Microsoft will take over Skype by the price of $7 billion - Business - Small Business

The morning of May 10 Beijing time, according to informed sources, Microsoft is about to reach an agreement with Skype, more than seven billion U.S. dollars will buy the Internet voice call service provider.

Alleged that Microsoft will be from 7000 to 8000 million U.S. dollars to buy Skype.Skype's long-term debt with the deal's total value of up to 85 billion U.S. dollars. The two sides completed negotiations Monday night, but the deal could still fail. Microsoft and Skype declined to comment on.

Currently, Skype has more than 663 million worldwide users, a new generation of Internet users in one of the core technology platform. 2010, Skype user's voice and video call time of up to 207 billion minutes.

Using a program called Skype voice calls over Internet Protocol technology, it will call as a data like e-mail messages, and then routed on the Internet, not the traditional phone network mode. Skype users can download free software and free Skype phone calls online or a specific user. Skype users can make free phone calls or video calls wired.

If Microsoft's acquisition of Skype, it will be able to this popular, many users will be integrated into the service in competition with Google; also be integrated into the Windows Phone platform, and Apple in mobile phones and Google Android iOScompetition; even with Office integration to help businesses better collaborate.

Since 2003, turned out, Skype has been seen as a potential threat to traditional phone companies. Not aware that sales of Windows Mobile and Windows Phone mobile phone operators how to look at the deal, and how Microsoft will integrate its Skype phone operating system is also unknown.

Analysts believe that Microsoft is taking action to stop Google in Internet communications take greater advantage. Independent analyst Rob Andrew (Rob Enderle), said: "This is between Microsoft and Google as part of a strategic rival."

Andrew that, Facebook value higher, but do not possess adequate cash, like Microsoft.He said: "Microsoft's standing in Facebook here. In a way, it is Google's strategy of confrontation with the intention to Facebook."

While Microsoft CEO Steve Ballmer (Steve Ballmer) the Internet as one of the main battlefield of the company, but the main virtue of the software giant and Office software, Windows operating system to make huge profits. Investors are increasingly concerned that Apple, Google and other companies in the competition, Microsoft's two core business profits under pressure.

Microsoft Office department developed a product called Lync, this product integrates e-mail, IM software, and voice communications services. Microsoft's acquisition of Skype will enhance the product.

Microsoft's acquisition of Skype also reflects the desire of the development of Skype. In 2003, Nicholas Zennstr?m (Niklas Zennstrom) and the Yalu Staver Reese (Janus Friis) founded the file-sharing technology Kazza, this technology with a number of music piracy events. However, by providing users an attractive international call for free or cheap phone service, Skype has become mainstream.

36-year history of Microsoft, usually does not initiate a huge acquisition. Therefore, if the acquisition of $ 7,000,000,000 spent Skype, it will be Microsoft's largest since the establishment of an acquisition. In 2006, Microsoft spent about 60 billion acquisition of Internet advertising company aQuantive. Many current and former Microsoft executives agreed that the deal price is too high. However, they are glad Microsoft 3 years ago, did not spend 48 billion U.S. dollars to buy Yahoo. The latter is not today's market and 480 billion dollars in half.

When eBay in 2005 to 2.6 billion to buy Skype, the latter is viewed as an experiment, let eBay buyers and sellers through the service to communicate potential transactions.However, this experiment has failed, eBay gave up in 2007, Skype, only to recover 1.4 billion dollars of investment.

70% of the company will sell by the Skype shares Silver Lake, Index Ventures, Andreessen Horowitz and the Canada Pension Plan Investment Board formed investment consortium. The Microsoft deal from these institutions to get good returns.

Skype business history is more complex. Created eight years, the company no profit almost every year. With the global expansion of Skype services, its profits still an uncertainty. Skype last year, revenue was 8.6 billion and operating profit of 2.64 billion U.S. dollars, but still loss of $ 7,000,000. As of December 31, 2010, Skype is also saddled with $ 686,000,000 in long-term debt.

Skype will open up in Microsoft's mobile phone market to play a role in the latter competition in the market have been far behind rival Google and Apple. Microsoft last year released a mobile phone operating system Windows Phone 7, won the critics of the system, although the compliment, but could not quite help the company increase market share.

But Microsoft will integrate its mobile Skype application software is likely to be very careful when, because they also need to reach an agreement with wireless operators, Skype users can make inexpensive Internet phone calls, and operators do not need to pay raise the fare.

Last August, Skype plans to submit the listing documents, but its initial public offering (IPO) in the new CEO (Tony Bates) delayed after he took office. The source said that, Skype was originally expected to raise through the IPO close to 10 billion dollars, while they also Facebook, Google, Cisco and other potential buyers to negotiate. Skype plans to sell 50-60 billion dollars. However, there are recent reports that Microsoft also became interested in Skype.

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