Wednesday, May 11, 2011

Microsoft Skype Going Foward

So Microsoft buys Skype for nearly 8 billion dollars after trying to buy Yahoo for 48 billion dollars. Yahoo is now worth half around 24 billion now and I wonder how much Skype will be worth in two years.

Ebay bought the company for around three billion dollars in 2005 and by 2007 Ebay realised it had overpaid by around one third of the original price. Microsoft purchased skype at a price that is 32 times skypes operating profits.

We use skype to talk to family in Fiji and other countries and for work it was used to save cost of overseas phone calls. The reality is that our use of skype has really fallen off and major contact is through facebook and gmail chat.

The move by Microsoft is classic move by executive management in which they have run out of ideas so think that a major purchase or upgrade will be the silver bullet the fixes their malaise. You can make good arguments in Microsoft purchasing Skype but for me they purchased it for the wrong reasons

As now Skype is part of Microsoft so stop being an independent product when facing Google and Apple which is a negative for skype going forward. As I am sure they will focus more energy in getting products that will compete with Skype.

The type of services that skype provide is the future of mobile oral communication but I am not sure if its going to be Skype that provides those services.


Post a Comment

<< Home