Microsoft Pays Premium for Skype

Industry shocked by massive price tag

Microsoft reportedly paid a shocking $8.5 billion to acquire Internet phone service giant Skype, only 20 months after eBay sold 65 percent of the company to a private equity group for $1.9 billion, which thus pegged its September 2009 value at $2.75 billion. The nearly $6 billion premium has industry analysts skeptical of Skype’s actual worth. The deal represents the most money Microsoft has ever shelled out for an acquisition.

The deal will bring Microsoft 660 million users from around the globe; it will also bring in $686 million in debt.

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