The Blog

Was that $8.5 billion well spent? Skype, Post-Microsoft.

Posted on the 25th May 2011

So Microsoft has acquired Skype for $8.5 billion. That’s a lot of cash in anyone’s books. (Apparently the next highest bidder was only $4 billion). Skype has never made a profit: in 2010 it recorded a loss of $7m on revenues of $860m – $1.30 per registered user a year, or $5 per “connected” user a year. While revenues have been growing it has been able to negotiate better call termination rates around the world with telephone companies.
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