Analysis: Investors slam Microsoft's Skype deal

Comments (9)
beau_martin wrote:

Tilson is an idiot. In fact, anyone that owns Microsoft shares is an idiot.

Not only is their stock is down about 20% this year, in the face of a bull market, it’s also down almost 60% from its tech-bubble high. To make it worse, their five year average dividend yield is just 1.80%.

As anyone that has ever taken an investing class knows, stocks stay in trends, until they don’t. Microsoft is in a long term down trend, and will stay there until they don’t. This deal will do nothing to break their fall.

How has Microsoft gone from being the smartest guy in the room to the stupidest, with both product and acquisition failure after failure?

In short, I suspect they started to read their own press clippings.

Again, Microsoft is a company to avoid, and this deal just shows it.

May 10, 2011 3:19pm EDT  --  Report as abuse
debroq wrote:

I wonder if they’ll drop Android support.

May 10, 2011 3:31pm EDT  --  Report as abuse
jemonly wrote:

It would have been nice for them to put people to work with that $8.5 billion.

May 10, 2011 3:37pm EDT  --  Report as abuse
jscott418 wrote:

You know Skype has been around for a while and its one of those services nobody really wants to pay for. Of course I thought right off the bat when eBay purchased Skype I wondered what they were doing. Of course they did not know what they were doing. Microsoft at least is a technology company, but I am not even sure Microsoft bought Skype for anything else but to prevent someone else from buying it.

May 10, 2011 3:42pm EDT  --  Report as abuse
blablabla wrote:

Actually Skype on my Window computer offer me the best deal for international calls…Giant his waking up….

May 10, 2011 3:43pm EDT  --  Report as abuse
bobbobwhite wrote:

So what if Mr. Softie loses money on the deal. It makes it like water so no biggie. Too much more where that came from.

Actually, Skype is about 5 years past its optimal time in history.

May 10, 2011 3:47pm EDT  --  Report as abuse
BenMyers wrote:

Skype has long been trusted by its millions of users for good reasons, excellent and innovated service at low cost or even free.

Microsoft has long been mistrusted and anti-trusted for its high-handed treatment of customers, OEMs, ODMs, and software developers at (KA-CHING) enormous profitability to the Redmond Borg.

So now the borg assimilates Skype. And then what? An oil-and-water mix of disparate corporate cultures. Borg-like, Microsoft will suck the innovation and creativity out of Skype, leaving a money-making shell… Ben Myers

May 10, 2011 3:57pm EDT  --  Report as abuse
mike136 wrote:

Interesting! I hope that everyone is having a great Nurses’ Day! That goes for last year and all the other years that I’ve missed. I’m sorry that I didn’t say anything about this last week (or forever), but it slipped my mind.

May 11, 2011 10:24am EDT  --  Report as abuse
DagHainc wrote:

It’s very mysterious to me what could be Microsoft’s reason to do this. I look’s to me like Skype’s name in VOIP world and number of current users, that Skype attracted and messenger could not, were the main thing. Skype is very popular among the common people. I now many people and families that bot computer and got internet connection just so that they could use Skype. Technology (protocol and system architecture) is not something Microsoft could handle by it’s own at least it’s not the reason to give 8.5 B $. If it’s technology maybe IPv6 poor development pushed MS towards to IPv4 NAT traversal solutions . But there were companies that had better performances in their product than Skype like HOLEST NAT traversal system which could open NAT and make direct p2p connections where Skype used relay servers. . So it very unclear to me why Microsoft did this .?.?.?…

May 11, 2011 7:04pm EDT  --  Report as abuse
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