Microsoft has announced its acquisition of the popular Internet telephone service Skype
Technologies from eBay last Tuesday, May 10. Also acquired were a group of private equity
investors including Silicon Valley tech moguls, the Silver Lake Partners. This deal is the largest
Microsoft has ever gotten into in its 36-year long history.
According to Microsoft’s press release, the deal will extend Skype’s brand and reach of its
networked platform, while enhancing Microsoft’s present portfolio of real-time communications
products.
However, The Daily Ticker’s Aaron Task and Daniel Gross discussed that Skype makes no
significant profit. So why did Microsoft spend almost 10 billion dollars for a company that
doesn’t improve its revenue? The Daily Ticker’s answer is short. Its because Microsoft just has
too many cash that it has just decided to buy Skype. Nevertheles, even without a significant
improvement in profit, Skype’s tehnology can definitely help improve Microsoft’s suite of
services making it level with its competitors Apple and Google.