Your company lost $7 million last year? Can we buy it for $8.5 billion? Microsoft buys Skype.
Subject: General Tech | May 10, 2011 - 12:51 PM | Jeremy Hellstrom
Tagged: ballmer, microsoft, boomtown, skype, purchase, billion
The rumour mill really dropped the ball on this one, as just a few hours ago it was Facebook that everyone was muttering would one day buy Skype. Turns out that in just a few hours the new rumour that Microsoft was going to buy Skype for $7 billion became a reality at an $8.5 billion price tag.
Skype lost $7 million dollars last year, though that number seems rather small compared to their overall balance sheet to date which puts them $686 million in the hole. As All Things Digital is quick to point out, that is slightly less than what Microsoft Online Services Division lost last Quarter, proving all things are relative even at very high amounts of dollars.
On the plus side, Microsoft gets its hands on Skype's 763 million registered users, about twice as many as there are MSN users and significantly more that there are XBox Live users. Toss in the TechNet people and you still have nowhere near the user pool that Skype brings. That huge increase in the number of people Microsoft can reach possibly gives them the ability to recoup the money they spent to buy them. Consider that 8 million users pay actual money for their Skype account, which Wired considers as at least a hint of Microsoft's strategy.
Most PC users who already use Windows, such as those at Ars Technica, are scratching their heads over the purchase while Linux users at Slashdot are very concerned about continuing support for the Skype Linux Client.
"The Wall Street Journal reported earlier tonight that Microsoft–in what would be its most aggressive acquisition in the digital space–was zeroing in on buying Skype for $8.5 billion all in with an assumption of the Luxembourg-based company’s debt.
Sources told BoomTown tonight that the deal for the online telephony and video communications giant is actually done and will be announced early tomorrow morning."
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