[Laura Knotek]

Confirmed: Microsoft Will Announce Acquisition of Skype Tomorrow Morning | Kara Swisher | BoomTown | AllThingsD



"The Wall Street Journal reported tonight that Microsoftin what would be its most aggressive acquisition in the digital spacewas zeroing in on buying Skype for $8.5 billion.

Sources told BoomTown tonight that the deal for the online telephony giant is actually done and will be announced early tomorrow morning.

The dealwhich is being spearheaded in a closely held negotiations by Microsoft CEO Steve Ballmer, with an assist from top dealmaker Charles Songhurstis a bold move for the software giant, which has struggled in its online efforts.

Skype, which had been headed bumpily for an IPO until now, will apparently be integrated into Microsofts Windows Live and other online communications efforts in both the consumer and enterprise arenas.

The deal is a big win for its recent investors, including Silver Lake Partners and Andreessen Horowitz.

At the time they made their investments, Skype was a huge legal mess with lawsuits flying.

Obviously, it has gotten cleaned up enough to attract Microsoft.

Others have looked at Skype, including Google, although acquisition interest by Facebook was overblown, said several sources.

Interestingly, Microsofts new smartphone partner Nokia also held meetings with Skypes CEO Tony Bates, a former Cisco exec who arrived at the company relatively recently.

Interest in Skype by Microsoft was first reported by GigaOms Om Malik.

Tune in at 5 am PT for the press release, apparently, and lots and lots and lot of analysis.

More to obviously come"

[johnenglish]

"Hmm Google has a phone OS and a telephony service. We have a phone OS and.... OH **** SOMEONE HURRY UP AND WRITE A CHEQUE."

[Laura Knotek]

Since VZW already has Bing as their default search engine on BlackBerry and has the Skype app, this acquisition gives new meaning to

[ridesno159]

I instantly thought of Verizon when I saw the rumor this morning, and wondered if they were of any help in making this deal. It seems like Verizon will gain something by these two combining.

Or maybe they will lose by it, I know a lot of people that aren't on Verizon but would love Skype. Verizon does seem to be really supporting Google right now, maybe Microsoft won't like that.

I do hope RIM will benefit by this though. I can't stand Bing, but I'm excited for what RIM and Microsoft will do together. If they keep on copying what Google does then by the time we see the integration in RIM products it might actually be good.

[Laura Knotek]

I instantly thought of Verizon when I saw the rumor this morning, and wondered if they were of any help in making this deal. It seems like Verizon will gain something by these two combining.

Or maybe they will lose by it, I know a lot of people that aren't on Verizon but would love Skype. Verizon does seem to be really supporting Google right now, maybe Microsoft won't like that.

I do hope RIM will benefit by this though. I can't stand Bing, but I'm excited for what RIM and Microsoft will do together. If they keep on copying what Google does then by the time we see the integration in RIM products it might actually be good.

It would be nice if VZW loses their Skype exclusivity with the acquisition by Microsoft. I have nothing against VZW, but it would benefit if all carriers are able to offer Skype to their customers.

This could be good for RIM if Skype is included due to the Microsoft partnership, and it extends beyond Bing and BBMaps.

[johnenglish]

I'd like to see MS integrate Skype into Windows and then strike up a deal with Facebook to become the exclusive voice & video chat service. They can then integrate Skype with Kinect and become a legit competitor to Facetime.

[lnichols]

I'd like to see MS integrate Skype into Windows and then strike up a deal with Facebook to become the exclusive voice & video chat service. They can then integrate Skype with Kinect and become a legit competitor to Facetime.

Not for this at all. I use Skype on my Mac when traveling overseas, and it should be coming to my Playbook at some point, but Microsoft has a way of destroying/corrupting everything they acquire. Looks like I'll have to come up with another solution. Maybe move over to T-Mobile and use the free UMA feature rolling out in a few days.

[johnenglish]

Not for this at all. I use Skype on my Mac when traveling overseas, and it should be coming to my Playbook at some point, but Microsoft has a way of destroying/corrupting everything they acquire. Looks like I'll have to come up with another solution. Maybe move over to T-Mobile and use the free UMA feature rolling out in a few days.

Well in the press release they announced that besides Windows it'll be integrated into Windows Phone and Xbox Live/Kinect but they'll continue to develop and maintain Skype for other platforms.

[dooodads]

Christ, talk about overpayment. If this doesn't work out I think it's safe to say Balmer is history.

[Laura Knotek]

Christ, talk about overpayment. If this doesn't work out I think it's safe to say Balmer is history.

I'm surprised he's lasted as long as he has already.

[dooodads]

He's living off of Windows sales but yeah he's been hanging by a thread for a while.

[Xterra2]

He's living off of Windows sales but yeah he's been hanging by a thread for a while.

Well not exactly
Kinect ? Most selling consumer device in history i have one of course and cant wait for skype on kinect

Now WP7 the paartnership with NOKIA which sells more phones than RIM,apple would pay off researcher say already that WP7 would beat iOS and true and would beat BB and WP7 which came late in the game have more apps than the Blackberry OS that was avaialable for years remeber WP7 was built from scratch and more apps than BB OS
And the iOS porting API that would port apps from iOS to WP7 easy
But if windows 8 does not eat into Mac OS X market share sorry ballmer i would miss the crazy man but windows 8 tablet version would beat iPad

[papped]

Well not exactly
Kinect ? Most selling consumer device in history i have one of course and cant wait for skype on kinect

Ignores the fact that their advertising budget was so enormously expensive that it offsets a ton of the sales, not to mention they handed them out highly discounted + huge numbers of free ones as promotions in the first place...

