Ballmer Defends Microsoft on its $8.5B Skype Deal

2 minute read
Geoff Spick avatar

Microsoft (news, site) has been going around the media since the announcement of the Skype deal, defending and explaining the benefits of the purchase.

Doing it His Way

Steve Ballmer has appeared on CNBC to discuss the potential benefits to Microsoft of its Skype purchase. Following the joint press conference, he took to the airwaves to discuss the way forward, assuming the deal get the regulators' seal of approval.

He confessed there is little in the way of advertising on Skype, but thinks it will boom once it is connected across Microsoft's range of devices and systems. Skype's CEO Tony Bates will run the Microsoft Skype division and will help build a framework across Microsoft's divisions.

An interesting part of the deal is that, as Skype is a Luxembourg-based company, Microsoft can use its foreign cash to pay for the deal and avoid heavy taxes if that money came stateside. See the whole interview here:

Learning Opportunities


From the Front

Existing Skype users have been guarded about their future use of the service, with a typically vociferous minority pledging to abandon the Microsoft-owned service, perhaps going to Viber, which may well become a takeover target in its own right as other players look to cover their positions.