Microsoft and Skype set to get engaged for $8 billion

10 May 2011

Bitterwallet Skype iPhone app bannedYour favourite way to call the world for free is about to land in the hands of Microsoft, according to the Wall Street Journal. Team Ballmer is looking to buy Skype for nearly $8 billion. eBay paid $2.6 billion in cash and stock in 2005, and Skype was valued at $2.75 billion just two years ago.

Is it more tits-and-tinsel smoke and mirrors from Steve Ballmer's Microsoft, an attempt to convince you that the company isn't losing ground to both Google and Apple? Possibly. There's a glaring lack of mainstream innovation from Microsoft at the moment, and despite two years of promises to revolutionise both the mobile and tablet markets, Microsoft have done neither.

Integrating Skype into their mobile operating system would be at least one obvious development if Microsoft confirm the deal; now that Windows Phone 7 is due to be rolled out to Nokia handsets, Microsoft could seamlessly add Skype into address books across the planet; although their market share has tumbled, Nokia still has significant market share.

As for the financials, Skype is a perfect fit for Microsoft; Ballmer is losing money hand over fist and so is Skype, which turned a $860 million revenue into a $7 million loss in 2010.

7 comments

  • BadaBing
    "Ballmer is losing money hand over fist"??? Microsoft made $5.7 BILLION in profit in the first 3 months of the year. This may still be a pig in lipstick but get the facts straight
  • gunn
    And I was worried it would be Apple or Google, I didn't expect this
  • Dick
    I don't see how they are going to make money out of it, unless they get all users to provide credit card details and then sell them.
  • stella
    It's too early for my thinking hat, but wouldn't automatically working Skype into address books on all Windows 7 phones piss of network providers and reduce their interest in partnering? I'm thinking more about the impact of reducing demand for 'free minutes' which are cost effetcive for providers compared to 3G etc...
  • Issac M.
    @ Dick, flaw in your logic. Who pays for credit card details these day? t'internet is awash with them.
  • Marky M.
    Providers would lose income from calls, and users' data demands would grow. Except users feel like they've already been conned out of unlimited free data so they'd stick to using their free minutes and Skype would be redundant. All a bit of a circle jerk, don't you think? Unless the circle jerk is Ballmer's new killer use for the Kinect.
  • Mark C.
    I suppose Skype would make more sense when using your smartphone via Wi-Fi, but it's hardly that easy to find free Wi-Fi these days.

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