Re: Making Sense of Microsoft's Skype Deal
PredictableChaos
5/16/2011 3:25:56 PM
A good App can not lift a lousy platform. I agree.
A US tax law which encourages MicroSoft not to bring their overseas cash back into the country is also a head-scratcher. I'm sure that result was never intended by people making the tax laws.
What will it look like in 5 years?
tokyogai
5/14/2011 8:07:56 AM
I agree that you can not just judge the value by the standard revenue and earnings- you have to look at what it is worth to Microsoft. I think the standard Skyoe user ( I call them users, since most do not pay) is not a standard Microsoft customer. Will they stick around or is this an opening for someone else? If the normal heavy handed business practices are followed, I would think users will defect quickly. Can Microsoft really learn to operate a different way? I have serious doubts. Understanding end users and catering to what they want has not been a strong suit and this problem has led to the slide in many areas. Time will only tell if they have learned anything and will behave differntly.
Re: Re : Making Sense of Microsoft's Skype Deal
Value Hiker
5/13/2011 6:27:03 PM
When Nokia bought Navteq, many people thought it would give Nokia extra edge over iOS or Android. It turns out to be a bad move for Nokia after three years. Navteq did not lift Nokia, or even keep Nokia in its position.
Microsoft's purchase of Skype is no better than Nokia's acquisition of Navteq. After 5 years, Skype may lose most of its customers, and its service will be replaced by Google voice or some other apps.
A good App can not lift a lousy platform.
Re: Microsoft and Skype
AskAsa
5/13/2011 3:01:10 PM
Yea, you gotta wonder how Skype users will feel being Microsoft customers. Bit of a culture clash, no?
Microsoft and Skype
ProfR
5/13/2011 2:37:54 PM
Hmmm. I am not sure this will work out for Microsoft. Skype is an edgy brand and has make its stripes partly by being separate from the more established companies. The question is can Microsoft figure out how to leverage this brand while figuring out how to integrate this well into other key products. Also, Microsoft has been better at selling software than services. So can they continue to build out the Skype service and innovate in this area as well.
Re : Making Sense of Microsoft's Skype Deal
yalanand
5/13/2011 12:23:53 PM
In which case, in hindsight, $8.5 billion looks like a very intelligent acquisition.
I totally agree with this analysis. This acquisation gives Microsoft that extra edge to compete with RIM and android phones. Moreover this feature will work in favour of Win-Nokia mobile which is facing stiff competition from iPhone and Android phones.
good for share holders?
TelecomFreq
5/13/2011 11:58:06 AM
It is interesting that the question might be if Skype will be worth that amount in 5 years or so. If MS can start making profit from Skype and intergrate it into other products it could be its now "it" product. If (and a big if) MS can play the Skype deal right it will pay off big time for the share holders. if not, it will be interesting to see what the impact on shares will be.
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