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Microsoft Buys Skype For $8.5b  
User currently offlineElite From Hong Kong, joined Jun 2006, 2875 posts, RR: 10
Posted (3 years 6 months 3 weeks 2 days 12 hours ago) and read 1445 times:

Microsoft has purchased the popular VoIP service Skype from eBay for $8.5 billion. I am not sure what direction Microsoft will bring Skype in, especially since Skype was the original reason for the demise of MSN Messenger in many parts of the world. This seems to resemble Google's takeover of YouTube, and hopefully Microsoft can do a somewhat decent job in improving Skype.

http://news.cnet.com/8301-13506_3-20...61371-17.html?tag=TOCmoreStories.0

22 replies: All unread, jump to last
 
User currently offlineJBirdAV8r From United States of America, joined Jun 2001, 4491 posts, RR: 21
Reply 1, posted (3 years 6 months 3 weeks 2 days 12 hours ago) and read 1440 times:

I'm not so convinced that was a good idea...or a good deal.

Then again, I've been wrong before.



I got my head checked--by a jumbo jet
User currently offlineajd1992 From , joined Dec 1969, posts, RR:
Reply 2, posted (3 years 6 months 3 weeks 2 days 12 hours ago) and read 1438 times:

I actually like skype - I haven't used MSN for years now. I hope they don't make a shambles of it, much like MSN and yahoo messenger has become. I think they can either make a fortune from it, or kill it - I hope it's the former, as long as they keep basic PC-to-PC calls free.

User currently offlineElite From Hong Kong, joined Jun 2006, 2875 posts, RR: 10
Reply 3, posted (3 years 6 months 3 weeks 2 days 12 hours ago) and read 1426 times:

Quoting ajd1992 (Reply 2):
I hope it's the former, as long as they keep basic PC-to-PC calls free.

Microsoft has got to find a way to make it viable. Free Skype calls make up the majority of Skype users, yet there is no way to monetize that. When was the last time you saw ads on Skype? Skype currently relies on users using it to make long distance phone calls for low rates, but now the problem is that Google Voice offers rates that are even lower than Skype.

At least right now it appears that Microsoft will be trying to learn from the success of Skype and not tamper with it too much as they have done before with other acquisitions. For the company itself, this is a big step in the right direction as both Google and Facebook were interested in purchasing it.


User currently offlineGarpd From UK - Scotland, joined Aug 2005, 2697 posts, RR: 4
Reply 4, posted (3 years 6 months 3 weeks 2 days 12 hours ago) and read 1428 times:

Bang goes to a product that just works and is for free!


arpdesign.wordpress.com
User currently offlineajd1992 From , joined Dec 1969, posts, RR:
Reply 5, posted (3 years 6 months 3 weeks 2 days 12 hours ago) and read 1418 times:

Quoting Elite (Reply 3):

Microsoft has got to find a way to make it viable. Free Skype calls make up the majority of Skype users, yet there is no way to monetize that. When was the last time you saw ads on Skype? Skype currently relies on users using it to make long distance phone calls for low rates, but now the problem is that Google Voice offers rates that are even lower than Skype.

At least right now it appears that Microsoft will be trying to learn from the success of Skype and not tamper with it too much as they have done before with other acquisitions. For the company itself, this is a big step in the right direction as both Google and Facebook were interested in purchasing it.

Skype themselves had managed to make it work for next to nothing for years - as did eBay. I only use it because it's free, and I only use it for PC to PC or iPod to iPod calls at that. It's insane the amount of money Microsoft have - they don't need to be trying to get the basic Skype end user to pay for the basic service, when you can get so much more through skype (like PC to phone, call forwarding, texting etc) that can be charged.


User currently offlineElite From Hong Kong, joined Jun 2006, 2875 posts, RR: 10
Reply 6, posted (3 years 6 months 3 weeks 2 days 12 hours ago) and read 1412 times:

Quoting ajd1992 (Reply 5):

I agree with you - it would be one of the worst mistakes Microsoft could make to charge Skype users for basic calls which would effectively chase off the majority - if not all - of the user base. I only hope that software development continues to be strong for Skype, as Skype has been notoriously slow in releasing updated versions of Skype for Mac, and I'm not exactly pleased with the current Skype....


User currently offlineSKYSERVICE_330 From Canada, joined Sep 2000, 1422 posts, RR: 5
Reply 7, posted (3 years 6 months 3 weeks 2 days 12 hours ago) and read 1394 times:

...and Canadian taxpayers are going to benefit!!


CPPIB set to cash in on Skype sale
May 10, 2011 – 7:13 AM ET | Last Updated: May 10, 2011 12:20 PM ET

The Canada Pension Plan stands to more than triple its $300-million investment in Skype after Microsoft Corp announced Tuesday that it would buy the Internet phone service for US$8.5 billion in cash.

In 2009, eBay sold a majority stake in Skype to an investor group including Silver Lake, the Canada Pension Plan Investment Board and Andreessen Horowitz for US$1.9 billion in cash and a US$125 million note. EBay retained about a third.

