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Microsoft Buys Skype - Rumors Are True!


The rumors that appeared overnight have turned out to be true. Microsoft has confirmed the purchase of Skype for $8.5 billion in cash. Microsoft has been very clear in that it sees Skype’s technology and services being applied across the board to both its consumer and business customers. That means enterprise customers will receive a new way to communicate over voice and video, but more excitingly, those who own an Xbox and Kinect will also benefit from its introduction, as will Windows Phone 7 owners. Last year, Skype had revenue of $860 million on which it posted an operating profit of $264 million. However, overall it made a small loss of $7 million, and had long-term debt of $686 million. This is the second time Skype has been bought out; after being started in 2003, it was purchased 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
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