I think you might overestimate how easy it is for people to switch from Skype. With all your Skype contacts, friends on Skype, the fact that many users would no

I think you might overestimate how easy it is for people to switch from Skype. With all your Skype contacts, friends on Skype, the fact that many users would not even fully understand how to download another software program and install it, these are reasonable but not huge barriers to entry. However did they overpay? In my definition anything that is more than 10 time net earnings is overpaying. So unless their net earnings dramatically improve to $700 million in a few years (unlikely), or unless there are some significant synergies that I am not aware of, I would say it's overpaying.