4 ms·
Micrsoft Overpaid for Skype...by $4.5 Billion
- smackfu 15y agoGee, I wonder if Google possibly has an incentive to release this rumor.
- demetris 15y agoYeah. Microsoft should have consulted with the TechCrunch analysts first. What were they thinking?
- 0v0 15y agowhile i share your disdain for all things techcrunch, i think in this rare case they might have accidentally reported something with some degree of accuracy. i'd be interested in hearing how they established their valuation and reading more on why large companies make such outrageously big purchases, when it seems the technology wouldn't bee too difficult to replicate.
- gte910h 15y agoI was curious myself why they didn't let the company IPO then buy it out. It seems that could have happened for far far less than 8 billion. I guess the facebook preIPO buyout issue was there.
- wglb 15y agoBut isn't it possible that the IPO could go very well, then MS would have a bigger price to pay?
- gte910h 15y agoOf course that's possible. They were looking like making 1-2 billion on the IPO though from estimates, and that means the total market cap would have likely been under 5 billion still.
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- orijing 15y agoMicrosoft perhaps overpaid for Skype, which is reminiscent of something that happened in the past. Google wanted to acquire a 2.5%-5% stake in Facebook at a $10 billion valuation in 2006 or 2007 (forgot), but Microsoft came in for a 1.6% stake at a $15 billion valuation. It seems like Microsoft is always competing with Google to acquire a company (or a share of it), and as a result it ends up paying significantly above what Google offers. In the end, the Facebook investment worked out for them but I'm not sure if it was the best decision at the time. Perhaps Microsoft can do something with Skype.