Author Topic: Microsoft buying skype for US $8.5 Billion (Read 32089 times)

Josh · « **on:** May 10, 2011, 07:37 AM »

Microsoft buying skype for US $8.5 Billion

REDMOND, Wash., and LUXEMBOURG – May 10, 2011 – 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.

The acquisition will increase the accessibility of real-time video and voice communications, bringing benefits to both consumers and enterprise users and generating significant new business and revenue opportunities. The combination will extend Skype’s world-class brand and the reach of its networked platform, while enhancing Microsoft’s existing portfolio of real-time communications products and services.

With 170 million connected users and over 207 billion minutes of voice and video conversations in 2010, Skype has been a pioneer in creating rich, meaningful connections among friends, families and business colleagues globally. Microsoft has a long-standing focus and investment in real-time communications across its various platforms, including Lync (which saw 30 percent revenue growth in Q3), Outlook, Messenger, Hotmail and Xbox LIVE.

Skype will support Microsoft devices like Xbox and Kinect, Windows Phone and a wide array of Windows devices, and Microsoft will connect Skype users with Lync, Outlook, Xbox Live and other communities. Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms.

“Skype is a phenomenal service that is loved by millions of people around the world,” said Microsoft CEO Steve Ballmer. “Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world.”

More at source

Carol Haynes · « **Reply #1 on:** May 10, 2011, 11:16 AM »

See http://www.zdnet.com...ion/9406?tag=nl.e539

Presumably that will be the end of Skype as we know it and it will all be bundled into Windows Live Messenger with all the attendant crap that comes with it!

MS apparently are upbeat about support non-MS users but haven't we heard that before somewhere?

Stoic Joker · « **Reply #2 on:** May 10, 2011, 11:29 AM »

Hm... I really can't decide how to feel about that. But I do wonder if they're going to go with a Live style Huggy-Feely interface, or do a clean straightforward business type interface.

Skype's interface has gotten progressively goofier with the last several updates, so I'd love to see a more back to basics strictly business UI.

Josh · « **Reply #3 on:** May 10, 2011, 11:44 AM »

I believe Microsofts acquisition is more about integration and development of voip technologies into Windows, The Office Communications platform (which is fantastic, btw), and movement to expand VOIP supporting technologies.

Stoic Joker · « **Reply #4 on:** May 10, 2011, 11:55 AM »

Presumably that will be the end of Skype as we know it and it will all be bundled into Windows Live Messenger with all the attendant crap that comes with it!
-Carol Haynes (May 10, 2011, 11:16 AM)

I'm not so sure that's guaranteed...And out of the three involved in the bidding (Google, FaceBook, MS), I do believe MS is the lesser evil.

FaceBook/Skype - Oh Goody I can Vcon with the Sheep on my farmville - Please let me die!
Google/Skype - Skype goes back into beta for the next decade as service slowly begins to totally suck.

Stoic Joker · « **Reply #5 on:** May 10, 2011, 11:59 AM »

I believe Microsofts acquisition is more about integration and development of voip technologies into Windows, The Office Communications platform (which is fantastic, btw), and movement to expand VOIP supporting technologies.
-Josh (May 10, 2011, 11:44 AM)

Well that (Implying a cleaner business UI) Would be delightful!

Josh · « **Reply #6 on:** May 10, 2011, 12:07 PM »

I wholeheartedly disagree, Carol. Just because MS buys this does not mean it is done for as I outline in my second posting here

Dormouse · « **Reply #7 on:** May 10, 2011, 01:02 PM »

MS may be the best option out of the 3. I'd hate to see Skype folded into Facebook (& not sure what else they'd do with it to make it worthwhile for them). The business model behind all Google's businesses is pretty much the same as the Skype one & I think they'd make it work - but that would make it extremely hard for anyone to compete. MS's record with acquisitions is hardly positive. I assume they see a potential benefit in their cloudy ambitions & possibly with WM7 too - and that clearly needs all the breaks it can get to avoid a rapidly visible flop. But it is a very different business model to the ones that MS is used to milking and I'd be surprised to see them make it work, so I suspect Skype (as is) will decline and become no more. The one good thing with that is that Google will still be out there & will have the ability & desire to move into any space left behind by MS.

Edvard · « **Reply #8 on:** May 10, 2011, 01:54 PM »

Since the Linux version received about as much attention as I give beetles in Mongolia, MS taking it over is simply more un-good news. $:-\$

On a side note, what is it with independent services getting bought up by big conglomerates?
I understand the dynamics, but isn't there anybody who refuses to sell out?
Or is that simply the name of the game?

Josh · « **Reply #9 on:** May 10, 2011, 01:56 PM »

Since the Linux version received about as much attention as I give beetles in Mongolia, MS taking it over is simply more un-good news. $:-\$

On a side note, what is it with independent services getting bought up by big conglomerates?
I understand the dynamics, but isn't there anybody who refuses to sell out?
Or is that simply the name of the game?

-Edvard (May 10, 2011, 01:54 PM)

I think it is easy to say "I will not sell out"....until you see a check or cash sitting in front of you. Then, it becomes a whole new story.

Edvard · « **Reply #10 on:** May 10, 2011, 02:26 PM »

Oh, believe me I understand completely.
$8.5B is a [expletives deleted] insane amount of money; as in, you're [more expletives] insane if you don't take the offer.
I was just musing on about if the point was to create a killer service with the intent of eventually getting bought out.

