Pencils Down

This weblog is about my experiences in software development

Browsing Posts tagged merger

Let’s see ():

– eBay buys Skype for 3.1 billion (all assumed it was a collosal mismatch)

– eBay sells 2/3’s of Skype for 1.9 billion (told you it was a bad idea)

– MS buys Skype for 8.5 billion

– That leaves (3.1 – 1.9 + 2.8 (8.5/3)) 1.6 billion net to eBay

It sounds like Meg is a lot better at this than many people (including me) thought.

Of course, the whole question of whether MS can do something useful with Skype or should have paid anywhere near this amount is iffy.

Maybe this means all of these companies with large cash hoards are finally getting out there.  Unfortunately it sounds like everyone is deciding at the same time, hence the price tag for Skype.  Assume there is competition for the company.

It looks like the deal may go through.  Many people are talking about how this is a MS attempt to compete with Google; admitting that MSN is not getting enough traction to do so.

No one seems to be bothered by the oligopolistic/monoplistic implications of this:  You have the parent of MSN with x % of the search space buying Yahoo with y % of the same market, isn’t this a bad idea for the end users/consumers/businesses that advertise?

As an end user, I like having the choice of MSN vs live.com vs. Yahoo.  They may overlap, but mostly do not.

As an advertiser I dread the increase in advertising costs since the whole will be munged together into one target audience size and higher fees.  Someone will have to pay for Yahoo besides MS.

Overall, this merger appears to be the latest in a series of oligopolistic advances taken by business where no one seems to be throwing up a flare.  Maybe people are reminiscing about the robber barons of the early 20th century and have decluded themselves into thinking that was a good thing.