Microsoft buys Skype for $8.5bn

"We think this is a set of services that can reach everyone on the planet." (Steve Ballmer)

Microsoft is buying Skype for $8.5bn, biggest Microsoft acquisition ever.

In October 2005 Skype was bought by eBay for $2.5bn, but was 70% sold in October 2009 to a consortium of private equity and venture capitalists.

Skype has never made a profit: in 2010 it recorded a loss of $7m on revenues of $860m – $1.30 per registered user a year, or $5 per "connected" user a year.

More about it here: 

• http://www.guardian.co.uk/technology/2011/may/10/microsoft-buys-skype-biggest-gamble-yet 
• http://techcrunch.com/2011/05/10/ballmer-bates-skype/ 
• http://www.readwriteweb.com/archives/ballmer_on_skype_microsoft_will_continue_to_suppor.php 

What do you think about it? Is it a good deal for Microsoft?

Reckon they did overpay and am not quite sure how Skype will readily be taken up by Playstation users. On the other hand, their business has soooo much $$$. They can afford it. You win some. You lose some. And they may yet prove this a winner.

You meant Xbox (rather than Playstation)? Yeah, I am not quite sure how they will integrate it...

For the part where they "can afford", I will disagree with you. Microsoft is already losing a HUGE amount of $$ from its Online section: http://www.marketingpilgrim.com/2011/01/microsofts-online-efforts-keep-losing-money.html 

Another big risk taken.

That was a Fredian slip of the tongue. Yes, Microsoft's own Xbox.