fast enough to their liking? its just a matter of time before the hardware makes surfing the net and using office software trivial. I give it less than 10 years. The clock is ticking on MS's domination in the general PC market. Google is probably going to be the winner of the OS wars.
only steve ballmer the idiot pays $8 billion for a company that:
-Ebay failed to make money with, and loss for a loss of 1 billion
-Was worth about 2+ billion three years
Skype is not worth more than 4 billion...
msft is full of idiots
Okay...give me one great product outside of windows that has earned MSFT serious cash.
If you are thinking about X-Box...they are in the hole for about a billion still on this little beauty.
Its been dead money for more than 10 years and management has not changed in 10 year other than Gates stepping away.
Its time to bring in new blood to get this company back on track.
IMHO GREAT move for MSFT !! It uses foreign profits saving $$$ in USA Taxes. It acquires the extensive technology and patents from Skype keeping this away from the competition.... and evolves MSFT along the trend software and communications is moving for the future....
I agree it's no whim. They probably spent a lot of time and resources deciding how best to keep the price of MSFT down. Let's see, we currently can't get any more leverage with the MSFT buys YHOO story, let's try another company!!!
Yes, isn't it interesting that all the people on this board who have real in depth knowledge of Microsoft's goals and business model feel qualified to comment.
Like all deals there are definitely positives and negatives, with positives probably overweighing and ultimately success will depend on execution.
It is just a wait and see.
It's not a question of the technology...SKYPE will fit into many of the product/services Softy has...but why pay 8.5 Bil...when, correct me if I'm wrong, but didn't ebay let it go for 1.5 Bil not to long ago...8.5 Bil would of been a nice one time divy for shareholders...so yea, they may be the VILLAGE IDIOT!!!
Problem isnt with the deal, or with the price for that matter. Its time. How long will it take to pay off? Msft needs a payoff quickly to satisfy Value investors. This deal was for Growth investors and Msft doesnt have a lot of believers there. They need a payoff more quickly to satisfy the Value guys. My guess is a div increase coming sooner rather than later for them. Small but soon.