Microsoft To Buy Skype: How Come Investors Weren’t Excited?
Microsoft to purchase Skype for 8.5 Billion- Too much Skype -hype?
Microsoft will be buying Skype, the premier video-calling platform used by millions for $8.5 billion. The purchase from Microsoft Didn’t seem to jive well with investors yesterday and the stock did relatively poorly on a day when the Nasdaq was up and stock prices moved decidedly upward.
Why Investors May Not Like The Microsoft -Skype Deal?
Investors may be dissuaded by the Microsoft purchase of Skype for several reasons. Here is our shortlist
- Microsoft paid too much for the deal.
- Investors unsure how to value Skype.
- Given a fair value for Skype, investors don’t see the business symmetry.
- Investors just don’t like the deal – unsure how to value Microsoft…
- Microsoft business vision too expansionary
We reported earlier that Google and Facebook were interested in buying Skype and that Google buying Skype seemed less interesting than Facebook purchasing Skype. Now that some of the hype about Skype is over, this may be an opportunity for a smaller player to gain market share if Microsoft leaves Skype innovatively “on the shelf”. Early reaction to the news from investors might be noise and Microsoft could be making some long term changes for the better – just look at Bing.