‘Skype to Go’ as Microsoft edges towards $8.5 billion purchase

[Technology Contributer,Vinson Binter]

A deal not made in heaven analysts are saying, as Microsoft Corp limbers up to buy troubled social networking giant, Skype, for $8.5 billion.

If the deal goes through, it will be Microsoft’s biggest and will enable the company to give Google a good run for its money in the Internet and mobile phone communications area, but at a considerable price it seems.

That is because, Skype, with its 145 million users, has not been doing that well. Last year it lost $7M on revenues of $860 million and analysts are worried that Microsoft, at that purchase price will never be able to generate enough sales for payback and profit on the deal.


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