Did Microsoft Overpay For Skype? Hell, Yes

With Microsoft having confirmed its acquisition of Skype, sources tell TechCrunch Europe that Redmond outbid its closest rival, Google, by almost two-to-one. Meanwhile, Facebook is said to have never been in the running.

According to a source who claims knowledge of talks held between all parties, Google came in second at a price of $4B, while Microsoft will be paying $8.5B. This suggests that Redmond is paying significantly over the odds for Skype, although only time will tell if it turns out to be a smart deal. What is known is that had Microsoft been aware of the price that Google was willing to pay it almost certainly would have come in lower.

Meanwhile, according to our sources, Facebook was never actually in the running to buy Skype and may have simply been inadvertently used to turn up the heat on Microsoft to push through a deal. Facebook was never approached, says one source, but that this didn’t stop rumors that the social networking site was “sniffing around”, a tactic often employed to close a deal.

The potential give-away is that the story circulating at the time put the emphasis on Facebook mulling an offer rather than Skype reaching out. Had the rumor been stronger, along the lines of “Skype is in talks with Facebook”, it could have caused a problem as the Microsoft discussions were far enough down the line, says our source, that Skype would have certainly have entered into a lockout, having accepted a deal in principal.

In fact, GigaOm’s Om Malik goes even further, suggesting that Google wasn’t that serious either. “I also don't believe that Facebook and Google were serious buyers”, he says, citing the existence of Google Voice. “In essence, I feel that Microsoft was bidding against itself.”

[...] Uhr: Microsoft hat die Ã?bernahme für 8,5 Milliarden Dollar offiziell bestätigt.Update 14:30 Uhr: Laut TechCrunch hat Google nur vier Milliarden Dollar für Skype geboten. Facebook sei gar nicht wirklich im Rennen [...]

How can such a functional tool be worth a ‘mere’ $4billion whereas tools that we can live without (facebook) are valued at 10 times that? The mind boggles.

copy and past article!

Facebook makes money, Skype doesn’t.

I hope they don't screw it up! http://techchaos.tumblr.com/post/5359690007/microsoft-buys-skype-i-hope-they-dont-screw-it

Here are my views on the this awesome acquisition! http://virbots.in/2011/microsoft-buys-skype/

The Best Sexy Girl and Beautiful http://bizerz.blogspot.com

The Best Sexy Girl and Beautiful http://bizerz.blogspot.com

they both have nice blue logo’s

This is the best reply I’ve seen yet.

I think this is bull. If Om Malik think Google wasn’t interested just because they have Google Voice…hello that’s not a secret. You think Microsoft doesn’t know that? You can claim Microsoft overpaid but it’s certainly wasn’t because they didn’t know about Google Voice.

buy Skype for $8.5 billion is surely very much better than buy Yahoo for $45 billion as Microsoft attempted to do a couple of years ago — what about a Yandex + Baidu + Bing + Yahoo + Facebook + Amazon + Apple + Skype + Groupon + alliance to BEAT the Google SE and online ads monopoly?

Because as functional as Skype might be, people don’t spend as much time on it as they spend on Facebook. Not nearly as much money as they spend on virtual crap on FB either.

[...] it look like it may have over-paid by $4.5 billion, and bid against companies who weren’t seriously in the running (Google and Facebook), owning [...]

Skype is as pricey as $8.5B. According to my analysis, its because Skype has been the most installed messenger software to almost billions of people worldwide, the fact that it can flawlessly operate on almost all gadget that has internet connection, Skype has been the favorite freebie of many gadget companies to entice prospect costumers, actually.

dds

[...] #technode?è¶?å?¿#???å®?äº?æ”¶?Skypeå?ï¼?ä¸?ç?ªäº??é?ä¹?è???ã????å?ºç????æ?¯?æ?¯?é«?äº?ï¼?æ??æ¶????ï¼?Googleå?ºç?????40?ç¾?å??ï¼?è????å?ºç??æ?´æ?´å¤?å?ºäº?45??ç???Googleå'?facebook??æ?¯ç??å¿?ç????ï¼????ä¹?å?¨å'?è?ª?ç«???å?¼?å?¼å'¢ï¼?ç??结æ??????http://eu.techcrunch.com/2011/05/10/did-microsoft-overpay-for-skype-hell-yes-%E2%80%94-by-4-5-billio… [...]

[...] it look like it may well have over-paid by $4.5 billion, and bid against companies who weren’t seriously in the running (Google and Facebook), owning [...]

Its funny. Microsoft overpaid. But lets see what happens

[...] it look like it may well have over-paid by $4.5 billion, and bid against companies who weren’t seriously in the running (Google and Facebook), owning [...]

Ow btw, there’ll be a press conference: http://www.microsoft.com/Press... ( via:http://123kinect.com/xbox-kine… )

I dont think Google were trying very hard to get skype and not coz they have voice already. But coz they are supposed to be in talks with a company called Chazz Studios who are developing a new compression technology.And NO. I dont work for them even though I would love to LOL

Who gives a crap, MS has like unlimited $$$, they can support Skype forever and make it even better. I rather have MS or Google buy out Skype then.. that crap you people call ‘Face’book

Given Microsoft’s shareholding in Facebook you would have thought Balmer would have been able to Skype Zuck & determine if there was indeed another offer brewing…

[...] it look like it may well have over-paid by $4.5 billion, and bid against companies who weren’t seriously in the running (Google and Facebook), owning [...]

What would the strategic damage to MS have been had skype gone to google or facebook?

Skype had nearly a billion in revenue with only a small net loss.

what a ridiciolous decision! are sotckholders agree for their money to be thrown away like that?? now wonder stock is sinking!! msft forgot they got into their position thanks to investors. today, its pretty much dead stock and the company. this only prooves how much they scared of google coming with simple OS and tablets taking over their OS market. RIP MSFT!

Huh? One can live without Skype just as easily as without Facebook. They’re both communication tools.

Huh? One can live without Skype just as easily as without Facebook. They’re both communication tools.

Huh? One can live without Skype just as easily as without Facebook. They’re both communication tools.

That would be like bringing a nuke to a fist fight

[...] biggest acquisition ever. Did the company pay too much? “Hell yes,” according to TechCrunch, which reports that the second highest offer for Skype came from Google "” and was only $4 [...]

What 4.5B between friends? Microsoft will save 4.5B on their phone bill by using Skype.

[...] it look like it may well have over-paid by $4.5 billion, and bid against companies who weren’t seriously in the running (Google and Facebook), owning [...]

Read Full Article »


Comment
Show comments Hide Comments


Related Articles

Market Overview
Search Stock Quotes