$8.5 Billion in-cash! It looks like crazy deal for me. However, it is Microsoft, the huge software company in the world, has no problem for such amount. This would be their largest acquisition after $6 Billion spending for online advertising firm aQuantive in 2007. From this deal e-bay got $2.55 Billion for its 30% stake and two co-founders got 1.9 Billion too.
What is the meaning of this deal? It doesn’t mean Microsoft is rich nor e-bay made money through their investment. It means Microsoft trying to enter mobile communication business aggressively. Moreover, this deal will help Microsoft in competing Google and Cisco in networking.
As the world has inevitably changed to mobile-web communication, this deal can be right move for Microsoft, my personal feeling, to compete Google and Apple (facetime) Voice communication services. Skype will soon be added feature in X-box, Window Phone 7 and may be, in Facebook since Microsoft is one of the Facebook’s investor.
This deal is huge. However, Skype can help both Microsoft (as a lot of observer believe that Microsoft leg behind in internet market) and Facebook. We will see more intense battle in mobile and web market for sure.
