Monday, 16 May 2011 13:03

Microsoft Buys Skype for $8 Billion Featured

Written by Thom Henderson
The property on the web fetches the highest prices these days. Donald Trumps era is evaporating as the number of properties dwindles and declines in price. Online websites can turn over huge amounts of traffic and we can safely say, will never die. Only be reincarnated with every development of the internet. Online property doesn't only include domains, but the software we are using. Your messenger client and your email client and other interfacing tools are part and parcel of the web experience. So why is Microsoft buying Skype?microsoft-skype_125x95

The first and biggest fan of the deal is Microsoft CEO Steve Ballmer who needs to purchase up properties if they are going to keep up with Google. In 2010 alone Google spent over 100 billion in purchasing small IT firms and assorted types of IT properties and developments. Google already has a similar offering in Gtalk using Google Voice so purchasing Skype would essentially remove the competition which would also take away their own product. So the battle commences between the IT Deity's.

For Microsoft it would begin to bridge many gaps in the online integration market. Sharing tools, video conferencing and integration with Messenger are the first steps they would take in developing the products. Let us not forget that Microsoft is also working on the mobile market with its Windows Mobile operating system.

Microsoft feels that taking this opportunity away from Google will also help them converge on the Facebook market. Microsoft is an investor in the Palo Alto based social networking site and incorporating Skype into facebook more efficiently could see huge returns for Microsoft and Facebook in a win win situation.

At the end of the day this acquisition will see Microsoft erode a tiny bit more of Google grip on online properties as more people integrate their usage into the different products, or both products as most of us have been using. Why would Skype sell to Microsoft, just after they developed their video platform to return profits. The premium video calling forecasts had proven to be exaggerated in the volatile online internet market. The owners found themselves earning a cool $1.12 billion while CPPIB hedge fund collected the majority of $4.48 billion from their 56% investment while eBay gets $2.4 billlion for its 30% stake.

Last modified on Monday, 31 October 2011 06:22
Thom Henderson

Thom Henderson

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