Microsoft and Skype join forces

By Maureen Aylward

With the big news coming out last week that Microsoft is set to purchase Skype for $8.5 billion, we wanted to know from our M&A Zintro experts what they think about the acquisition and if it will change anything for Skype’s 170 million global users.

SeanJC, an IT strategist with an expertise in internet-based applications, thinks that the deal will strengthen the position of Microsoft as it has become an out-dated internet company. “I feel that Microsoft has not moved with the internet and has been over taken by Google, Facebook, and others,” he says. “This is proven by the complete SEO change of Microsoft in launching the Bing search engine.” The purchase of Skype is a huge benefit for Microsoft. “I think that the purchase of a company that is not making a profit – for such a high purchase price –  can  only mean that Microsoft will look to capitalize on this purchase,” says SeanJC. “This will mean that Skype may be integrated into the Windows environment, both platform and mobile, and the possibility of a license- or advertising-based revenue stream using Skype, which may involve cutting back or limiting free Skype calls.” SeanJC goes on to say that the buying of Skype will secure Microsoft’s position, allow it to play a bigger part in the online world, and restore the dominance it once held in the computer world in general.

Jack Worthington, a global private equity investment and management managing partner, says that Microsoft’s acquisition of Skype and its development of Bing are portfolio covering moves, clear examples that the Microsoft executives are looking to Google for thought leadership on the future of the infotech industry. “In my opinion, a future battlefield will be online software applications, where again, Google leads,” statesWorthington “I am looking at what this unfolding corporate chess game tells us about the two organizations. However, it’s clear which company leads and which one follows.”

By Maureen Aylward

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