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Yahoo! Finance & News

Microsoft Acquires Skype In $8.5 Billion Deal

May 09, 2011

"When I look at the price tag, I go 'What?'" said Harry Wang, director of mobile research at Parks Associates, a tech research and consulting group. "$8.5 billion for revenue less than $1 billion a year? The long term, incremental value makes sense but it's not exactly a match with the price tag."

"The user base will definitely boost Microsoft's online presence," said Wang. "That's one of the key battlegrounds for them to gain in the future and they have to be there."

"It looks like Microsoft got into a bidding war, that Google and Facebook tried to acquire Skype," said Wang. "To use the Mastercard tagline, keeping competitors away from your key asset is priceless."

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