#7446646, By presh Microsoft buy Skype for $8.5 billion

  • presh 10 May 2011 15:45:19 1,221 posts
    Seen 10 months ago
    Registered 11 years ago
    kalel wrote:
    This is not unlike Google buying Youtube. It's just about customer base and ad revenue (as said above). Does seem a lot of money though.

    Think is, you can view the YouTube deal as Google paying for eyeballs - after all, it's an advertising platform. But where is the direct revenues MS will get from Skype? It's most recent financials showed a $7M loss on revs of about $800M, and only about 25% of account holders use Skype more than once a month.

    It's going to have to spend a lot more money to drive revenues to the point of it being a good deal, and MS doesn't have a great record of managing that.

    Also, there's the fact that under MS ownership ISPs may be less forgiving about Skype essentially using their networks for free - without free data, the business model of VOIP is dead overnight.
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