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Abstract

The case describes the acquisition of Skype by Microsoft and compares it with the previous acquisition of Skype by eBay. On 10 May 2011, Microsoft Corp and Skype announced that they had entered into a definitive agreement under which Microsoft would acquire Skype for $8.5 billion from the investor group led by Silver Lake Partners, Index Ventures, Andreessen Horowitz, and the Canada Pension funds. At the time of this announcement, Steve Ballmer, President and CEO of Microsoft, hyped the promise of the merger, though it was not the first time a technology giant had acquired Skype. In 2005, eBay took it over for $2.6 billion, with hopes of integrating it with its marketplace and PayPal businesses. But the acquisition never lived up to its promise, leading eBay to take a $1.4 billion write-down on its investment in 2007 and eventually divest Skype in 2009. The challenge for Microsoft is to decide or not to integrate Skype. The case can be used in combination or as an update of the eBay and Skype: Diverging Futures Case.
Location:
Size:
Large
Other setting(s):
2011

About

Abstract

The case describes the acquisition of Skype by Microsoft and compares it with the previous acquisition of Skype by eBay. On 10 May 2011, Microsoft Corp and Skype announced that they had entered into a definitive agreement under which Microsoft would acquire Skype for $8.5 billion from the investor group led by Silver Lake Partners, Index Ventures, Andreessen Horowitz, and the Canada Pension funds. At the time of this announcement, Steve Ballmer, President and CEO of Microsoft, hyped the promise of the merger, though it was not the first time a technology giant had acquired Skype. In 2005, eBay took it over for $2.6 billion, with hopes of integrating it with its marketplace and PayPal businesses. But the acquisition never lived up to its promise, leading eBay to take a $1.4 billion write-down on its investment in 2007 and eventually divest Skype in 2009. The challenge for Microsoft is to decide or not to integrate Skype. The case can be used in combination or as an update of the eBay and Skype: Diverging Futures Case.

Settings

Location:
Size:
Large
Other setting(s):
2011

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