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Tuesday, May 10, 2011

Ballmer to Skype Fans: You Can Trust Us

Ballmer to Skype Fans: You Can Trust Us: Trust us. We're not going to screw up Skype. That was the message Microsoft delivered Tuesday, hours after formally announcing that it was buying the internet telephony pioneer for a staggering $8.5 billion.

“We’re irrepressible,” said Ballmer. “This Skype acquisition is completely consistent with our ambitious, forward-looking, irrepressible nature."

"Microsoft: We're irrepressible!"


However, that seems like a rich price tag for a company that only generated $860 million in revenue in the most recent year and $264 million in operating profit — yet no net profit at all. Microsoft is paying about $50 for each of Skype’s 170 million users, or about $1,000 for each of its 8 million paying customers.