SoHoBizNet

Changes in Technology & Politics and their effect on Business

Microsoft Nears $7 Billion-Plus Deal for Skype

Read This Article on the Wall Street Journal

By ANUPREETA DAS And NICK WINGFIELD

Microsoft Corp. is close to a deal to buy Internet phone company Skype Technologies SA for more than $7 billion, and a deal could be announced as early as Tuesday, people familiar with the matter said.

Negotiations were wrapping up Monday evening, and a deal could still fall apart, the people cautioned. Representatives for Microsoft and Skype declined to comment.

A deal represents Microsoft’s most aggressive move yet to play in the increasingly-converged worlds of communication, information and entertainment. Skype connects more than 663 million users around the world via Internet-based telephony and video, making it a key technology platform for a new generation of Web-savvy consumers. During 2010, those users made 207 billion minutes of voice and voice video calls over Skype.

Buying Skype would give Microsoft a recognized brand name on the Internet at a time when it is struggling to get more traction in the consumer market. The company has invested heavily in marketing and improving the technology of its Bing search engine. While it has made some market share gains over the past year, Google Inc. still dominates the search market with more than 65% of U.S. searches going through its site.

At a value over $7 billion, the Skype deal would rank at or near the top of the biggest acquisitions in the 36-year history of Microsoft, a company that traditionally has shied away from large deals. In 2007, Microsoft paid approximately $6 billion to acquire online advertising firm aQuantive Inc. Many current and former Microsoft executives believe Microsoft significantly overpaid for that deal. But they are also relieved that Microsoft gave up on an unsolicited $48 billion offer for Yahoo Inc. nearly three years ago. Yahoo is valued at half that sum today.

Microsoft Chief Executive Steve Ballmer, though, sees the Internet as an essential battleground for Microsoft, a company that still makes the vast bulk of its profits from Windows and Office software systems. Investors have become increasingly concerned about Microsoft’s ability to squeeze continued growth out of those businesses, as rival technologies from Apple, Google and others put more pressure on profits.

The Microsoft division behind the company’s hugely lucrative Office suite of applications also makes a product, known as Lync, which ties together email, instant messaging and voice communications into a single application. Skype could strengthen that offering.

The deal shows how far Skype has come since it was launched in 2003 by Niklas Zennstrom and Janus Friis, two men who had created a file-sharing technology called Kazaa that became widely associated with music piracy. While Skype was initially popular with techies, it increasingly worked its way into the mainstream by offering free or cheap phone calls which were especially appealing to international callers.

When EBay purchased the company in 2005 for $2.6 billion in cash and stock, Skype was regarded as something of an experiment, in which EBay’s buyers and sellers would use the service to communicate about potential transactions.

Read more: http://online.wsj.com/article/SB10001424052748703730804576313932659388852.html#ixzz1LudAc8xT

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

RSS PeopleAreFunnyLikeThat

  • Would Angus MacLean or Robert Stanfield vote for Harper? April 29, 2011
    by Teresa Doyle on Thursday, April 28, 2011 at 1:57pm I grew up in a fiercely loyal conservative household. These two men were held in the highest regard. They were Progressive Conservatives we could all be proud of. Angus MacLean realized how dangerous nuclear power could be. Harper fired the head of Atomic Energy Canada for doing her job. She insisted that […]
  • IPTypewriters: Last manufacturing plant shuts down production April 26, 2011
      The final typewriter manufacturer shuts down in Mumbai BY: Brett Register CATEGORY: Trending Now An old manual typewriter is seen in Finca de Vigia, the villa where author Ernest Hemingway lived outside Havana, Cuba (Credit: GETTY) (CBS / What's Trending) Today in Mumbai the doors to the final typewriter manufacturing company Godrej and Boyce closed i […]
  • Five Years of Harper – Broken Promises April 21, 2011
    Technorati Tags: Five years of Harper,Election 2011 2006 Conservative Platform: 1. Require ministers and senior government officials to record their contacts with lobbyists. Government Action: Broken 2. Prohibit nominated candidates or MPs seeking re-election from accepting large personal gifts. Government Action: Broken. 3. Ban the use of trust funds to fin […]
  • What to do if you are being bullied April 19, 2011
    Cyberbullying sometimes escalates to serious situations, especially if the victim is lacking information when it comes to dealing with cyberbullies. Below are some things you can do to resolve or at the very least limit the damage of cyberbullying: * Refrain from Responding: Defending yourself from a cyberbully attack may seem like a natural response, but th […]
  • Dr. Harper’s New and Improved Medicare « Murray Dobbin's Blog April 17, 2011
    Medicare is turning out to be the sleeper issues in this election as Canadians continue to say that public health care – universal, comprehensive, publicly administered care, transferable across provincial lines – is their most important election issue, even more important than the economy. And is the economy that Harper has based his whole campaign on – aft […]
  • Best divorce letter & answer November 17, 2010
      Dear wife:        I'm writing you this letter to tell you that I'm leaving you forever. I've been a good man to you for 7 years & I have nothing to show for it. These last 2 weeks have been terrible. Your boss called to tell me that you quit your job today & that was the last straw.         Last week, you came home & didn't […]
  • Seal Caucus–Rick Mercer Rant!!! October 15, 2010
    It seems to me that the media is a little too obsessed with how controlling Stephen Harper is.  I don't really get this debate.  I mean, can we blame the Conservatives for wanting this in a leader?  A man who is firmly in control?  Because Stephen Harper is all that and a bag of chips.  And his idea to scrap the long form census is a perfect example of […]
  • NEW BOUTIQUE DISC JOCKEY COMPANY LAUNCHES IN OTTAWA October 14, 2010
    by Pulse Entertainment on Wednesday, October 13, 2010 at 10:26pm Pulse Entertainment promises a new standard of quality, style and sophistication for the “take no chances” customer (Ottawa) October 12, 2010 – MELDAN Entertainment Inc. is proud to announce the official launch of Pulse Entertainment. Pulse Entertainment is an Ottawa-based boutique business pro […]
  • Subject: DR Oz advice H1N1 October 30, 2009
    Subject: DR Oz advice H1N1 The following advice, given by Dr. Oz, makes a lot of sense and is important for all to know: The only portals of entry are the nostrils and mouth/throat. In a global epidemic of this nature, it's almost impossible to avoid coming into contact with H1N1 in spite of all precautions. Contact with H1N1 is not so much of a problem […]
  • RED SKELTON'S RECIPE FOR THE PERFECT MARRIAGE September 10, 2009
    1. Two times a week, we go to a nice restaurant, have a little beverage, good food and companionship. She goes on Tuesdays, I go on Fridays.2. We also sleep in separate beds. Hers is in California and mine is in Texas.3. I take my wife everywhere..... but she keeps finding her way back.4. I asked my wife where she wanted to go for our anniversary. "Some […]

