Microsoft set to acquire Skype: Report

The over US$7 billion deal could be announced as early as Tuesday

Microsoft is close to finalizing a deal to buy Internet phone company Skype Technologies for over US$7 billion, and a deal could be announced by Tuesday, according to a news report.

Buying Skype would give Microsoft a recognized brand name on the Internet at a time when it is struggling to get more traction in the consumer market, The Wall Street Journal said in a report late Monday.

Microsoft and Skype could not be immediately reached for comment. Both companies declined to comment to the WSJ.

Facebook, Cisco, and Google were also considering partnering or acquiring Skype, according to earlier news reports.

Despite being a well-recognized Internet brand among online users, Skype ran a loss last year. The company, which was founded in 2003, posted last year revenue of US$860 million and $264 million in operating profits, but still lost $7 million, according to WSJ. The company had $686 million in long-term debt as of Dec. 31.

Skype announced in August that it had filed with the Securities and Exchange Commission for a proposed initial public offering (IPO) of its ordinary shares. It put its IPO plans on hold after appointing in October a new chief executive, Tony Bates, who was earlier a senior vice president at Cisco.

The company is currently owned by an investor group led by Silver Lake, and which includes among others eBay Inc, and Skype founders Niklas Zennstrom and Janus Friis, it said on its web site.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Microsoftinternetbusiness issuesGoogleFacebookskypeciscoMergers / acquisitionsInternet-based applications and servicesTelephony/conferencing

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?