// Microsoft confirms takeover of Skype
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BrKhalid
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« on: May 10, 2011 02:10 PM »


Asalaamu Alaikum bro


Not sure what to make of this news.

Skype is a fantastic product which, like facebook and twitter, seems to have made it into the corporate as well as the social networking world.

Will Microsoft end up ruining it?



Microsoft confirms takeover of Skype


Microsoft has confirmed that it has agreed to buy internet phone service Skype.

The deal will see Microsoft pay $8.5bn (£5.2bn) for Skype, making it Microsoft's largest acquisition.

Luxembourg-based Skype has 663 million global users. In August last year it announced plans for a share flotation, but this was subsequently put on hold.

Internet auction house eBay bought Skype for $2.6bn in 2006, before selling 70% of it in 2009 for $2bn.

This majority stake was bought by a group of investors led by private equity firms Silver Lake and Andreessen Horowit.

Microsoft chief executive Steve Ballmer said: "Skype is a phenomenal service that is loved by millions of people around the world.

"Together we will create the future of real-time communications so people can easily stay connected to family, friends, clients and colleagues anywhere in the world."

Skype will now become a new division within Microsoft, and Skype chief executive Tony Bates will continue to lead the business, reporting directly to Mr Ballmer.


Price concerns
 

Analysts say Microsoft's aim in buying Skype is to improve its video conferencing services.

Although the price tag of $8.5bn will not stretch the US giant, some experts have questioned whether it is paying too much for a company that has struggled to turn a profit.

Michael Clendenin, managing director of consulting firm RedTech Advisors, said: "If you consider [Skype] was just valued at about $2.5bn 18 months ago when a chunk was sold off, then $8.5bn seems generous.

"[It] means Microsoft has a high wall to climb to prove to investors that Skype is a necessary linchpin for the company's online and mobile strategy."

This view was echoed by Ben Woods, head of research group CCS Insight.

"The big unanswered question is how do Skype assets work for Microsoft... how do you justify the price?" he said.

Skype was founded in 2003.

Calls to other Skype users are free, while the company charges for those made to both traditional landline phones and mobiles.


http://www.bbc.co.uk/news/business-13343600

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« Reply #1 on: May 10, 2011 02:24 PM »

Hmmm

Yikes... this kinda news is usually bad for consumers Sad Hate when big companies swallow up awesome innovative little one's. They usually end up ruining them for us or charging us ridiculous amounts of money for stuff they used to do free!
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« Reply #2 on: May 10, 2011 02:30 PM »

Hmmmm indeed. I was just thinking the very same things Jannah & BrKhalid.

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« Reply #3 on: May 10, 2011 05:06 PM »

Yeah, I think this is bad news. I think that is most people's reaction thus far. Like Sis J said, when whales swallow the little fish - not good for the little fish.  Wink


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« Reply #4 on: May 14, 2011 07:26 AM »

skype is a totally rubbish piece of software which everybody has to use and is indispensable to daily life because your mom and dad are on it.

maybe mr softy can make into something properly functional. it can't get much worse.

if you've ever used skype on a mac, you will know what i mean.  and on windows, it's only marginally better.

assalamualaikum
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« Reply #5 on: May 14, 2011 08:16 AM »

I have to disagree with you Br. Lucid. I mean, yes there are sometimes those auxillary noises at times. But most of the time, when I speak to my mom from here in Prague, it's fine. The few times I have had problems with Skype, I switched to Gchat - of course - like Skype both people have to have G-mail . . anyways, let's see what happens....

BABA
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« Reply #6 on: May 14, 2011 08:30 AM »

if you live in a developing country, then your upload speed is probably numbingly slow and skype doesn't seem to optimize this.  it could be so much better.

its a dumb piece of software imho.

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« Reply #7 on: May 14, 2011 11:55 PM »

Salams,

I think Bangladesh didnt see its fair share of IT boom yet...

Stop whining and get a good DSL/Wifi Wink

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