WSJ: ‘Microsoft Nears $7 Billion-Plus Deal for Skype’

Anupreeta Das and Nick Wingfield, reporting for the WSJ:

At a value over $7 billion, the Skype deal would rank at or near the top of the biggest acquisitions in the 36-year history of Microsoft, a company that traditionally has shied away from large deals. In 2007, Microsoft paid approximately $6 billion to acquire online advertising firm aQuantive Inc. Many current and former Microsoft executives believe Microsoft significantly overpaid for that deal. But they are also relieved that Microsoft gave up on an unsolicited $48 billion offer for Yahoo Inc. nearly three years ago. Yahoo is valued at half that sum today.

Skype for $7B sounds nutty to me. Skype loses money. Everyone agreed Skype wasn’t worth much after eBay took a bath on it a few years ago, at a far lower price than this. What’s changed?

Monday, 9 May 2011