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.

Saul
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.