That is, if you even assume they were making a large profit off the hardware in the first place without spending 500 million on advertising alone...

Microsoft buys sales, they buy market share. The profit on most of this stuff that isn't PC software is illusions in the form of sales numbers...

[dooodads]

How much was it for advertising on windows phone and kinect? 500 million? Such a ridiculous number.

[papped]

$500 million for kinect, + $500 million for WP7. $1b total.

[Xterra2]

How much was it for advertising on windows phone and kinect? 500 million? Such a ridiculous number.

Yes but it works Kinect is very succesful most seling consumer device ever
DId the $500 work YES IT DID and because of the units they sold they recouped their money in weeks am sure if not days.
Unlike RIM, Microsoft uses its billions to help itself, their plan work though they spent a lot it work and the Kinect SDK for WIndows is coming making it better and Skype coming too

Ignores the fact that their advertising budget was so enormously expensive that it offsets a ton of the sales, not to mention they handed them out highly discounted + huge numbers of free ones as promotions in the first place...

That is, if you even assume they were making a large profit off the hardware in the first place without spending 500 million on advertising alone...

Microsoft buys sales, they buy market share. The profit on most of this stuff that isn't PC software is illusions in the form of sales numbers...

But did it work YES or NO yes it did, so it is worth it MIcrosoft has Billions it uses it to help itself, they recouped their money and got more than that so not a bad idead, RIM needs to lear Advertisment,Marketing and PR.
MSFT paod money for skype $8billion + to help itself, MSFT knows what it is doing and would help MSFT, use your money to your advantage

$500 million for kinect, + $500 million for WP7. $1b total.

Kinect worked like in explained above
SO WP 7? Yes it did WP7 that was built from scratch and was released in Q4 2010 has more apps than BB OS of YEARS !! and they paid Nokia over $1 billion over the deal and hope you know Nokia sells more phones than RIM and Apple and WP7 is going there so it would help moicrosoft and researchers ( many nt 1 ) said WP7 would overtake iOS and BB only Andrioid left to beat, plus the iOS API tool dot port iOS apps to WP7 so simple and short Microsoft uses the $$$ it has to help itself,, advertisment or paying NOkia over $1 billion and noki would pay MSFT money on WP7 phones lincenses and since Nokia sells many phones it can recoup the $1 billion spent so MSFT spends money to its advantage

[Xterra2]

Forgive my typos please was feeling sleeping

[papped]

You're basically saying that RIM needs to follow M$ marketing example, which is a horrible idea...

Only they or Google can do it, and it would stupid for anyone else to follow that example unless they want to go bankrupt...

[papped]

And yes M$ spends money to it's advantage (who doesn't?). That's not the same thing as getting a good return on the investment, which a lot of M$ investments do not... They can throw billions away or lose money on phones or gaming consoles for multiple generations back to back simply because they can. Not everyone can do that.

Telling someone else to follow that strategy is a great way to kill a company.

[Xterra2]

You're basically saying that RIM needs to follow M$ marketing example, which is a horrible idea...

Only they or Google can do it, and it would stupid for anyone else to follow that example unless they want to go bankrupt...

That wasnt what am saying
Am defending MSFT idea which you oppose and showed you how it worked.
Use your money to your advantage

[Xterra2]

And yes M$ spends money to it's advantage (who doesn't?). That's not the same thing as getting a good return on the investment, which a lot of M$ investments do not... They can throw billions away or lose money on phones or gaming consoles for multiple generations back to back simply because they can. Not everyone can do that.

Telling someone else to follow that strategy is a great way to kill a company.

AM not saying RIM should follow but its quite a good idea thats if you have a path to follow first which MSFT does and RIM doesnt so it can spend $$$$ ont the path and it WORKS like i have explained ,
And RIM does not adverrtise well and market well which Microsot does so another factors come in play
And WP7 is coming to take over BB which isnt possible without advertisement and paying Nokia over a billion dollars

[papped]

That wasnt what am saying
Am defending MSFT idea which you oppose and showed you how it worked.
Use your money to your advantage

When you boil it down that generic it's a "duh" statement though...
It's like saying use your money to invest, rather than not using your money to invest....

They make a lot of stupid expensive, low return (or maybe negative return) investments simply because they can afford to. Gaining a tiny advantage by throwing away $8b isn't automatically a good idea just because you can afford it, especially if you keep doing it in different areas...

[papped]

AM not saying RIM should follow but its quite a good idea thats if you have a path to follow first which MSFT does and RIM doesnt so it can spend $$$$ ont the path and it WORKS like i have explained ,
And RIM does not adverrtise well and market well which Microsot does so another factors come in play
And WP7 is coming to take over BB which isnt possible without advertisement and paying Nokia over a billion dollars

Based on M$ marketing budget, their marketing sucks, especially if you factor in WP7...

Apple does better marketing and I guarantee you they spend less than M$....

[iN8ter]

I'm surprised he's lasted as long as he has already.

RIM's CEOs are still there, right, and they're doing 10x worse a job that Ballmer is doing.

What makes you think Ballmer is going anywhere?

[Skeevecr]

RIM's CEOs are still there, right, and they're doing 10x worse a job that Ballmer is doing.

Yeah, that continued growth and record quarters stuff they keep doing is dreadful.