No. of Recommendations: 8
Skype at near a billion in revs sold itself for $8.5 billion.... We can take away that it would have cost Microsoft perhaps $8 billion or more to create Skype.

Tinker, you know better than that. This way they got all of Skype's customers too. If Microsoft just built another Skype (Skype2), it would take them say three years, and maybe cost them $2 billion instead of $8 billion, but at the end of those three years they'd be starting off from scratch with Skype2, while Skype, or whoever bought it, would have had all of Skype's customers at the time, and three years' more customers added on.

It just made more sense for Microsoft, who wouldn't even notice $8 billion, to spring for the extra expense and buy it ready-made.

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