Linked by Thom Holwerda on Tue 10th May 2011 08:19 UTC, submitted by porcel
Microsoft So, the biggest acquisition in Microsoft's history. The Wall Street Journal reports - and it has been confirmed - that Microsoft and Skype will announce today that Redmond will buy Skype for $8.5 billion. That's a lot of money for a company that hasn't ever actually made any profits. Update: and it's official: yay on Skype on the Xbox360 and Windows Phone, and this: "Microsoft will continue to invest in and support Skype clients on non-Microsoft platforms." Let's hope this includes Linux.
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Difference
by TBPrince on Tue 10th May 2011 08:41 UTC
TBPrince
Member since:
2005-07-06

I don't think Microsoft will stop doing anything Skype is doing today, including Linux support. First, because many would complain about Microsoft trying to kill Linux the bad way (and that would also spark anti-trust fire), second because Microsoft can make money out of Skype for Linux, even if not a pile of money.

While we need to wait to understand what plans MS really has for Skype (merging with Live Messenger would be too easy...), I think this is someway a marketing move.

There's difference between having an high market capitalization (Apple, Google) and sitting on a pile of *cash* (Microsoft) and I think MS wants to tell people "Hey, maybe someone has an higher market capitalization than ours but how much money they REALLY do ? And how much money they REALLY have now ?"

I think Microsoft wants to tell anyone that looking at capitalization, the way analysts do now, and revenues per share could be less important that looking at other factors, including who has much money stored in vaults.

Reply Score: 1

RE: Difference
by RshPL on Tue 10th May 2011 08:59 in reply to "Difference"
RshPL Member since:
2009-03-13

"Due to increasing customer requirements and a need to provide the highest quality possible service we have decided to temporarily withdraw support for Skype on some of the less popular platforms. We understand this may prove an inconvenience to some of our customers and we deeply apologize. This decision has been made after careful consideration and we do believe it will allow us to provide even better quality service. In the meantime, you are welcome to try the Skype for Windows 7 Ultimate Professional edition."

Reply Parent Score: 21

v RE[2]: Difference
by GraphiteCube on Tue 10th May 2011 09:17 in reply to "RE: Difference"
RE: Difference
by malxau on Tue 10th May 2011 16:46 in reply to "Difference"
malxau Member since:
2005-12-04

I think Microsoft wants to tell anyone that looking at capitalization, the way analysts do now, and revenues per share could be less important that looking at other factors, including who has much money stored in vaults.


And it's showing this by taking money out of its vault and burning it, thus leveling the playing field. This valuation makes its valuation of aQuantive or Yahoo look sane.

Reply Parent Score: 2

RE[2]: Difference
by TBPrince on Tue 10th May 2011 21:45 in reply to "RE: Difference"
TBPrince Member since:
2005-07-06

Buying Skype doesn't seem like burning money out. Rather it looks like buying out a very significative player and yes, for a lot of money. Which is probably part of the plan.

It was quite significative that MS overtook Google and who else? Facebook maybe. Outmaneuvered on money, not talking.

Reply Parent Score: 2