Microsoft Buys Skype for $8.5 billion
Well that was fast. A few hours ago, the deal finally closed – Microsoft bought Skype for a whopping $8.5 billion. Other bidders were Google and Facebook, but I guess MS decided to go all out on this one.
Someone just got a hell of a lot richer.
Now $8.5 billion is no joke. It’s a boatload of money and Microsoft really took a risk in letting that go. So why’d they do it? Skype is a videocalling service that has been attracting users exponentially. Mention internet videocalling to any living 21st century human being and they will immediately think of Skype. It’s like in the movie “The Social Network.” When Mark Zuckerberg started the website that we now know as ‘Facebook,’ it was thrilling for them (the creators) to hear people say, “Facebook me.” Relating it to this entry, I know for a fact that you’d be lying to me if you say, “I’ve never had anyone tell me to Skype them.”
SKYPE ME. So yeah, the company is a big deal. Acquiring Skype would allow Microsoft to integrate the service into their products like Xbox, Windows Phone and Outlook. Which is kinda important for MS right now if they want to stay in the game, since the Windows Phone 7 is badly lagging behind its competitors. Skype is beginning to capture the mobile market and getting this service for themselves will not only increase their user-base but also drag this user-base to the whole of Microsoft itself.
There is no doubt that this move will be good for the company. But the question is, is $8.5 billion worth it? Despite the popularity of Skype, it’s still having a hard time earning its revenues. Is it simply a desperate attempt for Microsoft to stay in the game? I just hope they won’t be incurring losses this year.