More at: http://business.financialpost.com/20...ft-expected-to-buy-skype-for-8-5b/

For those who are unaware, the CPPIB is the Canada Pension Plan Investment Board which is a professional investment management organization, arm's length from government, tasked with investing the assets of the Canada Pension Plan (CPP) in a way that maximizes returns without undue risk of loss and ensures the long-term sustainability of the CPP, a public plan that was created in 1966.


User currently offlinesolnabo From Sweden, joined Jan 2008, 857 posts, RR: 2
Reply 8, posted (3 years 6 months 3 weeks 2 days 11 hours ago) and read 1366 times:

One Swede and one Dane are gonna swim in $$$$$$$$$$$$$

//Mike      



Airbus SAS - Love them both
User currently offlineKiwiRob From New Zealand, joined Jun 2005, 7690 posts, RR: 4
Reply 9, posted (3 years 6 months 3 weeks 2 days 10 hours ago) and read 1342 times:

That's a lot of money for a company which doesn't make a lot of money.

User currently offlinetugger From United States of America, joined Apr 2006, 5742 posts, RR: 10
Reply 10, posted (3 years 6 months 3 weeks 2 days 10 hours ago) and read 1333 times:

Quoting Elite (Reply 3):
Microsoft has got to find a way to make it viable. Free Skype calls make up the majority of Skype users, yet there is no way to monetize that. When was the last time you saw ads on Skype? Skype currently relies on users using it to make long distance phone calls for low rates, but now the problem is that Google Voice offers rates that are even lower than Skype.

At least right now it appears that Microsoft will be trying to learn from the success of Skype and not tamper with it too much as they have done before with other acquisitions. For the company itself, this is a big step in the right direction as both Google and Facebook were interested in purchasing it.

I liked this article/commentary on Microsoft buying Skype.
The key points to me are that Microsoft can integrate the service and technology into their Xbox Live and Office products. This will allow them to "monetize" the service in some way without impacting those that just use it for free for basic calls.

Tugg



I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
User currently offlineMaverick623 From United States of America, joined Nov 2006, 5716 posts, RR: 6
Reply 11, posted (3 years 6 months 3 weeks 2 days 4 hours ago) and read 1263 times:

Quoting KiwiRob (Reply 9):
That's a lot of money for a company which doesn't make a lot of money.

To be fair, it's probably not $8bn cash. Stocks, equities, securities, and other such nonsense make up the bulk of these types of transactions.

Quoting Elite (Reply 3):
but now the problem is that Google Voice offers rates that are even lower than Skype.

But Skype has better brand recognition.

Quoting Elite (Reply 3):

At least right now it appears that Microsoft will be trying to learn from the success of Skype and not tamper with it too much

From the article it appears they want to expand it to work with the Xbox Kinect system, and expand the mobile product to non-Apple platforms. I expect minor to no tweaks to the desktop version.



"PHX is Phoenix, PDX is the other city" -777Way
User currently offlinemham001 From United States of America, joined Feb 2005, 3695 posts, RR: 3
Reply 12, posted (3 years 6 months 3 weeks 2 days 2 hours ago) and read 1237 times:

Quoting ajd1992 (Reply 2):
I hope they don't make a shambles of it, much like MSN and yahoo messenger has become.

We are quite happy with Yahoo Messenger. My wife regularly uses it for PC voice calls across the Pacific. I am always impressed with the ease and clarity.


User currently offlineMir From United States of America, joined Jan 2004, 21804 posts, RR: 55
Reply 13, posted (3 years 6 months 3 weeks 2 days 2 hours ago) and read 1229 times:

Quoting KiwiRob (Reply 9):
That's a lot of money for a company which doesn't make a lot of money.

Which is hopefully not an indication that Microsoft is planning to start charging more for the service.

Quoting Maverick623 (Reply 11):
To be fair, it's probably not $8bn cash.

I heard it was cash. But that was just in passing on the news this morning, so it might be erroneous.

-Mir



7 billion, one nation, imagination...it's a beautiful day
User currently offlinecanoecarrier From United States of America, joined Feb 2004, 2843 posts, RR: 12
Reply 14, posted (3 years 6 months 3 weeks 2 days 2 hours ago) and read 1223 times:

Quoting Elite (Reply 3):
Free Skype calls make up the majority of Skype users, yet there is no way to monetize that.

As a stand alone product no. But, that's not why MS purchased Skype. Intergrate it into Outlook or MSN then you've added a feature that MS didn't offer before. Consider this, you're client is IM'n you on MSN about some project and you realize you should just pick up the phone and just talk about it. What if you can just hit one button on MSN and you get a Skype feed?

Quoting Elite (Reply 3):
At least right now it appears that Microsoft will be trying to learn from the success of Skype and not tamper with it too much as they have done before with other acquisitions. For the company itself, this is a big step in the right direction as both Google and Facebook were interested in purchasing it.