Besides, even as I was going to counter "check or cash sitting in front of you" with "perhaps millions of disapproving users frowning behind you", it always happens that for some godforsaken reason users end up liking the arrangement.

e.g. Lala.com; when Apple bought them up, a few people here (including yours truly) expressed their deep displeasure.
The reaction across the internet, however, was along the lines of "Oh, goody, I hope they use the technology to fix iTunes"

wraith808 · « **Reply #11 on:** May 10, 2011, 02:32 PM »

Since the Linux version received about as much attention as I give beetles in Mongolia, MS taking it over is simply more un-good news. $:-\$

On a side note, what is it with independent services getting bought up by big conglomerates?
I understand the dynamics, but isn't there anybody who refuses to sell out?
Or is that simply the name of the game?

-Edvard (May 10, 2011, 01:54 PM)

I think it is easy to say "I will not sell out"....until you see a check or cash sitting in front of you. Then, it becomes a whole new story.
-Josh (May 10, 2011, 01:56 PM)

Also, there's the fact that if I don't sell out someone will... and they'll have a check, and I'll have a whole new set of headaches from the new 800lb gorilla in the field...

Dormouse · « **Reply #12 on:** May 10, 2011, 02:39 PM »

In fact, they had already sold out long ago. Sold it to ebay in 2005. Ebay sold it to venture capitalists (+ founders) in 2009, having not got the most out of it. Hardly a surprise to find venture capitalists then selling for a profit - that is what they do (except when they sell for a loss that is).

mahesh2k · « **Reply #13 on:** May 10, 2011, 04:17 PM »

I don't think they'll shut freemium model, so don't know why everyone is so upset because MS bought it. Atleast they're not sold to apple, you can guess the next UI of skype if it were to be from apple folks (clean video window with two buttons- call/end), skype interface at high doped apple minimalism).

Deozaan · « **Reply #14 on:** May 10, 2011, 04:20 PM »

At first I was relieved because I'd heard rumors that Facebook was going to buy it.

But since Microsoft is an investor in Facebook, that might mean that Facebook will get it anyway.

I'm not sure how I feel about it yet either.

With Microsoft, I don't think it's a guaranteed failure, but I can't really be certain either way.

Carol Haynes · « **Reply #15 on:** May 10, 2011, 05:16 PM »

I wholeheartedly disagree, Carol. Just because MS buys this does not mean it is done for as I outline in my second posting here
-Josh (May 10, 2011, 12:07 PM)

Actually I probably agree with what you said but I would be surprised if the Skype technology isn't used within other MS products rather than keeping Skype as a free service as it is now. OK they say that isn't their intention but MS have acquired much in the past that has been absorbed and transformed into other projects and completely disappeared in its original form. Unfortunately MS don't always do justice to their acquisitions.

Take Windows Defender as an example - they bought up another anti-spyware product and made a complete hash of it.

I can't help feeling that the basic technology of Skype will be absorbed in to the Windows Live cloud (and in particular Windows Live Messenger which is pretty crap at voice and video IME) and also into some premium products. Personally I used to use Windows Messenger (the one that was built into Windows XP) and also MSN Messenger but the Live incarnation is unpleasant to use because of all the crap-bloat and the settings that make Facebook look transparent!

Whatever they do they will be working hard to recoup their $8.5bn so you can bet there will either be a massive advertising push onto cloud products or they will start pushing communicator to businesses in a bigger way - probably both!

Renegade · « **Reply #16 on:** May 10, 2011, 05:44 PM »

MS can't do any worse on the Mac version of Skype than it already is -- It's horrid on the Mac.

We'll see though. I like Skype and use it daily.

wraith808 · « **Reply #17 on:** May 10, 2011, 07:55 PM »

Take Windows Defender as an example - they bought up another anti-spyware product and made a complete hash of it.
-Carol Haynes (May 10, 2011, 05:16 PM)

I don't think that's entirely accurate. Isn't MSE based on Windows Defender? And to be sure, MSE is decent enough AV that I run it and nothing else.

Josh · « **Reply #18 on:** May 10, 2011, 08:19 PM »

I also run MSSE alone, and it has caught quite a bit. No issues with it here...

Edvard · « **Reply #19 on:** May 10, 2011, 09:14 PM »

MS can't do any worse on the Mac version of Skype than it already is -- It's horrid on the Mac.

We'll see though. I like Skype and use it daily.
-Renegade (May 10, 2011, 05:44 PM)

Me too.
I'm curious to see what they do to the Linux version.

Stoic Joker · « **Reply #20 on:** May 10, 2011, 09:18 PM »

At least they're not sold to apple, you can guess the next UI of skype if it were to be from apple folks (clean video window with two buttons- call/end), skype interface at high doped apple minimalism).
-mahesh2k (May 10, 2011, 04:17 PM)

Two Buttons! Perish the thought, for Mac you only get One Button (follows the mouse theme). Hold down the magic button, wait for your desired task to appear (from a list of 1,000 items - Much like the Mac Wheel) and then release the button. What could be simpler?

Renegade · « **Reply #21 on:** May 10, 2011, 09:30 PM »

Maybe MS could also start funding Mono, make it a first class .NET alternative, then rewrite Skype in Mono for the Mac and Linux~!

Wishful thinking...

Stoic Joker · « **Reply #22 on:** May 10, 2011, 10:23 PM »

A Skype SDK would be fun...

Renegade · « **Reply #23 on:** May 10, 2011, 10:31 PM »

A Skype SDK would be fun...
-Stoic Joker (May 10, 2011, 10:23 PM)

I was thinking that the other day -- I've been working with the Facebook and Twitter SDKs/APIs lately.

Deozaan · « **Reply #24 on:** May 11, 2011, 02:15 AM »

This could be a lot worse than any of us previously imagined...