According to a report in WSJ – Microsoft is very close to finalizing a USD 8 Billion deal to buy-out Internet telephony & Video based service – Skype.
And, probably for the first time, I am happy about Microsoft acquiring a company. To be honest with you – in last weeks, Microsoft has taken some great decisions and it all looks like a grand Mobile plan that Microsoft is working towards. First, the deal with Nokia, then recent announcement of Blackberry going Bing and now this.
If all these deals are put together – it sure seems that Microsoft is slowly and surely gaining ground in Mobility space. Although, Windows Phone 7 has not really made a splash as it was expected to, with recent advancements, it looks like Microsoft is taking significant strides in Mobile space – And as a consumer, this is really a great news – He stands to benefit the most!
Skype’s Upward Journey
I still remember Skype when it was launched around 7-8 years back – It was still only used by Techie people. Skype started becoming Uber popular after Ebay acquired it couple of years after its launch in 2005 for close to 2.5 Billion Dollars. Ebay had bought Skype to use it as a online communication platform between its buyer’s & sellers – but that never really happened. So, in 2009 Ebay sold 70% stake in Skype to Silicon Valley Technology Investors.
Though, Skype over the years kept blossoming and became a popular way of communication over the internet, it never really made profits! Last year the company posted revenue of $860 million and $264 million in operating profits, but still had a loss of $7 million [source]
One thing is for sure – Microsoft is betting huge on Mobile space and that is where the future is. Although, they have invested heavily on Bing for Web search services, it is a loosing battle against the near search Monopoly of Google!
However, with nearly all consumers moving towards smartphones and difference between a mobile & Computer fast disappearing – It will probably be the all-in-one tablet’esque device that will rule the consumer time-share. Microsoft is putting together all the pieces of that puzzle together, so it can atleast be at-par if not ahead when the time arrives !
So, what is your impression of this Skype – Microsoft Deal ?