#7446655, By presh Microsoft buy Skype for $8.5 billion

  • presh 10 May 2011 15:48:10 1,221 posts
    Seen 5 years ago
    Registered 16 years ago
    senso-ji wrote:
    Didn't ebay sell off most of Skype for $2bn in 2007 because it wasn't making enough money? I understand opportunities are different now with Kinect and Live, etc, but it's still a huge amount for an 8 year old company that hasn't courted the same level of confidence before from other corporations.

    Still, will be interested to see if and when it's integrated into MS products. Just hope they don't take forever to develop it.

    They did indeed - and that was after writing down the valuation (i.e. losing) $1.4 billon on the purchase cost. They kept a 30% stake, which ironically is now worth more than the 70% they sold - so they actually have made money on it.

    Skype on eBay - now that was a really, really dumb idea that proves that just because a deal is big doesn't mean it's been properly thought through...
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