Tag Archives: skype

Why Google Does Not Own Skype

http://www.wired.com/images_blogs/epicenter/2011/05/5514628.jpegSo Microsoft is buying Skype for $8.5 billion, its biggest deal ever. It’s too soon to make a pronouncement on whether the purchase is an idiot move, a brilliant one or just something in between. All the geniuses who ripped the investors who bought Skype from eBay in 2009 don’t look so smart now.

It was almost Google who owned Skype.

Here’s more detail on the story:

In 2009 a brilliant product manager named Wesley Chan was in charge of Google Voice, which was still in development. It was Google’s revamp of Grand Central, which Chan had snared in an acquisition the year before. When some Google executives heard that eBay was selling Skype, they jumped on the opportunity and began negotiating.

As Chan helped with due diligence, even going to Europe to see Skype firsthand, he became convinced that the purchase was a bad idea for Google. He concluded that one of Skype’s key assets — its peer-to-peer technology — was a mismatch for Google, which worked on the newer paradigm of cloud computing.

Read more at Wired
The article first appeared on Wired

Microsoft to buy Skype

Just days after reports that Google and Facebook were interested in partnering with, and possibly buying VoIP company Skype, Microsoft announced that it was buying the company for $8.56 billion in cash.

Last year, Skype had revenue of $860 million on which it posted an operating profit of $264 million. However, it overall made a small loss, of $7 million, and had long-term debt of $686 million. It was the second time Skype has been bought out; after being started in 2003, it was purchasd by eBay in 2005 for $3.1 billion. eBay then sold the majority of its stake in 2009 to a private investment group for $1.2 billion less than it paid.

for detailed read head over to NDTV