Archives

Categories

May 2011
M T W T F S S
« Apr   Dec »
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

Archives

Categories

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 4,759 other followers

RSS myHalifax.Ca

May 2011
M T W T F S S
« Apr   Dec »
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

RSS FreelanceSwitch

  • 20 Free Modern PowerPoint PPT Templates With Minimalist Designs (2019) March 25, 2019
    PowerPoint presentations have somewhat of a bad reputation as being boring. However, once you put some effort into finding the best modern PowerPoint template and customizing it with your colors and fonts, you can create a truly beautiful and modern PowerPoint presentation.High-quality premium templates, such as the minimalist Reddo from Envato Elements, can […]
    Brenda Barron
  • How to Make a Photography Logo Design Quickly (With Online Creator) March 25, 2019
    If you’re planning to open up your own photography business, you’re going to need a great professional logo that'll tell potential clients who you are and what you do. Creating your own photography logo will help you keep costs low, but if you don’t have graphic design skills the process can be quite intimidating. That’s why we’ve written this article, […]
    Nona Blackman
  • 22+ Best Restaurant WordPress Themes: With Premium Responsive Designs March 25, 2019
    Nowadays, every business should have a website. As a restaurant or cafe owner, it’s imperative that your food business has a well-branded, beautifully-designed online presence in order to attract more customers. Do you need a beautiful new restaurant site? One with on-trend designs made for 2019?  Thanks to WordPress, you can easily create your restaurant we […]
    Brenda Barron
  • How to Design Killer Webinar Slide Decks (With PowerPoint Templates) March 24, 2019
    An attractive slide deck plays a large role in your webinar presentation. When your slide deck looks good and is on brand, you've got  better chances of engaging your participants. It’s also easier for participants to remember details from your webinar considering visuals help us retain information for longer periods of time.If you’re not a designer, yo […]
    Brenda Barron
  • What Is Business Ethics and Why It Makes a Difference for Your Organisation March 23, 2019
    What is the purpose of your business? Even if you’re the most hard-nosed, profit-oriented person around, the answer will probably involve the question of business ethics.All businesses must make ethical decisions about how they operate. (Image source: Envato Elements)For example, let’s say that you answer: “My only purpose is to make as much money as possibl […]
    Andrew Blackman
  • 15 Top Meet the Team & Org Chart PowerPoint Templates for 2019 March 22, 2019
    Have you got a big investor presentation coming up? Do you need a great way to wow potential funders with the skills team members have?Instead of doing a long-winded speech about every team member, introduce your staff in an easy and visual way by including a meet the team organization chart inside your PowerPoint presentation.The Staff is just one of the ma […]
    Sharon Hurley Hall
  • 17 Best WordPress Music Themes (2019) for All Musicians March 21, 2019
    As a musician or a band, your primary goals are to fill the gig venue with raving fans and get noticed by agents. The best way to make sure that happens is to create an attractive website. Using your website, you can share information about your albums, upcoming single releases, events, and general band or biography information. Having a site also makes it p […]
    Brenda Barron
  • 20+ Corporate Brand Identity Packages—With Creative Designs for 2019 March 21, 2019
    Are branding your new business? Maybe you've got a logo, but need to extend your corporate identity design into business cards, letterheads, and more. Customers expect your brand identity to be professionally-designed and consistent. If your branding materials to feel dated, lack visual appeal, or appear carelessly constructed it reflects poorly on your […]
    Sean Hodge
  • 20 Best Photography Logo Design Ideas (+Easy Online Logo Creator) March 21, 2019
    Every photography business needs a great logo that'll help it stand apart from the competition and let potential clients know what kind of services you offer. Freelance Photographer Logo MakerIf you're a freelance photographer, planning to open your own photo studio or are looking to rebrand an existing photography business you need a good logo. In […]
    Nona Blackman
  • 20 Clean PowerPoint Templates (PPTs) With Minimalist Designs (For 2019) March 20, 2019
    Choosing the right PowerPoint design to wow your audience can be a challenge. Modern, minimal presentation designs are a good way to impress. Use clean, minimalist PowerPoint template for your next professional presentation to create an attractive professional presentation. Minimalist design also gets your audience to focus on what's really important in […]
    Laura Spencer
%d bloggers like this: