Microsoft and Skype set to get engaged for $8 billion
Your 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.