The Skype’s the limit for Microsoft

Ian Hancock General, Stuff

The acquisition of Skype for $8.5bn (yes billion) is Microsoft’s largest purchase to-date. It’s almost three times the price Ebay purchased Skype for 18 months ago at $3 billion (at the time of sale considered a huge amount). Ebay then sold a majority share for a reported $1.2bn less than it paid. However, it now transpires it was an extremely shrewd business acquisition. Even more surprising is that there were no rival bidders to Microsoft – so why the huge end price? If there was a .com bubble, then it hasn’t burst in the Microsoft purchasing department.

What’s really interesting is how Microsoft are planning to leverage a currently free global VOIP service to such an extent that provides a return on $8.5bn (BILLION!). I’ll be watching this space with bated breath (possibly).

Google VOIP anyone?