Microsoft to close $7bn-plus deal for Skype; deal shocks analysts
Posted in: Miscellaneous at 10/05/2011 18:52
Microsoft Corp. is close to a deal to buy Internet phone company Skype Technologies SA for between $7 billion and $8 billion -- the most aggressive move yet by Microsoft to play in the increasingly-converged worlds of communication, information and entertainment.
A deal could be announced as early as Tuesday, people familiar with the matter said, though they cautioned that negotiations aren't yet final and a deal could still fall apart. Including Skype's long-term debt, the total value of the deal is about $8.5 billion.
To read this Wall Street Journal report in full, see:
Microsoft's $8bn Skype deal shocks analysts
Microsoft is reported to have closed a $8.5bn (£5bn) deal for the internet phone service Skype, in a deal that has shocked analysts who think it would be a substantial overpayment for the company.
The acquisition, which is expected to be announced on Tuesday, would be Microsoft's biggest, ahead the $6bn it paid for online advertising company aQuantive in 2007, and would bring it 660 million users worldwide while giving it a foothold in voice and video communications. Analysts suggested the service could be integrated into existing Microsoft products such as its Xbox 360 games console and Kinect gaming systems, or even into its flagship Office product to let users collaborate more effectively.
Microsoft in Talks to Acquire Skype for $8.5 Billion
Microsoft is in advanced talks to acquire Skype, which revolutionized telephone calls over the Internet, for $8.5 billion, including the assumption of debt, according to people involved in the negotiations.
A deal is expected to be announced Tuesday morning, these people said, although they cautioned that the talks could still fall apart. A spokesman for Skype declined to comment, and calls to Microsoft were not returned.
Microsoft Said to Discuss Buying Internet-Call Provider Skype
Microsoft Corp. is in talks to buy Skype Technologies SA to gain the world's most popular international calling service and its 663 million customers, according to two people familiar with the matter.
A deal would value Skype at about $8.5 billion and may be announced as early as today, said one of the people, who asked not to be identified because the talks are private.