Cisco is on that list as well. This was as much about keeping the competitors away from the technology as it was MS gaining it.

Quoting tugger (Reply 10):
The key points to me are that Microsoft can integrate the service and technology into their Xbox Live and Office products.

Absolutely

Quoting Maverick623 (Reply 11):

But Skype has better brand recognition.

Microsoft hasn't gained verb recognition. People Skype, Facebook and Google they don't Microsoft. Here in Seattle it's generally perceived as a good purchase as long as MS doesn't screw it up by trying to integrate the Skype people into the grinder that is the 90K people that work in Redmond for MS. Like I said, this isn't about making Skype as a stand alone product profitable, I'm not sure it can be but make it part of the MS Office suite it's a powerful business tool. Especially for the few people that don't know how to use it...like my boss who I had to show how to use it. Shortly afterwords he ditched his Lifesize license. Who needs a $4k camera and a HD TV when you already have a laptop with a camera on it?



The beatings will continue until morale improves
User currently offlinemham001 From United States of America, joined Feb 2005, 3695 posts, RR: 3
Reply 15, posted (3 years 6 months 3 weeks 1 day 23 hours ago) and read 1199 times:

Quoting canoecarrier (Reply 14):
Consider this, you're client is IM'n you on MSN about some project and you realize you should just pick up the phone and just talk about it. What if you can just hit one button on MSN and you get a Skype feed?

That didn't require $8.5 billion. Yahoo has offered exactly that for several years.


User currently offlineBA6590 From UK - England, joined Jul 2007, 132 posts, RR: 0
Reply 16, posted (3 years 6 months 3 weeks 1 day 23 hours ago) and read 1194 times:

Quoting mham001 (Reply 15):
That didn't require $8.5 billion. Yahoo has offered exactly that for several years.

So does MSN, I use it all the time for video calls.



"Never forget, the higher we soar, the smaller we appear to those who cannot fly" - Nietzsche -
User currently offlineKlaus From Germany, joined Jul 2001, 21496 posts, RR: 53
Reply 17, posted (3 years 6 months 3 weeks 1 day 19 hours ago) and read 1173 times:

Quoting KiwiRob (Reply 9):
That's a lot of money for a company which doesn't make a lot of money.

If any...!

As soon as they're trying to push ads into the free version I'm out of there, and I'm hardly the only one to see it that way. Free internet calling is already a commodity and not easy to monetize except through landline connection fees. But these haven't been able to prevent Skype bleeding money so far either, so it seems a bit unclear how MS hopes to recover their investment here.

Quoting Maverick623 (Reply 11):
From the article it appears they want to expand it to work with the Xbox Kinect system, and expand the mobile product to non-Apple platforms.

It was never limited to Apple platforms.

Maybe you were thinking of Apple's Face time? (Which Apple is also publishing so anyone can adopt it.)


User currently offlineHAWK21M From India, joined Jan 2001, 31702 posts, RR: 56
Reply 18, posted (3 years 6 months 3 weeks 1 day 18 hours ago) and read 1156 times:

Looks like the price seems a bit high.


Think of the brighter side!
User currently offlineAesma From France, joined Nov 2009, 6847 posts, RR: 12
Reply 19, posted (3 years 6 months 3 weeks 1 day 17 hours ago) and read 1149 times:

I hope WLM will become compatible with skype, as I can't be bothered to have the two launched at the same time.


New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
User currently offlineviaggiare From Costa Rica, joined Jan 2007, 2139 posts, RR: 8
Reply 20, posted (3 years 6 months 3 weeks 1 day 13 hours ago) and read 1122 times:

Quoting Elite (Thread starter):
hopefully Microsoft can do a somewhat decent job in improving Skype

I'd wager Micro$oft will soon wreck Skype with their unique reverse midas touch.

Quoting ajd1992 (Reply 2):
I hope they don't make a shambles of it

There's always Ekiga and it's open source.



Entre le fort et le faible c’est la liberté qui opprime et la loi qui affranchit.
User currently offlineElite From Hong Kong, joined Jun 2006, 2875 posts, RR: 10
Reply 21, posted (3 years 6 months 3 weeks 1 day 10 hours ago) and read 1092 times:

Quoting viaggiare (Reply 20):
There's always Ekiga and it's open source.

But who has an Ekiga account? Skype is valuable because everyone has one, or anyone that thinks of VoIP thinks of Skype. Will take some real skill by Microsoft to mess that up.


User currently offlineKlaus From Germany, joined Jul 2001, 21496 posts, RR: 53
Reply 22, posted (3 years 6 months 3 weeks 1 day 9 hours ago) and read 1080 times:

Quoting viaggiare (Reply 20):
I'd wager Micro$oft will soon wreck Skype with their unique reverse midas touch.

Well, king Midas got his wish granted that everything he touched should turn to gold – so he starved because he couldn't eat any food any more. Bad enough...   


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