Blog on SOA - Technologies and Trends

Avi Rosenthal

Subscribe to Avi Rosenthal: eMailAlertsEmail Alerts
Get Avi Rosenthal: homepageHomepage mobileMobile rssRSS facebookFacebook twitterTwitter linkedinLinkedIn


Related Topics: Mergers & Acquisitions on Ulitzer

Blog Post

Microsoft's Skype Acquisition: Warning Signs Ahead

There are mixed opinions concerning the expected acquisition

Microsoft and Skype announced that they have entered into a definitive agreement under which Microsoft will acquire Skype, the leading Internet communications company, for $8.5 billion in cash from the investor group led by Silver Lake. The agreement has been approved by the boards of directors of both Microsoft andSkype.

There are mixed opinions concerning the expected acquisition.

I see the warning signs ahead.

I do think that analyzing important factors such as the number of months Microsoft's profit's sum to 8.5 billion USDs or tax reduction due to acquisition of a Luxemburg based company are irrelevant or at best secondary.

Even if a company profits are high, the company could find better investment alternatives, e.g. spending more on R&D, buying other companies or investing in companies without acquiring them. The last option was chosen by Microsoft in order to invest in Facebook.

More Stories By Avi Rosenthal

Ari has over 30 years of experience in IT across a wide variety of technology platforms, including application development, technology selection, application and infrastructure strategies, system design, middleware and transaction management technologies and security.

Positions held include CTO for one of the largest software houses in Israel as well as the CTO position for one of the largest ministries of the Israeli government.