If It Ain’t Broke, MIcrosoft Didn’t Just Buy It

Skype fell over again yesterday, for the second time since it was bought by Microsoft for $8,500,000,000 less than a month ago.

Several reports have suggested that the problem is related to the migration of Skype to Microsoft’s .Net framework, I’m dubious about that because the first failure was far too soon after the purchase for work to have gotten under way.

This is a bitĀ embarrassing for MS, analysts have suggested that $8.5 billion was a bit steep for Skype, so to get a good return MS can’t afford for the reputation of the service to suffer.

Skype has about 145 million regular users, so MS paid about $60 per user for Skype, but when you look at how many users actually pay for Skype it gets worse. Skype has about 8.8million paying users, each of them cost MS around $960.

Of course there is value in the non paying customers, Skype could be the advertising platform that MS is lacking. It’s also possible that Skype could be bundled with MS Office as a collaborative tool to add value and differentiate it from Google Docs.

What ever the plan for Skype is, it better include making it work properly.

Comments are closed.