Economy 10:11 10/05/2011

Microsoft is about to buy Skype

 Just days after reports that Goggle and Facebook were interested in partnering with, and possibly buying VoIP Company Skype, comes a claim from the Wall Street Journal that Microsoft is planning to buy the company for $7 billion, in a deal worth closer to $8 billion after Skype's debts are considered. This mirrors an earlier rumor of a Microsoft-Skype deal published by GigaOm. An announcement could be made as early as Tuesday.

Last year, Skype had revenue of $860 million on which it posted an operating profit of $264 million. However, it overall made a small loss, of $7 million, and had long-term debt of $686 million. A $7 billion purchase price would represent a huge premium over the $3-4 billion conjectured in the Facebook and Google deals.

A Microsoft purchase would not be the first time Skype has been bought out; after being started in 2003, it was bought by eBay in 2005 for $3.1 billion. eBay then sold the majority of its stake in 2009 to a private investment group for $1.2 billion less than it paid.



Source Panorama.am
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