To justify the buyout investment and to make Skype work Microsoft will have to transform Skype for an enterprise business solution which will not only challenge Cisco’s WebEx but also draw the possibilities to go with company’s enterprise solutions.

On the bigger note, many are predicting higher chances of execution failure if Microsoft overcomes Skype. For a company which leads all the way in Office and Desktop enterprise business, it would be a daunting task if Skype couldn’t scale up in next 6-8 months of post-acquisition. Microsoft has never been known as communication oriented company.

This we can confirm because, unlike Google and Facebook, company is not shielding itself behind any investment or advisory firm for Skype acquisition exercise. Post acquisition efforts and strategy are already on the cards of Microsoft. Yahoo is valued at half that sum today.Ĭan Microsoft Capitalized On Skype Services? But they are also relieved that Microsoft gave up on an unsolicited $48 billion offer for Yahoo Inc. Many current and former Microsoft executives believe Microsoft significantly overpaid for that deal. n 2007, Microsoft paid about $6 billion to acquire online advertising firm aQuantive Inc. If Microsoft pocket Skype with whooping $8 billion, it will be the biggest ever acquisition in the history of the company. Do all such calculations on business sheet really make any profitable sense for a company which has failed to give single master class over the Internet till such date? If Microsoft agrees to pay close to $8 billion, it’s nine times of Skype’s last year revenue and 30 times of operating profit. A company which holds more than 675 million users base still struggling to find a positive profit figure as net income – Surprising! The company also had long-term debit of $686 million as of December 31 last year. Consequently, operating profit stood $264 million but on net-to-net it lost $7 million. Just evaluate these figures: Skype’s last year revenue was 860 million.

Current skype ceo