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Skype: Going Going Gone for $8.5 billion to Microsoft Skype: Going Going Gone for $8.5 billion to Microsoft
By Salar Golestanian @ 10 May 2011 :: Article Rating
 
This morning We woke up to one of the biggest deals this year in the IT world with Skype Going Going Gone for $8.5 billion to Microsoft, the largest deal in the software giant’s history. IMO the size of the deal makes me think it was like an Auction scenario that took the price so high.

The price represents a hefty premium on the $3 billion to $4 billion Google and FaceBook were said to be considering for the service not so long ago. So I have a feeling that this was prompted by some insider auctioning situation between FaceBook, Google and Microsoft. This price is certainly more than the company would’ve been valued at in an IPO which Skype had filed for but earlier this year was reported to be delayed. 

From my perspective, the delay in IPO was an indication that they have been talking to number of people with regards to selling it rather than IPO approach. Otherwise, they had no real reason to delay the IPO. This clearly strengthens my guess that Skype must have been in negotiations with more than one buyer and therefore, my hunch for the auction type negotiations behind the scene.

Skype’s revenues are approaching $1 billion per year, and are a clear front runner in the VoIP provider world and therefore for Microsoft it was essential to keep it out of competitor’s hands. There are also some intriguing integration possibilities across Microsoft products like Kinect, Outlook and Windows Phone that could push Skype to the next level. But it also puts Microsoft closer to a world where people cross devices communicate both in chat, phone and desktop share. This is more than what any other social networking tool can do right now.

My personal worry is how Microsoft will change Skype. IMHO the product is great, I currently have Skype Pro account and I always have Skype credit to allow me to talk internationally with customers phone lines.

I love my Skype Pro features that come with very little monthly payments and this is what I get: which is a great deal and must be one of the revenue streams bringing that $1bn a year for Skype. Here is what I get:

  • Nothing per minute nationwide calls 
  • For calls to any phone within the US and Canada* (with no connection fee).
  • Save up to 60% on a personal online number 
  • A Skype In number that lets people call you at local rates.
  • Call transfer 
  • Transfer calls to Skype contacts, phones or cell phones.
  • Save on the move with Skype To Go 
  • International calls from your cell phone at local rates.
  • Voicemail – never miss a call 
  • Pick up messages when you’re busy or offline.
  • Free nationwide calls to any phone within the US and Canada
But for me the real saver was that recently it allowed me to share my desktop with customers in a conference call. This allowed me to cancel my GoToMeeting account with a saving of about 50 USD a months.

And for Microsoft it seems that it is a good fit since it is truely cross platform and users are businesses, gamers, kids and even much older folks like my dad that has to use it to talk with family in different countries. But also here are some of advantages that Skype brings to Microsoft.
  • Skype’s has 170 million active users — and clear growth plan.
  • The fact that 40% of Skype’s activity is video.
  • Skype’s role in mobile communications that is even beyond standard SmartPhones as with Skype it is possible to take iPod, iPad or other WiFi Only devices act like a phone.
For me the most important feature is desktop share when I conference call. This is one that I would be most upset if the deal with Microsoft undermines it.

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About General Topics Long Blog by Salar Golestanian
These are various short and long News Articles and Blogs by Salar Golestanian the founder of SalarO.com about the latest topics that interest me. The subject matter are mixed topics from Web Trends, Technology, Software, Science or Current Afair, or whatever that can affect Internet Technology in any shape or form.  I have been told that the best place for these would have been for me to place them on a page at SalarO.com, However, some of these Blogs have less of a commercial or corporate genra, so they are placed here in this personal site. These Blogs help me explain a little more than normally is allowed in the 140 character real-estate of a typical Twitter post. They may also link you to the actual news or site that can expands further on my comments.

SalarO.com is a respected UK web consultancy with a proven record in DotNetNuke WCMS and System Integration expertise for ‘.Net’, E-Commerce systems. Recently we have also been working with nopCommerce as highly versatile ecommerce solution that can live alongside Wordpress to deliver great blog engine that Google loves.   We possess the necessary skills to create solutions based on the 3 technology as well as mobile apps for iOS/Android so they can communicate with your WCMS or E-commerce portal using nopCommerce. We are also helping some of our clients at Salaro to setup and use wordpress as fringe sites blogging about their products and services helping to maximize SEO potentials on the key words that can increase their Google position.  SalarO team is expanding their offerings with a range of custom modules, extensions & templates for DNN and nopCommerce.