Microsoft Buys Skype for $8.5 Billion Cash; Facebook and Google Lose Bidding War

[images]

(05-12-2011 02:11 AM)yeti Wrote:  What do you guys think about setting up a ConCen audio chat server?

I think it's a great idea. Let me know when the server is up and I'll test with you guys.

[Mike_Smith]

(05-22-2011 05:26 PM)images Wrote:  

(05-12-2011 02:11 AM)yeti Wrote:  What do you guys think about setting up a ConCen audio chat server?

I think it's a great idea. Let me know when the server is up and I'll test with you guys.

It'd be great fun until the first major flame war errupts...

[images]

(05-24-2011 04:20 PM)Mike_Smith Wrote:  

(05-22-2011 05:26 PM)images Wrote:  

(05-12-2011 02:11 AM)yeti Wrote:  What do you guys think about setting up a ConCen audio chat server?

I think it's a great idea. Let me know when the server is up and I'll test with you guys.

It'd be great fun until the first major flame war errupts...

Ha. Well I hope that doesn't happen...

[pax681]

check out this Slashdot Story

[FastTadpole]

Quote:Why Microsoft Bought Skype for 8.5 Billion

.. the biggest reason for Microsoft to buy Skype is Windows Phone 7 (Mobile OS) and Nokia. The software giant needs a competitive offering to Google Voice and Apple’s emerging communication platform, Facetime.

Guess Who’s the Big Winner

The biggest winner of this deal could actually be Facebook (as I had posted earlier). The Palo Alto, Calif.-based social networking giant had little or no chance of buying Skype. Had it been public, it would have been a different story. With Microsoft, it gets the best of both worlds: It gets access to Skype assets (Microsoft is an investor in Facebook) and it gets to keep Skype away from Google.

Facebook needs Skype badly. Among other things, it needs to use Skype’s peer-to-peer network to offer video and voice services to the users of Facebook Chat. If the company had to use conventional methods and offer voice and video service to its 600 million plus customers, the cost and overhead of operating the infrastructure would be prohibitive.

Facebook can also help Skype get more customers for its SkypeOut service, and it can have folks use Facebook Credits to pay for Skype minutes. Skype and Facebook are working on a joint announcement, and you can expect it shortly.

Why Did Skype Want To Sell?

Skype had filed for an IPO, was going to do about a billion dollars in revenues, and was on its way to becoming profitable. So why sell? Silver Lake and eBay were both getting impatient and wanted to lock in their profits. Some sources also believe Skype’s revenues had stalled.

The company had bet heavily on is video sharing service. The premium version of video calling and sharing was a way for Skype to increase its average revenue per user and move into the enterprise market. However, given Skype’s DNA is that of a consumer Internet company, the challenges aren’t a surprise.

[b]So Who Made What?[/b]

Using the $8.5 billion price as the likely sale price, eBay gets $2.55 billion for its 30-percent stake in Skype. So in the end, eBay did make money on the Skype deal.

Niklas Zennström and Janus Friis, the co-founders, with their 14-percent stake, take home about $1.19 billion. Damn, these guys know how to double-dip!

Silver Lake, Andreessen Horowitz and the Canada Pension Plan Investment Board (CPPIB) own 56 percent of the company, and that stake is worth $4.76 billion.

Andreessen Horowitz had three percent of the deal and made $205 million profit on their $50 million initial investment.

http://gigaom.com/2011/05/09/why-microso...8-billion/

Silver Lake's (51% ownership) Press Release on the Deal
http://www.silverlake.com/pdfs/microsoft...inal-2.pdf

Interesting Portfolio on Silver lake that includes SMART systems, Energy and Technology and have just gotten a bunch of money (covert funding?) to tackle these ventures.
http://www.silverlake.com/content.php?page=news

[FastTadpole]

Just in case anyone was still stuck in that illusion that Google and Microsoft are not in a ridiculous amount of overlapping collusion..

Quote:Microsoft Now Receives Royalties On Over Half Of All Android Sales
Monday, October 24, 2011 - by Joel Hruska

Microsoft's general counsel and deputy general counsel (Brad Smith and Horacio Gutierrez) have co-written a new blog entry detailing Microsoft's latest licensing achievement. Yesterday's broad cross-licensing agreement with Compal Electronics means that Microsoft has now negotiated licensing terms with the ODMs (original Device Manufacturers) that build over half the Android devices on the market.

The team writes: "Amidst continuing clamor about uncertainty and litigation relating to smartphone patents, we're putting in place a series of agreements that are reasonable and fair to both sides. Our agreements ensure respect and reasonable compensation for Microsoft's inventions and patent portfolio. Equally important, they enable licensees to make use of our patented innovations on a long-term and stable basis."

   

At present, Microsoft has agreements in place with 55 percent of ODMs and 53 percent of US handset manufacturers. Of the latter group, Samsung and HTC have 23 percent and 29 percent of the market. The pair claim: "For those who continue to protest that the smartphone patent thicket is too difficult to navigate, it's past time to wake up. As Microsoft has entered new markets from the enterprise to the Xbox, we’ve put together comprehensive licensing programs that address not only our own needs but the needs of our customers and partners as well. As our recent agreements clearly show, Android handset manufacturers are now doing the same thing. Ultimately, that's a good path for everyone."

...

Full Story: http://hothardware.com/News/Microsoft-No...oid-Sales/

A little digging will turn up more dots to connect in the cartel structure between Apple, Mozilla, Google, Facebook and Microsoft.